Tag: Theresa May

  • Breaking: Theresa May to resign as British Prime Minister

    British Prime Minister Theresa May has announced her resignation, finally bowing to intense political pressure over the failure to deliver her signature policy — Britain’s withdrawal from the European Union.

    May said Friday she would quit as leader of the Conservative Party on June 7, but would stay on as Prime Minister until a successor is chosen.

    May was forced into making the announcement after losing the support of her Cabinet, many of whom were fed up with the ongoing turmoil over Brexit.

    The last straw for Cabinet ministers appears to have been the latest version of May’s Brexit plan, which she unveiled on Tuesday. In an attempt to win over opposition lawmakers, May offered the House of Commons the chance to vote on a second referendum — a concession that was bitterly opposed by some senior members of her government.

    Her fate was sealed by the leadership of the 1922 Committee — which represents the interests of rank-and-file lawmakers in May’s Conservative Party — who threatened to change party rules to allow a vote of no-confidence. May survived an earlier confidence vote in December last year, and under current rules was immune to challenge for another year.

    May’s announcement will set off a frantic race to succeed her. One leading candidate is Boris Johnson, the buffoonish but wily former Foreign Secretary who commands significant support among grassroots members of the party.

    Read Also: Breaking: Theresa May sacks Defence Secretary

    Johnson has bitterly opposed the withdrawal deal that May negotiated with the EU, and resigned from her Cabinet over it. But it’s unclear whether her successor would have any luck reopening the deal, which Brussels has insisted is locked down. May’s successor as prime minister will face the same deadlocked House of Commons, which has repeatedly rejected May’s plan but failed to vote in favor of any kind of alternative.

    That may raise the prospect of a new Conservative leader calling a general election in an attempt to break the impasse.

    May’s decision to step down is an inglorious end for a prime minister who was ushered into office on the back of the Brexit vote, promising to deliver on the results of the referendum.

    But the deal that resulted from a tortuous set of negotiations with the EU was rejected three times by the House of Commons.

    On Tuesday, in an attempt to repackage the plan, May rolled it up into a wider set of legislation dealing with Britain’s departure. As well as the offer of a second referendum, it also contained pledges on workers’ rights, environmental provisions, as well as a temporary customs relationship with the European Union.

    But her “new Brexit deal” was greeted with significant opposition from across the political spectrum. Hardline Conservatives who had supported May’s last deal, Democratic Unionist Party (DUP) MPs who prop up May’s minority government in Parliament and supporters of a second referendum alike all rejected it.

    CNN

     

  • Theresa May could give details of resignation date next week

    The Prime Minister may offer a “clear understanding” of her timetable for departure next week, the chairman of the backbench 1922 Committee has said.

    Theresa May has previously suggested she will leave Downing Street after her Brexit deal has been passed by Parliament.

    But Sir Graham Brady, chairman of the committee since May 2010, told BBC Radio 4’s Week in Westminster that May had offered to meet with the executive following a request for “clarity” on her plans.

    He told the programme: “It would be strange for that not to result in a clear understanding… at the end of the meeting.”

    The Altrincham and Sale West MP added he understood her “reticence” to set a date, but added: “I don’t think it’s about an intention for staying indefinitely as prime minister or leader of the Conservative Party.

    But Sir Graham Brady, chairman of the committee since May 2010, told BBC Radio 4’s Week in Westminster that May had offered to meet with the executive following a request for “clarity” on her plans.

    He told the programme: “It would be strange for that not to result in a clear understanding… at the end of the meeting.”

    The Altrincham and Sale West MP added he understood her “reticence” to set a date, but added: “I don’t think it’s about an intention for staying indefinitely as prime minister or leader of the Conservative Party.

    “I think the reticence is the concern that by promising to go on a certain timetable, it might make it less likely she would secure Parliamentary approval for the withdrawal agreement, rather than more likely.”

    Read Also: Theresa May battles to keep control of Brexit

    Earlier this week, May rebuffed demands to set out a timetable for her departure from No 10 amid growing pressure from Tory MPs to make way for a new leader.

    At Prime Minister’s Questions, Brexit-backing Andrea Jenkyns told May she had “failed” in EU withdrawal negotiations and forfeited the trust of the public.

