Brexit: Voting of delay in the UK Parliament today

The UK Parliament is voting also on Thursday about the Brexit delay. One of the options is that the Cabinet’s timetable leaving on the 29th March is extended if the EU accept the delay. Today´s voting can lead to different outcomes: a delay, the passing of the Cabinet’s Brexit deal anyhow as last minute, no-deal exit or another referendum.

The EU Commission confirmed on Thursday that the delay would require a justification but also the comments from member countries for example from Germany and Ireland showing their interest to find a sound solution to the situation.  It is assumed that EU would prefer only a short extension ending before the EU parliamentary elections on May 24-26.

No-deal Brexit would mean that there would not be transition period to soften the distruption to trade and business.

The stock markets were up on Thursday trading  in Europe and for example the Frankfurt DAX-index was up 0.42 % to 11 572 points and in Paris the CAC 40 -index was up 0,69 % to 5306 points. In London the FTSE all share index was up 0,14 % to 3926 points.

The UK sterling ws down 0,41 % to 1,328 dollars and euro was down 0,04 % to 1,1323 dollars.

Business Finance

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.

Business Finance

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.

Business Finance

Stocks to one-month high – Goldman up

The US stock markets continued their upward trend and the shareindexes reached one-month high during Wednesday trading. Two big financial companies, Goldman Sachs and Bank of America, both exceeded their earnings estimates.

Goldman Sachs reported its full year and fourth quarter earnings and according to the report, the group´s net revenues were 36,62 billion dollars and net earnings 10,46 billion dollars for the whole year 2018. The company shares jumped and lifted also Dow Jones- index and the banking sector as well.

-We are pleased with our performance for the year, achieving stronger top and bottom line results despite a challenging backdrop for our market-making businesses in the second half. For the year, we delivered double-digit revenue growth,
the highest earnings per share in the firm’s history and the strongest return on equity since 2009. We are confident that we are well positioned to support an even larger universe of clients, continue to diversify our revenue mix and deliver
strong returns for our shareholders in the years ahead, David Salomon, the CEO and Chairman of the Group said.

Dow Jones index ended up 0,90 % to 24 282 points, S&P 500 -index 0,41 % to 2623 points and Nasdaq ended up 0,39 % to 7051 points.

In London, where the UK Goverment won the confidence vote, FTSE ended down 0,47 % to 6862 points. The voting started at 7 pm local time. In Germany the DAX-index ended up 0,36 % to 10 931 points and in France the CAC-index ended up 0,51 % to 4810 points.

In Asia the Nikkei-index traded down 0,55 % to 20 442 points, while in Hong Kong the Hang Seng index ended up 0,27 % to 26 902 points.

 

Business Finance

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

Stocks gained after the UK confidence vote

Wall Steet ended up lifted by the better trade outlook and the UK confidence vote. UK Prime Minister Theresa May won the vote of the confidence of the Conservative Party in London on Wednesday.

According to PM May, the focus is now delivering the Brexit deal in order to build the better future for Britain and brining the country together. She mentioned also that she will have negotiations with the EU members on Thursday regarding the legal and political assuarances of the Brexit deal.

Dow Jones ended up 0,64 % to 24 527 points, S&P 500 -index  ended up 0,54 % to 2651 points and technology-index Nasdaq closed up 0,95 % to 7098 points. In Europe the FTSE 100 -index closed up 1,08 % to 6880 points and German DAX-index + 1,38 % to 10929 points and in France the CAC 40 -index closed up 2,15 % to 4909 points.

In Asia the stocks were also on the upward trend and in Hong Kong the Hang Seng -index closed up 1,61 % to 26 186 points and in Japan the Nikkei 225 -index ended up 2,15 % to 21 602 points.

The euro was trading at 1,137 dollars, up 0,04 % and UK sterling rose 0,06 % to 1,263 US-dollars.

The Brexit-process will continue as planned and after the EU-meetings on Thursday and Friday, it is expected that the UK Parliament would have the Brexit vote before the 21st January 2019. According to the timetable, the Brexit breakup will be on the 29th March 2019.

For the UK Conservative Party, it means that the Party will have to renew their position for the next elections, while it might be that the PM May is not the Party leader then.

Business Finance

China easing auto tariffs for US cars -stocks gained

According to US Trump Administration, China has agreed to cut  tariffs on the US built autos and auto parts to 15 % from the current 40 % level. This news helped to heal the US stock markets and for example the automotive shares gained because of this.

The markets are also expecting that the wider trade talks between the US and China seem now a little easier for both parties. The countries agreed in the G20 meeting in Argentina to postpone the tariffs by 90 days.

Dow Jones ended down 0,22 % to 2437 points, S&P 500 -index ended down 0,04 % to 2636 points, but the Nasdaq-index ended up 0,16 % to 7031 points. In Europe the UK FTSE 100 -index ended up 1,51 % to 6835 points, the German DAX-index ended up 1,49 % to 10780 points and the CAC40 in Paris ended up 1,35 % to 4806 points.

The euro was trading flat at 1,13 dollars. The sterling gained slightly 0,01 % and was trading at 1,248 dollars.

The UK – EU Brexit situation is expected to gain some new input on Thursday and Friday, when the EU meeting in taking place. In the meanwhile UK Prime Minister Theresa May have had discussions with different country leaders about the Irish border issue and resassurances. Today she met the German Chancellor Angela Merkel in Berlin.

Many EU leaders have said that they want to help the UK to reach the Brexit deal in order to avoid the situation that there is no deal at all. The Bank of England has made analysis of the hard-case and the economic impact would be very difficult for the UK trade and economy.

Business Finance