Wrecking the City of London

Tory Leadership Campaign

Yesterday, Liam Fox was eliminated on the first ballot.  He declared he would ask those who supported him to support Teresa May as he would.   At 20.08 yesterday Stephen Crabb announced he was withdrawing his name from the race and supporting Teresa May.

This means that only one further round of MP voting will be required to arrive at the two names to be submitted to the Members of the Party.

Round 2 Candidates Round 1  Round 2  

 

William Hilll
Teresa May

165

    1/5 (3/10)
Andrea Leadsom

66

    4/1 (2/1)
Michael Gove

48

    14/1 (14/1)
Stephen Crabb

34

     
Liam Fox

16

     

The Times:  “May storms into lead as rivals battle for No 10”, The Telegraph “Conservative leadership election: Andrea Leadsom and Michael Gove battle to get on the ballot with front runner Theresa May”.  The Guardian has:  “Tory leadership race: May takes big lead as Fox and Crabb drop out”.

gove2
Poison Dwarf Gove

The Daily Mail has quite a raft of stories on its home page including this: “Third-place Gove insists he can still win the fight: Leadership hopeful faces crunch 36 hours to find the votes needed to overhaul Andrea Leadsom” but the Spectator (which ought to know Poison Dwarf Gove and Clown Boris well)  has this:  “Michael Gove is going to lose, and lose badly”.  I do so hope the writer is right.

The Labour Party in Trouble

The Guardian has the latest news about efforts to sort out the mess:  “Jeremy Corbyn’s shadow cabinet agrees to Labour peace talks“.   It seems entirely possible that Parliament may resume after the summer break without an effective opposition.

Brexit Vote coming home to roost

Yesterday sterling hit a 31 year low against the US Dollar closing below USD 1.28.  Government Bonds hit record lows and UK commercial property funds are in trouble. Thus far M&G’s fund (£4.4 billion), Aviva’s fund (£1.8 billion) and Standard Life’s fund (£2.9  billion) have all suspended redemptions pending sales of assets and the share prices of fund managers dropped between 3.5%  and 6%.  The fear spread to overseas bond markets  affecting Australia, France, Germany and Switzerland all posting record lows for bond yields. While the FTSE100 rose by o.4% the FTSE250 (which is UK rather than international) dropped by 2.4% .

The Bank of England published its July Financial Stability Report which does not make comfortable reading.  In effect, the BoE and the MPC have taken necessary steps to keep things as stable as possible – but there is quite an element of “we told you what would happen after a Brexit vote and it is happening“.

After the Flawed Referendum

It is becoming more and more clear that both the Remain and the Leave camps in the Referendum Campaign behaved very badly.  The voters were not provided with a fair and balanced assessment of the advantages and disadvantages of the alternatives.  For that reason alone,  it seems vital that the popular vote should be reviewed and voted on by Parliament before any definitive steps to give effect to the Referendum outcome are taken.

The Lord Mayor of London has also spoken out about the imperative need to remain in the Single Market:  see this from Reuters:  “London’s financial district urges fast action on EU trade terms“.

It is therefore very concerning to read this Guardian report:  “Brexit can be started without parliament vote, government lawyers say“.   In fact, proceedings challenging that assertion are not merely imminent but in fact under way. See this Guardian Report: “Deadline approaches for government response to Brexit legal challenge“.

One thing is clear, Brexit may cause enormous damage to the City of London which contributes so much to the UK economy.    That factor alone, should require careful consideration of the actions which the government proposes to take – by Parliament.

A decision taken by Ministers to invoke the Article 50 process without the approval of Parliament is not a proper way of proceeding.

 

 

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