Summary for the 22nd of March 2019


After gotten her Brexit deal voted down by the British parliament twice, the British prime minister, Theresa May, had to ask the EU for a delay of Brexit date from the 29th of March. The UK would like a delay of three months, but the EU offered them two weeks, and some options: The British parliament must approve May’s Brexit deal within a week, then the UK would get the Brexit postponed to the 22nd of May. If the British parliament doesn’t approve of the Brexit deal, the UK could stay in the EU until 12th of April, at which point it must make a choice between three options: a hard Brexit (no deal), a long delay of Brexit or canceling of Brexit (revoking Article 50) altogether and stay in the EU.

The last option is the least likely option, the first option will have a major economic impact on the UK, the last option, a long Brexit delay, will lead to the UK to have to participate in voting at the 2019 European Parliament election on the 26th of May.

The EU has increased the pressure on the UK. Theresa May has earlier told the British Parliament that if her Brexit deal doesn’t get approved, the UK will risk having a long delay of Brexit. Now she is signaling that she prefers for the UK to leave the EU with no deal. This shouldn’t come as a surprise, after what she has been through in the last few months, she would rather not go through the same thing for another year, or more. With the pressure from both the EU and Theresa May, the British Parliament might be able to approve the Brexit deal, a deal which they have voted down twice already. If the Parliament still doesn’t approve the deal, the probability of a hard Brexit will rise considerably.

Indices for 22nd of March:
Dow: +0.8% (21st of March)
S&P 500: +1.1% (21st of March)
Nasdaq: +1.4 (21st of March)
Nikkei: Marginally positive (22nd of March)
Chinese indices: -0.9% (22nd of March)
STOXX Europe 600 Index: -1.22% (22nd of March)

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