THE MOST FROM THE COAST !

..


 Coastweek website


XINHUA NEWS SERVICE REPORTS FROM THE AFRICAN CONTINENT

 

British Sterling pound rebounds after BREXIT deal voted down

LONDON United Kingdom (Xinhua) -- The British pound stopped its decline and rebounded as an immediate response to the British parliament’s overwhelming rejection of the Brexit deal on Tuesday evening.

Members of Parliament (MPs) voted 432-202 against the Brexit deal reached between the British government and the European Union after a five-day debate, creating the loss that is said to be the biggest defeat for a British government since 1920s.
.

British Sterling pound rebounds after BREXIT deal voted down | Coastweek

  The pound had been relatively calm until noon as British media widely expected the failure of the deal as a "done deal".

However, the currency faced more downward pressure in the afternoon and dropped 1.24 percent against the U.S. dollar to trade at 1.27 by the time the key vote began.

Within one hour after the defeat of the Brexit deal was announced, the pound gained its loss against the U.S. dollar and rose slightly later.

It had been up 0.6 percent against the euro for a while.

While many analysts agreed the rejection of the deal would mean more uncertainties to come before Brexit due on March 29, which will lead to volatility of the currency, some did foresee the rejection of the deal might become positive for the pound.

"However, a rejection of the vote may also prove positive for the pound if investors believe it will lead to a delay to Brexit or potentially even resulting in the UK remaining within the EU - it all depends on the margin of loss with the vote," said Luke Trevail, currency analyst at TorFX, before the vote.

British Prime Minister Theresa May has three sitting days to return to parliament with a "Plan B". Labor leader Jeremy Corbyn tabled a motion of no confidence in the government following the deal defeat. The motion will be debated in the Commons on Wednesday.

To forecast the future trend of the currency, banking and financial services corporation ING predicted that a delayed Bexit or a second referendum could be sterling positive while a snap election or a no-deal Brexit would be bad options for the currency.

Monex Europe, a UK-based foreign exchange firm, said the pound could rise in the coming weeks, despite continuing political uncertainty.
.
Monex Europe, a UK-based foreign exchange firm, said the pound could rise in the coming weeks, despite continuing political uncertainty.

Trevail believed things become a bit more muddled when the deal is rejected, as observers predict a range of different Brexit outcomes.

"The most sterling-negative outcome is if the UK crashes out of the EU without a deal, with a no-deal Brexit being the default outcome if MPs cannot agree to an alternative plan."
.

EARLIER REPORTS:

United Kingdom parliament rejects Brexit deal in historic vote

LONDON United Kingdom (Xinhua) -- MPs have voted 202 to 432 against the deal reached between the British government and the EU after a five-day debate.

British Prime Minister Theresa May has three sitting days to return to parliament with a "Plan B".

Britain is due to leave the EU on March 29.

Labour leader Jeremy Corbyn tabled a motion of no confidence in the government following the defeat.

The motion will be debated in the House of Commons Wednesday.

In a last minute plea ahead of the vote Prime Minister May said the vote any politician will ever make in their political careers.

She said the decision will define Britain for decades to come.

Before the main vote MPs voted by to accept reject an amendment by Conservative MP John Barron.

It was designed to give the British government the right to terminate the Northern Ireland backstop measure without the agreement of the EU. It was defeated by 600 votes to 24.

An EU insistence that a backstop must be part of May’s deal led to many MPs voting against her in tonight’s deal.
.

Uncertainty mounts after British parliament rejects Brexit deal

LONDON United Kingdom (Xinhua) -- British Prime Minister Theresa May suffered the worst defeat for almost a century in the British parliament Tuesday when members of parliament (MPs) rejected the deal she brokered for leaving the European Union (EU).

Conservative party leaders had braced themselves for a defeat, but the 432-202 vote with a wide margin of 230 showed May still has a mountain to climb.

Around 118 Conservative MPs voted against May.

The defeat has created mounting uncertainty over the politics and economy in the country and even the world at large.

Within minutes of Speaker John Bercow announcing the result, May told MPs that the government would pave the way for a debate Wednesday to decide if the parliament still had confidence in her government.

Main opposition Labor party leader Jeremy Corbyn tabled a motion of no confidence, with a debate scheduled for Wednesday to decide whether May’s government will collapse.

"This is a political crisis, a parliamentary crisis, a popular crisis, a crisis of government perhaps and a crisis of the UK as a political entity," Anthony Glees, political expert from the University of Buckingham, told Xinhua.

