UK Finance Minister Hammond to resign on Wednesday over no-deal Brexit

Finance Minister Philip Hammond said on Sunday he would resign if Boris Johnson became Britain’s new prime minister because he could not support a leader happy to take the country out of the European Union without a deal. Hammond’s decision underlines the strength of feeling in parliament against a no-deal Brexit, which some lawmakers and many businesses say would be catastrophic for the economy. Britain’s new prime minister is tipped to be former London mayor Johnson, who has promised to leave


Finance Minister Philip Hammond said on Sunday he would resign if Boris Johnson became Britain’s new prime minister because he could not support a leader happy to take the country out of the European Union without a deal. Hammond’s decision underlines the strength of feeling in parliament against a no-deal Brexit, which some lawmakers and many businesses say would be catastrophic for the economy. Britain’s new prime minister is tipped to be former London mayor Johnson, who has promised to leave
UK Finance Minister Hammond to resign on Wednesday over no-deal Brexit Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-21
Keywords: news, cnbc, companies, uk, eu, finance, lawmakers, nodeal, withdrawal, brexit, johnson, prime, hammond, minister, deal, resign, weekbritains


UK Finance Minister Hammond to resign on Wednesday over no-deal Brexit

Finance Minister Philip Hammond said on Sunday he would resign if Boris Johnson became Britain’s new prime minister because he could not support a leader happy to take the country out of the European Union without a deal.

Hammond’s decision underlines the strength of feeling in parliament against a no-deal Brexit, which some lawmakers and many businesses say would be catastrophic for the economy.

A loyal Conservative who has served in a number of ministerial roles, Hammond is an unlikely rebel. He said his fears over a no deal had forced him to vote against the government for the first time in his 22-year political career last week.

Britain’s new prime minister is tipped to be former London mayor Johnson, who has promised to leave the EU “do or die” by an Oct. 31 deadline. That leaves him facing a tricky Brexit challenge from the moment he takes office on Wednesday.

Johnson has said he would ramp up preparations for a no deal if he becomes prime minister to try to force the EU’s negotiators to make changes to the deal that Prime Minister Theresa May sealed with Brussels and UK lawmakers voted down.

But parliamentary opposition to a no deal is growing and the EU is refusing to budge over that Withdrawal Agreement.


Company: cnbc, Activity: cnbc, Date: 2019-07-21
Keywords: news, cnbc, companies, uk, eu, finance, lawmakers, nodeal, withdrawal, brexit, johnson, prime, hammond, minister, deal, resign, weekbritains


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

What Brexit could mean for the US economy

After three long years of negotiations and the possibility of a no-deal Brexit rising every day, economists have predicted what it could all mean for the U.S. economy and its financial markets when the U.K. does finally leave the EU. ‘America first’ trade deal? I also find it hard to imagine a trade deal being agreed, at least while Trump is still in power. “The president’s idea of a trade deal may not entirely coincide with some people in the U.K.’s idea of a trade deal. ” “But stocks quickly r


After three long years of negotiations and the possibility of a no-deal Brexit rising every day, economists have predicted what it could all mean for the U.S. economy and its financial markets when the U.K. does finally leave the EU. ‘America first’ trade deal? I also find it hard to imagine a trade deal being agreed, at least while Trump is still in power. “The president’s idea of a trade deal may not entirely coincide with some people in the U.K.’s idea of a trade deal. ” “But stocks quickly r
What Brexit could mean for the US economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: holly ellyatt
Keywords: news, cnbc, companies, deal, uk, minister, president, mean, financial, uks, trump, eu, trade, economy, brexit