    “The public no longer trust her to run Brexit negotiations,” she said.

    “Isn’t it time to step aside and let someone else lead our country, our party and the Brexit negotiations?”

    May retorted: “This is not an issue about me and it’s not an issue about her.

    “If it were an issue about me and the way I vote, we would already have left the European Union.”

    Downing Street made clear the Prime Minister was not ready to go beyond her earlier promise to the 1922 to quit as Tory leader when the first phase of Brexit negotiations – dealing with the divorce terms – is complete.

    “The PM made a very generous and bold offer to the 1922 Committee a few weeks ago that she would see through phase one of the Brexit process and she would leave and open up for new leadership for phase two,” a No 10 source said.

    (https://www.thenational.scot)

     

  • Breaking: Theresa May sacks Defence Secretary

    The Prime Minister Theresa May has sacked her Defence Secretary Gavin Williamson.

    The sack followed an investigation into an information leak from the National Security Council.

    Details shortly…

  • Britain’s May heading to Brussels in hope of Brexit extension

    British Prime Minister Theresa May will on Wednesday head to Brussels for an emergency meeting of the European Council at which other EU leaders are expected to extend the Brexit deadline.

    May has requested to delay Britain’s EU departure from Friday till June 30, while European Council President Donald Tusk has proposed a flexible one-year extension.

    Report says all EU leaders need to agree to a delay.

    London needs time to broker parliamentary approval on a Brexit divorce deal negotiated with Brussels.

    Britain’s EU departure has already been postponed from March 29.

    Read Also: Brexit: PM Theresa May survives vote of no-confidence

    “As a condition for any delay – either the shorter option sought by May or Tusk’s one-year `flextension’ – Britain will likely have to take part in EU elections in late May,’’ EU diplomats have said.

    On Tuesday, lawmakers backed May’s plan to request an extension until June 30, voting by 420 to 110 in favour of a government motion.

    The prime minister was forced to table the motion after parliament approved a cross-party bill the previous day that legally obliged her to avoid a no-deal Brexit and request a delay.

    Britain’s parliament has rejected May’s withdrawal agreement three times but also failed to come up with a majority position on any other option.

    Her government held more talks on Tuesday with the opposition Labour Party in a bid to break the impasse in parliament.

    Labour lawmaker, Rebecca Long Bailey, told newsmen that the talks were “really constructive” and would continue on Wednesday.

    Labour’s key demand is that Britain remains in a long-term customs union with the EU.

  • Brexit: As chaotic exit looms

    The beleaguered British Prime Minister Theresa May suffered yet another humiliating defeat in parliament (House of Commons) on Tuesday March 12, after her “new Brexit deal” was rejected by members of parliament (MPs) with a majority of 149 votes (242 in favour and 391 against).

    Her defeat came in quick succession after she had lost in her earlier attempt to obtain parliamentary approval on the so-called “original deal” on January 20.  By that defeat, the British parliament dealt yet another devastating blow to May’s leadership and her already battered image even as she had continued to bungle the Brexit deal which MPs had earlier insisted was a complete “sell-out” to the European Union.

    The last straw that finally broke the camel’s back was the legal opinion by the chief law officer of the British government and attorney general who repudiated the so-called last minute assurances obtained by May from the EU leaders on the highly contentious issue of the Custom Union on the Irish border. The attorney general maintained that the assurances May had extracted from the EU was not legally binding on the Brexit deal hence such assurances could not alter the contents of the already rejected deal.

    It was indeed a masterstroke which emboldened many hard-line Brexiteers in May’s governing Conservative Party to massively vote against the so-called “revised deal”. The EU’s so-called assurances to Theresa May was merely a window dressing  or simply put  a  symbolic  gesture  carefully designed to appease the embattled May who had since lost her moral authority not only within her own government but also in her governing  Conservative Party.  A “No deal” scenario which had long been predicted by political watchers in the unfolding Brexit drama now seems inevitable.

