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  • The exhausting psychodrama that is Brexit continues unabated. This week’s episode involved a delay on the approval of the withdrawal agreement between the EU and the UK in addition to the delivery of an unsigned letter to Brussels by the UK government requesting an extension. We are hopefully approaching the end of the first phase of the Brexit process where Johnsons deal is approved or a referendum and/or general election is called. Thankfully, it seems that the possibility of a no deal Brexit has been eliminated.
  • News flow associated with the ongoing trade war between the US and China was limited this week however, there was general acknowledgment that the Trump “Handshake deal” amounted to inadequate progress on a more substantive deal.
  • The ECB meets this week with Mario Draghi at the helm for one final time. No change in monetary policy is expected at this meeting and a Bloomberg survey of economists does not anticipate a further cut in interest rates until June 2020.
  • The US 10Y3M yield curve is back in positive territory. Often quoted as a reliable predictor of future recessions, the anticipated cut in the Feds short term interest rate at their meeting of next week has assisted in the steepening of the curve and provides a respite for investors.