What Brexit could mean for the US economy

After three long years of negotiations and the possibility of a no-deal Brexit rising every day, economists have predicted what it could all mean for the U.S. economy and its financial markets when the U.K. does finally leave the EU. A current leadership race to succeed Prime Minister Theresa May has largely put Brexit on hold, but whoever wins the contest — the former Foreign Minister Boris Johnson or the incumbent Jeremy Hunt — will have to quickly turn his attention to the issue, given an October 31 deadline to leave the bloc. The effect Brexit will have on the U.S. economy, let alone the U.K.’s, will largely depend on what form the departure takes and how closely aligned the U.K. stays to the EU – and to what extent this dictates Britain’s new trading relationships. Pro-Brexit campaigners want the U.K. to forge trade deals with countries outside the bloc but it cannot negotiate these while still inside the EU — which unsurprisingly remains the U.K.’s largest trading partner as a bloc. The U.S. is the U.K.’s largest single-country trading partner.

It’s currently uncertain whether the U.K.’s new prime minister would take the country out of the EU without a deal in place, rather than Parliament finally approving some sort of formal deal. Some Brexiteers have insisted that the U.K. must now leave the EU come what may on October 31 and believe a “no deal” Brexit is preferable than a potentially interminable alliance with the EU that resembles partial membership.

‘America first’ trade deal?

U.S. trade deficits (where it imports more than it exports) with any given country are a bugbear of President Donald Trump and his trade and tariff disputes with China and the EU have reflected this. The U.K. has largely escaped Trump’s wrath, however, as the U.S. has a trade surplus with the U.K.

President Donald Trump attends a Ceremonial Welcome at Buckingham Palace on June 03, 2019 in London, England. Samir Hussein | WireImage | Getty Images

U.S. goods and services trade with United Kingdom totaled an estimated $262.3 billion in 2018, according to the Office of the U.S. Trade Representative, with exports at $141.1 billion and imports at $121.2 billion, giving the U.S. a goods and services trade surplus of $19.9 billion in 2018. Trump had promised the U.K. a “phenomenal” trade deal post-Brexit, but not everyone is convinced that the U.K.’s cherished “special relationship” with the U.S. will translate into such a mutually beneficial trade deal. For one, IHS Markit’s Vice Chairman Dan Yergin told CNBC that “the challenge for Britain will be to make the ‘special relationship’ very special.” There are question marks over what a trade deal would entail but Trump also caused a furor during his recent U.K. state visit when he said “everything is on the table” when it came to trade talks and included Britain’s closely-guarded health service, the NHS.

‘Political non-starters’

Capital Economics’ Senior U.S. Economist Andrew Hunter believes that the U.S. really doesn’t have that much to gain – or lose – from a disorderly Brexit, or even a trade deal, given that U.S. exports only account for 0.7% of U.S. gross domestic product (GDP). “There may well be an attempt on the U.K. side at least to foster a closer economic relationship with the U.S. to make up for the loss of ties with the EU, and a comprehensive U.S.-U.K. trade deal would have the potential to provide a modest boost to both economies,” he said. “But in the case of the U.S. that boost really would be pretty miniscule. I also find it hard to imagine a trade deal being agreed, at least while Trump is still in power. The U.S. administration wants any deal to include significant access to the U.K. agriculture sector and possibly even the NHS, both of which are surely political non-starters from the U.K. government’s perspective,” he added.

US President Donald Trump and Prime Minister Theresa May shake hands during a joint press conference at the Foreign & Commonwealth Office during the second day of the President’s State Visit on June 4, 2019 in London, England. WPA Pool | Getty Images News | Getty Images

The U.K.’s outgoing Finance Minister Philip Hammond summed up how the U.K. government might feel when it comes to drawing up a trade pact with the U.S., suspecting that any deal was very likely to favor America. “Trade deals are intrinsically complex and what I hear the president say as well as ‘We want to do a U.S.-U.K. trade deal,’ what I hear the president say is ‘America first’,” he said Monday. “The president’s idea of a trade deal may not entirely coincide with some people in the U.K.’s idea of a trade deal. ”

