US-UK trade deal on the agenda

The US and UK have been discussing about the trade deal between the countries after the Brexit deal, which is estimated to happen latest October 31st. This is part of the state visit of the US President Donald Trump and the UK royal family & Government.

According to the news conference on Tuesday, Mr Donald Trump said that the US-UK trade deal would have “tremendous potential” and coverage, even maybe the health care system NHS.

He also mentioned that the UK Brexit deal with the EU countries “will happen and should happen” and that it is important to deliver the Brexit. The US is offering the UK a broad free-trade agreement once the country has left the EU.

The UK Prime Minister Theresa May said also in the news conference that the UK should deliver the Brexit deal as the Goverment has been negotiated and that it is now the duty of the UK Parliament.

Mrs May is leaving the Downing Street 10 on Friday and the next Prime Minister will be chosen by the Conservatives during the summer time, maybe in July in the UK.

Business Finance

Brexit: What next – stocks closed up

The yesterday announcement by the UK Prime Minister Theresa May that she will step down from the Party leader position on June 7 has left some questions how to proceed after this? Mrs May, who is highly respected by her counterparts, will stay as Prime Minister until the new leader is chosen- maybe in July.

The UK decision was not a surprise for the EU leaders. In fact, they were asking swift process in order to avoid possible bottlenecks between the countries business and economic transition process. For example the French President Emmanuel Macron said that he would like more clarification about the situation while “EU cannot remain indefinitely uncertain on Brexit”. According to him, France is ready to work with the new British Prime Minister on all issues.

The German chancellor’s Angela Merkel´s spokesperson said that Germany is ready to continue the work with Prime Minister Theresa May’s successor for an “orderly exit”.

And several other EU leaders have had same kind of message as well. They want to conclude the work and the agreement agreed with the EU and Mrs May. The message is still the same: the legal text of the withdrawal agreement will not be open.

This case has also raised the possibility of the no-deal Brexit after the Mrs May decision to leave. This is a major concern for the British Industry and the City as well. The Bank of England has made also several economic estimates which show that the no-deal Brexit would be catastrophic for the UK economy and for example housing prises.

The UK and EU have extended the Brexit deadline for several times and now the deadline is at the end of October, 31st. So, the UK Parliament has this timeframe in order to decide how to proceed. There is not that much time left, while it is assumed that the new UK Prime Minister might start his/her duties July/August time. As Prime Minister Theresa May said in her speech on Friday, the new leader will have to find a compromise in the Parliament in oder to get on with the Brexit.

On the other hand, it might also be possible, that the new Party leader is not willing to make a deal, so the no-deal Brexit might increase its appearance. According to Bloomberg News, two-thirds of Conservative members want a no-deal Brexit.

But the Labour Party in the UK Parliament is against no-deal scenario, which makes this approach uncertain. And the third option is also a new referendum or general elections, which would have to be before the end of October.

Now, in the middle of EU elections, the UK Conservative party is expected to face losses and this might have also its impact for the future of the UK and the Brexit process. The results of the EU elections are to be published on Sunday evening.

The UK stock markets closed Friday slightly up and the FTSE 100 -index ended +0,65 % to 7277 points. During one year time, the yield has been -1,68%. The pound was at 1,27 US-dollars, up 0,45 % on Friday. During a five year period the pound has fallen from the 1,7 US-dollars levels.

Business Finance

Brexit: Theresa May to step down June 7

The UK Prime Minister Theresa May says she will step down on the June 7 as a party leader. This announcement was expected after the weeks long public discussion of her successor. According to Mrs May, the successor will need to find Parliament Consensus on Brexit.

The London Stock Exchange FTSE 100 -index was trading up 0,59 % to 7273 points and the pound slightly up 0,17 % to 1,2676 dollars.

 

 

 

Business Finance

Brexit-deal back in the Parliament in June?

Brexit-deal may be back in the Parliament in early June. According to Bloomberg News, the UK Prime Minister Theresa May may be delivering the deal again in the House of Commons in June with the help of Labour Party  Jeremy Corbyn.

The cross-party talks have been continued also today evening in London and it is agreed that the Prime Minister will put the Withdrawal Agreement Bill (WAB) to Parliament before the long summer brake.

 

Business Finance

UK to target net zero emissions by 2050? FT

The UK is targeting to set a new goal for carbon emissions. According to the report from Committee on Climate Change, UK should be net zero emissions country by 2050. This would equate to 1-2 % of the 2050 GDP, says Financial Times.

FT says that the report, which will be published on Thursday, will guide Scotland to be net zero already in 2045 and Wales 95 %zero in 2050 due to its sheep-farming industry.

The UK Parliament is expected to discuss about the Climate Change updates on Wednesday,when the House of Commons will have this topic on its agenda.The target would be reached by using more renewable energy sources, increasing the electric vehicles in transportation and for example capturing carbon from the air.

In 2018 the UK carbon emissions fell by 2,5 % sixth straight years in row.About 80 % of the UK homes are warmed by using natural gas.

If this new target would pass the Parliament,it would mean that the UK would be among the leading G7 countries to set this kind of target.  It is good to remember that the UK will leave also the EU Emissions Trading System as part of the Brexit deal.

In London there have been several climate activists protests during the last two weeks in order to speed the decision making on Climate Change.

Business Finance

Brexit: Delay to the year end?

The European Council President Donald Tusk has said today that the short extension of the deal would not be enough. He is then favour of  a longer Brexit, maybe up to a year or beyond.

The UK Prime Minister Theresa May has today met several EU leaders. She was in Germany and met the German Chancellor Angela Merkel, which pointed that the extension might be long enough, but also so that the option of leaving earlier is possible if the deal is reached. PM May is having a meeting with French President Emmanuel Macron tonight.

The EU leaders are having their summit tomorrow on Wednesday in Brussels and for example the Belgium has invited the country leaders, which border the North Sea, according to Bloomberg News. The fishering polices and the use of the natural resources in the future if no-deal is agreed means that more work is ahead.

The UK Parliament is also discussing tonight how long the delay would be for Theresa May to put forward. On Monday the Parliament decided that extension is ok. This was backed by the UK Parliament by votes 420-110.

PM Theresa May sent last week a letter to Mr Tusk and asked for the extension until June 30.  The UK is leaving the EU on next Friday the 12th April, if no deal is reached.

The UK Goverment has said that it will continue the talks with Labour Party after the summit on Thursday. The talks were halted because the parties said that there were not enough compromise.

Business Finance

Brexit: UK Goverment and talks about the steps further

The UK Goverment is now having discussions how to proceed with Brexit, while yesterday evening the UK Parliament rejected all the proposals related to Brexit. The deadline for the UK to leave the EU is the April 12th.

According to Bloomberg News, the ministers are likely to be asked to postpone the date for leaving the block until potentially year-end or beyond in order to allow more time to resolve the deadlock in the Parliament.

Postponing the deadline would also mean that the UK would have to take part in the EU elections in May. There has also been speculation of general elections in a way out of the deadlock.

On the other hand Brexit Secretary Steve Barclay has commented  today that if the Parliament could agree the deal during this week, it could be possible to avoid the extension of the deal and the EU elections.

The UK sterling was down 0,47 % to 1,304 dollars in today´s trading. During one month period, the stocks have gained in major markets: FTSE 100 -index +3,24 %, DAX +0,8 %, CAC40- index +2,70%, S&P 500 -index +,226%, Nasdaq+3,07 % and Dow Jones -index +0,89% in New York.

 

Business Finance