    In the past few weeks, parliament had been debating and voting on series of amendments on the Brexit deal including the possibility of a second referendum. Precisely on March 13, parliament rejected the “No deal” motion, 321 votes against and 278 votes in favour of no deal Brexit. In the same vein, parliament equally rejected the motion for a second referendum, 334 votes against and 85 votes in favour. Another crucial vote was taken on March 14 on the vexed issue of “Delay Brexit” or extension which would allow the United Kingdom more time to put together an acceptable deal that could be passed in parliament. In other words, should the EU grant the United Kingdom an extension, then the scheduled date for United Kingdom’s final departure from the EU which is slated for March 29 would no longer be feasible. Parliament had already voted in favour of delay Brexit or extension, 413 votes in favour and 202 against.

    In the midst of the extremely messy political situation and uncertainty, the Hon. Speaker of the House of Commons John Bercow few days ago released what could be described as a bombshell when he told parliament that Prime Minister May could not re-present her Brexit deal in its present form which had been overwhelmingly rejected twice by parliament without substantial changes or amendments. This latest development had further compounded the already complicated Brexit impasse. It had equally thrown up a constitutional crises which was unprecedented since a similar political scenario erupted in 1604 about 300 years ago.

    In the meantime however, Theresa May in her familiar diplomatic shuttle was due to visit the European leaders in Brussels on Thursday March 21, with a view to convincing them to grant the United Kingdom an extension beyond March 29, which is the scheduled date for her departure from the EU. The United Kingdom had requested for a new departure date and which is June 30. But whether the European leaders would be favourably disposed to grant an extension to the United Kingdom is entirely a different matter altogether even as the EU had always insisted that the British parliament had not yet come up with any viable alternative to the Brexit deal which Prime Minister May signed with the EU leaders more than two years ago.  For any Brexit extension to happen however, it will require the revocation of the all important Article 50 in the union treaty which initially triggered off the Brexit process by Britain over a year ago.

    According to press statement just released in Brussels, leaders of the 27 member states of the EU after their crucial meeting on Thursday March 21 granted Britain an extension up till April 22, to allow the British parliament approve the Brexit deal or in the alternative, bring up any other viable option that would be acceptable to the European Union. It seems time has already run out for the British to engage in further political manoeuvring in the utterly confusing Brexit imbroglio.

    As the Brexit saga continues to rage however, another dangerous dimension to the endless crises seem to have reared its ugly head when Prime Minister May in a televised broadcast to the British people in the evening of March 20 launched what could be described as a veiled attack on the integrity of the MPs whom she accused of being the stumbling block to her Brexit deal without offering any meaningful proposal or alternative to the deal.  She devoted much of her speech to what could be termed a blame game and had assured the British people that she was always with them and vowed to carry out the people’s sacred mandate which they unambiguously expressed in the referendum to leave the EU about three years ago. Swift reactions from some conservative party members in parliament however, greeted her speech who described her televised speech as simply outrageous and unfortunate.

    Meanwhile Britain appears to be in a terrible political quagmire, disarray and had boxed herself into a tight corner, even as the British economy is currently under severe stress and in an unprecedented state of doldrums and uncertainty.  The lingering political crises has adversely affected the British currency the Pound Sterling, which had been on the receiving end since the Brexit stalemate even as its volatility had impacted negatively on the lives of the British people generally.

    To British political watchers, the Brexit debacle could be attributed to the British political leaders or gladiators who had grossly underestimated the dire consequences the Brexit deal would cause the British economy and her people. The British political leaders across the political spectrum were simply myopic and could not see beyond their noses even as they were merely concerned with the primordial sentiment and extreme narrow interest of protecting the British sovereignty and blind nationalism which they argued were arbitrarily ceded to the European Union via the Union Treaty of 1958.

    The British have simply shot themselves on the foot and are now paying dearly for their omission or commission in the entire Brexit saga. The United Kingdom made up of England, Scotland, Wales and Northern Ireland is currently facing unprecedented threat of disintegration occasioned by the Brexit uncertainty. The people of Scotland who overwhelmingly voted to remain in the European Union are already calling for yet another referendum for Scottish independence from the United Kingdom. Similarly, the people of Northern Ireland who also voted to remain in the EU are equally reaffirming their yearnings and aspirations to re-unite with their kith and kin in Irish Republic across the border who equally voted massively to remain in the EU.  Should the above scenario eventually play out, it would be only a matter of time when the people of Wales would also demand for their own independence and leaving England alone as a nation.

