Wednesday 21 August 2019

British budget faces into 'the unknown'

Week 46

Chancellor Philip Hammond. Photo: Bloomberg
Chancellor Philip Hammond. Photo: Bloomberg

Donal O’Donovan

The diverging trajectories of the UK and other major economies will be further laid bare this week when Chancellor Philip Hammond delivers Britain's 2018 budget on Wednesday.

Mr Hammond has almost no scope for sizeable tax cuts or spending hikes as he tries to manage an economy facing into the unknown of Brexit.

"The Chancellor is in an unenviable position heading into the budget," Mark Gregory, chief UK economist at accountancy firm EY, wrote in a note.

Elsewhere, European ministers vote today in Brussels on a divide up of Brexit spoils, casting ballots to decide future location of the European Medicines Board and European Banking Authority. Ireland has bid to host both, in Dublin, but competition is fierce and the race is highly politicised, regardless of attempts to compare locations on an objective set of criteria.

It's a light week for domestic data, with only manufacturing output prices for October, due on Wednesday.

Ovoca Gold holds its AGM on Thursday in Dublin, and Origin Enterprises shareholders meet on Friday. In the UK, William Hill, Kingfisher and easyJet report results this week.

Irish Independent

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