Brexit: The UK Parliament to sit on Saturday 19th

The UK Parliament is having a working day on the 19th of October after the EU Leaders meeting. According to Independent, the Parliament is getting ready for different kind of Brexit scenarios.

The UK Prime Minister Boris Johnson is having different leaders meeting during this week and for example meeting with the Irish Prime Minister Leo Varadkar. Yesterday the German counsellor Angela Merkel told the media, that the Brexit-agreement seems unlikely if the Irish border issue is not solved.

Business Finance

The negotiations of the EU top jobs started in Brussels

The EU leaders meeting in Brussels today was the start of the new leaders discussions in the EU. The German Chancellor Angela Merkel and the French President Emmanuel Macron expressed their different views of the new leader candidate for the EU Commission.

Manfred Weber has been the lead candidate for the EPP (centre-right), but President Macron was mentioning other candidates  for this position. This was the first time the EU leaders met after the EU elections last Sunday. Luxembourg´s Jean-Claude Juncker in stepping down on October 31st.

There are also other leading positions open to fulfil like European Council President (now Donald Tusk), the head of European Central Bank ECB (now Mario Draghi) and the EU representative for Foreign Affairs (now Federica Mogherini).

The EU elections last weekend put the seats in the EU Parliament to new order. Here are the main representatives for the 751 seats in the EU Parliament:

  • socialists & democrats (146)
  • greens (69)
  • liberals (109)
  • centre-rights (180)
  • conservatives (59)
  • populists (54)
  • right-wing nationalists (58)
  • left (39)

The timetable for the new leaders is somewhat open, others expect the names to be ready by July and others expect them during the autumn time.

 

 

 

 

 

 

 

 

Business

Brexit: What next – stocks closed up

The yesterday announcement by the UK Prime Minister Theresa May that she will step down from the Party leader position on June 7 has left some questions how to proceed after this? Mrs May, who is highly respected by her counterparts, will stay as Prime Minister until the new leader is chosen- maybe in July.

The UK decision was not a surprise for the EU leaders. In fact, they were asking swift process in order to avoid possible bottlenecks between the countries business and economic transition process. For example the French President Emmanuel Macron said that he would like more clarification about the situation while “EU cannot remain indefinitely uncertain on Brexit”. According to him, France is ready to work with the new British Prime Minister on all issues.

The German chancellor’s Angela Merkel´s spokesperson said that Germany is ready to continue the work with Prime Minister Theresa May’s successor for an “orderly exit”.

And several other EU leaders have had same kind of message as well. They want to conclude the work and the agreement agreed with the EU and Mrs May. The message is still the same: the legal text of the withdrawal agreement will not be open.

This case has also raised the possibility of the no-deal Brexit after the Mrs May decision to leave. This is a major concern for the British Industry and the City as well. The Bank of England has made also several economic estimates which show that the no-deal Brexit would be catastrophic for the UK economy and for example housing prises.

The UK and EU have extended the Brexit deadline for several times and now the deadline is at the end of October, 31st. So, the UK Parliament has this timeframe in order to decide how to proceed. There is not that much time left, while it is assumed that the new UK Prime Minister might start his/her duties July/August time. As Prime Minister Theresa May said in her speech on Friday, the new leader will have to find a compromise in the Parliament in oder to get on with the Brexit.

On the other hand, it might also be possible, that the new Party leader is not willing to make a deal, so the no-deal Brexit might increase its appearance. According to Bloomberg News, two-thirds of Conservative members want a no-deal Brexit.

But the Labour Party in the UK Parliament is against no-deal scenario, which makes this approach uncertain. And the third option is also a new referendum or general elections, which would have to be before the end of October.

Now, in the middle of EU elections, the UK Conservative party is expected to face losses and this might have also its impact for the future of the UK and the Brexit process. The results of the EU elections are to be published on Sunday evening.

The UK stock markets closed Friday slightly up and the FTSE 100 -index ended +0,65 % to 7277 points. During one year time, the yield has been -1,68%. The pound was at 1,27 US-dollars, up 0,45 % on Friday. During a five year period the pound has fallen from the 1,7 US-dollars levels.

Business Finance

Brexit: Delay to the year end?

The European Council President Donald Tusk has said today that the short extension of the deal would not be enough. He is then favour of  a longer Brexit, maybe up to a year or beyond.

