UK Prime Minister Theresa May´s cabinet is not planning for a second referundum, said Bloomberg news on Sunday. According to the news, the cabinet has confirmed that there is no planning for this possibility. The Brexit-discussions are expected to continue in the Parliament on Monday.
The Climate deal, which aims to limit the global warming below 2 degree Celcius, was agreed in Poland, Katowice on Saturday. Nearly 200 countries agreed on the actions and methods needed to implement the Paris Climate Agreement at this COP24 meeting.
The two-weeks negotiations agreed on how the emissions reductions and accounting principes should be done in relation to the Paris Climate target. Delegates believe that this new agreement will help countries to cut the carbon.
The problems have risen about the different definitions, accounting and timetables in each country.
This year’s summit included 24. Conference of the Parties to the United Nations Framework Convention on Climate Change (COP24), 14. Meeting of the Parties to the Kyoto Protocol (CMP 14) and the Conference of Signatories to the Paris Agreement (CMA 1).
Equities fell in the markets globally on Friday trading. The major concerns were the Chinese signs of slowing economy, Brexit-situation and the ongoing US China tradetalks. Dow Jones fell 2,02 % to 24 100 points, S&P 500 fell 1,91 % to 2599 and technology Nasdaq-index dropped 2,26 % to 6910 points.
The macro data regarding the Chinese retail sales was a disappointment for the markets and the Asian stocks fell as well. Tokio Nikkei 225-index ended down 2,02 % to 21374 points and Hang Seng in Hong Kong fell 1,62 % to 26 094 points.
In Europe stocks in London ended down 0,47 % and FTSE 100 stood at 6845 points. German DAX-index ended down 0,54 % to 10865 and CAC40 -index in Paris ended down 0,88 % to 4853 points.
According to Citigroup analysis, the company earnings are expected to rise on average 8 % in the US next year by the analysts compared to 6 % growth by markets strategists and 4% by the markets itself. In Europe the difference is wider, while the analysts expect the company earnigns to grow on average by 8 % e and strategists by 2 % in 2019. The markets expectation is -4 %, Bloomberg news reported.
The slowing economy signs have also increased the expectations that the US Federal Reserve would have fewer rate rises in 2019 than earlier estimated. The European Central Bank signaled on Thursday that the ECB in ready to operate and feed the system in case of sudden economic turnarounds and political situations. At the same time the bank also announced the end of the bond buying programm.
The UK EU Brexit deal was on the news as well. The EU leaders declined to open the deal for new negotiations, but there where willingness to help the UK with the border issue. UK Prime Minister Theresa May said in Brussels that she feels that there could be more assurances while the talks will continue. The UK Parliament is going to vote about the deal during January 2019.
Euro fell against US dollar and was down 0,48 % at 1,130 dollars. The UK sterling fell 0,47 % to 1,258 dollars.
Wall Street ended mixed on Thursday trading. The Dow Jones closed up 0,29 % to 24597, when the S&P 500 -index ended down 0,02% to 2650 and Nasdaq-index down 0,39 % to 7070 points. The markets were having some good news from the US China trade talks, but on the other hand the Brexit-situation in Europe and the moneraty polices were under considerations.
UK Prime Minister Theresa May told the media that she will not be the Party leader for the next elections in 2022.
– What I’m clear about is the next general election is in 2022 and I think it’s right that another party leader take us into that general election, UK Prime Minister Theresa May told on Thursday in Brussels.
The EU leaders were having discussions in Brussels regarding the Brexit-deal and how to help the British Parliament with the deal. Many of the EU leaders pointed out that the deal is a deal and it cannot be reopen, although they wanted to get some kind of solution for the Irish border.
The European Central Bank announced Thursday of the end of the net bond purchasing program. The Central Bank also informed that this does not mean the end of the quantitative easing – the message was that ECB promised to keep feeding stimulus for years into a slowing economy with an unexpected slowdown and political turbulence. The size of the bond portfolio is 2,6 trillion euros.
Euro was trading 1,14 dollars, down 0,03 %. And the UK sterling was up 0,04 % , 1,26 dollars.
Wall Steet ended up lifted by the better trade outlook and the UK confidence vote. UK Prime Minister Theresa May won the vote of the confidence of the Conservative Party in London on Wednesday.
According to PM May, the focus is now delivering the Brexit deal in order to build the better future for Britain and brining the country together. She mentioned also that she will have negotiations with the EU members on Thursday regarding the legal and political assuarances of the Brexit deal.
Dow Jones ended up 0,64 % to 24 527 points, S&P 500 -index ended up 0,54 % to 2651 points and technology-index Nasdaq closed up 0,95 % to 7098 points. In Europe the FTSE 100 -index closed up 1,08 % to 6880 points and German DAX-index + 1,38 % to 10929 points and in France the CAC 40 -index closed up 2,15 % to 4909 points.
In Asia the stocks were also on the upward trend and in Hong Kong the Hang Seng -index closed up 1,61 % to 26 186 points and in Japan the Nikkei 225 -index ended up 2,15 % to 21 602 points.
The euro was trading at 1,137 dollars, up 0,04 % and UK sterling rose 0,06 % to 1,263 US-dollars.
The Brexit-process will continue as planned and after the EU-meetings on Thursday and Friday, it is expected that the UK Parliament would have the Brexit vote before the 21st January 2019. According to the timetable, the Brexit breakup will be on the 29th March 2019.
For the UK Conservative Party, it means that the Party will have to renew their position for the next elections, while it might be that the PM May is not the Party leader then.
UK Prime Minister Theresa May wins the vote of confidence of the Conservative Party by 200 to 117. The Party has been in discussion over the Brexit deal and its impact on the future of the British people and jobs.
On Thursday and Friday the EU will be discussing the Brexit deal and how the situation can proceed. According to the timetable Britain will leave the EU on the 29th March 2019. The UK Parliament vote of the Brexit deal is expected to happen by the 2st of January 2019.
According to US Trump Administration, China has agreed to cut tariffs on the US built autos and auto parts to 15 % from the current 40 % level. This news helped to heal the US stock markets and for example the automotive shares gained because of this.
The markets are also expecting that the wider trade talks between the US and China seem now a little easier for both parties. The countries agreed in the G20 meeting in Argentina to postpone the tariffs by 90 days.
Dow Jones ended down 0,22 % to 2437 points, S&P 500 -index ended down 0,04 % to 2636 points, but the Nasdaq-index ended up 0,16 % to 7031 points. In Europe the UK FTSE 100 -index ended up 1,51 % to 6835 points, the German DAX-index ended up 1,49 % to 10780 points and the CAC40 in Paris ended up 1,35 % to 4806 points.
The euro was trading flat at 1,13 dollars. The sterling gained slightly 0,01 % and was trading at 1,248 dollars.
The UK – EU Brexit situation is expected to gain some new input on Thursday and Friday, when the EU meeting in taking place. In the meanwhile UK Prime Minister Theresa May have had discussions with different country leaders about the Irish border issue and resassurances. Today she met the German Chancellor Angela Merkel in Berlin.
Many EU leaders have said that they want to help the UK to reach the Brexit deal in order to avoid the situation that there is no deal at all. The Bank of England has made analysis of the hard-case and the economic impact would be very difficult for the UK trade and economy.