Brexit in the week from 6/4 – 13/4/2020

Fundamental analysis

There was a moment of a serious concern over the fate of the British Prime Minister, who after a long time had the opportunity to change Britain according to his own image. His healing in this case is more than symbolic. Just as Johnson was a symbol of London when he was its mayor, he is a symbol of Brexit and now, Johnson's recovery becomes a symbol of hope for a country where more than 88,600 are already infected with COVID-19. His illness and recovery can help him gain further support.

However, negotiations on the trade agreement are stopped. By June 30, 2020, the British government can ask the EU to extend the deadline for negotiating a trade agreement if it is clear that it is not possible to conclude the agreement by the end of the year. However, the Prime Minister Johnson said several times that he would not extend the term.

The macroeconomic data reported last week showed a change in the real estate price index (Halifax House Price Index), which in March compared to February reached 0.0% (0.2% in the previous period). GDP on a year-on-year basis reached 0.3% (the previous figure was 0.7%). The production in February increased month-on-month to 0.5% (versus previous value 0.4%). The February trade balance was £ -11.5 billion.