by Ntombi Malatsi | Jul 2, 2017 | ECONOMIC NEWS
All There Is To Know About Brexit
Welcome back. It’s been a while since I published a blog post. I have been doing weekly economic news updates only for the past few weeks. I usually post a lot about Brexit on my Facebook timeline. I get lots of questions concerning it. I thought I should publish a short detailed post just so you don’t get lost/confused. I hope this helps.
What is Brexit?
Brexit is the abbreviation for “British exit“. It refers to British people exiting the European Union (EU). Britain is the first country to leave the EU.
What is the EU?
The European Union is a political and economic union of 28 member states that are located primarily in Europe. Their headquarters in Brussels. The UK was one of them.
When did Brexit take place?
Brexit took place on the 23rd of June 2016. The outcome was too close because 51.9% voted for Exit while 48.1% voted for remain (such a close call). It was also reported that most people who voted for Brexit did not really have a clear understanding of what they were voting for. Google searches also revealed that most people were looking for information on Brexit just after Brexit was announced. GBP slumped to a 31 year low. We were just there to grab trading opportunities. You might like to read the post I published just after Brexit was announced HERE.
Who voted for Brexit the most?
Economically disadvantaged and anti-migration individuals helped to secure the leave vote. This group of voters does not normally vote but they voted for Brexit. After the votes, Britain got a new Prime Minister, Theresa May. She took over from David Cameroon who announced his resignation as he lost the referendum. He was in favour of Bremain and so was Theresa May (She has since changed her mind though and now in favor of Brexit). On the 29th of March 2017 , Theresa May triggered Article 50
What is Article 50?
Article 50 of the Treaty of Lisbon gives any EU member the right to quit/leave the EU and it outlines the procedure for doing so. It gives the leaving country two years to negotiate an exit deal and once it’s set in motion it can’t be stopped except by an unanimous consent of all member states. Brexit negotiations officially began on the 19th of June 2017. The UK will finally leave the EU on Friday 29th of March 2019. There’s still a long journey, a very rocky one I must say. Uncertainty awaits British people. German Foreign Minister, Sigmar Gabriel hinted that Europe may offer a “soft Brexit“.
Soft Brexit
- British people will be able to trade goods and services with the remaining EU member states tariff free.
- Financial firms will also be allowed to have passports to sell services in the EU.
- Britain will have access to single market
- UK will remain within the EU customs, meaning the exports won’t be subjected to border checks.
Thank you for stopping by, keep your eyes on GBP pairs during this period. Please help to keep this blog going. If you need to open a live account kindly register with one of the recommended FSB regulated brokers using the links provided HERE. For further assistance you can WhatsApp me on: +27 76 966 9392 Or +27 64 510 4132.
by Ntombi Malatsi | Jun 18, 2017 | ECONOMIC NEWS
Economic News To Watch This Week
by Ntombi Malatsi | Jun 11, 2017 | ECONOMIC NEWS
Economic News To Watch This Week
A very busy week ahead. Please help to keep this blog going. If you need to open a live account kindly register with one of the recommended FSB regulated brokers using the links provided HERE. For further assistance you can WhatsApp me on: +27 76 966 9392 Or +27 64 510 4132. Below is our weekly economic calendar.
by Ntombi Malatsi | Jun 4, 2017 | ECONOMIC NEWS
Economic News To Watch This Week
Highlights from last week: The U.S CB Consumer confidence which measures the level of a composite index based on surveyed household decreased from expected 120.1 to 117.9. Canada GDP increased by 0.2% from expected 0.3% reaching 0.5%. Get all Canada GDP 2017 dates HERE. Australia Retail Sales increased from expected 0.3% to 1.0%. Get all Retail Sales 2017 dates HERE. U.S ADP Non-Farm Employment Change increased by 72k from expected 181k to 253k. We wrapped up our week with the UK Construction PMI which increased from expected 52.7 to 56.0. U.S Average Earnings held steady at 0.2%. Non-Farm Payrolls decreased by 43k from expected 181k to 138k while unemployment rate also decreased to 4.3% from expected 4.4%.
Please help to keep this blog going. If you need to open a live account kindly register with one of the recommended FSB regulated brokers using the links provided HERE. For further assistance you can WhatsApp me on: +27 76 966 9392 Or +27 64 510 4132. Below is our weekly economic calendar.
by Ntombi Malatsi | Jun 4, 2017 | ECONOMIC NEWS
What is United Kingdom Elections?
British people are heading to the polls to elect their leader. The elections were initially scheduled for 2020, which means they are actually happening 3 years earlier. British Prime Minister, Theresa May vowed that she will never call for an early elections and she changed her mind and called for an early elections. On the 19th of April 2017, MPs approved Theresa May’s early elections proposal. For the elections to happen, 434 out of 535 MPs had to vote in favour. The outcome was shocking when 522 voted in favour against only 13 MPs who voted against. Clearly the majority saw the need for early elections. The official campaign began on the 3rd of May 2017.
When is it all happening?
On the 8th of June 2017. The polls will open at 7am to 10pm on the same day.
Who are the voters?
- British, Irish or commonwealth citizens
- Resident at an address in the UK
- 18 years of age or older
What will happen after the elections?
A government will be formed by any party which will get the majority of MPs.
Which parties are being looked at?
- Conservative party which is led by the British Prime Minister Theresa May
- Labour Party which is led by Jeremy Corbyn.
May added that she wants unity. She added that British people want certainty and strong leadership (which she believes she is the right candidate to lead). She also added that British people also need stability and a strong negotiator for Brexit negotiations. Read Conservative’s manifesto HERE. Amongst other things, Corbyn mentioned in his manifesto that he will invest more in NHS (National Health Services) and provide first class treatment. Read Labour Party’s manifesto HERE.
Why do we (traders) care?
The Pound has been driven by politics. From the Brexit last year to the Prime Minister triggering the article 50 to kick off the Brexit negotiations and now general elections. Elections in general, play a bigger part in the currency markets. The elections will have a direct impact on GBP. Thank you for stopping by. Please help to keep this blog going. If you need to open a live account kindly register with one of the recommended FSB regulated brokers using the links provided HERE. For further assistance you can WhatsApp me on: +27 76 966 9392 Or +27 64 510 4132.
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