Brexit Bulletin: Labour’s Smith Seeks to Block Exit

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Owen Smith is tapping into discontent over Brexit again in his bid to challenge Jeremy Corbyn for the Labour Party leadership. He promises today that he would try to block the start of exit talks by voting against any attempt to trigger Article 50 unless Prime Minister Theresa May commits beforehand to putting the final divorce deal to another referendum or a general election.
“The British people were lied to by the ‘Leave’ campaign: they deserve to have a say on whatever exit deal the Tories strike with the EU,” Smith said. “Nobody knows what Brexit looks like. It could involve trashing workers’ rights and environmental protections, opening our National Health Service up to foreign competition, making it harder for us to trade with our neighbors and damaging our economy.”
There are a few obstacles to the plan: one is that Corbyn remains bookmakers’ favorite to win the leadership contest. Labour obviously doesn’t have a majority in Parliament. And it’s not yet certain that May will seek Parliament’s approval to trigger Article 50.
Read more on the debate about Parliament’s rights and role here.

Severing Links

More than a quarter of European companies plan to reduce the amount of business they do with U.K. banks after Britain exits the European Union, according to a survey by Greenwich Associates.
Twenty-eight percent of companies on the continent are planning to move away from British banks, with 20 percent shifting business to global lenders, the financial services consulting firm says, as Bloomberg’s Gavin Finch reports.
In case you missed it yesterday, German lawmaker Michael Fuchs, an ally of Chancellor Angela Merkel, said the EU won’t bend the rules to preserve the City’s access to the single market. So-called passporting rules, which allow banks to offer services across the bloc, are “not negotiable,” he said in an interview with Bloomberg’s Francine Lacqua.
Brexit turns out to be good news, at least for now, for investors in European bonds. Spanish, Italian and Irish bonds have all gained since the referendum as investors expect the European Central Bank to add stimulus to shield the region from the economic fallout. Add this to the list of unexpected consequences of Brexit: the government bonds of the most indebted countries have led gains across the euro region.  


Big Spenders

Other Brexit winners are retailers selling to foreign tourists.
International tax-free shopping in the U.K. rose 7 percent in July from a year earlier as the pound’s post-Brexit-vote slide reduced costs for foreign tourists, according to Global Blue. Visitors from Qatar had the highest average spend per transaction while Japan, Indonesia and the U.S. accounted for the biggest increases in purchases, according to Bloomberg Gadfly’s Andrea Felsted.


On the Markets

European markets were down at the open, after Asian stocks rose overnight. Investors are keeping their eyes on the U.S. Federal Reserve, with Chair Janet Yellen due to speak later this week.

And Finally...

Former Foreign Secretary William Hague has a new gig, according to the Times. Political advisory firm Teneo, which hired Hague last year, has appointed him to its new “Brexit client transition unit,” according to the paper.

Brexit Bulletin: Labour’s Smith Seeks to Block Exit Brexit Bulletin: Labour’s Smith Seeks to Block Exit Reviewed by Unknown on 01:26 Rating: 5
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