UK spending plans, Brexit paralysis put rating at risk: Moody’s By Reuters



By Paul Sandle and William Schomberg

LONDON (Reuters) – Moody’s warned on Friday it might cut its rating on Britain’s sovereign debt again, saying that neither of the main political parties in next month’s election was likely to tackle high borrowing levels which Brexit had made even harder to fix.

In a toughly worded statement, Moody’s said the fissures in Britain’s society and politics exposed by its still-unresolved decision to leave the European Union would be long-lasting.

“It would be optimistic to assume that the previously cohesive, predictable approach to legislation and policymaking in the UK will return once Brexit is no longer a contentious issue, however that is achieved,” the ratings agency said.

Moody’s said Britain’s 1.8 trillion pounds ($2.30 trillion) of public debt – more than 80% of annual economic output – risked rising again and the economy could be “more susceptible to shocks than previously assumed.”

Both of the main political parties have promised big spending increases ahead of next month’s election.

“In the current political climate, Moody’s sees no meaningful pressure for debt-reducing fiscal policies,” the ratings agency said.

Prime Minister Boris Johnson called the Dec. 12 election in an attempt to break the deadlock over how, and even if, the country should leave the EU, more than three years after the Brexit referendum.

Moody’s said the “increasing inertia and, at times, paralysis that has characterized the Brexit-era policymaking process” showed how the UK’s institutional framework has diminished.

Even once Britain was out of the EU, uncertainty would remain because of the “significant challenges” of reaching a future trade deal with the bloc, it said.

Any signs that Britain was unable to replicate the benefits of EU membership with trade deals in Europe and beyond would also be negative for the rating.

Moody’s, which stripped the country of its AAA rating in 2013 and downgraded it again in 2017, said it was lowering the outlook on Britain’s current Aa2 rating to negative from stable, meaning the rating could be cut again.

At Aa2, Britain is on the same level as France but below Germany’s AAA rating by Moody’s.

Moody’s said the government, after reducing a budget deficit which leapt to 10% of GDP in 2010, had been increasingly willing to “move the goalposts” on making further progress.

“Successive governments have announced large, permanent increases in public expenditures, most notably a large increase in spending on the National Health Service, outside the normal calendar for fiscal policy changes and without detailed policy plans,” it said.

Last month, ratings agency Standard & Poor’s said it would cut Britain’s AA credit rating if the country leaves the EU without a deal, and it, too, warned that Brexit indecision was causing government paralysis.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



UK manufacturing decline slows after new Brexit stockpiling rush: PMI By Reuters



By Andy Bruce

LONDON (Reuters) – A renewed rush to stockpile ahead of another aborted Brexit deadline limited losses for British manufacturers last month, though not by enough to prevent a sixth month of contraction, a survey showed on Friday.

The IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) rose to 49.6 from 48.3 in September, its highest level since April and topping all forecasts in a Reuters poll of economists that had pointed to a reading of 48.1.

However, the index still remained below the 50 dividing line between growth and contraction.

October’s PMI was flattered by manufacturers building stocks ahead of the Oct. 31 date for Brexit that was superseded this week by a Jan. 31 deadline, survey compiler IHS Markit said.

Britain will also hold an early national election on Dec. 12 as Prime Minister Boris Johnson tries to break the Brexit deadlock.

Uncertainty around Britain’s exit from the European Union, originally scheduled for March 29, had previously prompted factories to load up on parts at the fastest rate in the 27-year history of the PMI surveys in early 2019.

That spurred a brief increase in manufacturing output which gave way to a sharp downturn in mid-2019, exacerbated by a slowing global economy.

The latest official figures show that factory output fell by 1.7% in the year to August, and the Confederation of British Industry said last week that manufacturers reported the bleakest outlook since 2009.

October’s PMI data showed that new business continued to decline, despite the fastest growth in export orders since December 2018 as EU customers stocked up on parts from British suppliers – a sign that domestic demand was especially weak.

“The underlying picture looks even darker than even these disappointing headline numbers suggest,” IHS Markit director Rob Dobson said.

“Output and new orders fell despite short-term boosts from stock-building activity in advance of the October 31 Brexit deadline, which included a rise in exports as clients in the EU sought to mitigate supply risk.”

