Brexit September 2019

[Albert Davis]

Is a no-deal Brexit back on the table


The government intends to bring down a Brexit process guillotine at the end of December 2020. If we haven't agreed a trade deal by then, we are out anyway. The ghost of no-deal, it seems, will be haunting business in Christmas future.
The financial markets took fright and we saw the pound immediately give up all the gains it enjoyed since the Conservatives won a thumping majority last Friday.

[Evanvincent]

European stocks stay cautious as Brexit fears return

European stocks were cautious on Wednesday as investors remained concerned over a hard Brexit.

The Stoxx 600 SXXP, +0.06% edged 0.1% higher, sitting below the record highs of Monday, while the German DAX DAX, -0.29% nudged 0.2% lower. The FTSE 100 UKX, +0.10% and French CAC PX1, +0.00% also climbed 0.1% but the domestically-focused FTSE MCX, -0.51% fell 0.6% as the returning prospect of a no-deal Brexit spooked investors.

The pound GBPUSD, -0.3122% slipped further to $1.3104, having reached $1.35 after last week’s election.

What’s moving the markets?

After Boris Johnson’s convincing election victory last week, the Prime Minister moved on Tuesday to block any further delays to Brexit by introducing a law banning an extension beyond December 31, 2020. With just over a year to negotiate a U.K.-EU trade deal, concerns over a hard Brexit returned.

Wall Street climbed to record highs late on Tuesday on relief over the interim U.S.-China trade deal announced last week, but European gains were held back on Wednesday by renewed Brexit fears.

CMC Markets analyst Michael Hewson said: “As we head toward the middle of the last full trading week of 2019, investors appear to be adopting a much more safety-first approach, as the euphoria of a U.S.-China detente and a new Conservative majority government quickly fade.”

The closely-followed German Ifo survey showed the country’s business climate improved in December as German exporters were more positive amid easing U.S.-China trade tensions.

Which stocks are active?

Car manufacturers Fiat Chrysler FCA, +0.16% and Peugeot UG, +1.18% have reached an agreement over a $50 billion merger, the companies said on Wednesday. Each company’s shareholders will own 50% of the new entity. Peugeot’s stock rose 1.4% in early trading, while Fiat Chrysler remained flat.

Pearson PSON, +2.92% shares climbed 2.7% as the educational publisher said it would sell its remaining 25% stake in publisher Penguin Random House for $675 million. Chief Executive John Fallon will also retire in 2020, the company said.

U.K.-facing stocks tumbled on Wednesday, losing some of their gains after Johnson’s election win. The Conservative Party victory appeared to have ruled out a hard Brexit before the Prime Minister ramped up fears just days later. Royal Mail RMG, -2.68% fell 2.8%, house builder Persimmon PSN, -3.49% dropped 3.4% and challenger bank Virgin Money VMUK, -2.14% slipped 1.7%.

[Evanvincent]

FCA urges advisers to prepare for Brexit plans

The regulator has called on advisers to “ensure they are prepared” for the UK’s departure from the EU in light of last week’s election result.The Conservative party gained a parliamentary majority of 80 in last Thursday’s general election.

Prime Minister Boris Johnson had continuously promised to “get Brexit done” and, speaking outside Downing Street after the election, pledged to honour that promise by January 31.

The Financial Conduct Authority has been clear that it “takes no view on the substance” of Brexit, but in light of last week’s results, called on advisers to continue in their preparations for the UK’s departure from the EU.

An FCA spokesperson told FTAdviser: “Following the result of the general election, and pending further developments, financial advisers should continue to ensure they are prepared.”

The FCA has already struck a deal with EU regulators to ensure cross-border co-operation in the event of a no-deal Brexit, but earlier this year chief executive Andrew Bailey admitted the drawn-out process was beginning to drain the regulator’s resources.

Don Scott, technical director at compliance business TCC, urged advisers to revisit their plans for Brexit in light of the election result.

Mr Scott said: “While January 31, 2020 is a big deadline in the minds of many, the real crunch will come when the transition period ends a year from now, at the end of December 2020 – a date that the prime minister has repeatedly insisted will not be pushed back.

[Albert Davis]

Brexit December

Queen to outline PM's Brexit and NHS agenda


The Queen is to set out the Conservative government's agenda for the year ahead following last week's decisive election win. Legislation to take the UK out of the EU on 31 January will be among more than 20 bills announced during Thursday's State Opening of Parliament. Other measures include guarantees on extra health service funding and longer sentences for violent criminals.