Market volatility

Many business leaders dread a “no deal” cliff-edge scenario for the U.K., as it would mean that the country abruptly leaves with no transition period in place which would allow businesses to adjust to life outside the EU. It would cause market volatility too, economists note. “The Fed has explicitly mentioned Brexit uncertainty as one potential factor weighing on the U.S. outlook, and it’s certainly possible that a no deal Brexit could cause a period of volatility in global financial markets which, if it was sustained, might weigh on U.S. growth,” Hunter told CNBC. “That said, it’s worth remembering that the financial market volatility following the referendum result in 2016 was unwound pretty quickly, and we suspect the same would happen again. ” The original Brexit vote caused the Dow Jones industrial average to drop by 5% or 6% in June 2016, and many U.S. economists thought Brexit could shave as much as 0.5 percentage points from the country’s GDP growth. “But stocks quickly recovered, and so too did the forecasts that Brexit would damage the U.S. economy,” Chris Rupkey, managing director and chief financial economist at MUFG in New York, told CNBC.


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: holly ellyatt
Keywords: news, cnbc, companies, deal, uk, minister, president, mean, financial, uks, trump, eu, trade, economy, brexit


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

UK lawmakers back bid to hamper a no-deal Brexit

British lawmakers on Thursday backed proposals to make it harder for the next prime minister to force through a no-deal Brexit by suspending parliament, showing again their determination to stop a divorce from the EU without agreement. Boris Johnson, the frontrunner to succeed Prime Minister Theresa May next week, has said Britain must leave the European Union on Oct. 31 with or without a deal. He has refused to rule out suspending, or proroguing, parliament to prevent lawmakers from passing leg


British lawmakers on Thursday backed proposals to make it harder for the next prime minister to force through a no-deal Brexit by suspending parliament, showing again their determination to stop a divorce from the EU without agreement. Boris Johnson, the frontrunner to succeed Prime Minister Theresa May next week, has said Britain must leave the European Union on Oct. 31 with or without a deal. He has refused to rule out suspending, or proroguing, parliament to prevent lawmakers from passing leg
UK lawmakers back bid to hamper a no-deal Brexit Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18
Keywords: news, cnbc, companies, uk, suspending, minister, nodeal, hamper, reports, northern, exit, johnson, bid, lawmakers, parliament, prime, backed, brexit


UK lawmakers back bid to hamper a no-deal Brexit

British lawmakers on Thursday backed proposals to make it harder for the next prime minister to force through a no-deal Brexit by suspending parliament, showing again their determination to stop a divorce from the EU without agreement.

Boris Johnson, the frontrunner to succeed Prime Minister Theresa May next week, has said Britain must leave the European Union on Oct. 31 with or without a deal.

He has refused to rule out suspending, or proroguing, parliament to prevent lawmakers from passing legislation to block his exit plan if he tries to exit without a deal.

Lawmakers backed a proposal by 315 to 274 that would require parliament to be sitting to consider Northern Irish affairs for several days in September and October even if it was suspended.

They also backed a requirement for ministers to make fortnightly reports on progress towards re-establishing Northern Ireland’s collapsed executive, to give lawmakers an opportunity to debate and approve those reports and if, parliament has been suspended, to recall it in order to do so.

The measures do not amount to an outright block on suspending parliament but could make it much more difficult to bypass parliament.

A junior culture minister was among those who rebelled against the Conservative government to vote for the measure while media reported some senior government figures, including finance minister Philip Hammond who are likely to be sacked if Johnson wins the top job, abstained.


Company: cnbc, Activity: cnbc, Date: 2019-07-18
Keywords: news, cnbc, companies, uk, suspending, minister, nodeal, hamper, reports, northern, exit, johnson, bid, lawmakers, parliament, prime, backed, brexit


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Brexit is going to continue to be a ‘big mess’: Professor

Brexit is going to continue to be a ‘big mess’: Professor14 Hours AgoJames Crabtree of the Lee Kuan Yew School of Public Policy discusses next steps for the European Central Bank and Brexit. He says Europe is increasingly divided.