Compared with its long-term average, the elevated level of the stocks of purchases index added 0.8 points to the headline PMI.

IHS Markit said Brexit uncertainty had hurt the investment goods industry hardest as customers postpone or cancel capital spending.

“With a further Brexit extension confirmed and the prospect of a December general election, it looks as if the specter of uncertainty will cast its shadow over manufacturing for the remainder of 2019,” Dobson said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Nigel Farage Demands Johnson Ditch Brexit Deal to Forge Election Pact By Bloomberg



(Bloomberg) — Sign up to our Brexit Bulletin, follow us @Brexit and subscribe to our podcast.

Brexit Party Leader Nigel Farage threatened to field candidates in every constituency in the Dec. 12 election if Prime Minister Boris Johnson refuses to abandon his deal with the European Union and form a “leave alliance” to deliver a clean-break Brexit.

Speaking at the launch of his party’s campaign at an event in central London, Farage said the deal agreed by Johnson on Oct. 17 “isn’t Brexit” and he will make sure every voter knows that before they go to the polls.

Farage said he wants to agree a “non-aggression pact” with Johnson in which Conservative candidates would stand down in 150 seats where the Brexit Party is well placed to beat Jeremy Corbyn’s Labour Party and he would do the same in return.

“There are around 150 seats in this country that are Labour-held constituencies that the Conservative Party have never ever won in their history,” Farage said. “The only way to solve this is to build a leave alliance across the country.”

There are concerns among some Conservative activists that the Brexit Party will split the anti-EU vote in some parts of the country, costing them seats they could otherwise win. But the party has so far rejected Farage’s overtures in favor of selling Johnson as the man to “get Brexit done.”

Farage compared Johnson’s deal with the EU to a used car with a shiny hood but a failing engine. It’s just Theresa May’s deal with a new coat of paint, he said.

“This is Mrs May’s appalling surrender deal. This is not Brexit,” he said. If Johnson refuses to ditch it, “by the time Dec. 12 comes along the country will understand what’s in it, they’ll understand it’s not Brexit. We’ll make sure of that,” he said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

EU won’t give broad access to its market after Brexit if Britain tramples standards By Reuters



BRUSSELS (Reuters) – The European Union’s Brexit negotiator Michel Barnier said the bloc will only give as much access to its single market to Britain after Brexit as is justified by London ensuring that EU rules and standards are preserved.

Barnier said access would be “proportional” and that British Prime Minister Boris Johnson may be able to achieve the goal of a zero-tariff and zero-quota new trade relationship.

“We want to have solid guarantees on the level-playing field,” Barnier said. “We will keep a close watch and be extremely vigilant on … social rights, environmental protection, state aid and obviously on issues of taxation.”

“It will be a difficult and demanding set of negotiations,” he said, adding that time would be extremely short to negotiate a new trade deal with Britain after Brexit and before the end of 2020.

He said that at the end of 2020 the sides would need to reassess whether more time was needed in the status-quo transition period envisaged after Brexit to agree on a new deal.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Johnson Wins Commons Support For Dec. 12 Election: Brexit Update By Bloomberg



(Bloomberg) — Sign up to our Brexit Bulletin, follow us @Brexit and subscribe to our podcast.

U.K. Prime Minister Boris Johnson is on course to get the general election he wants on his preferred date of December 12 after winning crucial votes in the House of Commons.

With Brexit on hold until the end of January, and Johnson unable to get his divorce deal through Parliament, the U.K.’s political leaders now believe a snap poll is the only way to resolve the crisis paralyzing the country. The vote is set to become a proxy referendum on European Union membership.

Key Developments:

  • Johnson won a vote in the House of Commons for a bill to set the date of the next election as Dec. 12 by 438 to 20.
  • MPs voted 315 to 295 to reject a Labour bid for the election to be held on Dec. 9
  • Election Bill now passes to the House of Lords
  • Ten Tories who were kicked out of the party for opposing Johnson’s Brexit strategy have been re-admitted

MPs Approve Dec. 12 General Election (8:25 p.m.)

