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