[Evanvincent]

The Brits who won't Brexit
(Reuters) - British Prime Minister Boris Johnson won a thumping election victory last week on a campaign to “get Brexit done,” but not before some wealthy donors to his Conservative Party quietly took steps to stay inside the European Union.Cyprus government documents seen by Reuters show that Conservative Party donors have sought citizenship of the island, an EU member state, since Britain voted to leave the bloc in 2016.

They include billionaire Alan Howard, one of Britain’s best-known hedge fund managers, and Jeremy Isaacs, the former head of Lehman Brothers for Europe, the Middle East and Asia. Cyprus’ interior ministry recommended that both men’s applications be approved, the government documents show.

The Conservative Party won another term in office last week after an election campaign that was dominated by Brexit. Johnson called the election to try to gain a majority in Parliament to push through his plan to take Britain out of the EU early next year.

[Evanvincent]

Boris Johnson Plans 'Radical' U.K. Remake After Big Election Win

U.K. Prime Minister Boris Johnson set out his agenda for government in what he described as the “most radical” program of law-making in a generation after last week’s “seismic” election victory.

Leading on his commitment to leave the European Union on Jan. 31, the legislative program, delivered by tradition in a speech to Parliament by Queen Elizabeth II, also includes campaign promises on spending on the National Health Service, infrastructure development and a review of the relationship between government and the courts.


One potentially controversial plan is to scrap the law that sets the date for general elections, due in 2024, to put power over timing of the next vote in the hands of the prime minister.

“Millions of people, many of them who have never voted Conservative before, put their faith in this government and voted overwhelmingly for us to move this country on and deliver change. We have no time to waste,” Johnson wrote in his introduction to the speech. “Our first task is to get Brexit done and we will leave the EU by the end of January.”

Johnson, who also promised action on immigration and tougher sentences for offenders, is seeking to act fast to cement the support of people in areas of Britain that have traditionally voted for the opposition Labour Party. His law-making program is loaded with the pledges he made to win support in those districts.

[Albert Davis]

For the latest UK News update you can follow https://www.megri.co.uk/news.

[Albert Davis]

MPs Vote By 358 To 234 To Pass The Withdrawal Agreement Bill


MPs vote for EU withdrawal agreement bill, which paves way for UK to leave EU in January

How did each MP vote on the Brexit deal
Brexit withdrawal bill: what’s new and what’s different
What happens after the Brexit bill is passed
Full story: parliament passes withdrawal agreement bill by 124 majority

[Albert Davis]

Boris Johnson clinched his Brexit deal by calling the bluff of EU chiefs


BORIS Johnson passed his Brexit deal by calling the bluff of EU chiefs, it was revealed yesterday. The PM convinced them he would call an election with a No Deal departure in his manifesto – and win.
The secret ploy which helped Mr Johnson defy the odds was revealed after his deal was finally voted through by MPs on Friday
He delivered a clear message to chief Brussels negotiator Michel Barnier to convince him he meant business.

Tory MPs were despatched to “leak” details of his plan via back channels.
One was sent to talk to officials at the Dutch Embassy, knowing word would get back to Eurocrats.

[Albert Davis]

Brexit On Fast-Track: On Passage Of Deal In Uk Parliament



With the passage of Prime Minister Boris Johnson’s Brexit deal in British Parliament, it is now almost certain that the country would exit the European Union (EU) on or before the current deadline — January 31. Mr. Johnson became Prime Minister after his predecessor Theresa May’s repeated attempts to get lawmakers’ support for her Brexit deal failed. Mr. Johnson first reached a new agreement with the EU and then called fresh elections. With his party’s resounding win in the parliamentary election and a surge in the number of Brexiteers among Conservative lawmakers, the passage of the Bill in the House of Commons was a mere formality. The deal got the support of 358 lawmakers against 234. The agreement deals with issues such as citizens’ rights, the settlement amount the U.K. has agreed to pay the EU and an arrangement to avoid physical barriers between the Northern Ireland, which is part of the U.K., and the Republic of Ireland, an EU member. The accord will be put on vote in the House of Commons once more, and then the upper chamber, the House of Lords, will vote on it. The formalities in the U.K. are expected to be over by early January and the deal will then go to the EU Parliament. Once the EU lawmakers ratify it (which is expected on January 29), the U.K. will formally exit the union.