     

    Akabogu (JP) wrote from Enugwu-Ukwu, Anambra State.

  • Theresa May battles to keep control of Brexit

    Prime Minister Theresa May on Monday battled to keep control of Britain’s exit from the European Union as some in her party called on her to quit.

    The parliament, however, plotted to wrest the Brexit process away from her government.

    At one of the most important junctures for the country in no less than a generation, British politics was at fever pitch and, almost three years since the 2016 EU membership referendum.

    Meanwhile, it was still unclear how, when or if Brexit will take place.

    With May weakened, ministers lined up to insist she was still in charge and to deny any part in, or knowledge of, a reported plot to demand she name a date to leave office.

    As speculation swirled around May’s future, parliament prepared to try to take control of the Brexit process from the government in a series of votes due from 2200 GMT.

    “May’s divided cabinet of senior ministers met on Monday to discuss a way forward,’’ May’s spokesman said, though contradictory reports of the discussions, which are supposed to remain private, were swiftly published on Twitter.

    “The PM opened by suggesting that “no deal’’ is not a viable option.

    “Other ministers said no deal is better than no Brexit.

    “Other reports said her cabinet war-gamed an election,” the Daily Telegraph’s deputy political editor Steven Swinford reported.

    Amid the chaos, it was unclear when May would bring her divorce deal back to parliament.

    The deal May negotiated with the EU was defeated in parliament by 149 votes on March 12 and by 230 votes on Jan. 15.

    “We will only bring the vote back if we believe that we would be in a position to win it,” May’s spokesman said, declining to comment on whether it would take place on Tuesday.

    May had to delay Britain’s original March 29 departure date because of the deadlock in London.

    Now, the country will leave the EU on May 22 if May’s deal is approved by parliament this week.

    If not, Britain will have until April 12 to offer a new plan or decide to leave without a treaty.

  • Brexit: PM Theresa May survives vote of no-confidence

    British Prime Minister Theresa May has survived a vote of no- confidence.

    The House of Commons, voted to defeat the motion raised by the leader of the main opposition Labour party, Jeremy Corbyn, by 325 votes to 306.

    The motion, tabled following May’s 230-vote defeat on her EU divorce agreement, is an official way to vote on the confidence in any current U.K. government.

    May was backed by members of the Northern Irish Democratic Unionist Party and the Brexiteer Conservative Party lawmakers who had voted against her EU withdrawal plan in the same chamber only 24 hours earlier.

    Votes of no-confidence in the government from Labour, Welsh and Scottish nationalists, the Liberal Democrats and the Green Party were not enough to dislodge the current government.

    Read also: Brexit vote: British Parliament rejects Theresa May’s deal

    If the motion was agreed to, the sitting government would’ve had 14 days to form a new government that can win a subsequent confidence motion in the House of Commons.

    If not, then a General Election would have been called.

    Details Later…

     

  • Brexit disaster looms

    The iceberg is approaching and now the scramble for the lifeboats begins. The iceberg in question is the catastrophe of a no-deal crashout from the European Union, its contours and texture becoming ever sharper as 29 March gets closer. For now, most MPs are vehement in their insistence that they dislike the iceberg very much, and that they are passionately opposed to sailing right into it. But the law is clear: Britain leaves the EU on that date unless another law is passed to change course. In other words, standing on the deck shouting at the berg will not help. MPs have to agree a plan to get out of the way – and they have to do it very soon.

    Here’s how fast things are moving. On Tuesday night, Theresa May will watch as her deal sinks in the Commons. It might not take the battering predicted by BBC News, which projects a defeat by more than 220 votes. Indeed, it might end up being much narrower. That’s thanks to an amendment tabled by Labour’s Hilary Benn, which will give MPs the chance simultaneously to reject both May’s deal and a no-deal. Jacob Rees-Mogg’s crowd won’t want to do that – they think a collision with the iceberg will be bracing, shake things up a bit – so May might suffer a milder humiliation than was otherwise looming.

    Then, thanks to Messrs Grieve and Bercow – not a Dickensian law firm but the double act of Tory rebel and troublesome Speaker – the government will have to return to the Commons within three working days to present its new plan. Chances are, it will be virtually the same as the old plan. The prime minister will tell MPs, once again, that if they want to avoid disaster, their only guarantee of safe passage is via her deal.

