Reuters Insider - UK Day Ahead: MPs to vote again to try and break Brexit deadlock, Euro Zone economy

Union

01/04/2019 16:14

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Source: Reuters Insider

Description: Parliament will again try to take control of Britain’s
departure from the European Union. Lawmakers are set to vote on a second round
of votes on alternative proposals to UK Prime Minster Theresa May's Brexit
deal later late on Monday. Plus, watch out for euro zone producer prices.
Short Link: https://reut.rs/2I8WC3L

Video Transcript:

Good afternoon. I'm Angeline Ong, and welcome to your insight into Tuesday.
But first, Sterling rose ahead of a second round of votes on a series of
Brexit alternatives. Voting is set to start around 8PM BST. But don't forget,
anything could happen. The first round of voting last week failed to reveal a
majority for any Brexit outcome. UK Prime Minister Theresa May could then try
one last roll of the dice by bringing her deal back to Parliament as soon as
Tuesday. This is after it's been defeated three times already. May's own
enforcer in Parliament, Julian Smith, told the BBC that a softer Brexit was
'inevitable after May lost her majority in the 2017 snap election. 

The thing that people forget is that Conservative Party went to get a majority
in order to deliver Brexit, failed to get a majority. 

To avoid all of this mess? 

The government as a whole probably should have been clearer. There are
consequences of that. The parliamentary arithmetic would mean that this would
be inevitably a kind of softer type of Brexit.

Now some senior ministers have threatened to resign, says the Times newspaper,
if May pursues a softer option. What is clear is the clock is ticking loudly
again. Of Mrs. May doesn't come up with a workable plan then the UK is due to
leave the bloc on April 12. UK Environment Minister Michael Gove urged
Parliament again to stick with Mrs. May's plan.

Members of Parliament have important decisions to make today. I think one
thing is clear, which is that we have to leave the European Union in good
order. Members of Parliament won't vote for no-deal and indeed no-deal would
be bad for our economy and bad for the Union, but also staying in a customs
union or accepting a single market would mean that some of the manifesto
pledges that were made at the general election would be compromised. 

To markets now to see how they stand ahead of the close. The FTSE 100 is up
around 0.67%, DAX is up more than 1%, and STOXX 600 up more than 1% as well.
The risk on mood being underpinned, particularly by those surprisingly upbeat
manufacturing numbers from China, and that's offsetting concerns about a
global economic slowdown for now. Now on the economic front, we've got
Eurozone producer prices for February on Tuesday. A weak figure will be grim
reading for the European Central Bank, especially after data showed that
factories in the Eurozone had their worst month for almost six years in March.
And that's it for now. We'll be keeping a close eye on Parliament for you as
well. I'm Angeline Ong, and this is Reuters