MPs agreed to hold a general election on Dec. 12, voting in favor of Boris Johnson’s bill by a margin of 438 to 20.

The prime minister earlier saw off an attempt by opposition parties to change the date to Dec. 9 (see 8 p.m.).

The bill now heads to the House of Lords, where it can still be amended. The unelected upper chamber typically yields to the view of the lower one – meaning that an early general election is now a near certainty.

MPs Reject Election Date of Dec. 9 (8 p.m.)

MPs rejected a bid by the opposition Labour Party to change the proposed election date to Dec. 9 from Dec. 12. The amendment to change the date was defeated by 315 votes to 295.

Opposition politicians had argued an earlier date would make it more likely that students would be able to vote, as many universities break up for the holiday in the week of Dec. 9.

But the government won the day with its argument that the earlier date would make it hard to pass vital legislation relating to Northern Ireland before Parliament dissolves (See 6 p.m.)

Johnson Flexible on Date, Official Says (6:40 p.m.)

The wrangling over the date of the election is continuing, but Boris Johnson is not tied to his preferred date of Dec. 12 at all costs.

MPs in the House of Commons are now discussing Labour Leader Jeremy Corbyn’s proposal to move the election date to Dec. 9.

While it’s difficult to wrap up Parliamentary business in time for a Dec. 9 election, the premier would probably not abandon his plan if that date were forced on him by Parliament, a Tory official said.

This all points to an election being agreed to by Tuesday night.

Ten Expelled Tories Back in the Fold (6:30 p.m.)

Johnson met in private with 10 of the 21 MPs Conservative MPs who were thrown of the party for opposing his Brexit strategy and they have been re-admitted, a party spokesman said.

They include two former Cabinet ministers: Greg Clark and Caroline Nokes. Some of the other notable names are Alistair Burt, Nicholas Soames — the grandson of Winston Churchill, Stephen Hammond and Margot James. The door has been left open for others to be brought back as well, the spokesman said.

The development is good news for Johnson as it points to some of the former rebels planning to vote with the government and may help to heal rifts in the party.

What does the EU make of all this? (6:15 p.m.)

Michel Barnier, the EU’s chief Brexit negotiator, said a prospective snap election in the U.K. won’t have a material effect on the concrete negotiations involving Brexit.

“The problems to be solved remain the same — and the solutions would also be the same,” Barnier told Germany’s Sueddeutsche Zeitung in an interview.

“We spent two years negotiating a 600-page treaty with Theresa May. With Boris Johnson we negotiated for a comparatively short amount of time,” he said. May was “courageous and tenacious,” and Johnson is “also tenacious and a strong character,” he said.

Govt. Rejects Changing Election Day (6 p.m.)

Cabinet Office Minister Oliver Dowden said if MPs opt for a Dec. 9 election, as proposed in an amendment, there’s a “real danger” nurses, teachers and police officers in Northern Ireland won’t get paid after the end of the month as there won’t be time to approve a budget for the province.

A Dec. 12 election “gives Parliament enough time to progress essential business, and specifically the Northern Ireland budget Bill,” Dowden said.

Asked twice whether it would be possible for the House of Commons to sit on Friday in order to ensure the Northern Ireland legislation goes through, he replied that the bill needed to be “properly” considered.

Early Election Bill Proceeds to Next Stage (5:45 p.m.)

The House of Commons just gave approval in principle to the government’s bill calling for an early general election. There was no need for a vote, and the bill passed its so-called second reading on the nod. It now goes to the committee stage, when it can be amended.

Parliament Won’t Vote on Expanding Electorate (5:20 p.m.)

Deputy House of Commons Speaker Lindsay Hoyle rejected proposals to lower the voting age to 16 and to give EU nationals living in the U.K. a vote in the upcoming general election. The government said it would pull its election bill rather than accept either measure.

The only amendment Hoyle selected was Labour leader Jeremy Corbyn’s proposal to change the date of the election from Dec. 12 to Dec. 9. The Liberal Democrats and the Scottish National Party have indicated they would support such a move. The government said it wouldn’t rule out a vote on Dec. 9, but said it would be a rush.

Farewell and Good Luck from Tusk (4:30 p.m.)

