Daily Briefing: May's non-friend, Brexit, wobbles

LONDON (Reuters) – British Prime Minister Theresa May has convened a special cabinet meeting on Brexit today, according to a report from local media, as more and more signs indicate she would not benefit. no parliamentary support for its draft compromise with the European Union.

Over the past few days, senior conservatives from the Remain and Leave camps have rejected his plan, considering it the worst possible world, leaving the UK in a limb less attractive than the status quo, but with little chance of achieving the "global Britain" ambition of Brexiters.

Add to this the fact that the Labor opposition and the DUP would both vote on the agreement in its current form and the stalemate is total. Former ministers such as Justine Greening and Jo Johnson have stepped up calls for a new referendum, the only possible solution – an option that May has always rejected.

The Swedish Parliament will today present a motion to elect the next Prime Minister Ulf Kristersson, a moderate center-right leader, which would put an end to the stalemate since the September election, which left the Swedish democrats opposed to immigration hold the balance of power. .

They promised to vote against any government in which they would not exercise any influence. Kristersson has ruled out any negotiations with Swedish Democrats, who nevertheless insist on the fact that they need "guarantees" on certain policies to support it. A vote is expected around Wednesday. until now, there is no sign of movement.

Italy will host the Libya Conference, which begins today, with the aim of advancing a new US plan to stabilize the troubled North African country after failed efforts to hold elections on next month. Western powers that helped to overthrow Muammar Gaddafi then let Libya sink into chaos, leaving militias and radical Islamist groups to grow.

Fearing that this will become a source of instability on the coasts of Europe, the European powers have again begun to pay more attention to Libya, but the expectations for a breakthrough are not great. .

Diplomats hope that pressure will at least be exerted on the various Libyan factions to overcome their differences; Tensions between Italy and France are also at stake. They both have important oil interests in Libya, but have used different approaches to try to resolve the conflict.

MARKETS AT 07:55 GMT

The US dollar has leapt ahead in the new week as markets begin to position themselves for the Fed's next interest rate hike next month and concerns over the two European hurdles of Brexit and Italy's budget increase by one notch.

The euro / dollar surpassed its August 2018 low and fell to its lowest level since June last year at $ 1.126, a 0.5% gain on the day. The DXY Dollar Index also rose 0.5%, reaching its highest level since June 2017, with the pound losing more than one cent from nearly $ 1.2861.

Sterling was undermined by rumors of deep divisions in the Brexit government cabinet over the weekend, citing resignations from supporters of a "hard Brexit", as well as supporters of another referendum.

According to reports, the European Commission categorically rejected Italy's expansionary budget because it renounced its previous commitments and gave Rome the task of revising its figures. The dollar / yen has reached its highest level in more than a month. A sharp rebound in world oil prices following reports of cuts in Saudi output added to early volatility.

The concern over the steady tightening of the Fed has increased since the central bank said it had not changed course after its last political meeting last Thursday. The S & P500 lost close to 1% at closing on Friday and futures are reporting only a modest recovery since. The US Treasury market is closed later today, with partial leave in the United States for Veterans Day.

Major Asian stock markets regained strength after sudden losses, as the Chinese government set up a series of measures this weekend to boost the private sector and offset the shock of the growing trade war with the United States. . Shanghai shares ended up rising about 1%.

Tokyo and Hong Kong have hardly changed, while Seoul has slightly dragged into the red. A stronger dollar in Asia, against the yuan, the won, the rupee, the rupee and the ringgit added to the pressure of emerging markets. Equity and currency indices in emerging markets were down. In the meantime, European equities have risen, despite the weakness of the regional currency and the expected results.

Infineon chip maker has announced good news for semiconductors, which have been among the hardest hit by massive sales in recent weeks in the highly valued technology sector. Equities rose 1% after the company guided an acceleration of revenue growth in its 2018/19 fiscal year.

British American Tobacco tobacco stocks fell by 10% and Imperial Brands by 3% after a Wall Street Journal report announced that an FDA commissioner was considering banning menthol cigarettes.

– An overview of Mark John, Editor-in-Chief of European Economic and Political Affairs, and EMEA Markets Editor Mike Dolan. The opinions expressed are theirs –