VIDEO4:2304:23UK lawmakers take control of Parliament to block no-deal BrexitFast MoneyU.K. lawmakers have taken another step toward wresting control of the Brexit process away from Prime Minister Boris Johnson and his government. A majority of lawmakers, including opposition politicians and so-called "rebel" members of the ruling Conservative Party, voted 328 to 301 Tuesday to take control of parliamentary business from the government. This would in theory allow them to push through legislation that could block government efforts to withdraw the U.K. from the EU without a deal on October 31. Johnson said he would bring forward a motion for a new general election following the setback. Government ministers had acknowledged ahead of the vote that it would test the parliament's confidence in Johnson's relatively new government; could serve to undermine his Brexit strategy, and might precipitate fresh elections. Another vote will now be held as early as Wednesday on the legislat..
Morgan Stanley's Mike Wilson, one of Wall Street's most skeptical strategists, is advising clients to dump growth stocks and buy defensive names as the "demand destructive" tariffs are fanning recession fears. Wilson, the firm's chief U.S. equity strategist, sees defensive bond proxies outperform growth names by another 10% as the U.S.-China trade war weighs on consumer sentiment, which adds to a long list of recessionary indicators that are already flashing red. "At the end of a growth scare when recession fears emerge, secular growth stocks typically underperform defensives," Wilson said in a note to clients on Monday. "Slowing job creation and slowing hours worked, stock market volatility and new tariffs are all potential weights on consumer spend." Tariffs on $112 billion of Chinese goods kicked in on Sunday. This round of duties target many everyday grocery items and household staples, which could cost the average American household $1,000 a year, J.P. Morgan estim..
British Prime Minister Boris Johnson delivers a speech at 10 Downing Street on September 2, 2019 in London, England.Chris J Ratcliffe | Getty ImagesSterling fell below $1.20 on Tuesday morning, reaching levels not seen since October 2016 as Britain's constitutional crisis over Brexit threatens to come to a head. At around 8:00 a.m. on Tuesday, sterling was trading as low as $1.1968, its lowest since a "flash crash" in October 2016. The brief crash saw the pound fall 6% in a matter of minutes during Asian trading hours to $1.1491, confounding market participants. While no single factor caused the sudden nosedive in late 2016, an official report from the Bank for International Settlements concluded that it was caused by a combination of headline-sensitive algorithmic trading, inexperienced traders and a lack of active market participants given the time of day. Brexit showdownU.K. lawmakers return from summer recess on Tuesday afternoon, with a cross-party group of lawmakers expected..
VIDEO3:4103:41Rebel lawmakers launch bid to stop a no-deal BrexitCapital ConnectionOpposition lawmakers, alongside some rebels from the ruling Conservative Party, have applied for an emergency debate in the U.K. parliament in an attempt to thwart a no-deal Brexit. The application will now be considered by House Speaker John Bercow. If successful, it means that opposition lawmakers could then have a vote later Tuesday to wrestle control of parliament away from the government. This vote would be seen as a confidence vote on Prime Minister Boris Johnson and his Brexit strategy. It could also eventually lead to an extension of the Brexit deadline until January 31, 2020. Johnson has warned members of his own party that if they did not vote with the government, they would undermine the U.K.'s position in talks with the EU. His administration has been rushing to refashion a new Brexit deal before the current October 31 deadline. Snap election?Johnson has insisted there were "no circumsta..
Conservatives face challenges in a possible general electionAppearing on Al Jazeera English on 3 September, Open Europe's Dominic Walsh discusses the prospects of another Brexit extension and a possible general election. The post Conservatives face challenges in a possible general election appeared first on Open Europe.
Extending Article 50 does not automatically stop No DealMPs opposed to a No Deal Brexit will try to force the Prime Minister to seek an extension to the Article 50 process when Parliament returns from recess tomorrow. Open Europe's Dominic Walsh argues that extending Article 50 merely delays No Deal, rather than taking it off the table. The post Extending Article 50 does not automatically stop No Deal appeared first on Open Europe.