Most politicians expected May to lose, but by a much smaller margin.

The big stumbling block for many was the risk of Britain being permanently linked to the EU because of a requirement by Brussels that an arrangement had to be put in place to prevent an EU land border between Ireland and British-controlled Northern Ireland.

Although assurances had been given by Brussels that it did not want to introduce the backstop, British politicians, especially those in Northern Ireland, demanded a legally enforceable guarantee that it would never happen.

The EU refused to budge on the issue, offering only words but not the cast-iron legally watertight guarantee.

"Every day that passes without this issue being resolved means more uncertainty, more bitterness and more rancour," said May, reacting to the huge government loss.

If May loses Wednesday’s confidence vote, it could lead to Queen Elizabeth dissolving parliament and the calling of a snap general election.

That would throw the Brexit timetable, with Britain due to end its membership of the EU on March 29, into chaos.

It could also lead to Corbyn being handed the keys to 10 Downing Street as a Labor prime minister.

If she survives, May is expected to hold talks with other political parties to determine whether an alternative Brexit deal can be reached.

She would also discuss the crisis with EU officials in Brussels.

The result of the confidence vote will determine the next moves, either a general election or May bidding for a deal that could win in the British parliament, or even May resigning or being ousted as prime minister.

If May survives the confidence vote she will return to the House of Commons on Monday with her plan B.

Experts had doubts about May’s future, and were not optimistic about an alternative Brexit deal.

Glees believed the vote makes a postponement of article 50 countdown timetable more likely, and makes a second EU membership referendum a stronger possibility.

"The EU may improve the deal so we get another vote soon.

"It is difficult to see any other proposal getting a majority in the House of Commons.

"Failing a better EU offer, the default outcome is no deal.

"This looks most likely," predicted Patrick Minford, one-time advisor to Conservative Prime Minister Margaret Thatcher and a macroeconomist at Cardiff Business School.

Global economy responded immediately to the mounting uncertainty resulted from the rejection of the Brexit deal.

Tokyo stocks opened lower Wednesday as investors opted to secure profits made from recent gains amid ongoing uncertainty surrounding the Brexit deal.

The pound had fallen more than 1 percent against the dollar immediately after the rejection of the deal on Tuesday and pared some of the losses later as investors saw trimmed possibility of a hard Brexit.

However, many analysts still believed that the rejection of the deal would mean more uncertainties to come, which will lead to volatility of the currency.

Britain’s business community reacted to the vote with dismay, fearing it could lead to Britain leaving the EU with no deal.

Mike Cherry of the Federation of Small Businesses said many of its members would struggle to survive should deadlock in parliament lead to the country crashing out of the EU.

Carolyn Fairbairn, director general of the Confederation of British Industry, said "every business will tonight feel no deal is hurtling closer.

A new plan is needed immediately."

The EU has also been carefully monitoring what will happen in London.

Jean-Claude Juncker, president of the European Commission, believed the rejected deal is a fair compromise and the best possible deal, warning that "time is almost up" and urging the Britain to "clarify its intentions as soon as possible."

Each member state of the EU will continue preparations for the worst variant of Brexit, Romanian Minister for European Affairs George Ciamba told local media late Tuesday after the rejection.

"Romania, as the country holding the presidency of the EU Council, is making an appeal and wishes to continue to express the unity of the 27 members," he said, adding that "at this moment we need to see what will happen tomorrow, it is about the motion of no confidence."

While showing respect for the result of the vote, Dutch Prime Minister Mark Rutte said on Tuesday evening that the British parliament’s rejection of the Brexit deal does not mean a no-deal situation and that "the next step is up to the UK."

The result of the vote gave May a massive mandate to go back to Brussels and renegotiate a new deal, said Boris Johnson, former British foreign secretary and ex-Mayor of London.

Alan Wager, research associate at The UK in a Changing Europe at King’s College London, told Xinhua after the vote that a no-deal Brexit, which will have catastrophic consequences, has become more likely following the vote.

"It seems almost certain that her deal which she has spent the last two and a half years negotiating is now dead in the water," he said.
.

British businesses call for immediate "Plan B" after Brexit deal rejected

LONDON United Kingdom (Xinhua) -- British businesses urged the government to take an immediate action to introduce a "Plan B" after Prime Minister Theresa May’s Brexit deal was rejected overwhelming in the Parliament on Tuesday night.

