In a motion put forward by oppositions and Conservative rebels to take control of parliamentary schedules, the UK government was defeated by 328 to 301 votes. On Wednesday, those lawmakers will proceed to pass a law to force Prime Minister Boris Johnson to seek another Brexit delay, from October 31 to January 31, to stop no-deal Brexit.
After the vote, Johnson warned, “I don’t want an election, but if MPs vote tomorrow to stop negotiations and compel another pointless delay to Brexit, potentially for years, then that would be the only way to resolve this.” He reiterated ” if I am Prime Minister, I will go to Brussels, I will go for a deal and get a deal but if they won’t do a deal we will leave anyway on 31 October.”
It’s reported that all 21 Conservative rebels could face expulsion from the party as a result of the vote. The group include Nicholas Soames, the grandson of Britain’s World War Two leader Winston Churchill, and two former finance ministers – Philip Hammond and Kenneth Clarke.
Separately, Irish Finance Minister Paschal Donohoe insisted that “a very significant political rationale” is needed for any further Brexit delay. He told national broadcaster RTE, “the European Council and the European Commission have said that were another extension to be looked for, there would have to be a very significant political rationale for it and it is yet to be seen what that rationale would be.”
Australia GDP grew 0.5% in Q2, strengthen the case for RBA rate cut
Australia GDP grew 0.5% qoq in Q2, matched expectations. Annual growth slowed to 1.4%, way slower than 3.1% a year ago and was the worst since 2009. ABS Chief Economist for Bruce Hockman, noted “the external sector drove GDP growth this quarter, while growth in the domestic economy remains steady”. Net exports added 0.6% to Q2’s growth, reflecting strong exports of mining commodities. He added, “strength in mining related activity was seen across a number of measures in the economy”.
Full release here.
According to Westpac, today’s data strengthened the case for further RBA rate cut in the very near term. To achieve RBA’s growth forecasts of 2.5% for 2019, the economy needs to register 1.6% growth in the second half. That’s seen as out of reach while recent retail and housing data were also disappointing. Westpac expects another RBA cut in October.