Brexit: UK to ask deadline extension

Today´s news from the UK Goverment confirm, that the PM Theresa May´s Cabinet is asking the European Union for an extension of the Brexit deadline.  The preliminary timetable was that the UK would leave the EU next week on Friday the 29th March.

Tomorrow  on Thrusday, the European leaders are having a meeting to discuss about the Brexit situation. It is expected that the delay for the Article 50 would be a short one in order to avoid the EU elections.

The stock markets were having a negative sentiment today and for example the German Dax-index was down 0,88 % to 11685 points, the France CAC 40 -index was down 0,09 % to 5420 points. In London the FTSE index was down 0,04 % to 4012 points.

Euro was trading down 0,06 % to 1,134 dollars and the UK sterling was down 0,27 % to 1,323 dollars. The dollar was up 0,17 % to 111,58 yens and euro was up 0,24 % to 0,8577 pounds.

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Brexit: Delay and new vote next week in UK

After intense discussions and voting in the UK Parliament today, the MPs decided to delay the Brexit-deal. This means that the delay can be a short or a longer one. The next voting time is planned for the next week.

According to May´s proposal if the MPs agree the Brexit before the March 20th, the request for a delay would be a shorter one. And if it takes more time, the longer the Brexit delay. Any delay in the Brexit-deal need also that all 27 EU memberstates agree it as well.

The UK Parliament also voted 334-85 against the second referendum on EU membership.

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Brexit: Defeat today in the UK – markets mixed

New Brexit-defeat was today in the UK Parliament, when the MPs voted by 303-258 to reject the UK Goverment´s motion. This means that the Parliament has voted no to the Goverment´s plan to renegotiate the Irish border backstop.

The UK is planning to leave the EU on the 29th March 2019 and the next EU leaders summit will be on the 21st March. It was planned that UK PM Theresa May would  have tried to renegotiate the Irish Border issue with the EU collaques before the EU Summit. According to Prime Minister´s office, the target is still the same, to get a new agreement regarding the backstop.

In the City of London, the FTSE- index was quite stable and gained 0,09% to 7197 points. In Germany, the DAX-index declined by 0,69 % to 11 089 points and in France the CAC40 -index lost 0,23 % to 5062 points.

In Wall Street the financial markets were mixed, while the Dow Jones as down 0,13 % to 25511 points and S&P 500 -index -0,09 % to 2750 points. The Nasdaq was up 0,24 % to 7438 points.

In Asia the stocks ended by 0,23 % decline in HongKong and HangSeng- index was 28 432 points. In Tokyo the Nikkei-index ended down 0,02 % to 21139 points.

According to Bloomberg, the US President Donald Trump is ready to sign a compromise spending legislation that would avoid goverment shutdown and on the other hand would get funding for a border wall. The US-China trade talks are going “very well” and goverment spokesman said that the US President is considering delaying the possible tariffs by 60 days to get the deal done.

The trade negotiations have been led by the US Treasury Secretary Steven Mnuchin and his Chinese collaque Vice Premier Liu He.

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Wall Street slightly mixed – trade talks to continue

The financial markets were slightly mixed in Wall Street on Friday. The US-China trade talks made  progress and president Donald Trump made a statement that the deal might be done by March 1st. Also the macrodata from US jobs lifted the markets.

Dow Jones -index ended up  0,26 % to 25063  points, the S&P 500 -index ended up 0,09 % to 2706 points and the Nasdaq-tech index ended down by 0,25 % to 7263 points for the week.

According to Xinhua News Agency, China agreed to buy more US goods, including agriculture products, but also the talks included some agreements about IP rights. The talks will continue in China for the next round in mid-February and the US-China Presidents´summit might take place before the March time according to Bloomberg. The Chinese markets will be closed during next week due to the New Year´s holidays.

In the UK, the Brexit situation with extending time period got new supporters. The UK Chancellor of the Exchequer Philip Hammond said that he excepts the delay of the exit-day if needed.

– If we do get the deal and we need a little bit more time to put all the legislation and so on in place then I’m sure everybody on both sides will take a reasonable approach to that,” Hammond said in an interview with ITV News according to Bloomberg.

