Brexit: Friday Afternoon Update

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Posted on July 16, 2016

Navigator joins with the leaders of Canada, the UK and across the world in declaring our solidarity with the people of France and all those affected by the attacks in Nice.

Story of the Day: May’s First PM Visit – Edinburgh
Prime Minister Theresa May opted to travel to the Scottish capital as her first official visit as PM. The gesture did not go unnoticed by First Minister Nicola Sturgeon who is concerned that Scottish interests will be overlooked as the UK prepares for its departure from the European Union (EU). In the coming months the Tory government must counter Sturgeon’s assertion that Scotland must maintain its vital links to the EU. Undoubtedly, it is in May’s best interest to keep relations from deteriorating down the path to a second independence referendum. In an interview following their conversation, May stated the two had an ‘excellent meeting’, noting it was both ‘constructive and positive’ — certainly a tone they will have to work to maintain.
Oliver Letwin, former Cabinet Office Minister and policy expert within Cameron’s government, alleged today that the UK does not have any trade negotiators. Conversations with Canada in particular have begun in an effort to adopt aspects from its Comprehensive Economic and Trade Agreement (CETA). A British model based on Comprehensive Economic and Trade Agreement (CETA) is backed by new Brexit Minister David Davis, at least for a practical starting point. The negotiation process of CETA, however, can be seen as a cautionary representation of what lays ahead. CETA has taken seven years to negotiate with a team of 300 negotiators involved.

Newly appointed Foreign Secretary Boris Johnson has come under further scrutiny and received a chorus of boos last night at the French embassy (prior to the attack in Nice) as he attended a Bastille Day celebration. Johnson has stated that he would like to keep the status quo allowance of EU nationals remaining in the UK, as long as UK nationals are allowed to remain in the EU. Although criticized for appointing the controversial Johnson as Foreign Secretary, many see method to May’s madness. Her cabinet currently consists of 15 Remainers and 7 Brexiteers, Boris Johnson is the face of the Leave campaign and having him in an esteemed position in solidarity with May could allow the Tories to not fully deliver on the promises made by the successful Leave campaign.
Labour Party
Owen Smith has finally come out today and officially announced his campaign to run against current leader Jeremy Corbyn for party leadership. His campaign, which he had planned to launch earlier but delayed due to family illness, will be anchored by a promise to push for a second EU referendum. It is unclear how or when such a pledge could be honoured by any Labour leader.
Both Smith and Andrea Eagle have announced their official campaigns but agree that it is best if only one challenger makes the ballot against Corbyn. Interestingly, Smith is uncertain as to the procedure that would decide whether it is he or Eagle who makes the final cut. His curious suggestion that Deputy Leader Tom Watson make the final decision hardly seems to respect the democratic policy of the party.

In other news the Labour Party suspended its largest constituency, Brighton and Hove, and annulled the result of a recent vote that granted supporters of Jeremy Corbyn significant positions within the party. This after allegations of bullying, intimidation, and misconduct at the party’s Annual General Meeting surfaced today. Sadly, similar allegations emerged earlier this week at the National Executive Committee’s vote on Corbyn’s automatic right to the ballot.

In other news, Labour’s biggest union, Unite, has raised the issue that MPs may lose their right to re-election if their constituency supports Jeremy Corbyn but they do not.
UK Independence Party (UKIP)
Career politician Bill Etheridge has officially announced his leadership ambitions as the leader of UKIP. Former school teacher Jonathan Arnott and lawyer Steven Woolf are also officially in contention for the Party’s top job. Interestingly, all three men are Members of the European Parliament in Brussels/Strasbourg.

Markets
The pound sterling is up an impressive 3.7 per cent against the US dollar this week, trading at $1.3370. It is also up over three per cent against the Euro trading at roughly タ1.20. In other news, the pound is set for a weekly gain of nine per cent against the Japanese Yen, marking its best week in the history of the two currencies’ relationship.
The FTSE 100 closed up 0.22 per cent, while the FTSE 250 slipped 0.36 per cent. European markets slumped following the attacks in Nice with the French CAC 40 down 0.3 per cent with hotels and airlines taking the most damage.

News of greater Chinese growth than forecasted was released today prompting a general boost in the markets globally.
Five Must-Read Articles

To speak to someone on the ground in London, connect directly with our London lead Ashley Prime at aprime@navltd.com.

Navigator's Brexit Response Team

If you have any questions on the implications of Brexit and its implications for your organization, please reach out to Navigator's Brexit Response Team.

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1 (877) 431-9721

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