Labour’s Brexit Splits Risk Undermining Party Ahead of Election

Labour’s Brexit Splits Risk Undermining Party Ahead of Election

LONDON (Capital Markets in Africa) – U.K. Labour leader Jeremy Corbyn is struggling to keep his party together as senior members demand an unambiguous commitment to staying in the European Union before a general election expected in the fall. Corbyn said his party is pledging to hold a second referendum on Brexit if it’s elected to government, pitting ‘Remain’ against a “credible” deal he negotiates with the EU — but he wouldn’t say which side he’d campaign…

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U.K. Labour Says Legislation Is Ready to Nationalize Utilities

U.K. Labour Says Legislation Is Ready to Nationalize Utilities

LONDON (Capital Markets in Africa) – The U.K.’s opposition Labour Party said it’s already drafted laws to nationalize water and energy utilities as the prospect of a general election looms. Taking control of energy transmission and distribution networks as well as water companies will help bring down bills for consumers and allow the government to pursue a strategy to curb greenhouse gas emissions, Rebecca Long-Bailey, the party’s business spokeswoman, said on Sunday. “We’ve got the legislation…

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Brexit Pops the Question for U.K. Courts: How Powerful Are You?

Brexit Pops the Question for U.K. Courts: How Powerful Are You?

LONDON (Capital Markets in Africa) – The white-haired Supreme Court judge leaned forward with a stern look, interrupting a lawyer who argued that Prime Minister Boris Johnson’s suspension of Parliament was unlawful. Justice Nicholas Wilson was miffed at Ronan Lavery for describing the Brexit risks to peace in Northern Ireland. That exposed the decade-old court to an accusation it’s been at pains to disprove: that it has become a player in the U.K.’s political arena. Played…

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Boris Johnson Takes Bid for Brexit Deal to New York as Clock Runs Down

Boris Johnson Takes Bid for Brexit Deal to New York as Clock Runs Down

LONDON (Capital Markets in Africa) – Boris Johnson will start a week of intense diplomacy on Monday, as he tries to push for a Brexit deal on the sidelines of the United Nations General Assembly in New York. The British prime minister will hold meetings this week with all the key players — Germany’s Angela Merkel, French President Emmanuel Macron, Irish Prime Minister Leo Varadkar and European Council President Donald Tusk. He will try to persuade them to renegotiate the divorce…

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Fed Takes Stock of Battered Money Markets as Uneasy Calm Returns

Fed Takes Stock of Battered Money Markets as Uneasy Calm Returns

NEW YORK (Capital Markets in Africa) – U.S. money markets are taking a breather following last week’s volatility, but the Federal Reserve remains on alert and is examining what implications the turmoil may have for the central bank and the financial system. Rates on repurchase agreements held steady on Monday after stabilizing late last week in the wake of an unprecedented market spike. A daily Federal Reserve operation — aimed at keeping funding markets on an even…

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Big Banks Hold Flash Boys at Bay With Grip on Treasuries Trading

Big Banks Hold Flash Boys at Bay With Grip on Treasuries Trading

NEW YORK (Capital Markets in Africa) – High-frequency traders haven’t taken over Treasuries, according to data just released by a senior U.S. government debt manager, a sign banks still call the shots in the world’s largest bond market. These automated market makers have bought and sold about $140 billion of Treasuries a day since April, 20% of total volume, Deputy Treasury Secretary Justin Muzinich said Monday during a speech in New York. These companies — the U.S….

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Warren’s Rise Is Bigger Market Risk Than Trump-Ukraine, AGF Says

Warren’s Rise Is Bigger Market Risk Than Trump-Ukraine, AGF Says

NEW YORK (Capital Markets in Africa) – Investors should be more concerned about the increasing prospects of Elizabeth Warren being the 2020 Democratic presidential nominee than any fallout from the scandal around Donald Trump’s phone call with his Ukrainian counterpart, according to AGF Investments. The outrage surrounding allegations that Trump urged Ukrainian President Volodymyr Zelenskiy to investigate Democratic front-runner, former Vice President Joe Biden, is unlikely to affect markets, Greg Valliere, the firm’s chief U.S. policy strategist, wrote in a…

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