EU Council President Donald Tusk warned that the Brexit extension to Jan. 31 ‘may be the last one,’ after announcing the bloc has formally adopted its decision to allow a delay.

“Please make the best use of this time,” Tusk said in a tweet. “I will keep my fingers crossed for you.”

Ex-Tories Add Backing to Votes at 16 (3:40 p.m.)

At least four former Conservative MPs have signed a proposed amendment that would expand the electoral roll to include 16 and 17 year olds.

Anna Soubry, who quit the party in February, and Guto Bebb, Justine Greening and Dominic Grieve, who were expelled in September for rebelling against Johnson’s Brexit plans, have all put their name to an amendment by Labour backbencher Stephen Doughty calling for the change.

But the issue may not come to a vote. The list of amendments chosen for debate will be announced sometime after 5:45 p.m.

Johnson to Pull Bill If Franchise Amendments Pass (3:20 p.m.)

Boris Johnson would abandon his attempt to hold a general election next month if amendments are passed to allow EU nationals and 16-year-olds to vote, his spokesman told reporters in Westminster.

Expanding the franchise would be a bad idea and would force a six-month delay until there can be a national vote, the spokesman said.

But he said the prime minister may press on if MPs vote to hold the election on Dec. 9 instead of Dec. 12. A vote on Dec. 9 would be a rush but the government isn’t ruling it out, he said.

It’s unclear which amendments the speaker will select, so these issues may not come to a vote.

Lib Dems and SNP Back Votes at 16 (3:10 p.m.)

The Liberal Democrats and Scottish National Party will join Labour in backing any amendment to allow 16-year-olds and EU nationals with settled status in the U.K. to vote in the general election, according to a Lib Dem official.

The Liberal Democrat stance is a change from Monday, when party officials briefed they were likely to abstain on any such amendment. That’s because, while they want 16-year olds to have the vote, they think there isn’t time to change the electoral register in time for a December election.

Ian Blackford, the SNP’s Westminster leader, reminded lawmakers that EU citizens are already on the electoral roll for local elections so it would be easy to give them votes in a general election.

Corbyn Backs Expansion of Electorate (2:50 p.m.)

Labour leader Jeremy Corbyn said he will back amendments to allow 16-year-olds and EU nationals with settled status in the U.K. to vote in the general election.

If the measures pass, it could torpedo the legislation, and therefore the early national poll.

Boris Johnson’s spokesman, James Slack, earlier told reporters that the Electoral Commission recommends changes to the electoral register shouldn’t be made less than 6 months before a vote, and that the government has no plans to expand the franchise.

Johnson Makes Case For Early Vote (2:35 p.m.)

Boris Johnson made his case for an early election in the House of Commons, saying the current crop of members wouldn’t vote through his Withdrawal Agreement Bill and accusing opposition MPs of not wanting to deliver Brexit.

“There is only one way to get Brexit done in the face of this unrelenting parliamentary obstructionism,” he told the chamber. “That is, Mr speaker, to refresh this Parliament and to give people a choice.”

MPs Vote to Allow Amendments to Election Bill (2:20 p.m.)

MPs backed the amendment by Labour backbencher Stella Creasy (see 2:10 p.m.) enabling them to add changes to Boris Johnson’s bill to force through a general election.

The government had sought to by bypass normal Parliamentary rules and limit the opportunity for rank-and-file lawmakers to change the proposed law.

It now opens up the bill to possible amendments, including from those who want to change the date of the election, or to add 16 and 17-year-olds and EU nationals to the electorate.

MPs Voting to Allow Election Bill Amendments (2:10 p.m.)

MPs are voting on an amendment to the government’s schedule for proceeding with the general election bill in the House of Commons.

In essence, the amendment, proposed by Labour backbencher Stella Creasy, would allow MPs to amend the legislation calling for an early general election. The government is trying to bypass normal Parliamentary rules to speed its passage through parliament.

Creasy said her amendment aims merely to put the concept of “fair play” back in the Commons. “What the government was trying to do, in simple terms, was rig today’s debate,” she told lawmakers. “Letting this program motion go through without the full list of rules, is like letting Lance Armstrong keep all his medals.”