    That’s when the scramble starts in earnest, with different camps offering rival lifeboats. Thanks to all that procedural activity in Westminster, MPs have won the right to offer alternatives to the May deal and to do so rapidly. One of these options is labelled Norway plus, the other a second referendum. MPs will have to choose which one offers the best shot at safety – because if both go down, we crash.

    This choice will not be made calmly and deliberatively, with adequate time for reflection and debate. It’s more likely to be rushed and frantic. The minute one amendment is voted on and rejected, the next one will be up. So supporters of Norway – who seek a soft Brexit through which Britain would join the European free trade area (Efta), thereby staying in the single market, with customs union membership as the “plus” – could see their first choice rejected, only to have to make a decision immediately on whether to back a second referendum.

    Much will depend on the sequence. Campaigners for a so-called people’s vote say their strategy has always been “to remove everything else from the table”, to ensure that a referendum is the last option left standing. They believe this week’s Commons manoeuvres demonstrated MPs’ rejection of no deal. Tuesday will eliminate the May deal. If Jeremy Corbyn tries and fails to pass a motion of no confidence in the government, the option of a general election falls away. Once Norway falls then, hey presto, there’s only one way to swerve away from the berg: another public vote. But what if the Speaker doesn’t play along, choosing instead for MPs to vote on a referendum first, before Norway has been rejected?

    It means that all those who want to avoid the cataclysm of crashing out of the EU need to do their hard thinking now. Pro-Europeans especially need to guard against so dividing their forces between Norway and a referendum that neither option gains the critical mass it would need – in Westminster and the country – to prevail. The risk is that in dithering over which lifeboat is best, they run out of time and crash to disaster.

    So how to weigh up this choice? The Norway plan has attracted renewed interest in recent days. On the Tory benches, the thoughtful Conservative George Freeman announced he’d back May and then, when that plan failed, support Efta membership. Meanwhile, the shadow chancellor, John McDonnell, is said to have had friendly conversations with the Norway group, and there have been other public smoke signals in that direction.

    McDonnell’s move suggests a shift in the Labour leadership’s thinking. The realisation has come that allowing a hard, or even no-deal, Brexit won’t just be blamed on the Tories: Labour too will be held responsible, including by its own devotedly pro-remain members. Accordingly, any earlier attraction to no deal as a route to economic collapse and calamity, after which the British public would thirst for a radical Labour government, has faded. On the other hand, the high command of the party does not much like the prospect of a second referendum – partly because they fear it would alienate leave voters, and partly because they regard the People’s Vote campaign warily, imagining it as a Blairite shadow army.

    And yet it’s not easy for them to jump into the Norway lifeboat, either. True, Britain would stay in the single market, which avoids the economic self-harm of Brexit. But we would have lost our seat at the EU table, deprived of a voice and a veto. The bogus sovereignty arguments deployed by the Brexiteers would gain a validity they previously lacked.

    If advocates of Norway are honest about what their model entails, it might prove a hard sell, especially to those who voted leave. As well as depriving the UK of a say in EU decisions, it will involve hefty cash payments and an ongoing commitment to free movement of people. And there’s no guarantee our European neighbours would even allow a country of Britain’s size to join Efta. Besides, people’s vote campaigners suspect some Tories are attempting to use the appeal of Norway to get Brexit across the line, only to harden our exit from the EU once we’ve formally left on 29 March. As one puts it: “You think you’re going for a nice weekend trip to Oslo, only to wake up in the frozen tundra of Canada.”

    One remain MP is upfront, admitting he might well resort to Norway eventually, but not yet. Only when remain is certifiably dead as an option, if we leave on 29 March, will he countenance it. While there’s still a chance to stay in the EU, he’ll fight any form of Brexit, including even the softest, Norway version.

    Which leaves only one lifeboat: a public vote. The case for a second referendum suffered a blow this week, at least among the 1.3 million who watched James Graham’s Brexit drama on Channel 4. It was a reminder of just how dispiriting and sour an affair the 2016 campaign was. No one could watch that and want to relive the experience. And because Britain still lacks any equivalent to the US’s Mueller investigation, we haven’t got to the bottom of either the methods or funding of the leave campaign – including its use of social media, the focus of the Channel 4 film. We can hardly be confident that the same tricks won’t be used again.

