Trump impeachment proceedings launched by the democrats
Market moving news in brief
On 25th September 2019 – reports stated that Nancy Pelosi, speaker of the U.S. House of Representatives announced that the U.S. Democratic Party had begun a formal impeachment inquiry into President Donald Trump – reportedly over allegations that he pressured a foreign power to ‘investigate’ a political rival and therefore influence the U.S. 2020 election.
It is expected that even with strong support from the Democrats, who are in favour of impeachment, it is highly unlikely to pass the Senate, which is Republican controlled.
Previous Presidents
Two U.S. presidents have previously been impeached; Andrew Johnson and Bill Clinton; both were later acquitted by the Senate. Could Donald Trump be the third? It’s doubtful.
In a tweet President Trump responded to the announcement as, ‘witch hunt garbage’.
How did this news affect the markets? Dow up 160 points on the day
The Dow Jones barely moved on this news, as it was already ‘up’ considerably on the day excited by a Trump comment suggesting that a trade deal with China could ‘come sooner than expected‘, and that steps were being taken towards a new agreement with Japan.
The Dow gained 160 points mainly encouraged by the news that a U.S. – China trade deal was getting ‘closer’. The Dow didn’t move on the impeachment news. Strange times!
U.S. – China talks apparently end abruptly
The announcement from Donald Trump came on the back of earlier news in the week suggesting that a Chinese delegation ended their ‘talks’ early, packed up and went home! And that the U.S. President did not want an interim deal and was prepared for ‘negotiations to take as long as was necessary to secure a deal suitable for the U.S.
Also, earlier this week, the U.S. President reportedly criticised China and its economic policy. On Wednesday, he then said Washington had been having ‘some very good conversations‘ with Beijing. He said, ‘They want to make a deal very badly… It could happen sooner than you think.’
Trading in Asia has been mixed amid confusing signals from the U.S. over the trade talks with China.
Earlier this week, the U.S. President criticised China and its economic policy. On Wednesday, he then said Washington had been having ‘some very good conversations‘ with Beijing. He said, ‘They want to make a deal very badly… It could happen sooner than you think.’
So, in just a few short days the news surrounding a ‘deal’ has moved yet again. I for one am confused and find this market very difficult to trade.
Anyway, the ‘higher level’ meetings are still scheduled for early October 2019.
UK Supreme court ruling on suspension of parliament
On Tuesday 24th September 2019 the UK Supreme court ruled that the suspension of parliament was unlawful. Hot on the heels of that announcement, the Speaker of the House of Commons, John Bercow recalled parliament.
Shambolic
It would have been better, in my opinion, if parliament had been left ‘suspended’ because it would have at least spared us all witnessing the shameful, disrespectful and embarrassing behaviour that followed.
The behaviour in the house recently was appalling and, in my humble opinion, parliament as it stands, is utterly unfit for purpose, all of it!
Please, please, please, can we dispose of this incapable group of frustrated and fractious MPs and replace them with new fresh energy to get the Brexit job done!
Clear out
We need a good ‘clear out’ of MP’s (on all sides) as they have failed to demonstrate that they can deliver the referendum result.
The current house is stale, fractious and without direction. It is lost! Not all are incapable or inept to deliver the referendum result, but many have, in my opinion dramatically failed us – (thus far) – and have now lost all sense of purpose. They appear to be capable of only preventing Brexit – NOT delivering it!
The Speaker – impartial?
Isn’t the Speaker supposed to be impartial and not meant to guide, direct or influence parliament but to ‘control’ debate the house – I’m not so sure this has been the case for some time. It hasn’t helped matters.
Deal or no deal Brexit?
Does parliament actually want a deal? Are all the ‘no-deal’ shenanigans just an excuse to not leave the EU? Will it now become the people vs parliament to get Brexit over the line?
It has taken more than three years to get to here (wherever ‘here’ is) – and this is only the exit deal – just the start! The real negotiations of our future relationship with the EU, assuming we leave, are yet to be decided. Haven’t we got other things to be getting on with?