Election Bill Presented to Parliament (1:45 p.m.)

The bill calling for an early general election has been presented in Parliament – what’s called its first reading. That’s just a formality. MPs have 6 hours to get it through all of its stages in the House of Commons.

That includes a vote on second reading – expected by about 6 p.m. and then debate on possible amendments at what’s called the committee stage of the bill. If it stays to schedule, the final vote should be no later than 7:45 p.m.

OBR Forecasts Still Due on Nov. 7 (12:45 p.m.)

The government’s fiscal watchdog said it will still publish its economic forecasts on Nov. 7, even though Chancellor of the Exchequer Sajid Javid’s Budget the day before has been canceled.

The forecasts, which were due to be presented in response to the Budget, will include updated assessments of the impact of the Brexit deal Boris Johnson agreed with the EU on Oct. 17. Javid has ruled out publishing any government impact assessments of the deal.

In a letter to the Treasury, Robert Chote, Chairman of the Office for Budget Responsibility, said it is required by law to publish at least two forecasts per year and will go ahead with its plans.

Chote said in his letter that the new deal is unlikely to have made a “significant quantitative difference” compared to the last forecast in March, which was based on Theresa May’s deal and assumed a transition period to Dec. 2020.

Johnson Will Consider Other Election Dates (12:30 p.m.)

Boris Johnson is open to considering other dates for a general election, but doesn’t consider a poll on Dec. 9 as logistically possible, his spokesman James Slack told reporters in Westminster.

That means Dec. 10 or 11 could emerge as the date for a pre-Christmas election, rather than the Dec. 12 vote proposed by the prime minister.

Slack also said that Johnson wouldn’t countenance the lowering of the voting age to 16, or the inclusion of EU nationals in the vote, both of which have been proposed by opposition parties. Even if he supported the changes, there would be practical issues with either happening in time for an election next month, Slack said.

Mixed Reaction to Election From Labour MPs (11:50 a.m.)

Not all Labour MPs seem happy about Jeremy Corbyn’s decision to back a general election.

Darren Jones, who represents a constituency in Bristol, tweeted a painting of the Charge of the Light Brigade – one of Britain’s best-known military disasters. Another, Ben Bradshaw said an election shouldn’t be a tool to resolve Brexit. “A general election is about everything about governing the country,” he told the BBC.

But others threw their support behind the plan. Laura Pidcock tweeted “BRING IT ON,” while Clive Lewis tweeted an abbreviated version of the same message: “bring it.”

‘It’s Time,’ Corbyn Says (11:30 a.m.)

Labour leader Jeremy Corbyn tweeted that his party will back a general election, confirming earlier statements from his office (see 10:50 a.m.). “It’s time,” he said.

Pound Erases Loss With Election Likely (11:10 a.m.)

The pound reversed an earlier decline as traders judged a vote in Parliament on an early election vote was likely to pass with the Labour Party’s backing (see 10:50 a.m.). The currency gained as much as 0.1% to $1.2873 before paring gains.

Market participants judge a snap poll could bring back a Conservative majority and end the Brexit deadlock, according to Nomura International Plc analyst Jordan Rochester.

Corbyn Backs December Election (10:50 a.m.)

Labour Party leader Jeremy Corbyn indicated his party will back a general election in December, meaning Johnson will be able to go to the polls by the end of the year.

Corbyn told his team: “For the next three months, our condition of taking no deal off the table has now been met,” according to a statement. “We will now launch the most ambitious and radical campaign for real change our country has ever seen.”

The parties are haggling over the date of the election, with a day between Dec. 9 and Dec. 12 currently on the table. Amendments to Johnson’s bill are being written now.

Trust Is Key as SNP Deliberates Over Election (10:45 a.m.)

Scottish National Party MPs are scrutinizing the contents of the government’s election bill ahead of a debate later today, according to a spokesman.

The party wants an election, but its lawmakers don’t trust Boris Johnson to keep to his word, he said.

Government Offers Dec. 11 to Win Lib Dem Support (10 a.m.)

