After telling Britain to prepare for a no-deal Brexit yesterday, Boris Johnson today reiterated his message, saying this was “very, very likely”.
In a speech with European Commission chief Ursula von der Leyen, the British Prime Minister Boris Johnson stated that, “It’s looking very, very likely we’ll have to go for a solution that I think will be wonderful for the UK, we’ll be able to do exactly what we want from January 1st, it will obviously be different from what we set out to achieve”.
The FTSE 100 fell close to 0.8% on the news, with the DAX 30 dropping around 1.36%.
Boris did go on to add that, “If there’s a big offer, a big change in what they’re saying then I must say that I’m yet to see it”. Markets now wait to see if this change does come.
European recovery stimulus officially approved
It was announced today that European leaders have finally approved a COVID-19 stimulus package, days after being rejected by Hungary and Poland.
The package was initially created in the wake of the coronavirus pandemic and lead European nations to raise €750 billion euros from public markets. These funds were to be used to support the economic recovery across all 27 EU member countries.
This comes a day after the ECB also announced it would be increasing its own stimulus package by €500 billion.
S&P 500 down as producer prices gain
It’s been a tale of two halves for U.S. stock indices, Monday-Wednesday gave us consecutive record highs, however since then the markets have been in free fall.
Indices continued the decline today as it was announced that producer prices barely rose in November, supporting views that inflation would remain at current levels as COVID-19 cases continue to rise.
Data from the Labor Department PPI figures were up 0.1% in November, after increasing 0.3% in October. That was the smallest gain since April.
Many had expected the PPI to rise 0.2%.
As of writing, the S&P 500 and Dow Jones were down 0.62% and 0.2% respectively.
Quote of the day – “Do more of what works and less of what doesn’t.”Steve Clark
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Senior Market Analyst