Connect with us

Latest News

A crucial Brexit debate is underway that threatens to derail the whole process

Published

on


Demonstrators holding EU and Union flags gather in front of the Houses of Parliament in Parliament Square following an anti Brexit, pro-European Union march in London on March 25, 2017, ahead of the British government's planned triggering of Article 50.

DANIEL LEAL-OLIVAS | AFP | Getty Images

Demonstrators holding EU and Union flags gather in front of the Houses of Parliament in Parliament Square following an anti Brexit, pro-European Union march in London on March 25, 2017, ahead of the British government’s planned triggering of Article 50.

But perhaps the most significant amendment to face a vote in the latest Commons reading is known as the “meaningful vote.” If passed, it would mean that a majority of both houses of parliament would have future veto power over whatever deal the government is able to win in the next few months of negotiations with the European team led by Michel Barnier. And this is where investors, business, and markets more broadly should be paying close attention. As of now, the British parliament does not have this veto power. But if the day arises when such a veto is wielded by a majority in either the Commons or the Lords, and if that happens close to the official Brexit date of March 29, 2019, there remains a rather ominous possibility — one that has long worried many economists and trade specialists.

This set of circumstances would be one in which the European side refuses to return to the negotiating table for whatever reason, most likely a lack of time, and in the absence of a confirmed agreement the United Kingdom is forced to exit the European Union in a disorderly manner.

This so-called “no deal” scenario has not received much serious planning, by the government’s own admission, and the mere threat of it could add a far greater level of caution into the government’s approach to Brexit, or indeed wreck it altogether. Supporters insist this amendment is a crucial test of parliament’s sovereignty, but you can be sure that government ministers will be tracking the result of this vote by vote. Markets participants would be wise to do so as well.



Source link

Latest News

Global stock market sell-off not an isolated event

Published

on

By


A trader works at the New York Stock Exchange in New York, the United States, Dec. 4, 2018. 

Xinhua News Agency | Getty Images

A trader works at the New York Stock Exchange in New York, the United States, Dec. 4, 2018. 

The latest wave of heavy selling in financial markets is a clear sign of things to come, according to a new report from the world’s oldest international financial organization.

The Bank of International Settlements (BIS), an umbrella group for the world’s central banks, warned on Sunday that a normalization of monetary policy is likely to trigger a flurry of sharp sell-offs over the coming months.

“The market tensions we saw during this quarter were not an isolated event,” Claudio Borio, head of the monetary and economic department at the BIS, said in the report.

“Monetary policy normalization was bound to be challenging, especially in light of trade tensions and political uncertainty,” Borio added.



Source link

Continue Reading

Latest News

Fed is missing critical inflation trend, economic forecaster worries

Published

on

By


A veteran economic forecaster is worried the Federal Reserve and Wall Street are looking at inflation all wrong.

According to Economic Cycle Research Institute co-founder Lakshman Achuthan, they’re largely missing a critical economic trend that shows inflation is in a downturn.

“Inflation is cyclical, and I don’t think everybody really understands that — in particular, the Fed and a lot of market participants,” he said Wednesday on CNBC’s “Trading Nation.” “They’re looking at the level of inflation, and it’s generally up there around near target. But what’s really important is the direction.”

Achuthan highlighted a chart as evidence the inflation cycle is rolling over. He believes it could have market-moving consequences because it could affect the Federal Reserve’s interest rate policy.

“This is just a couple years of inflation cycles here,” he said. “We have PPI growth now and CPI growth both sitting at around 10 and 11 month lows. It’s not simply about oil. The peak in these things happened back in July.”

Achuthan, a self-proclaimed former super bull, has been bearish this year. On “Trading Nation” last April, he turned sour on economic growth because leading indicators were pointing to a slowdown that was picking up momentum.

For Achuthan to become bullish again, he said two things need to happen: The Fed must become more aware of the inflation downturn and leading growth indicators must turn up. The Fed meets on Tuesday and Wednesday to decide whether to raise rates for the fourth time this year.

“With inflation ticking lower, they should consider stopping. But fixated on a 49-year low in the jobless rate and a 9 ½-year high in wage growth, it’s not clear that they will stop just yet,” Achuthan told CNBC by email.



Source link

Continue Reading

Latest News

Harvard professor Roland Fryer faces reports of sexual harassment

Published

on

By


Harvard University professor Roland Fryer speaks at the Clinton Global Initiative in New York on Sept. 25, 2008.

Ramin Talaie | Corbis Historical | Getty Images

Harvard University professor Roland Fryer speaks at the Clinton Global Initiative in New York on Sept. 25, 2008.

A prominent Harvard University economics professor is being investigated for sexual harassment, according to a new report.

Roland G. Fryer Jr., a 2011 MacArthur “Genius” fellowship recipient, is the one of the latest powerful men to get flagged amid the #MeToo movement, which took hold last year. More than 200 men have lost their jobs or major roles as a result, the New York Times said in October.

A Harvard investigator found that Fryer was involved in “unwelcome conduct of a sexual nature” with four women who worked at Fryer’s research lab, the New York Times reported on Friday. The investigator learned that one person who made an accusation about Fryer took disability leave in response to Fryer’s behavior, according to the report.

Allegations about Fryer came to light earlier this year but Friday’s New York Times article provides new details.

One woman who worked in the lab reportedly said that Fryer regularly made inappropriate comments about women, but that his reputation for being vindictive made it difficult for people to speak up. And two women told the investigator they disapproved of how Fryer had put his crotch in the face of a woman at the lab by placing his foot on her desk, the article said.

Read the full article here.



Source link

Continue Reading

Trending

Copyright © 2017 Zox News Theme. Theme by MVP Themes, powered by WordPress.