The Day Today

– BOE’s Saunders expects “a more protracted period of sluggish growth” than the “relatively benign scenario” painted by the BOE forecasts and wants a “relatively prompt and aggressive response”

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– US tariffs on Chinese goods to stay in place until after November presidential elections, as Mnuchin said “these tariffs will stay in place until there is a Phase 2”

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– Iran nuclear deal sees dispute mechanism triggered by UK, France and Germany
– US/EU trade negotiations, can EU’s Phil Hogan ease the tensions just as the US become focussed on the EU
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– US Treasury took China off the currency manipulator list saying China has made “enforceable commitments” not to devalue the yuan and it will also now publish exchange rate information
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– UK economy shrinks, contracting 0.3% in November, although an election month it was still below expectations with weakness in services not just manufacturing
– Sterling fell below $1.30 on interest rate cut speculation after Gertjan Vlieghe spoke to the FT
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