Summary for the 16th of January 2019


The draft of a Brexit deal was downvoted at the British parliament yesterday. 432 members of parliament (MP)voted against the deal while 202 voted for the deal. The deal was thus lost with the majority of 230.The lost was one of the biggest for a British government.

The British prime minister, Theresa May will now have to work with the Labour Party and postpone Brexit. The leader of the party, Jeremy Corbyn proposes a vote of no confidence and challenges Theresa May’s leadership. The proposal will be debated and voted today.

May has three days to present a plan B for Brexit, this might be difficult because the MPs that voted against the deal, had all their own reasons, and trying to find a common ground will not be an easy task. If May manages to find a solution with the Labour Party, and get it’s support, she might be able to manage to present a plan B for the British Parliament. If that happens, the Brexit will be postponed to the summer.

The British pound (GBP) reacted by weakening prior to the voting, but it quickly reversed back in value. The stock market fell temporarily, this suggests that the market doesn’t seem to think that the probability of a hard Brexit has gotten any higher.

Wall Street makes a gain on this day with the technology sector rises by 1.7%. The gain comes when the Chinese government announces  that it is deploying measures to keep the growth in the Chinese economy intact, and starting with lower tax rate for small companies and for the industrial sector. Also it announces that it will improve the transaction mechanisms of the monetary policy and will keep the lending interest rate low.

The German economy posts a GDP growth by 1.5% for 2018 (2.2% in 2017). This shows that the growth in 2018 was strongest in the last quarter, based on how the growth was on the first three quarters of 2018. The slow in growth is temporarily and experts believe the growth strength will rise again on the first half of 2019.


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