Brexit is going to continue to be a ‘big mess’: Professor14 Hours AgoJames Crabtree of the Lee Kuan Yew School of Public Policy discusses next steps for the European Central Bank and Brexit. He says Europe is increasingly divided.
Brexit is going to continue to be a ‘big mess’: Professor Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-17
Keywords: news, cnbc, companies, school, public, continue, big, steps, professor14, yew, going, lee, brexit, professor, kuan, mess, policy


Brexit is going to continue to be a 'big mess': Professor

Brexit is going to continue to be a ‘big mess’: Professor

14 Hours Ago

James Crabtree of the Lee Kuan Yew School of Public Policy discusses next steps for the European Central Bank and Brexit. He says Europe is increasingly divided.


Company: cnbc, Activity: cnbc, Date: 2019-07-17
Keywords: news, cnbc, companies, school, public, continue, big, steps, professor14, yew, going, lee, brexit, professor, kuan, mess, policy


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Sterling hits lowest level since April 2017 as disorderly Brexit fears grow

The pound plunged to new lows Tuesday after lackluster U.K. data compounded growing fears of a haphazard Brexit outcome at the end of October. Sterling versus the U.S. dollar weakened 0.7% Tuesday, reaching $1.2418 by late-morning London trade. It hit a 27-month low against the greenback and a new six-month low versus the euro. Against the single currency, the pound has also suffered 10 consecutive weeks of losses — the longest on record. Previous London Mayor and former Foreign Secretary Boris


The pound plunged to new lows Tuesday after lackluster U.K. data compounded growing fears of a haphazard Brexit outcome at the end of October. Sterling versus the U.S. dollar weakened 0.7% Tuesday, reaching $1.2418 by late-morning London trade. It hit a 27-month low against the greenback and a new six-month low versus the euro. Against the single currency, the pound has also suffered 10 consecutive weeks of losses — the longest on record. Previous London Mayor and former Foreign Secretary Boris
Sterling hits lowest level since April 2017 as disorderly Brexit fears grow Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-16  Authors: david reid
Keywords: news, cnbc, companies, lowest, disorderly, secretary, ireland, uk, sterling, fears, low, trade, brexit, pound, currency, versus, separate, hits, grow, 2017, level, union


Sterling hits lowest level since April 2017 as disorderly Brexit fears grow

Contenders to be the U.K.’s next leader, Boris Johnson and Jeremy Hunt (R), take part in the debate “Head To Head” on ITV on July 9, 2019 in Salford, England.

The pound plunged to new lows Tuesday after lackluster U.K. data compounded growing fears of a haphazard Brexit outcome at the end of October.

Sterling versus the U.S. dollar weakened 0.7% Tuesday, reaching $1.2418 by late-morning London trade. It hit a 27-month low against the greenback and a new six-month low versus the euro. Against the single currency, the pound has also suffered 10 consecutive weeks of losses — the longest on record.

In a research note Tuesday, Nomura’s currency analyst Jordan Rochester called the fall in the pound’s spot price as “the story of the day” and said there was potentially more downside risk.

“I am worried that volume is starting from a very low base and hedging flows will be picking up further,” he said. Rochester said in a separate text on Monday that he expected a spike in volatility for the pound’s trade once lawmakers returned to the House of Commons in September after their summer breaks.

According to Reuters data the British pound has been the worst performing G-10 currency this year. Sterling’s recent trend of losses against its major trading partners has been attributed to the ongoing race to succeed Theresa May as the next Conservative Party leader and U.K. prime minister.

Previous London Mayor and former Foreign Secretary Boris Johnson is the favorite to defeat current Foreign Secretary Jeremy Hunt in the runoff.

In their pitches to Conservative Party members, both men have taken a hard-line stance on future negotiations with the European Union, suggesting that they are prepared to walk away without a deal on October 31.

In a television debate Monday, each declared that the Northern Ireland “backstop” was “dead,” as it could trap the U.K. into a never-ending customs union with the EU.