The stocks in London ended up and FTSE 100 -index gained 0,69% to 3851 points. Also the markets in Germany and in France were positive and the CAC 40-index  ended up 0,51 % to 3911 points and the DAX-index 0,13 % to 11 180 points.

Oil gained nearly 3 % and a barrel was traded at 55,37 dollars. Energy sector was one of the leaders for the Friday trading.

Euro was trading quite firmly against dollar at 1,1456, up 0,07 %, but the UK sterling was down 0,23 % to 1,30 dollars.

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Brexit: No more time – new backstop?

After UK Brexit votes  this week, the situation with the UK- EU is still the same. No new news  – this means that solution is not ready yet. The UK Parliament agreed that the deal could be done if the Irish border issue, the backstop, would have a new approach. What that would be, is still unclear and the EU has said  on Wednesday that there would be no new agreements.

The UK Parliament voted that no new timeline was given, which means that the March 29th exit-day is still valid. Prime Minister Theresa May was granted a mandate to negotiate with the EU collaques about the Irish border issue. According to news agencies, she is not travelling to Brussels this week any more.

The UK Parliament is having the Brexit-vote on Valentine´s Day, the February 14th and according to Bloomberg, some EU diplomats are expecting to have the EU summit about the Brexit on the March 21-22.

The financial markets have seen increasing prices in spite of the turbulence in this Brexit-matter. For example in London the FTSE 100 -index ended up 1,58 % to 6941 points, but also the Wall Street increased to new level due to the news that the Federal Reserve will be “patient” with the future interest-rates moves. The Feds Funds Rate is now at 2,25 – 2,50 percent and the Fed is still having the 2 percent inflation target.

Dow Jones was up 1,61 % to 24976 points, the S&P 500-index was up 1,51 % to 2679 points and technology-index Nasdaq was up 2,01 % to 7169 points.

The US-China tradetalks are having a new chapter when the Chinese economic advisor, Vice Premier Liu He is meeting with the US Treasury Secretary Steven Mnuchin today and tomorrow.

In Asia, the stockmarkets were mixed while the HangSeng increased by 0,40 % to 27642 points and the Nikkei-index in Tokio decreased by 0,52 % to 20 556 points.

 

 

 

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Brexit: UK May wins confidence vote – crosstalks continue

The UK Prime Minister Theresa May´s Goverment wins the confidence vote in the Parliament today.  Numbers 325-306 the Goverment will continue its Brexit-negotiations and reaching some kind of deal with the EU.

Prime Minister Theresa May said after the voting results that she will continue the Brexit-negotiations with all the party leaders, starting tonight. She said that the target is to reach a statement by Monday about the EU deal in the Parliament.

Yesterday evening the Parliament rejected the  Goverment´s Brexit-deal and now the UK does not have any agreement to face the exit timetable March 29th. Many party leaders, including the Labour leader Jeremy Corbyn have stated that no-deal Brexit must be ruled out of the Brexit options.

EU leaders have not yet responded to the voting results but during the day there has been discussions of various options – including the extending the exit-time.

 

Business Finance

Brexit-deal rejected – stocks gaining in US

The UK Parliament has rejected the Brexit-deal with numbers 432-202. Prime Minister Theresa May and the other supporters fear that this could lead to a disorderly exit from the EU. According to the plan, the UK should leave the EU on March 29th.

After years of negotiations and fierce debate in the Parliament, the historic vote today means that the UK is now in a political crisis. The Labour leader Jeremy Corbyn said that he will ask for a vote of confidence, which will be tomorrow on Wednesday.

According to Reuters, the Cabinet ministers are still having a confcall tonight with the UK business leaders about the Brexit-vote and what does it mean to the business and City.

The EU has said that there will be no emergency summit beause of the situation. The EU leaders also confirmed that the deal, which was negotiated in November, will not be reopened.

The UK sterling was trading about 0,04 % up at 1,286 against to dollar. Euro was down by 0,49% to 1,14 dollars.

The US stocks were all up and Dow Jones showed 0,41 % to 24 008 points, S&P 500 -index was up 0,96 % to 2607 points and Nasdaq 1,47 % to 7007 points. In London the FTSE 100 ended up 0,73 % to 6895 points. In Germany the Dax-index ended up 0,33 % to 10891 points and in France the CAC 40 -index 0,49 % to 4786 points.

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