The negotiations have begun in Westminster ahead of the vote on Boris Johnson’s plan for a Dec. 12 general election. With the Liberal Democrats and Scottish National Party seeking a Dec. 9 poll, a U.K. official said the government has offered Dec. 11 as a compromise.

A spokesman for the Liberal Democrats said the party is looking at the offer.

The government needs some opposition votes to reach a simple majority for its election bill to pass, but it also wants to avoid amendments being attached to the legislation.

Students’ Vacation Key to Election Date Battle (9 a.m.)

The biggest sticking point in Boris Johnson’s bid for a Dec. 12 general election is the date itself. Two smaller opposition parties, the Liberal Democrats and the Scottish National Party, whose support could be key to the government’s chances, want an earlier poll on Dec. 9 to ensure students are still at their universities to cast their ballots.

Liberal Democrat MP Chuka Umunna told BBC radio on Tuesday his party would not accept Dec. 12. But Conservative minister Brandon Lewis said Dec. 12 is the “right date” and accused the opposition parties of seeking to stop Brexit altogether. The government has said it needs time before Parliament breaks up for an election to secure key Northern Ireland legislation.

Johnson lacks a majority in Parliament, so will need at least some opposition votes to secure an early election. But the Liberal Democrats and SNP, both staunchly pro-EU and anti-Brexit, regard students as a key constituency.

Meanwhile, even though the main opposition Labour Party abstained in Monday’s vote on a snap poll, their position appeared to be softening on Tuesday. Labour’s trade spokesman, Barry Gardiner, hinted his party could back a Dec. 9 election, telling BBC radio: “The first thing is to make sure that students are not disenfranchised by the date of the election.”

Hammond: Election Will Usher in Tory Hardliners (8:30 a.m.)

Former Conservative Chancellor of the Exchequer Philip Hammond, who is still suspended from the party after defying Boris Johnson over Brexit, warned an election would usher in “hardliner” pro-Leave MPs to the Tory benches.

“I fear that the real narrative here is that the Vote Leave activists, the cohort that has seized control in Downing Street — and to some extent in the headquarters of the Conservative Party — wants this general election to change the shape of the Conservative Party in Parliament,” Hammond told BBC radio.

Hammond also disputed the government’s narrative that he and other expelled Tories, and MPs in general, are the ones blocking Brexit. The House of Commons voted in favor of the initial passage of Johnson’s Brexit bill before the government pulled the legislation over its failure to win backing for an accelerated timetable, Hammond said.

Rees-Mogg: No Plan to Bring Brexit Bill Back (Earlier)

In his business statement to Parliament late Tuesday, Cabinet minister Jacob Rees-Mogg said the government wants to get the early election bill through all stages of the House of Commons on Tuesday.

He also said the government had no plan to bring back the Withdrawal Agreement Bill — the legislation that puts the Brexit deal into U.K. law — before Parliament breaks up for the election. That’s a key demand of the Liberal Democrats and Scottish National Party, who opened up the legislative route to an early election when they expressed willingness to vote for a snap poll, subject to Brexit not being concluded beforehand.

According to Tuesday’s House of Commons order paper, debate on the election bill is due to begin at 12:30 p.m. — subject to ministerial statements and urgent questions — and can continue “until any hour.”

Earlier:

Boris Johnson Won’t Give Up on Trying to Force a U.K. ElectionBrexit Bulletin: Fourth Time Lucky?Two Foreign Exchange Traders, Three Votes and a Brexit Meltdown





Source link

EU hopes to endorse Brexit delay to January 31 with earlier departure possible: sources By Reuters


© Reuters. FILE PHOTO: An anti-Brexit protester waves an EU flag outside the Houses of Parliament in London

BRUSSELS (Reuters) – The 27 European Union countries that will remain after Brexit hope to agree on Monday to delay Britain’s divorce until Jan.31 with an earlier departure possible should the factious UK parliament ratify their separation deal, sources said.

British Prime Minister Boris Johnson last week reluctantly requested the three-month delay until the end of January, 2020, after the parliament’s lower House of Commons refused to swiftly approve a new Brexit deal he had agreed with the bloc.

Any postponement to Brexit can only be granted unanimously by the 27 and French objections have so far prevented a decision as Johnson spars with lawmakers over calling an early election.