Catherine McGuinness, policy chair at the City of London Corporation, tweeted that "parliament’s decision to reject the Government’s deal means businesses across the UK will continue to face uncertainty."

"The Government must urgently set out its ‘Plan B’ to ensure we can secure a deal locking in a legally binding transition before 29 March," McGuinness said.

Carolyn Fairbairn, director general of the Confederation of British Industry (CBI), said "Every business will tonight feel no deal is hurtling closer.

"A new plan is needed immediately."

She noted that it is time for the politicians to make history as leaders.

"All MPs need to reflect on the need for compromise and to act at speed to protect the UK’s economy."

Companies that have business with the UK are also in jittery.

Michael Strobaek, global chief investment officer of Credit Suisse, commented that "People, business and financial markets in the UK need certainty on future UK-EU relations."

"Tonight’s parliamentary vote merely heightens the uncertainty," he added.

The UK members of Parliament (MPs) voted 432 to 202 against the Brexit deal after a five-day debate, further complicating the country’s historic exit from the European Union (EU).

Prime Minister Theresa May has three sitting days to return to parliament with a "Plan B".

Britain is due to leave the EU on March 29.

"Every day that passes without this issue being resolved means more uncertainty, more bitterness and more rancour," said May reacting to the huge government loss.

Labor leader Jeremy Corbyn tabled a motion of no confidence in the government following the deal defeat.

The motion will be debated in the Commons on Wednesday.
.

European Union to prepare for worst variant, hard Brexit: Romanian minister

BUCHAREST Romania (Xinhua) -- Each member state of the European Union (EU) will continue preparations for the worst variant of Brexit, Romanian Minister for European Affairs George Ciamba told local media late Tuesday after the rejection of the Withdrawal Agreement in the British parliament.

"It was a result that the world was expecting, in the sense that the only novelty is that it is a much worse score than the expectations of the past few days," he said, regretting the vote result.

"Romania, as the country holding the presidency of the EU Council, is making an appeal and wishes to continue to express the unity of the 27 members," he told local Mediafax news agency, adding that "at this moment we need to see what will happen tomorrow, it is about the motion of no confidence."

According to him, the Romanian authorities are in contact with all European partners for a coordination of efforts.

Romania has preparations that are both at Community level of legislation to be adopted and at national level, he said.

"We will see the other elements of the political process.

"I do not think it is necessary to create a fear or to think that at this moment it is very clear that there is a disorderly withdrawal of UK," the official said, noting that "no fear" should be created.

"I revert to the assurances made by the British Foreign Minister that the rights of European citizens who are on the territory of Great Britain will not suffer in a disorderly withdrawal but will have the same treatment as that provided in the Brexit agreement," said the Romanian official.

The British parliament on Tuesday rejected the Brexit deal in a 432-202 vote, further complicating the country’s historic exit from the European Union.

Romania officially assumed its presidency of the EU Council last Thursday and will preside over the process of Brexit.

Britain’s departure from the EU, slated for March 29, will be the most complicated challenge during its mandate.

Brexit process is also a sensible issue for Romania, as it has in the UK almost 500,000 migrants, the second largest non-UK nationality.
.

European Union asks Britain to clarify intentions on Brexit after deal rejected

BRUSSELS Belgium (Xinhua) -- The European Union asked Britain to clarify its intentions on Brexit, shortly after British Prime Minister Theresa May’s deal was rejected by a large margin by British parliament.

Jean-Claude Juncker, president of the European Commission, said in a statement that he takes note of the outcome, and that the rejected Withdrawal Agreement is a fair compromise and the best possible deal.

"It reduces the damage caused by Brexit for citizens and businesses across Europe.

"It is the only way to ensure an orderly withdrawal of the United Kingdom from the European Union," Juncker said.

"The risk of a disorderly withdrawal of the United Kingdom has increased with this evening’s vote.

"While we do not want this to happen, the European Commission will continue its contingency work to help ensure the EU is fully prepared," he said.

"I urge the United Kingdom to clarify its intentions as soon as possible.

"Time is almost up." he said.

President of the European Council Donald Tusk tweeted, "If a deal is impossible, and no one wants no deal, then who will finally have the courage to say what the only positive solution is?"

The British parliament on Tuesday voted against the Brexit deal with 202 "ayes" and 432 "noes", further complicating the country’s historic exit from the European Union.
.