    And yet, what other escape do we have from the looming iceberg? This is the question that now presses on MPs with urgency, Labour MPs especially, the party leadership most of all. Rarely for an opposition, they can shape events. They can steer the country to safety. If they don’t, the ship of state is sailing towards catastrophe – and it’s getting nearer every day.

    • Originally published in The Guardian with the title ‘Brexit disaster looms. Can MPs unite quickly enough to save us?’
  • May promises to step down before 2022 election

    British Prime Minister, Theresa May, has said she will step down as Conservative party leader before the next general election scheduled in 2022, the BBC and other media quoted Conservative lawmakers as saying.

    May delivered a speech to the party’s 317 lawmakers ahead of a no-confidence vote that she is expected to win in spite strong opposition to the Brexit deal she has agreed with the EU.

    An earlier Downing Street statement had hinted that May would offer to step down after Britain leaves the EU in March but before the 2022 election, if the lawmakers back her in the confidence vote.

    Less than four months before the United Kingdom is due to leave the EU on March 29, Britain’s exit is in chaos with options ranging from a potentially disorderly no-deal departure to another referendum that could reverse it.

    May said she would fight for her job with everything she had.

    But at a closed meeting with Conservative lawmakers before they were due to decide her fate, she announced she would not take the party into the next election due in 2022, two lawmakers present told reporters.

    “She said that she did not intend to lead us into the 2022 election,” lawmaker Alec Shelbrooke said, adding “her opening remarks were, ‘I am not going to hold a snap election’.”

    Lawmakers said she told them she recognised that the party did not want her to lead them into the next election, a gesture that could help her win over some wavering MPs on Wednesday evening.

    May could be toppled if a simple majority of 317 Conservative MPs (members of parliament) vote against her, though a large rebellion could also leave her fatally weakened.

    At least 189 indicated public support for her and one bookmaker had the odds she would win at 89 per cent.

    A bitter division over Europe in the Conservatives helped bring about the downfall of all three previous Conservative premiers – David Cameron, John Major and Margaret Thatcher.

    May, 62, who voted to remain in the EU at a 2016 referendum, told opponents of her EU withdrawal deal – struck after two years of negotiations – that if they toppled her, then Brexit would be delayed or stopped.

    “A change of leadership in the Conservative Party now would put our country’s future at risk and create uncertainty when we can least afford it,” she said.

    “I stand ready to finish the job.’’

    May said a new leader would not have time to renegotiate Brexit and secure parliamentary approval by the end of March, meaning the Article 50 withdrawal notice would have to be extended or rescinded.

    The Conservative lawmakers will cast their votes in the confidence ballot from 1800 GMT in Committee Room 14 at the House of Commons.

    An announcement is due at 2100.

    “The size of the vote does matter,” said polling expert John Curtice.

    “If much more than 100 MPs vote against her then I think she is going to be struggling to remain for very long and would find it difficult to get that deal through the House of Commons.”

    Brexit is Britain’s most significant political and economic decision since World War Two, though pro-Europeans fear it will weaken the West as it grapples with the presidency of Donald Trump and growing assertiveness from Russia and China.

    The outcome will shape Britain’s 2.8 trillion dollars economy, have far reaching consequences for UK unity and determine whether London keeps its place as one of the top two global financial centers.

    The British pound rose to 1.2652 against the dollar.

    May won the top job in the turmoil that followed the 2016 EU referendum but promised to implement Brexit as a way to heal a divided nation.

    But on Monday she pulled a parliamentary vote on her deal – which seeks to keep Britain closely aligned with the EU after exit – to avoid defeat.

    Her trade minister, Liam Fox, said the government might not even put it to a vote unless the EU gave more reassurances on the so-called Irish “backstop”, an insurance policy aimed at preventing border controls on the island of Ireland.

    German Chancellor Angela Merkel also said the 27 other bloc members would not change the deal.

    Pro-Brexit hardliners in her party say May has betrayed the people’s vote in negotiations, while other critics say she struck a deal that is the worst of all worlds – out of the EU but with no say over rules it has to abide by.