The backstop was agreed by May’s team with Brussels as a means to ensure that there was no physical border erected on the island of Ireland between Northern Ireland (which is a part of the U.K.) and the Republic of Ireland (a separate country that is to remain as a European Union member nation).


Company: cnbc, Activity: cnbc, Date: 2019-07-16  Authors: david reid
Keywords: news, cnbc, companies, lowest, disorderly, secretary, ireland, uk, sterling, fears, low, trade, brexit, pound, currency, versus, separate, hits, grow, 2017, level, union


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

How Trump has managed to overshadow the UK’s leadership race

U.S. President Donald Trump, speaks during a a joint news conference with Theresa May, U.K. prime minister, at Chequers in Aylesbury, U.K., on Friday, July 13, 2018. Current Foreign Secretary Jeremy Hunt and his predecessor Boris Johnson are the final two candidates in the race. Their approach to Brexit, future trade deals and the U.K.’s much-vaunted “special relationship” with the U.S. have been at the forefront of public debates between the candidates. And how both men would deal with the unig


U.S. President Donald Trump, speaks during a a joint news conference with Theresa May, U.K. prime minister, at Chequers in Aylesbury, U.K., on Friday, July 13, 2018. Current Foreign Secretary Jeremy Hunt and his predecessor Boris Johnson are the final two candidates in the race. Their approach to Brexit, future trade deals and the U.K.’s much-vaunted “special relationship” with the U.S. have been at the forefront of public debates between the candidates. And how both men would deal with the unig
How Trump has managed to overshadow the UK’s leadership race Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: holly ellyatt
Keywords: news, cnbc, companies, deal, trump, managed, leadership, uk, overshadow, race, theresa, minister, prime, trade, uks, brexit


How Trump has managed to overshadow the UK's leadership race

U.S. President Donald Trump, speaks during a a joint news conference with Theresa May, U.K. prime minister, at Chequers in Aylesbury, U.K., on Friday, July 13, 2018. Trump dealt a double blow to May during this meeting, saying her plans for a soft Brexit would likely end hopes of a trade deal with the U.S.

President Donald Trump, whether intentionally or not, is managing to play a key role in the race to become the next U.K. prime minister.

Current Foreign Secretary Jeremy Hunt and his predecessor Boris Johnson are the final two candidates in the race. Their approach to Brexit, future trade deals and the U.K.’s much-vaunted “special relationship” with the U.S. have been at the forefront of public debates between the candidates. Particularly as its EU withdrawal remains uncertain and that has a direct knock-on effect for the U.K.’s future trading relationships with the world.

And how both men would deal with the unignorable figure of Trump looms large too.

Trump’s influence on U.K. politics came to the fore in recent days following the controversy surrounding leaked memos sent by the U.K. ambassador to the U.S. in which he called the U.S. administration “uniquely dysfunctional” and “inept.”

Kim Darroch’s resignation on Wednesday came after Trump publicly lambasted the experienced diplomat, calling him a “very stupid guy” who “had not served the U.K. well,” adding that the U.S. “would no longer deal with him.” He also criticized outgoing Prime Minister Theresa May and her handling of Brexit negotiations.

For the U.K., it’s impossible to ignore that the country will want to remain on best terms with Trump, not just to maintain political ties but economic ones as it seeks a trade deal with the U.S. once it leaves the EU.


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: holly ellyatt
Keywords: news, cnbc, companies, deal, trump, managed, leadership, uk, overshadow, race, theresa, minister, prime, trade, uks, brexit


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Richard Branson warns the pound will ‘collapse to parity’ with the dollar in a hard Brexit

The U.K. leaving the European Union without a deal on October 31 would cause the pound to reach “parity” with the dollar, Virgin boss Richard Branson has said. Branson identified Virgin Atlantic as being particularly susceptible to the plummeting pound. “The pound will collapse to parity with the dollar if there is a hard Brexit,” he said, explaining that all of Virgin Atlantic’s costs are in dollars and projecting a “bottom line hit” of around $100 million. “It obviously is going to result in u