Italian pundits eye implications after British MPs nix Theresa May’s Brexit deal

ROME Italy (Xinhua) -- Italian pundits analyzed late Tuesday the implications and possible outcomes for Brexit after British MPs overwhelmingly rejected the deal Prime Minister Theresa May negotiated with the European Union (EU) by 432 votes to 202, prompting opposition calls for a no-confidence vote and a new referendum.

The deal May negotiated in November 2018 calls for the UK to withdraw from the EU on March 29.

"For the past couple of years there’s been a continuous and very insistent narrative on the need for change, no matter what kind of change it is," commented journalist Marianna Aprile, who writes for Oggi (Today) weekly magazine, on Otto e Mezzo (Eight and a Half) talk show on La7 private broadcaster.

"(Tonight’s vote) is the proof that change for its own sake is not enough, but rather it must be part of an idea of the future and of a country, whether alone or in company, whether many or few, but it must be a clear and sustainable idea, not a mere wish list," Aprile opined.

On the same show, writer and Il Foglio newspaper journalist Pietrangelo Buttafuoco said a new referendum on Brexit would be "unthinkable".

British citizens in 2016 voted 52-48 percent in favor of leaving the EU.

"We’ll see," Corriere della Sera newspaper editorialist Beppe Severgnini replied with regards to a possible second referendum on Brexit.

"The issue is that (the British) voted based on a series of promises and lies," Severgnini said.

"It is not a given that the ‘Leave’ vote would win again.

"If the UK leaves without a deal on March 29, the most optimistic forecasts see British gross domestic product (GDP) collapsing by 8 percent—it would be an enormous problem for them."

Such an outcome would have serious economic fallout for Italy’s fragile economy as well, Severgnini added.

"If UK GDP plunged 8 percent, we wouldn’t be able to ignore it," he said.

"It would be a huge shock coming from the Northwest, and we would all feel it."

Both Aprile and Severgnini pointed out that there are 650,000 Italians living in the UK as well as 60,000 Britons living in Italy, most of whom voted "Remain" in 2016.

Writing on Sole 24 Ore business and financial newspaper, analyst Angela Manganaro commented that one of the possibilities now is for the UK to simply postpone Brexit for a few months by "extending Article 50 of the EU Treaty, which the UK invoked to start its withdrawal procedure".

"Simply put, the British government—whether May stays or resigns—would have a couple of extra months to come up with a text that could win approval by parliament," Manganaro wrote.

A second referendum is also a possibility, and in that case "the Remainers would have a chance at winning" if aging Brexiters die, "because in 2016, the older generations were the ones who angrily voted against the EU while the young voted Remain: the latter have time on their side," the Sole 24 Ore journalist wrote.

In a brief report issued shortly after the vote, the Italian Institute for International Political Studies (ISPI) wrote that the UK now has four options:

negotiating a so-called "Plan B" Brexit deal with the EU;

May could submit to parliament a new so-called "soft Brexit" deal, with the UK remaining in the single market;

a so-called "hard Brexit", in which the UK would leave the Union without negotiating terms with the EU, meaning that trade barriers would immediately go up; and lastly,

a unilateral withdrawal from the Brexit procedure.

A hard Brexit would cause the UK economy to contract by "up to 8 percentage points" and reduce per-capita GDP by 3,000 euros (about 3,423 U.S. dollars) in the first year, according to ISPI, due in part to the fact that trade with the EU accounts for half of its overall trade.

Such a scenario would also be bad for Italy, which has a 12-billion-euro (about 13.7 billion dollars) yearly trade surplus with the UK, ISPI wrote.
.

FURTHER READING:

The case for a 'hard' Brexit: Why it well might not be all doom and gloom

Risk of a disorderly UK withdrawal from Europe has increased with vote

             

 

Remember: you read it first at coastweek.com !


 

TO ADVERTISE ON THIS WEB SITE:  www.coastweek.com
Please contact

MOMBASA - GULSHAN JIVRAJ, Mobile: 0722 775164 Tel: (+254) (41) 2230130 /
Wireless: 020 3549187 e-mail: info@coastweek.com

NAIROBI - ANJUM H. ASODIA, Mobile: 0733 775446 Tel: (+254) (020) 3744459
e-mail: anjum@asodia.co.ke

 
    © Coastweek Newspapers Limited               Tel: (+254) (41) 2230130  |  Wireless: 020 3549187  |  E-mail: info@coastweek.com