    “Theresa May’s plan would bring down the government if carried forward,” lawmakers Jacob Rees-Mogg and Steve Baker said in a statement.

    “Conservatives must now answer whether they wish to draw ever closer to an election under Mrs May’s leadership. In the national interest, she must go.”

    Facing defeat, UK’s May postpones key Brexit vote.

    May’s predecessor Cameron bet all on the referendum he lost in 2016.

    Now, having already been weakened by a snap election in 2017 which cost her a parliamentary majority, May also sees her own job at risk over Europe.

    May has been widely praised for a punishing work ethic and dedication to duty, but her premiership has been characterised by obduracy in the face of crises.

    Ministers said changing leader at such an important moment in British history was folly.

    “I am absolutely sure the prime minister will win,” said Michael Gove, the most senior Brexiteer in May’s government.

    But as investors and company bosses tried to gauge the ultimate outcome of the political crisis, some were betting Brexit would be thwarted.

    The EU’s top court ruled on Monday that Britain could cancel its Article 50 notice to leave without permission from other members and without losing privileges.

    But if May’s deal fails in parliament and Brexit is not delayed, then Britain could be heading toward a disorderly exit that investors fear will clog the arteries of trade, dislocate supply chains and roil markets.

    “We are working hard to make sure we get an orderly Brexit,” said Merkel, the EU’s most powerful leader. (Reuters/NAN)

  • Dollar weakens as cautious Fed leads to rate-hike rethink

    The dollar weakened against other major currencies on Thursday as markets took Federal Reserve Chairman Jerome Powell’s comment that U.S. interest rates were just below neutral as a signal that a three-year rate-hiking cycle is nearing an end.

    The dollar index, which measures the value of the greenback against a basket of other major currencies, fell 0.2 per cent to 96.64 — its lowest level in almost a week.

    Powell took markets by surprise on Wednesday when he noted that the policy rate, at 2 to 2.25 per cent, is now “just below” the broad range of estimates of neutral which in September was 2.5 to 3.5 per cent.

    That marks a departure from comments in October when Powell said rates were a “long way from neutral at this point”.

    “Clearly, Powell’s comments about where the neutral interest rate is has created a shift in market expectations with respect to Fed policy,” said Jane Foley, a senior currency strategist at Rabobank in London.

    “That is a dovish factor for the dollar and is positive for risk appetite.”

    That shift was reflected in money markets where expectations of Fed rate increases declined to around 47 basis points over the next year from 52 basis points earlier this week.

    The dollar was also weaker across the board and was last down 0.4 per cent at 113.25 yen and a quarter of a per cent weaker against the euro.

    The euro fetched $1.1394, having touched $1.13975 – its highest in almost a week.

    Benchmark 10-year U.S. Treasury yields fell to their lowest level since September at 3.013 per cent on Thursday, adding to the bearish sentiment towards the dollar.

    Read Also: Naira loses marginally against dollar at investors’ window

    Focus now turns to the release this session of the October U.S PCE price index, the Fed’s favoured inflation gauge, for more clues on the outlook for U.S. interest rates. Minutes from the Fed’s November meeting are also released later in the day.

    Analysts said the minutes were likely to reaffirm market expectations for a rate hike in December, but were unlikely to have a significant impact, since market focus has now turned to whether the Fed will pause the tightening cycle next year.

    Dollar weakness in the wake of Powell’s comments was expected to be limited, given a note of caution ahead of the G20 summit on Friday and Saturday where U.S. President Donald Trump and China’s President Xi Jinping are scheduled to discuss contentious trade matters.

    Rodrigo Catril, senior currency strategist at NAB, said safe-haven buying could return if there were no signs of a truce between Washington and Beijing over the course of the G20 summit.

    Elsewhere, sterling rose to $1.2830, but weakened 0.2 per cent against the euro to 88.81 pence, reflecting uncertainty about whether British Prime Minister Theresa May be able to get her Brexit deal approved by a fractious parliament.

    The Bank of England warned on Wednesday that Britain risked a bigger hit to its economy than it suffered from the global financial crisis a decade ago if it leaves the European Union in a “disorderly” manner, which would include a 25 per cent crash in the value of the pound.

    NAN