“Conservative MPs have triggered a vote of no confidence in Theresa May, plunging the Brexit process into chaos as Tory colleagues indicated they no longer had faith in the prime minister to deliver the deal.
“Sir Graham Brady, the chair of the 1922 Committee, has received at least 48 letters from Conservative MPs calling for a vote of no confidence in May. Under party rules, a contest is triggered if 15% of Conservative MPs write to the chair of the committee of Tory backbenchers.
“A ballot will be held on Wednesday evening between 6pm and 8pm, Brady said, with votes counted “immediately afterwards and an announcement will be made as soon as possible”.”
“UK officials have been warning EU27 nations that a “no-deal” Brexit places a high risk of financial disruption to their banks, Sky News understands. It forms part of a move seen by some close observers as a perceived form of attempted leverage over the Brexit negotiation.
“Dozens of banks, including some of Europe’s biggest in Germany and France, have complex outstanding financial contracts, known as derivatives, notionally worth tens of trillions of pounds, operated through the City of London. The bulk of them will mature after March 2019.”
https://news.sky.com/story/eu-risks-bank-crisis-from-no-deal-brexit-say-uk-officials-11578161
“The litany of risks for global investors in the euro area keeps growing as France joined Italy in putting its spending interests ahead of the European Union’s budget rules.
“The extra yield traders seek to hold French 10-year notes over those of Germany increased Tuesday to the widest since the 2017 election…”
“Turkey is almost certainly experiencing its first economic recession in almost a decade, posing a significant challenge to President Recep Tayyip Erdoğan as he seeks to solidify his power base at local elections in March.
“The economy contracted by a quarterly 1.1 percent in the three months to September as private consumption and investment slumped…”
https://ahvalnews.com/turkey-recession/turkey-slides-recession-challenge-erdogan
“Mexican President Andres Manuel Lopez Obrador’s declaration of war on “neo-liberal” economics has shaken investors holding Petroleos Mexicanos bonds, fueling concern about the future of the highly-indebted state oil company he has pledged to revive…
“Fitch and Moody’s have in recent weeks flagged concerns about Pemex’s $106 billion of financial debt – the highest of any state oil company in Latin America.”
“Goodyear employees in Venezuela are each to be given 10 tyres as part of their severance payment, as the US firm halts operations in the country.
“Quality tyres are valuable on the black market, in a country where there is a chronic shortage of all sorts of goods. A number of foreign firms have pulled out of Venezuela, citing a growing economic crisis and US sanctions.”
https://www.bbc.co.uk/news/world-latin-america-46513571
“Nigerian lenders are in retreat.
“Rising costs and declining appetite to lend are prompting banks to repay dollar borrowings. Brent crude prices near their lowest levels in a year have slashed earnings from Nigeria’s main source of foreign income, reducing the amount of foreign exchange banks need to fund deals.”
https://www.businesstimes.com.sg/banking-finance/sputtering-oil-industry-halts-nigeria-bank-loans
“Australia’s tumbling property prices could shave up to 1.2 percentage points from economic growth in 2019 as the decline hits housing construction and consumer spending, according to AMP Capital Investors Ltd. Sydney and Melbourne prices will drop a further 10 percent next year, taking their peak-to-trough fall to 20 percent as a “perfect storm” smacks housing, AMP Chief Economist Shane Oliver said in a research report Wednesday.”
“Car sales in China continued to decline in November, placing them on course to mark their first annual decline in 28 years as homegrown brands from state-owned manufacturers struggle to compete with foreign rivals.”
Which would seem to give lie to the suggestion that the trade war is having a direct impact on sales.
https://asia.nikkei.com/Business/Business-Trends/China-s-car-brands-suffer-most-as-auto-sales-slump
Interesting…
Given that Yellen said this last summer:
“Gundlach noted that consumer confidence readings lately versus economists’ expectations are falling short by a magnitude and consistency last seen prior to the recession in 2007.
“This continued disappointment could be a sign of economic weakness ahead… The Fed seems to be on a “suicide mission,” raising rates while the government deficit increases as a share of GDP, Gundlach said.”
“American farmers have been forced to warehouse a bumper crop of soybeans, or sell at a loss, while a Midwest medical supply company is considering shipping production overseas amid growing uncertainty…
“We have been told by some local Chinese manufacturers that it ‘feels’ like they’re entering a slowdown and that they are being hurt already due to higher export costs and overcapacity.”
“Signs the US expansion may have peaked shook global stock markets in recent weeks and Wall Street’s main indices have erased all the gains posted this year.
“The US recovery will soon become the longest in recorded history but the boost provided from last year’s tax cuts is dwindling. Rising interest rates and a shortage of workers are crimping the housing market.
“Meanwhile, Europe faces political and economic upheaval and Japan remains in a long-term funk.
“The global economy may be hit by a hangover in 2019 that will last well beyond New Year’s day.”
https://www.dailymail.co.uk/wires/afp/article-6485997/Global-economy-2019-Growth-beginning-fray.html
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