Theresa May Found in Contempt of Parliament

Mike “Mish” Shedlock's Sitka Pacific Capital Management,Llc

Theresa May was held in contempt of Parliament for not releasing the full legal findings document on Brexit.

By a vote of 311 to 293 Theresa May’s Government Found in Contempt of Parliament.

British prime minister Theresa May’s government has been found in contempt of parliament for refusing to release its full legal advice on the prime minister’s deal with the EU on the UK’s exit from the bloc. The vote also orders the immediate publication of the “final and full” legal advice on the Brexit deal.

British MPs have also voted to hand more power to parliament over what happens next if Mrs May’s Brexit deal is rejected on December 11th, in a move which could diminish the chances of a no-deal exit from the union. The procedural change means MPs could put forward alternatives if the current deal on the table is rejected.

Following the votes, Mrs May officially opened five days of debate in parliament on her Brexit deal, ahead of a crucial vote on December 11th, when MPs will be asked to approve it.

The leaked summary was damaging enough. It was billed as the full document. So what else is hidden?

Another interesting event today is the notion that Parliament can take control of the process.

Can Parliament Take Control?

For starters, there has been little agreement in parliament on much of anything except that no one likes the deal May secured.
Second, both May and the EU billed the deal as a take it or leave it proposal. Other than cosmetic changes, there is no time to go back to the EU for changes.
Third, French president Emmanuel Macron may very well have sealed the fate of this deal by announcing he was willing to perpetually hold the UK in a customs agreement over fishing rights and climate change.

Following the vote of contempt on Tuesday, parliament leader Andrea Leadsom said the government would publish the full legal advice on Wednesday.

On November 26, I noted Macron Threatens to Keep EU in Perpetual "Temporary" Customs Union Backstop

Macron added to his climate change demand, upping the ante to include fishing rights.

"We as 27 have a clear position on fair competition, on fish, and on the subject of the EU's regulatory autonomy, and that forms part of our position for the future relationship talks," said Macron. Clearly, Macron understood what was in the agreement that May signed.

What was leaked already was very damning. For discussion, please see Theresa May Caught in Massive Lie: Leaked Brexit Deal Analysis Vindicates Trump

Author

Mike “Mish” Shedlock's

Sitka Pacific Capital Management,Llc

Mike “Mish” Shedlock is a registered investment advisor for SitkaPacific Capital Management.

AUD/USD hangs below mid-0.7100s amid bullish USD, ahead of FOMC meeting

AUD/USD remains on the back foot during the Asian session on Tuesday, close to an over three-week low touched the previous day. US bond yields hold near multi-year highs ahead of the FOMC meeting and oil-driven inflation risks, supporting the US Dollar and weighing on the currency pair. However, rising RBA rate-hike bets could limit deeper losses for the Aussie.

USD/JPY sticks to gains near mid-154.00s as traders await Fed/BoJ meetings

USD/JPY attracts some buyers for the second straight day on Tuesday, though it remains below a one-week high touched the previous day as traders await the FOMC and BoJ meetings this week. Meanwhile, Fed rate-hike bets and oil-driven inflation risks keep US bond yields near multi-year highs, supporting the US Dollar and the currency pair. That said, a more hawkish repricing of the BoJ normalization path might continue to underpin the Japanese Yen and cap spot prices.

Gold seems vulnerable below $4,300 as traders await FOMC meeting

Gold struggles below $4,300 during the Asian session on Tuesday and remains vulnerable near a one-month low, touched the previous day. Fed rate-hike expectations and inflation concerns remain supportive of elevated US bond yields, underpinning the US Dollar and weighing on the non-yielding bullion. Bears, however, might wait for the outcome of a two-day FOMC meeting on Wednesday before placing fresh bets.

Bitcoin pushes past $79K as markets anticipate Fed meeting, Strategy stays put

Bitcoin rose above $79,000 on Monday as the broader crypto market enters a closely watched week for policymakers. According to QCP analysts, markets have largely priced in a 25-basis-point Federal Reserve rate increase after the release of August inflation data last week. The focus has shifted toward how policymakers communicate their outlook for future rate moves.

Eight reasons why the Fed should raise rates

The FOMC meeting on September 15–16 is expected to mark a turning point with the Fed’s first rate hike since May 2023. While there may have been economic reasons to hold off and maintain the status quo until now (some negative signals on the employment front and some encouraging ones on the inflation front), the conditions for a necessary recalibration now appear to be in place.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.