07/01/2019 - May Warns Against Rejecting Deal

GBP

Prime Minister Theresa May said on Sunday that Britain would be in uncharted territory if her Brexit deal is rejected by parliament later this month, despite little sign that she has won over skeptical lawmakers.

May said the vote in parliament would be around Jan. 15, as expected, contrary to reports she could delay it.

With the parliamentary debate on her deal due to begin on Jan. 9, May said there was still work to do to get reassurances over the backstop from the EU. She also promised parliament would have a greater say in the rest of the Brexit process and warned that rejecting her deal could prevent Britain’s exit.

Amid the uncertainty over Britain’s next steps - which range from leaving without a deal to not leaving at all - a poll showed more Britons want to remain a member of the EU than leave, and voters want to make the final decision themselves.

On Tuesday, her government could face a bid to block an unmanaged exit when a group of lawmakers try to amend budget legislation to deny funding for some no-deal preparations unless they are approved by parliament.

May repeated her objections to holding a fresh public vote on the deal. She said a second referendum would be divisive, and also highlighted the lack of time available to hold a new referendum.

USD

U.S. officials are meeting with their counterparts in Beijing this week for the first face-to-face talks since Trump and China’s President Xi Jinping in December agreed to a 90-day truce in a trade war that has shaken international markets.

Trump imposed import tariffs on hundreds of billions of dollars of Chinese goods to pressure Beijing to change its practices on issues ranging from industrial subsidies to hacking. China had since retaliated with tariffs of its own.

Beijing on Friday cut bank reserve requirements amid slowing growth at home and pressure from the U.S. tariffs.

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15.00 - USD: ISM Non-Manufacturing PMI; Forecast at 59.6 against previous of 60.7