Brexit: UK PM ask EU for extention

The UK Prime Minister Boris Johnson has sent a letter to the EU and asked for Brexit extention. According to Bloomberg, the PM has sent the letter but he still thinks he can find a way to exit by timetable October 31st. The extention in the letter was until January 2020.

The EU leaders need to vote in order to grant the extention and according to EU, they will need a couple of days to proceed with the issue.

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US banks start the earnings season next week

The US banks will start the earnings season during next week. For example Citigroup, Wells Fargo, JP Morgan, Goldman Sachs and Bank of America will be in the headlines. One of the big questions is the low interest rates and how the banks are coping with the margins.

It is also a question about the timing. How quickly the banks can swift the low rates to deposits? On the other hand mortgage loans are expected to have shown good trend for banks during the third quarter.

For investment bankers, the recent office-rentals company WeWork´s failed IPO listing might show some write offs in the balance sheet. The market valuation for the WeWork was expected to be around 47 billion dollars before the financial worries started.

The financial markets in general have faced the US China trade talks as an issue for market volatility. Now, when the first phase of the deal between the US and China, has been announced on Friday, the situation is expected to calm down a little when more information of the deal will be revealed.

The market speculation of the low interest rates policy in Europe, US and other Asian countries, is expected to continue while for example the US Central Bank Federal Reserve, Fed is expected to make one rate cut in October, according to Reuters.

The reason for low interest rates policy is the global growth concerns due to geopolitical differences, several trade talks and Brexit. In the UK, the Prime Minister Boris Johnson has said on Sunday that he believes the deal can be reached. On the other hand, the EU´s opinion is that the Brexit Plan is not good enough for the EU leaders Summit on the 17-18th October in Brussels.

 

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Brexit: PM does not have to ask for extension – Court

The Scottish judge has today announced that the UK Prime Minister Boris Johnson does not have to ask for the extension to the Brexit-deal if there is no deal ready by 19 October.

The EU leaders summit is taking place 17-18 October and some MPs have asked that the UK Government should ask extension to Brexit if the leaders are not able to reach an agreement in order to avoid the no-deal scenario.

This positive sign for possible Brexit deal was welcomed in the markets and FTSE 100 -index closed up 0,59% to 7197 points in London. In Germany the markets closed also up and Dax-index rose 0,70 % to 12097 points. In France the CAC 40 -index closed up 0,61 % to 5521 points.

 

 

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Brexit: EU likely not to accept the new proposal

The comments related to the new Brexit proposal by the UK Prime Minister Boris Johnson show that the deal is unlikely. For example the Irish Prime Minister Leo Varadkar said on Thursday, that Ireland could not sign if there is no open Irish-British border.

The EU has backed the Ireland comments and said that the EU is open, but more needs to be done. According to European Commission President Jean-Claude Juncker the proposal has some issues that are problematic.

The equity markets ended down on Thursday as the global recession concerns were on the top of mind by investors. FTSE 100 -index closed down 0,63% to 7077 points in London. In Europe the German DAX index closed down 2,76  % to 11925 points, but in France the CAC40 -index closed up 0,30 % to 5438 points.

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