Brexit: Car production fell 44,5 % in April -Hammond to Tory race?

The UK car production fell 44,5 % in April according to the Society of Motor Facturers & Traders. The organisation estimates that the year-on-year production could fall by 10 %.

Manufacturing for domestic and overseas markets fell 44 % and 45 % respectively as the major companies were having production shutdowns due to Brexit timetable.

The Brexit-issue has also been in the politics. Chancellor of Exchequer Philip Hammond was speaking in the BBC Radio on Thursday and according to him the UK should reach to people if the UK Parliament cannot resolve the case. He was still stressing that the main objective for the Parliament is to proceed with the Brexit deal. He mentioned still that second referendum would be then better than a general election because of the hard situation in the Labour Party and Tories.

– It will be a stain on Parliament´s reputation if at the end, we have to admit that we have been unable to agree how to discharge the Brexit mandate from the people, he also said in the interview according to Independent newspaper.

Mr Hammond said he has a zero-tolerance approach to the breakdown or flouting of cabinet collective responsibility. He also mentioned that he might run for the Conservative leadership race  if there is no candidate who would reflect his thoughts properly.

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Brexit: House of Lords will have their say today

The Brexit deadline is on the next week Friday. The UK Parliament voted on Wednesday that the UK approves the delay law, but it also makes it possible for the Parliament to propose different lenght of the Brexit extension than for example the Goverment has proposed. The meaning of this law was also to prevent the situation with no-deal Brexit.

The law passed the House of Commons with votes 313 – 312 and it is expected that the House of Lords will have their say about the law today.

The UK Prime Minister Theresa May and the Labour party leader Jeremy Corbyn met also yesterday in order to seek more co-operation and integration. According to several media sources, the meeting went well, and was “constructive” but there are still things to do.

According to Bloomberg News, the customs might be the area, where compromises are possible to seek and according to Chancellor of the Exchequer Philip Hammond “some kind of customs arrangements is clearly going to be a part of the future structure.”

The EU leaders summit will be next week Wednesday in Brussels and Prime Minister May would need some kind of  Brexit plan to present in order to get more extension.

According to EU Commission President Jean-Claude Juncker, EU is not giving Brexit extension and he repeated that the UK Parliament must back the exit deal by April 12th in order to get the extension to the May 22th. Otherwise the UK will be forced to longer extension and possible with the EU elections as well.

Yesterday the financial markets closed up in Wall Street. Dow Jones ended up 0,15 % to 26218 points, S&P 500 0,21 % to 2873 points and Nasdaq 0,60 % to 7895 points.

Today the trading has been mixed in the Asian markets. Hang Seng in Hong Kong has been down 0,52 % to 29 831 points, but the Nikkei has been up 0,03 % to 21 719 points. The South Korean Kospi has been up 0,12 % to 2205 points.

The sterling is up 0,11 % to 1,3173 US-dollars and the euro is up 0,08 % to 1,124 dollars.

 

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Brexit: MPs having indicative votes next week in the UK Parliament

The Brexit-deal is accelerating next week in the UK Parliament. The MPs will have several indicative votes related to different Brexit-outcomes or second referendum. This means practically that all outcomes are open in this situation.

The general opinion of the Brexit-deal has gain new levels while millions of British people have signed the pledge against leaving the EU. On Saturday there were also protest marching in London to rise the overall interest of the topic and voting for a second referendum.

According to weekend newspapers there has also an internal discussion of the Prime Minister Theresa May´s role in the Conservative party. This shows the tensions what the Brexit-deal is having also inside the party. The BBC reported on Sunday that Theresa May could gain support for her Brexit deal if she promises to stand down as a prime minister, according to senior party representatives.

On the other hand, the finance minister Philip Hammond commented on Sunday, that Britain must find a way to leave the EU in an orderly fashion rather than trying to oust Prime Minister Theresa May.

And one can say that the MPs are more or less frustrated with the situation. As MP George Freeman tweeted: “…across the country you can see the anger. Everyone feels betrayed. Trust in democracy is collapsing. This cant go on.”

The EU leaders agreed last week that the Brexit-deal can be delayed until at last 12 April. If May´s deal is approved next week in the Parliament, the EU has agreed to extent the Brexit deadline until 22 May.

If the UK Parliament is not backing the Goverment´s deal and no other plan is revealed then the UK is set to leave the EU on the 12th April.

The big question for the next week is, if May´s deal is getting enough votes in the Parliament. The Goverment´s deal has been rejected two times in the Parliament before. On the other hand, the House of the Commons Speaker John Bercow has commented that the May´s deal needs fundamentally new items in order to be voted again in the Parliament.

 

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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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