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US Economy Grows at 3.5% | Sterling Falls as Brexit Negotiations Stall
Published October 26, 2018
The US economy expanded 3.5% in the third quarter as both consumers and the government boosted spending. Consumer spending unexpectedly accelerated with a 4% increase. The data indicates a healthy job market and lower taxes which has continued to propel demand among consumers and companies.
The UK exit from the European Union received another setback today after a disagreement within Prime Minister May’s cabinet has delayed top-level negotiations with the European Union. Sterling has dropped to 1.2802 against the greenback on the news.
This Sunday, Brazil shall vote for the next president of the country, with Jair Bolsonaro holding a strong lead over Workers’ Party candidate Fernando Haddad. Analysts forecast that the Brazilian real’s recent gains out of optimism for a Bolsonaro win is already priced into the market.
The Comprehensive and Progressive Agreement for the Trans-Pacific Partnership will take conditional effect 60 days after six countries ratify it. Four have, so far, and Canada is set to on Monday. The deal’s enactment is a victory for the global trading system, with the CPTPP nations representing 14% of global gross domestic product.