The UK Prime Minister Theresa May has today met several EU leaders. She was in Germany and met the German Chancellor Angela Merkel, which pointed that the extension might be long enough, but also so that the option of leaving earlier is possible if the deal is reached. PM May is having a meeting with French President Emmanuel Macron tonight.

The EU leaders are having their summit tomorrow on Wednesday in Brussels and for example the Belgium has invited the country leaders, which border the North Sea, according to Bloomberg News. The fishering polices and the use of the natural resources in the future if no-deal is agreed means that more work is ahead.

The UK Parliament is also discussing tonight how long the delay would be for Theresa May to put forward. On Monday the Parliament decided that extension is ok. This was backed by the UK Parliament by votes 420-110.

PM Theresa May sent last week a letter to Mr Tusk and asked for the extension until June 30.  The UK is leaving the EU on next Friday the 12th April, if no deal is reached.

The UK Goverment has said that it will continue the talks with Labour Party after the summit on Thursday. The talks were halted because the parties said that there were not enough compromise.

Business Finance

Brexit: May to meet Juncker for last-minute talks

The UK Prime Minister Theresa May will be having last-minute talks with EU Commission President Jean-Claude Juncker. Mrs May arrived in Strasbourg tonight targeting to win her Brexit deal by MPs.

This meeting is not a quarantee that there would be a new deal. For example the UK and EU did have several discussions during the weekend, and according to German Chancellor Angela Merkel it is now the British MPs time to vote.

The British pound has strenghtened 1,2 % to 1,3169 dollars. The FTSE 100 -index went up by 0,37 % to 7130 points in today´s trading in the London Stock Exchange.

The UK decision to leave the EU is in a couple of weeks, on the 29th of March 2019. The border issue related to the Irish backstop has been one of the major issues in the Brexit talks.

 

 

 

Business Finance

Brexit: UK Goverment accepted citizen rights – Merkel and Macron in Paris

The UK Goverment has accepted the citizen rights in the Brexit depate in the Parliament today evening. According to Reuters, UK will turn to European Union to try to secure citizen´s rights if there will be no-deal Brexit.

“I’m happy to confirm … that we will write to the EU institutions and that this will be done in the coming days,” Brexit minister Stephen Barclay said according to Reuters.

The question of delaying the Brexit has got support from Germany and France. The German Chancellor Angela Merkel and the French President Emmanuel Macron commented the Brexit-situation in Paris today.

Both countries would give more time if needed, but the message from President Macron was that there need to be choices taken in order to extend the timeframe.

The German and France leaders were having trade talks in Paris and the countries agreed to present  Bryssels a new industrialstrategy with China. They also talked about the EU army, which the countries have different approaches at the moment.

The German Chancellor Angela Merkel pointed out, that the EU countries must have a clear and unite exports strategy regarding the army products, while at the moment they have different views for example regarding Saudi Arabia.

Business Finance

Davos: Companies should have Climate Change strategy

According to the Global Risk Report by the World Economic Forum, Climate Change, Natural Resources and Biodiversity are among the the top global risk areas for this year. 

– Rising geopolitical and geo-economic tensions are the most urgent risk areas in 2019, with 90% of experts saying they expect further economic confrontation between major powers in 2019, the World Economic Forum Report states.

– Environmental degradation is the long-term risk. Rapidly evolving cyber and technological threats are the most significant potential blind spots; we still do not fully appreciate the vulnerability of networked societies, the report says.

– 2018 was sadly a year of historic wildfires, continued heavy flooding and increasing greenhouse gas emissions. It is no surprise that in 2019, environmental risks once again dominate the list of major concerns. So, too, does the growing likelihood of environmental policy failure or a lack of timely policy implementation. To effectively respond to climate change requires a significant increase in infrastructure to adapt to this new environment and transition to a low-carbon economy. By 2040, the investment gap in global infrastructure is forecast to reach $18 trillion against a projected requirement of $97 trillion. Against this backdrop, we strongly recommend that businesses develop a climate resilience adaptation strategy and act on it now, says Alison Martin, Group Chief Risk Officer in the  Zurich Insurance Group.

The Wef Davos meeting will be held next week in Davos, in Switzerland. Around 3000 quests are expected to come to Davos, including Japan PM Shinzo Abe, German Angela Merkel and Prince William, the Duke of Cambridge.

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