The U.K. leaving the European Union without a deal on October 31 would cause the pound to reach “parity” with the dollar, Virgin boss Richard Branson has said. Branson identified Virgin Atlantic as being particularly susceptible to the plummeting pound. “The pound will collapse to parity with the dollar if there is a hard Brexit,” he said, explaining that all of Virgin Atlantic’s costs are in dollars and projecting a “bottom line hit” of around $100 million. “It obviously is going to result in u
Richard Branson warns the pound will ‘collapse to parity’ with the dollar in a hard Brexit Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: elliot smith
Keywords: news, cnbc, companies, virgin, european, warns, richard, parity, pound, dollar, branson, uk, union, hard, collapse, result, brexit


Richard Branson warns the pound will 'collapse to parity' with the dollar in a hard Brexit

The U.K. leaving the European Union without a deal on October 31 would cause the pound to reach “parity” with the dollar, Virgin boss Richard Branson has said.

In an interview with the BBC, Branson said a hard Brexit would be “devastating for many Virgin companies,” and would force the group to move investment away from the U.K.

A hard Brexit is one in which along with leaving the European Union, the U.K. also leaves both the European single market and the customs union, eradicating existing free trade agreements with the bloc.

Branson identified Virgin Atlantic as being particularly susceptible to the plummeting pound.

“The pound will collapse to parity with the dollar if there is a hard Brexit,” he said, explaining that all of Virgin Atlantic’s costs are in dollars and projecting a “bottom line hit” of around $100 million.

“A hard Brexit will result in the freight that we get from Europe, that we put on Virgin Atlantic going to America, just disappearing – we won’t get any of that freight, so that would be another $100 million just down the drain, and I could carry on,” he told the BBC.

“It obviously is going to result in us spending a lot less money in Britain and just putting all our energies into other countries,” Branson added.

Boris Johnson, the most likely candidate to replace British Prime Minister Theresa May, has vowed to take the U.K. out of the EU with or without a deal in place, and has refused to rule out suspending parliament in order to push the departure through.

The pound was trading just above the significant $1.25 marker on Thursday, having broken below it earlier in the week.


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: elliot smith
Keywords: news, cnbc, companies, virgin, european, warns, richard, parity, pound, dollar, branson, uk, union, hard, collapse, result, brexit


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

European stocks close lower after IMF calls for ECB stimulus

European stocks closed lower on Thursday after the IMF said the euro zone economy faces rising risks stemming from trade tensions, Brexit and Italy. In a report published on Thursday afternoon, the International Monetary Fund (IMF) also called for fresh stimulus from the ECB. “Directors agreed that monetary policy should remain accommodative until inflation is sustainably converging to the ECB’s objective,” it said. Sewing is seeking shareholder backing for a massive 7.4 billion euro ($8.4 billi


European stocks closed lower on Thursday after the IMF said the euro zone economy faces rising risks stemming from trade tensions, Brexit and Italy. In a report published on Thursday afternoon, the International Monetary Fund (IMF) also called for fresh stimulus from the ECB. “Directors agreed that monetary policy should remain accommodative until inflation is sustainably converging to the ECB’s objective,” it said. Sewing is seeking shareholder backing for a massive 7.4 billion euro ($8.4 billi
European stocks close lower after IMF calls for ECB stimulus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: chloe taylor elliot smith, chloe taylor, elliot smith
Keywords: news, cnbc, companies, close, financial, brexit, stocks, stock, tax, calls, testimony, lower, imf, monetary, ecb, bank, european, british, trade, stimulus, billion


European stocks close lower after IMF calls for ECB stimulus

European stocks closed lower on Thursday after the IMF said the euro zone economy faces rising risks stemming from trade tensions, Brexit and Italy.

In a report published on Thursday afternoon, the International Monetary Fund (IMF) also called for fresh stimulus from the ECB.

