Brexit is happening next month – Tories -Skynews

– Brexit is happening next month, says UK´s foreign secretary Dominic Raab in the Conservative Party conference in Manchester on Sunday. According to Skynews, Mr Raab said that there is “no ifs or buts”.

According to the news, Prime Minister Boris Johnson commented that he has a plan to break the Brexit deadlock in a way the MPs could support.

PM Johnson has faced several questions of his tone of voice in the Parliament regarding the Parliament suspension. And this has also increased the concern if the Government is able to find a solution to the Brexit deal and the Irish border issue before the October 31st.

In the financial markets, one of the Bank of England´s Monetary Policy Committee members,  Mr Michael Saunders, estimated that the Central Bank´s Bank Rate, the key rate in the UK, might be moving down rather than up. He commented the interest rates markets situation last week. During the same week, the US Federal Reserve continued also to support the short-term repo-markets.

 

 

 

 

 

 

 

 

 

Business Finance

Brexit: UK Parliament 5 weeks break

The UK Parliament has started its five weeks break during this week. The MPs are getting back on the 14th October, while the Halloween deadline for Brexit is scheduled for the 31st of October.

The parties will be having their annual conferences during this time and also preparing for the possibility of general elections. The Prime Minister Boris Johnson has said that he will not delay the Brexit and his ambition is to get a new deal with the EU, with the new EU leaders.

On the other hand, if there is no new deal at the end of October, the 19th, the Prime Minister has to extend the deadline to the end of January 2020 and resign. And this would mean new elections or new referendum.

The Labour leader Jeremy Corbyn and other opposition parties have agreed not to back the PM´s demand for a general election before the EU-summit. The EU Summit will take place on the 17-18th October in Brussels.

 

Business Finance

Brexit: MPs vote to block no-deal

The UK Parliament has today voted to block the no-deal Brexit scenario. According to this bill, the Prime Minister will have to seek Brexit delay if no new agreement has been made by the 19th October. The bill was voted by numbers 327 to 299. This result has been a defeat for the new PM Boris Johnson, which has been against the delay of the exit time.

The Parliament also voted down the PM´s attempt for snap general elections, which would have needed two thirds of MPs to win the case.

On Wednesday the Treasury Committee published the letter of the Bank of England Governor Mark  Carney regarding the new updated Brexit perceptions. The BoE says that in no-deal Brexit case the economic impact would not be so severe than the bank´s forecast in November. This is due to the situation that there has been preparations by companies and government for the new trade situation.

– UK banks are capitalised to withstand much more adverse combinations of domestic and global economic shocks and to keep serving the UK´s households and businesses. The UK banks have sufficient capital to continue lending through both worst-case, disorderly Brexit and a global trade war, Mr Carney wrote in the letter.

The stocks closed slightly up in London on Wednesday and the FTSE-index was up 0,59 % to 7311 points. The UK sterling was trading also up 0,02 % at 1,23 dollars.

 

 

Business Finance

Brexit: The question of general elections

This weeks topic in the Brexit discussion is the question of possible general elections.  The PM Boris Johnson has said he would take the UK out of the EU block by October 31st the deadline and the EU has said that the negotiations are ongoing with the parties, but no news is from their side.

According to Bloomberg, the Prime Minister Johnson is planning general elections on October 14th, if the Parliament is forcing the Cabinet to delay the Brexit until January 31st.

Last week the Prime Minister Johnson announced that the Parliament would be suspended until mid-October, when the Queen is reopening the Parliament.

The UK sterling is trading at  1,099 euros and 1,2066 dollars.  The FTSE index closed today up 1,04 % to 7281 points in London.

 

 

 

 

 

 

 

 

 

 

 

Business Finance

G7 Leaders underline the unity and positive spirit

The G7 Biarritz  statement underlines the unity and positive spirit of the ongoing debates. According to the final statement, the G7 is committed to open and fair world trade and to the stability of the global economy.

– The G7 wishes to overhaul the WTO to improve effectiveness with regard to intellectual property protection, to settle disputes more swiftly and to eliminate unfair trade practices, the statement said.

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The event was also about gender and environmental issues. They launched the Biarritz Partnership Gender Equality initiative for governments to join.

The leaders urged also  Multilateral Development Banks (MDBs) and other Development Finance Institutions (DFIs)

  • to build on existing efforts to promote transparency and accountability mechanisms
  • to support projects that respect international law and prevailing standards, including the rule of law, human and labour rights, gender equality, and environmental standards
  • and to avoid unjustified disparities in the treatment of companies in calls for tenders.

Regarding the climate change issues, the US President Donald Trump kept his earlier message same and underlined the importance of LNG energy as one of the major energy sources in the world.

-I’m not going to lose that wealth (LNG). I’m not going to lose it on dreams, on windmills, which frankly aren’t working too well,  he said in the media meeting.

The tone of voice related to trade deals and US -China trade was somewhat positive and according to Mr Trump he said that he has great respect on the Chinese President Xi.

According to Bloomberg, some analysts thought that the UK PM Boris Johnson had a good meeting with the other G7 leaders and this was a positive sign for the Brexit due to October 31st.

The financial markets turned to green and the New York closed clearly up. Dow Jones index closed up 1,07 %, S&P 500- index  1,11 % and technology Nasdaq- index 1,32 %.

Business Finance

Brexit: Is UK paying the 39 billion pounds?

The Brexit-situation between the UK and the EU is escalating. The UK newspapers have reported that the new Prime Minister Boris Johnson is not willing to pay the 39 billion pounds exit deal to EU in no-deal case but rather 9 billion pounds. The EU has told that it is not willing to change the Brexit agreement which was reached with the former PM Theresa May.

This new approach is raising questions of the Brexit outcome in general. For example the editor of Financial Times, Lionel Barber wrote in his twitter feed on Sunday about the situation:

” In the Brexit referendum, we were told exiting the EU would be a cake walk and a new trade deal would be agreed on day two. Now Boris Johnson is asking for legal advice on shutting down Parliament for five weeks to force through Brexit. This is the tyranny of the tiny majority”, he tweeted.

According to the Guardian the PM Johnson has asked the attorney general if the UK Parliament can be shut down for five weeks from September 9  to stop MPs forcing a further extension to Brexit. Many MPs have rejected such a move to be against the democratic process saying it will “threaten the future of our country”.

 

 

 

 

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