European Union

Frontrunning: June 29

  • Global stocks gain as Brexit nerves settle (Reuters)
  • Draghi Wishes for a World Order Populists Will Love to Hate (BBG)
  • Merkel Says No Way Back From Brexit as Cameron Regrets Loss (BBG)
  • EU leaders meet without UK to plot Brexit response (FT)
  • Division, confusion as EU rethinks future without Britain (AP)

Global Stock Surge Continues As "Investors Look To Central Banks For Support"

Why the ongoing rally? A squeeze, sure, and also month-end fund flows. But the fundamental driver remains one and the same, and we quote Bloomberg: "the relief rally endures as Asian and European stocks rally with crude oil amid speculation policy makers will use stimulus to blunt the impact of the U.K.’s decision to leave the European Union, including a pause in the Federal Reserve’s tightening cycle. Investors are looking to policy makers for support."

The Accusations Begin: David Cameron Blames Brexit On Merkel And EU "Immigration Failure"

David Cameron told European leaders he lost the EU referendum because they failed to address public concerns over immigration, as tensions rose ahead of looming Brexit negotiations. The British PM said that fears of mass immigration were "a driving factor" behind the vote and free movement would have to be addressed in Brexit talks. He was mostly referring to Angela Merkel who blocked British demands before the referendum for an "emergency brake" on migrant numbers.

16 Reasons To Celebrate Brexit's Win

Could Brexit turn out to be a mistake? Yes. Unfortunately, we live in an uncertain world with imperfect knowledge. We can only guess at the future. However, Britain has been capably governing itself for hundreds if not thousands of years. In that light, Brexit appears likely promote the right people and ends.

Bernie Sanders: The World Is Rejecting Globalization

"The global economy is not working for the majority of people in our country and the world. This is an economic model developed by the economic elite to benefit the economic elite. We need real change... We also need a president who respects the democratic rights of the people, and who will fight for an economy that protects the interests of working people, not just Wall Street... and other powerful special interests."

Farage Slams The EU Parliament: "You're Not Laughing Now Are You?"

In his first appearance in European Parliament since the Brexit vote, UKIP leader Nigel Farage was greeted with raucous jeers and boos (presumably for enabling The Brits to exercise their democratic right to self-determination). Once EU President Martin Schulz had demanded (ironically) that they listen, Farage began his 'victory' speech by reminding his so-called peers of their laughter when he first suggested UK should leave The EU - "you're not laughing now... are you!"

Juncker Refuses To Speak English In Address To EU Parliament

European Commission President Jean-Claude Juncker didn't speak English Tuesday as he lamented the U.K.'s departure from the bloc. Juncker's official speech to EU lawmakers was made only in French and German. He did, however, respond to hecklers among the British EU lawmakers in English. Previously, Juncker has often used the EU's most widely spoken and written language as well, particularly when addressing issues close to British hearts.

Why All The Post-Brexit Hysteria?

If there is one thing that the EU should hope for it is complete economic catastrophe as a result of this vote; that their threats and fear mongering leads to action resulting in a self-fulfilling prophecy. Otherwise, if the UK proves that you can leave the union, maintain friendly trade relations and continue to be a dominant global economy, it would signal the beginning of the end of the EU. If other nations see proof that you can escape the Brussels bureaucracy with only minor short-term complications it will surely lead to an exodus from the destined-to-fail union.

 

Why The ECB Thinks Brexit Is Not A "Lehman Moment"

"I think indeed the comparison does not apply because the reaction to Lehman as you may recall was that several markets froze... That was not the case this time." Actually... that's not exactly true is it!!

European Parliament Plans To Remove English As An Official Language

There has been a lot of speculation surrounding what the changes will be in the relationship between the UK and the European Union as a result of the Brexit referendum. One thing we do know, is that according to a senior MEP, English will no longer be an official language of the European Union.

Satyajit Das: What Does Brexit Really Signify?

History may well record that little changed as a result of Brexit after the long tortured process of negotiation of the terms of withdrawal and arrangements regarding trade and other matters with the EU. But, if the deep seated economic and social divisions within Britain or other societies cannot be dealt with peacefully and through existing processes, the risk is that it will unleash the furies of nationalism and isolationism in unknown ways and with unpredictable results.

 

After Brexit, A Trump Path To Victory

The English wish to remain who they are, and they do not want their country to become, in Theodore Roosevelt’s phrase, “a polyglot boarding house” for the world. From patriots of all nations, congratulations are in order. It will all begin to unravel now, over there, and soon over here.

Bank of America: "If You Are Going To Panic, Panic Early"

"While globalization, immigration and the free market have strong support from the winners of these themes – the plutonomists and the highly educated, in our view they seem to have underestimated the frustration of developed market middle and working classes... We suspect that few will pay attention to these tectonic shifts – it will require more Brexit-type surprises for the message to sink in."

UK Labour Party Leader Corbyn Loses Vote Of No Confidence

Following the resignation of more than 20 members of his shadow cabinet, UK Labour Party Leader Jeremy Corbyn has just lost a vote of no confidence by a vote of 176 to 40. Despite his previous statement that he is "not going anywhere" we suspect this will lead to a formal leadership challenge. Notably Cable is weakening on the news as yet another level of uncertainty hits The UK.