Diplomatic sources told Reuters the bloc’s 27 EU ambassadors would meet at 0900 GMT on Monday in Brussels to agree on the three-month delay from the current Brexit date of Oct. 31.

The latest plan envisages that Britain could also be out on Dec.1 or Jan.1 should the parliament ratify the agreement in November or December, respectively, according to diplomats who deal with Brexit in the EU hub, Brussels.

The bloc will state that the extension, the third granted so Britain can sort out its departure, will not be used to renegotiate the divorce treaty again and that London should not impede other essential work by the EU on projects from budgets to climate policies.

Should all the ambassadors agree, there will be a short period — less than 24 hours and possibly as little as several hours — during which national capitals could still object. If no issues are raised, the decision will take effect.

If Britain is still in the EU after Oct. 31, the bloc will ask London to name a candidate for the new executive European Commission, added the sources, who spoke on condition of anonymity. A new Commission, comprising one representative from every member state, is due to take over on Dec. 1.

More than three years after Britain voted to quit the EU, the country and its parliament remain divided over how, when and even whether to leave, and the matter has triggered a spiraling political crisis in the country.

For the EU, the unprecedented loss of a member is a historic setback. But the 27 are also deeply frustrated with the intractable divorce, which is sapping time, energy and political capital that should otherwise be spent on jump-starting economies and tackling security and other challenges.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



S&P says it could cut UK rating after no-deal Brexit By Reuters


© Reuters. S&P says it could cut UK rating after no-deal Brexit

LONDON (Reuters) – Ratings agency Standard & Poor’s said on Friday it would cut Britain’s AA credit rating if the country leaves the European Union without a deal, and warned that Brexit indecision was causing government paralysis.

“The UK authorities’ search for consensus on Brexit continues and is crowding out nearly all other policy considerations,” S&P said as it maintained its negative outlook on Britain’s rating. S&P said it did not expect a no-deal Brexit, and forecast growth would average 1.3% a year from 2020 to 2022.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



The Odd Couple Determined to Get Brexit Done By Bloomberg



(Bloomberg) — When Boris Johnson first coined his slogan “Get Brexit Done,” the president of France probably wasn’t top of the list of people he thought he could turn to for help.

After all, for three years Emmanuel Macron has portrayed himself as the European Union’s savior, standing up against the populists and the nationalists inspired by Brexit and excited by anything that tugs at the threads of EU cohesion.

Now the two men are forming an informal bond over getting Britain out of the EU sooner rather than later.

France is holding up approval of a U.K. request to extend its deadline for leaving the EU. That might sound like an unusual way to help out a British prime minister, but in the strange logic of Brexit, that’s exactly how it works.

Johnson doesn’t actually want the extension he’s asked for — he only submitted the request after being boxed in by his opponents in the U.K. Parliament. The British premier would rather have a hard deadline and the risk of a chaotic no-deal exit to force lawmakers to endorse his withdrawal plans.

Macron gets that. And he’s happy to oblige because on that point at least, their interests are aligned. The French president also wants to get Brexit done.

Old Rivals

It’s not the way observers thought Brexit was going to turn out.

From the very start of the negotiations in July 2017, two months after Macron’s shock election victory upended the old political order in Paris, France has mostly taken the hardest line, frequently to the annoyance of other European governments. From cooperation on financial services to divvying up fishing waters, the U.K.’s oldest rival has been the most stubborn negotiator.

Like previous French leaders, Macron is suspicious of the U.K.’s intentions in Europe. Postwar president Charles de Gaulle twice vetoed Britain’s EU membership in the 1960s, while two decades later Francois Mitterrand clashed with Margaret Thatcher over the amount of money the U.K. contributed.

So Macron knows that acting tough on Brexit plays well domestically. And with Germany stuck in a political rut, getting the U.K. out of the club will help his efforts to reshape the EU along French lines.

But the dynamic changed when Johnson stepped in to replace Theresa May.

Awkward, anxious May struggled to strike up a rapport with European leaders — earning only respect, sympathy and, at times, disdain. Johnson’s personal chemistry with Macron was evident from the outset.

