“It now seems plausible that uncertainty could remain elevated for some time,” Mark Carney, head of the Bank of England said today in his second televised speech since the United Kingdom voted to leave the European Union. “The economic outlook has deteriorated and some monetary policy easing will likely be needed over the summer”
Any post-Brexit crisis will will be a slow motion crisis driven by a gradual slowdown in economic growth in the United Kingdom, the European Union, Japan, China and the United States that results in a dimming of prospects for corporate earnings growth. The crisis will be interrupted periodically, as it has been in the last two days, by the hope that this time central banks will be able to intervene and get this or that economy growing again
Better than a poke in the eye with a sharp stick: U.S. GDP growth revised up to 1.1% in the first quarter
This morning the Commerce Department announced that it had revised its estimate for first quarter GDP growth up to 1.1%, from an earlier estimate of 0.8%. This is the last of three estimates for first quarter GDP. The median projection for this revision of first quarter GDP growth by economists surveyed by Bloomberg called for 1.0% growth.
The last time that the People’s Bank tried to pull off this balancing act was back in January 2016 when what looked like an extended trend of weaker fixings against the dollar contributed in a decline in emerging markets of 13.8% from December 28 to January 20.