“Directors agreed that monetary policy should remain accommodative until inflation is sustainably converging to the ECB’s objective,” it said. “They welcomed the recent extension of forward guidance to help achieve a sustained pickup in inflation. Targeted macroprudential policies could be used to address any financial stability risks.”

The pan-European Stoxx 600 was in negative territory at the closing bell, with all major bourses in the red.

Stateside, the Dow Jones Industrial Average rallied to a record high on Thursday, lifted by health insurance stocks after the White House dropped a proposal to eliminate drug rebates.

Stocks on Wall Street were also lifted by Wednesday’s testimony by Federal Reserve Chair Jerome Powell, which signaled that easier monetary policy could be implemented later this month.

Powell told the House Financial Services Committee in a prepared testimony on Wednesday that the central bank will “act as appropriate” to sustain expansion as “crosscurrents” are weighing on the economic outlook.

Back in Europe, the Bank of England’s Financial Stability Report on Thursday suggested that British banks hold enough capital to cope with the simultaneous risks of a no-deal Brexit and a global trade war, but warned that a slide in overseas investment into some British assets due to Brexit does pose a risk to the wider economy.

France’s Senate approved a tax on the revenues of tech giants like Google, Amazon and Facebook on Thursday, defying a warning from the U.S. Trade Representative Robert Lighthizer said Wednesday that President Donald Trump has ordered a probe into whether the planned “digital services” tax is an unfair trade practice that targets U.S. companies.

In corporate news, Deutsche Bank shareholders will have the opportunity to grill CEO Christian Sewing on how he plans to deliver on the German lender’s revenue growth targets during a global roadshow. Sewing is seeking shareholder backing for a massive 7.4 billion euro ($8.4 billion) restructuring program. Deutsche Bank shares were up 0.9% on Thursday.

Swiss Re has suspended the $4.1 billion IPO (initial public offering) of its U.K. life insurance business due to market conditions. The reinsurance giant’s stock pared early losses to end the session around the flatline.

In terms of individual stock performance, German packaging manufacturer Gerresheimer topped the Stoxx 600, jumping 13.7% after reporting a strong second quarter, with net income more than doubling.

At the other end of the table, British online supermarket Ocado saw its shares fall 6% during afternoon trade, after U.S. retailer Kroger announced that the two companies would invest $55 million in a “customer fulfillment center” in Georgia, an automated warehouse facility with digital and robotic capabilities.

Swiss chemical company Sika shed 4% after UBS downgraded the stock from “neutral” to “sell.”


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: chloe taylor elliot smith, chloe taylor, elliot smith
Keywords: news, cnbc, companies, close, financial, brexit, stocks, stock, tax, calls, testimony, lower, imf, monetary, ecb, bank, european, british, trade, stimulus, billion


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Disorderly Brexit now seen as a ‘significant risk’ by Irish finance minister

The Irish finance minister has warned that his government is stepping up preparations given the “significant risk” of a disorderly Brexit. The two candidates for the role of the U.K.’s next prime minister have continued to criticize each other’s plans for Britain to leave the European Union (EU) but neither have completely ruled out leaving with no deal in place at all. “From the point of view of the Irish government we now believe that the prospect of a disorderly Brexit is now a significant ri


The Irish finance minister has warned that his government is stepping up preparations given the “significant risk” of a disorderly Brexit. The two candidates for the role of the U.K.’s next prime minister have continued to criticize each other’s plans for Britain to leave the European Union (EU) but neither have completely ruled out leaving with no deal in place at all. “From the point of view of the Irish government we now believe that the prospect of a disorderly Brexit is now a significant ri
Disorderly Brexit now seen as a ‘significant risk’ by Irish finance minister Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: willem marx
Keywords: news, cnbc, companies, european, prospect, irish, finance, meeting, risk, disorderly, seen, significant, minister, prime, brexit


Disorderly Brexit now seen as a 'significant risk' by Irish finance minister

The Irish finance minister has warned that his government is stepping up preparations given the “significant risk” of a disorderly Brexit.

