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The British parliament has to decide how long to delay Brexit. The government is strongly opposed

Xinhua reported on April 10 that the lower house of the British Parliament approved the bill late at night on the 8th, binding the government must put forward a request to the European Union to postpone the "Brexit", and must not "leave the EU" without a deal on April 12. In addition, the government must "go through the court", explain to Parliament the extension of the "Brexit" timetable, and Parliament will vote to approve it.

Although the content required by the bill is not fundamentally different from what British Prime Minister Theresa May is doing at this stage, the initiative is clearly different. The British government strongly opposes Parliament's move.

【 Parliament's action 】

The bill, co-sponsored by Conservative MP Oliver Light and opposition Labour MP Yvette Cooper, passed the lower house of Parliament last week by 313 votes in favour and 312 against, before being debated and voted on by the upper house. The bill was passed by the upper House on the 8th and sent back to the lower house, where it was approved by an overwhelming majority that night and signed by Queen Elizabeth II just before midnight.

May has written to European Council President Donald Tusk asking for another extension, with a deadline of June 30. Reuters reported that Parliament passed the bill at this time, intended to obtain additional legislative guarantees to ensure that no deal is avoided on the 12th "Brexit".

In addition, the bill requires the government to put forward a motion to postpone the "Brexit" timetable to Parliament for discussion and approval by Parliament. If Parliament does not agree with the government's extension of the "Brexit" schedule, it can make legally binding adjustments. However, if the EU sets a new "Brexit" date, parliament will not be able to raise objections again and ask the prime minister to renegotiate with the EU.

"Both houses of Parliament have made it clear tonight that no deal would be hugely damaging to jobs, manufacturing and security in this country," Cooper told reporters.

Reuters reported that the above bill passed in Parliament, May further weaken Theresa May's persuasive power in the EU. She had previously told the EU that it would be able to secure enough support from parliament as long as the time was extended.

【 Schedule is tight 】

Theresa May promised to use June 30 as the latest "Brexit" deadline, but opposed parliament's approach, arguing that the bill approved on the 8th was not well drafted, rushed through parliament and constituted a dangerous precedent.

Theresa May made a motion overnight on the 8th to take June 30 as the "Brexit Day" for Parliament to debate and vote on the 9th.

The United Kingdom was scheduled to formally "leave the European Union" on March 29, because the agreement reached by the two sides was rejected by the Lower house of the British Parliament three times in a row, the "Brexit" process has stalled. According to the agreement, the United Kingdom must make a new choice before April 12, that is, delay "Brexit", no deal "Brexit" or no "Brexit".

Leaders of EU member states are scheduled to meet on April 10 to discuss the British side's request for another extension of the "Brexit". Mrs May wants to speak to the leaders of Germany and France before the meeting. She will travel to the German capital Berlin on Tuesday to meet with German Chancellor Angela Merkel, and then to the French capital Paris to meet with French President Emmanuel Macron.

According to the analysis, the EU may reject the British request and oppose the June 30 limit and grant a longer extension.

In the UK, Theresa May chose to compromise and negotiate with the opposition Labour Party in order to win support for the "Brexit" agreement. However, Labour leader Jeremy Corbyn said on the 8th that the government still rejected Labour's demands, such as remaining in the EU customs union.

Maintaining the customs union is a key demand of the opposition Labour Party. Such a plan of politically decoupling from the EU and economically remaining in the customs union is also known as "soft Brexit."

[Statement] This website is neutral about the statements and opinions in the text, and does not provide any express or implied warranty as to the accuracy, reliability or completeness of the content contained. The client should be fully aware of all the risks associated with the trading of foreign exchange precious metals and assume full responsibility.


Focus: IMF says countries may need to coordinate stimulus action as global growth cools

Washington, April 9 (Reuters) - The International Monetary Fund on Tuesday cut its forecast for global economic growth this year and said the global economy is slowing more than expected and a sharp downturn may require world leaders to coordinate stimulus measures.

