UK Brexit: MPs rejected the Cabinet´s deal (updated)

IMG_0852The UK Parliament has voted about the Cabinet´s Brexit deal. According to the results, the MPs have rejected the Brexit-deal by votes 391-242.

This means that the Parliament will vote on Wednesday again of no-deal Brexit and possible on Thursday for the delaying of the Brexit.

According to Bloomberg News, the City of London´s institutions are calling for urgent timetable with UK and EU.

-MPs must now say “no to no-deal and the UK and EU must urgently return to the negotiating table. We need a rapid agreement on the way forward to protect customers and jobs, said Miles Celic, the CEO of TheCityUK.

 

 

 

 

 

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Brexit: May is giving the option to delay the Brexit

The UK Prime Minister Theresa May has today confirmed the earlier news and promised the option to MPs to delay the Brexit-deal or ruling out a no-deal Brexit if the Parliament rejects the Cabinet´s proposal.

This means that the meaningful vote will be as planned on the 12th March about the Cabinet´s Brexit-deal. And if this fails, on the 13th of March the MPs will vote if they support a non-deal Brexit. If this would win, it would mean that the UK would leave without a deal on the 29th March.

If this vote is negative, there would be third voting on the 14th March. And it is about the extension of the Brexit deal beyond the 29th March.

According to May, she is still focused on the 12 March voting for the deal in order to leave with a deal on the 29th March.

On Wednesday the Parliament will vote about the sequences of votes.

The UK Prime Minister May said also that the goverment is publishing a paper assessing the readiness for a non-deal Brexit and the serious challenges it would pose, according to BBC.- But this paper provides an honest assessment of the very serious challenges it would bring in the short-term and further, she said.

 

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Brexit: May: final voteday by 12th March (updated)

The UK Prime Minister Theresa May has delayed the meaningful Brexit-vote. She has promised to put her final Brexit deal to a vote in the Parliament by March 12th.

She said on the journey to Sharm el-Sheikh for a summit between EU and Arab league leaders that her team will be travelling to Belgium next Tuesday to continue the Backstop-talks.

-As a result of that, we won’t bring a meaningful vote to Parliament this week, but we will ensure that that happens by 12 March, she said.

The situation has changed also in the EU side, while some of the officials think that the Brexit could be postponed until 2021, according to Guardian.The idea behind this thinking is that if the PM cannot get the Brexit-deal through Parliament and wants to delay to departure, the EU could consider that UK would stay in the block until 2021.

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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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Highlights of the year 2018 – Brexit, trade talks and green finance

The year 2018 was a year of Brexit, electric cars and trade talks. It included special moments in the financial markets and in the company side. Green Bonds and Green Finance were getting more attention in the markets and trade talks and Brexit were the topics during the year 2018 along. Climate Change and low carbon landed also in the agenda of central banks.

Investors were also asking what is the role of the City as a global financial hub. Should it have its own rules in spite of the Brexit? In the financial hub competition, Frankfurt and Paris were the European cities to get more new financial offices as financial companies were moving some operations to the EU side.

The UK Parliament is expected to vote of the Brexit during Janury 2019 after very intensive debate about the deal during the year.

Climate Change has become part of the everyday life in the financial markets and for example one of the biggest insurance companies in the US, Berskhire Hathaway informed in February 2018, that it has got 3 billion dollars losses of the natural catastrophies, the hurricances in the US. Several central banks, including the European Central Bank and some Asian ones, have also agreed about the co-operation in the climate issues and how to monitor the impact on the markets.

In the tech-side augmented reality and ioT were the themes for the year. Apple, Amazon, Google, Tesla, Intel  and Samsung  were one of the tech-companies to deliver new services related to the new technology. On the other side of the topic, Facebook was dealing with the privacy issues globally. New tech- companies listed in the markets were for example Spotify and Xiaomi.

Year 2018 was a year of electric cars in many countries. The e-cars breakthrough with charging issues was one of the tech topics as well. Telsa founder Elon Musk was the leading industry sector figure as he estimated that Tesla would make one million cars by 2020 in February 2018.

Also the German automakers announced new investments and concept cars. For example the BMW Group launched an autonomous driving campus in Munich in March 2018.

Year 2018 was also a year for luxury goods and services. The Basel World 2018 -fair announced its good selling and for example the CEO of Hublot, Ricardo Guadalupe,  told ComteamPUB+ that the company expects double digit growth for the year and that the Chinese customers will be the leading segment.

In the debt markets the US Uber and Netflix issued their junk bonds to investors. Uber, the ride-sharing company, is said to plan an IPO for the year 2019 according to the secret filings to the SEC.

One of the biggest infrastructure projects ever, the China Silk Road, is getting more attention from the green investors side, while the organization made its first announcement of the green principles for the project co-operation and operators. The ancient Silk Road is expected to rise the GDP growth by 4 % or 240 billion dollars in the countries invlolved according to Credit Suisse analysis.

The aim of the Roman time Silk Road is to connect the western Europe with the eastern coast of China and to renew the infrasturcture in between. This means also that the 10 world largest container ports are located along the route.

Trade talks between different countries have continued lively during the year. US and China have been in the headlines, but also the EU with its agreement with Japan.  The political situation and rising volatility in the financial markets tell the direction for the next year. Geopolitical easing is needed.

Päivi Härkönen, co-founder, ComteamPUB+

 

 

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