Financials –
Big news out of the UK this morning as the supreme court ruled that PM May must seek an act of Parliament to trigger the two-year countdown to Brexit. The ruling passed by an 8-3 vote. The judges also ruled that legislatures in Scotland and Northern Ireland don’t get to vote on the issue. This is a big win for anti-Brexit members of Parliament. While a form of Brexit is expected to pass Parliament due to the popular vote win, this now allows anti-Brexit officials to play a bigger role in negotiations and finally shape how the exit is framed.
The bill will have to go through five stages in each of the two chambers of Parliament. As you’d expect, this can take a lot of time considering dissenters will likely continually propose amendments. Both houses must agree on the wording of the final law. PM May had previously said they intended to invoke Article 50 by Mar 31, but that appears to be in jeopardy now.
It is a bit surprising considering the news that markets this morning are not overly volatile. The DX is higher against most pairs this morning, but that appears to be nothing more than a bounce of technical support. The DX was pressured late yesterday by new warnings from new Treasury Sec Mnuchin about an “excessively strong” dollar. It is very interesting to see the Trump administration come out so strongly discussing their preference for a weaker dollar. Given their policies on trade it really shouldn’t come as a surprise they’d prefer a weak dollar, but it is still a change in the guard that is very important to note.
On tap today we have existing home sales this morning. We also have earnings reports from VZ (which will be interesting in light of the YHOO acquisition) and AA. There will also be a meeting between President Trump and executives of several auto companies and that could potentially be market moving.
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