Let’s just press the ‘reboot’ button and get a change of parliament and start again. The only option now is to have a general election.
Remember – our children are watching this utterly appalling sorrowful fiasco.
Referendum
The people voted in the referendum to ‘leave’ the EU. And if you, like me, voted to remain – we must concede that the vote was lost and we must now to leave.
The democratic decision given by the people was to leave the the EU and that MUST be upheld.
Party politics or country first?
I’m not a Boris fan, I am not a Conservative, nor do I support Labour or the Liberal Democrats. In fact, I don’t have any allegiance to any particular party but, I will give my vote to who I think will do the best for our country at any given time. And, right now and even though his hands are tied, and even though I do not support Mr Johnson – he is carrying the mandate from the people to deliver Brexit and he has to be allowed to get this done – like it or not, deal or no deal.
I didn’t vote to leave – I would much prefer to remain part of the European Union, I still do – but not like this. The referendum was clear – the people voted to leave and leave we must.
So parliament, please do your duty and allow Brexit to happen as voted for by the people. Or stand aside and permit a general election that will hopefully deliver fresh impetus to get this job done. No hung parliament please.
It really is time to leave – with or without a deal!
Other market moving news
U.S. data released today 26th September 2019
Figures released today suggest U.S. GDP remains pretty much unchanged at 2%, so does this mean there is a slowdown ahead? U.S. trade deficit in goods widens just a little in August. U.S. jobless claims rise slightly to 213,000 in September. Treasury yields reportedly fall Thursday as geopolitical jitters abound.
German manufacturers woes continue
The number of German firms moving workers to short time employment has increased as reported by the Ifo economic institute.
5.5% of manufacturers surveyed by the Ifo said they had used the ‘Kurzarbeit’ short hours facility, in September. The procedure is a way to avoid mass layoffs. It is reported that 12.4% of employers expect to use the facility in the next three months, this figure is up from June.
Is China’s economy slowing and heading for reverse gear?
A recent run of poor data has revived previous concerns about the world’s second largest economy. In August 2019, industrial output grew at its slowest pace since 2002, exports fell and retail sales appear to be slowing. Even China’s Premier Li Keqiang said it would not be easy for the country to sustain growth rates of above 6%.
A quarterly survey released Wednesday 25th September 2019 showed that growth slowed in the third quarter while debt levels increased. Revenue, profits, output, sales volumes, and job growth all slowed from a quarter ago, as did both domestic and export orders, the report said.
China became a key player in world economic growth as developed countries struggled after the 2008 global financial crisis hit. But now issues at home, the U.S. led trade dispute and increasing debt appear to be slowing China’s expansion. Will a U.S. – China trade deal help fix China’s problems?
UK business – brief update
British Airways profits are set to fall as a result of excessive costs linked to recent strike action. It is reported that it expects full year operating profit to be some £191 million lower that last year’s results. BA pilots strike reported to have cost the airline £121 million. Ouch!
Imperial Brands vaping fears impact sales – reportedly to now grow at a sluggish 2% rate this year.
Shares in education provider Pearson have closed more than 13% down on a troubled day for the firm.
Users of Nat West’s online business banking service have been reporting problems again – some claiming to have seen transactions and balances of completely different businesses when they logged in.
Thomas Cook closes and goes into liquidation having failed to secure a bailout. Some 150,000 holiday makers are to be repatriated by the CAA.
It was reported today that the UK’s biggest car maker, Jaguar Land Rover, will close its British factories for a week in November to help cope with Brexit uncertainty.
Figures from the Office for National Statistics (ONS) – show an increase in the number of employees of 229,500, between 2017 and 2018 – an increase from 30.3 million to 30.5 million.
Indices update
How did all this market moving news translate to the stock market today?
FTSE closed up at: 7351
Dax closed up at: 12288
Dow closed at: 26891
S&P closed down at: 2977