Newsletter – 24th July 2019

Morning Bulletin

Yesterday

  • Boris Johnson is the new prime minister and leader of the Conservative party having beaten rival Jeremy Hunt by obtaining 92,153 votes compared to Hunt’s 46,656. Johnson won 66.4 percent of members’ votes after a turnout of 87 percent.
  • In his speech following the result, Johnson thanked former prime minister Theresa May for her service, said that the Conservatives need to unite to defeat Jeremy Corbyn and that they need to energise the country to deliver Brexit by October 31st.
  • In response to Johnson’s victory, Labour leader Jeremy Corbyn once again called for a general election and Scotland first minister Nicola Sturgeon said she had ‘profound concerns’ about Johnson. US President said Johnson and Brexit Party leader Nigel Farage will do “tremendous things”.
  • GBP/EUR opened at 1.1127 and traded a high of 1.1169, a low of 1.1106 and closed at 1.1150 representing a 0.17% rally on Tuesday.
  • GBP/USD opened at 1.2475, traded a high of 1.2481, a low of 1.2417 and closed at 1.2438 representing a fall of 0.29% on the day.
  • A Russian official said a military jet’s intrusion into South Korean territorial airspace was not intentional according to Seoul’s presidental office despite Russia not officially commenting on the incident.
Overnight
  • New Zealand’s trade balance came in at 365M overnight – far better than the forecast of 100M.
  • GBP/AUD, GBP/NZD and GBP/JPY are currently trading at 1.7878, 1.8599 and 134.56, respectively.
Today
  • Johnson will meet with the Queen this afternoon before heading to Downing Street where he will announce some senior cabinet posts including chancellor of the exchequer and home secretary.
  • Eurozone flash manufacturing PMI came in at 46.4 vs 47.6 and flash services PMI came in as expected at 55.4.
  • At 2.45pm we can expected flash manufacturing PMI data from the USA.