At the Group of Seven meeting in Biarritz, France, in August, the president laughed heartily as Johnson regaled him with stories in his best French. They agreed on several global issues, and spoke warmly about each other afterward.

“He’s a leader who demonstrates real strategic thinking and who has shown commitment and willingness to deliver,” Macron said after an EU summit in Brussels a week ago. “Those who didn’t take him seriously were wrong, and will continue to be wrong.”

Neither of them are typical leaders. Though both are deeply rooted in their countries’ establishments — Eton and Oxford for Johnson, France’s National School of Administration for Macron — both see themselves as outsiders.

Johnson spent most of his career on the fringes of the Conservative Party, only really taken semi-seriously. Macron set up his own movement to jump the queue to the French presidency and smashed the country’s traditional two-party system in the process.

Coordinating Plans?

As Brexit enters its endgame, both are keeping the world guessing about their real intentions. And the rest of the EU is every bit as annoyed with France as it is with the U.K., one EU official said.

At a meeting in Brussels on Friday morning, diplomats from 26 EU countries agreed that the U.K. should be given another three months to complete its departure. France was insisting on a month at most.

Macron wants to put pressure on the House of Commons to back Johnson’s deal, officials said. The rest of the bloc sees that as too much of a gamble because it could lead to a no-deal Brexit. So the decision was deferred.

Johnson spoke to Macron last Saturday when the British Parliament refused to approve his Brexit deal. Officially that’s the last time the two conversed, though there’s speculation in London they’ve texted each other since then to discuss France’s position on the delay.

For now, a British prime minister has found a French leader he can see eye to eye with on Europe. Let’s see how that holds up when they start discussing a trade deal.





Source link

Sterling Falls as Brexit Extension Uncertain   By Investing.com


© Reuters.

Investing.com – The pound was lower on Friday as confusion over whether or not the U.K. will leave the European Union next week continued, as the EU failed to reach an agreement on a Brexit extension.

The U.K. had asked the EU for an extension. U.K. lawmakers voted in principle for a Brexit deal on Tuesday but pushed against Prime Minister Boris Johnson’s timetable for passing a Brexit deal in three days.

Johnson has pushed for a general election but has faced backlash. The EU postponing their decision on an extension could put more pressure on the PM. Labour leader Jeremy Corbyn said Friday he would agree to an election if a no-deal Brexit was off the table.

slumped 0.3% to 1.2815 as of 10:52 AM ET (14:52 GMT) while was down 0.2% to 1.1985.

Elsewhere, the U.S. dollar was higher as traders looked ahead to the Federal Reserve’s policy meeting next week. Policymakers are expected to cut the fed funds rate by another 25 basis points, according to Investing.com.

The global trend of easing monetary policy seems to be expanding, with Indonesia and Turkey both cutting interest rates on Thursday. remained flat at 0.1735 against the U.S. dollar.

The , which measures the greenback’s strength against a basket of six major currencies, was up 0.2% to 97.558. The safe-haven Japanese yen was flat with at 108.60.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

U.S. Dollar, Pound Flat as Traders Pause to Assess Brexit Risk  By Investing.com


© Reuters.

Investing.com – Forex markets were quiet on Wednesday as Brexit uncertainty led to a pause in trading.

U.K. lawmakers vote in principle for a Brexit deal on Tuesday, but pushed against Prime Minister Boris Johnson’s timetable of passing a Brexit deal in three days, causing Johnson to threaten to move for a general election before Christmas.

The U.K. has asked the EU to extend the Oct. 31 deadline, when Johnson was hoping to leave the bloc. The EU has yet to offer an extension, but the Irish foreign minister said that he thinks it will be flexible.

was flat at 1.2874 as of 10:27 AM ET (14:27 GMT) while was down 0.1% to 1.1117.

The , which measures the greenback’s strength against a basket of six major currencies, was up 0.1% to 97.325 while the safe haven Japanese yen slide, with up 0.1% to 108.56.

Elsewhere, the Turkish lira gained, with down 0.7% to 5.7633 after Turkey and Russia agreed to remove Kurdish militia fighters from the border of Turkey and Syria and Turkey said there was no further need for attacks in the region.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link