The global lender's semi-annual World Economic Outlook pointed to the US-China trade war and the possibility of a disorderly Brexit as two key risks. The IMF warned that further downgrades to the outlook were highly likely.

The IMF said some major economies, including China and Germany, may need to take short-term action.

"The global economy is at a delicate moment," IMF chief economist Gita Gopinath said at a news conference to discuss the report.

Gopinath said governments "across economies" may need to open their purse strings at the same time if the slowdown deepens. Looser monetary policy may also be needed, he added.

The comments sent a dire warning to global officials gathering in Washington this week for the spring meetings of the IMF and World Bank. The world responded to the 2008 financial crisis with a coordinated fiscal stimulus.

The IMF said the global economy was likely to grow 3.3 per cent this year, the slowest pace since 2016. The latest estimate is 0.2 percentage points lower than the January estimate. This is the third time since October that the IMF has cut its global growth forecast.

The IMF expects global growth to remain unchanged at 3.6 per cent next year.

More than two-thirds of the projected slowdown in economic growth in 2019 is due to problems in rich countries, including EU members.

"In this context, avoiding policy mistakes that could hurt economic activity should be a priority," the IMF said.

One potential mistake is Britain's indecision over how to leave the EU. Despite the looming deadline, London has yet to decide how it will protect its economy during the Brexit process.

The IMF's latest forecasts assume an orderly Brexit, but it said a disorderly exit could shave more than 0.2 percentage points off global growth in 2019. The IMF said the Bank of England should remain "cautious" on interest rate policy, in an apparent reminder to wait for clarity on the outcome of Brexit before deciding whether to raise rates.

Economic growth in Europe has slowed sharply, but the IMF said it still believes the sharp slowdown in Europe and some emerging market economies will reverse in the second half of 2019 and resume accelerating growth.

The outlook for Germany, Europe's economic locomotive, has been hit by slowing export demand and consumer spending, as well as new emissions standards that have crimped car sales.

The IMF said Germany may have to act quickly on fiscal stimulus and called on the European Central Bank to continue stimulating the region's economy. The IMF also cut its growth forecast for Japan following a series of natural disasters.

The U.S. economy, while outperforming its peers in the developed world, has also been downgraded amid signs that the fiscal stimulus from tax cuts is generating much less activity than previously thought.

Worries about the global economic outlook sent U.S. Treasury yields lower and U.S. stocks lower, with the S&P 500 down about 0.4 percent and the Dow Jones industrial average down about 0.6 percent.

** China's economy shows Signs of recovery **

The IMF said it supports the U.S. Federal Reserve's decision to pause its rate hike cycle, believing it will ease financial conditions and support the U.S. and global economy this year. The IMF raised its 2020 US growth forecast by 0.1 percentage point to 1.9 per cent.

The IMF said it slightly raised its forecast for China's economic growth this year to 6.3 percent, in part because earlier expectations of an escalation in the trade war between the United States and China did not materialize.

Still, ongoing tensions between the United States and China and other major trading partners remain a risk to the global economy.

U.S. tariffs on Chinese imports have already dealt a blow to China's economic growth, while also putting pressure on Latin America and other regions that rely on Chinese demand for commodities.

The IMF also cut its 2019 growth forecasts for Canada, Latin America and the Middle East and North Africa.

When U.S. President Donald Trump imposed tariffs on Chinese imports starting in 2018, China was trying to rebalance its massive economy away from its reliance on investment and exports. In response, China imposed retaliatory tariffs on American goods.

The IMF said Beijing might need fiscal stimulus "to avoid a sharp near-term slowdown in growth that could undermine the overall reform programme".

Ms. Gopinath, the IMF's chief economist, said there were some tentative signs of recovery in the Chinese economy, which she called 'green shoots.'

[Statement] This website is neutral about the statements and opinions in the text, and does not provide any express or implied warranty as to the accuracy, reliability or completeness of the content contained. The client should be fully aware of all the risks associated with the trading of foreign exchange precious metals and assume full responsibility.

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