The two candidates for the role of the U.K.’s next prime minister have continued to criticize each other’s plans for Britain to leave the European Union (EU) but neither have completely ruled out leaving with no deal in place at all. The uncertainty has sent pound sterling to near two-year lows versus the U.S. dollar.

“From the point of view of the Irish government we now believe that the prospect of a disorderly Brexit is now a significant risk and the Irish government is meeting to day to review our readiness for this great challenge,” Paschal Donohoe told CNBC at a meeting of European finance chiefs in Brussels on Tuesday.

Donohoe also claimed that it was important that new leadership at the European Commission — the EU’s executive branch — be appointed quickly.

This was necessary, he said, “to allow Europe to respond back to protect our single market and to ensure that we can rise to the risks that might be created in dealing with Brexit.”

The Irish government issued a new Brexit planning document this week and at a press conference to mark its publication, the country’s deputy prime minister Simon Coveney described a disorderly British departure from the EU as an “ugly prospect.”


Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: willem marx
Keywords: news, cnbc, companies, european, prospect, irish, finance, meeting, risk, disorderly, seen, significant, minister, prime, brexit


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

These two risks could sneak up on investors in the year’s second half

While Wall Street focuses on U.S.-China trade war dangers, Medley Global Advisors’ Ben Emons sees two risks making a comeback. The way the world’s affairs are shaping up, he warns Brexit fallout and the threat of U.S. tariffs on European cars could sneak up on investors in year’s second half — which kicks off Monday. “It’s a big market for European cars. With Treasury yields at record lows in Europe, Emons believes another batch of tariffs would add to volatility and act as a catalyst for more c


While Wall Street focuses on U.S.-China trade war dangers, Medley Global Advisors’ Ben Emons sees two risks making a comeback. The way the world’s affairs are shaping up, he warns Brexit fallout and the threat of U.S. tariffs on European cars could sneak up on investors in year’s second half — which kicks off Monday. “It’s a big market for European cars. With Treasury yields at record lows in Europe, Emons believes another batch of tariffs would add to volatility and act as a catalyst for more c
These two risks could sneak up on investors in the year’s second half Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-28  Authors: stephanie landsman
Keywords: news, cnbc, companies, risks, european, global, tariffs, emons, europe, second, cars, brexit, sneak, half, trade, investors, administration, war


These two risks could sneak up on investors in the year's second half

While Wall Street focuses on U.S.-China trade war dangers, Medley Global Advisors’ Ben Emons sees two risks making a comeback.

The way the world’s affairs are shaping up, he warns Brexit fallout and the threat of U.S. tariffs on European cars could sneak up on investors in year’s second half — which kicks off Monday.

According to Emons, there’s an increasing chance a no-deal Brexit could damage global markets.

“That’s still ongoing with the changes in leadership in the UK,” the firm’s global macro strategy managing director told CNBC’s “Futures Now ” last Thursday.

Emons’ other glaring risk is possible car tariffs. In May, the Trump administration delayed a final decision by up to six months on whether to place tariffs on automobile and auto parts.

“You have the administration negotiating with Europe, and that’s the next thing we’ll have to look at after this G-20,” he said. “It’s a big market for European cars. That could really impact Europe in particular, and I would like to mention the U.S. likely, too.”

With Treasury yields at record lows in Europe, Emons believes another batch of tariffs would add to volatility and act as a catalyst for more central bank easing measures.

Meanwhile, the trade war between Washington and Beijing is already pushing rate cuts around the globe. He expects the Federal Reserve to join them by trimming interest rates in July to address softening consumer spending and the growth slowdowns tied to trade.

“Our base case is more for a 25 basis point cut,” Emons said.


Company: cnbc, Activity: cnbc, Date: 2019-06-28  Authors: stephanie landsman
Keywords: news, cnbc, companies, risks, european, global, tariffs, emons, europe, second, cars, brexit, sneak, half, trade, investors, administration, war


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post