UK Prime Minister Theresa May lost the control over the parliamentary debates over Brexit on Monday after lawmakers voted to pass a proposal giving more powers to the House of Commons by 329 to 302. Three ministers resigned to join 29 other rebel Conservatives defying their leader.
The amendment passed gives MPs control of the debates for a day on Wednesday. They can use it to find a majority for a different approach on Brexit, including possibility of holding a second Brexit referendum or seeking a customs union with the EU. Decisions will not legally be binding for the government.
Just one rate hike
The President of the Federal Reserve Bank of Philadelphia Patrick Harker said on Monday one interest rate hike this year and another in 2020 would be reasonable given the strong US economic conditions. He also said Fed will make no drastic changes any time soon. His Boston counterpart Eric Rosengren said the Fed should consider raising the proportion of a short-term Treasury bonds it holds.
Bank of Japan board member Yutaka Harada said the central bank’s massive asset-buying program, quantitative and qualitative easing (QQE), has helped create jobs and boost productivity. Employment rate fell below 2.5 percent thanks to QQE, he said. On their monthly rate review, policymakers considered ramping up of monetary stimulus amid overseas risks.
China pledges more reform
After meeting with global business executives, Chinese Premier Li Keqiang reaffirmed Beijing’s pledge to further open up to foreign investment. China assured to provide foreign investors and companies with a more open and transparent business environment, along with intellectual property rights protection and no forced technology transfers.
Qataris opposed to German bank merger
Deutsche Bank is facing resistance from its Qatari shareholders who are opposed to the finance giant’s merger plans with Commerzbank, Bloomberg reported, citing sources familiar with the matter.
The investors were concerned that a deal would dilute their holdings if Deutsche Bank is forced to raise equity in a share sale to help fund the deal.
Meanwhile US Treasury yields rose after a 10-year rates saw two-day plunge below zero on three-month bills, easing fears of a recession.