Summary for the 29th of August -Boris Johnson shuts down the parliament


The UK prime minister, Boris Johnson announced yesterday that he would shut down the British parliament for five weeks in September and October.

The British parliament is currently on a summer break until the 3rd of September. The parliament members will be returning to work for a week before they are suspended until the 14th of October. From the 14th of October, there will only be less than three weeks before the UK will have to leave the EU, with or without a Brexit deal. Johnson says he has to shut down the parliament to prepare for the Queen’s speech which will be held at the opening of the parliament to mark the beginning of a new parliamentary session.

Johnson will try to get a new Brexit deal before the deadline of 31st of October. After meeting with the EU-leaders, Johnson seems to agree on the Brexit deal that Theresa May has negotiated forth, except that the current backstop plan with the Irish border has to change. The current backstop plan risks of locking the UK to EU’s custom union indefinitely, which is not a desirable option for Brexit supporters. Johnson has expressed that if the EU doesn’t agree on changing the backstop deal, the UK will be willing to leave the EU without a Brexit deal (hard Brexit).

Many of the UK parliament members doesn’t want a hard Brexit and would try to stop Johnson from going through with this solution. One of the options is to try to force through a whole piece of legislation which can prevent a hard Brexit but considering how much time is left until the deadline, this option proves to be difficult. Another option is to vote out the current UK government, but the current government has indicated that it will not step down, thus triggering a general election, the government has implied that if there is going to be a new election, it wont be happening until the start of November.

Indices for 29th  of August
Dow: +1 % (28th of August)
S&P 500: +0.7% (28th of August)
Nasdaq: +0.4% (28th of August)
Nikkei: -0.2%  (29th of August)
Chinese indices: -0.6% (29th of August)
STOXX Europe 600 Index: +1.40% (29th of August)

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