Brexit Reality: What To Expect After Article 50 Letter on March 29 (video)

Brexit graphic ©2017 DomainMondo.com

UPDATE March 29, 2017:

Leaving the EU negotiating objectives | PlanforBritain.gov.uk: "The Government has set out 12 negotiating objectives ahead of the UK leaving the EU."

1. Providing certainty and clarity
2. Taking control of our own laws
3. Strengthening the Union
4. Protecting our strong and historic ties with Ireland and maintaining the Common Travel Area
5. Controlling immigration: We will have control over the number of EU nationals coming to the UK.
6. Securing rights for EU nationals in the UK, and UK nationals in the EU
7. Protecting workers’ rights
8. Ensuring free trade with European markets
9. Securing new trade agreements with other countries
10. Ensuring the UK remains the best place for science and innovation
11. Cooperating in the fight against crime and terrorism
12. Delivering a smooth, orderly exit from the EU

Information about leaving the EU | planforbritain.gov.uk: "We have ruled out being a member of the single market, as the PM said in the Lancaster House speech. EU leaders have made clear their view that members of the single market must sign up to the ‘four freedoms’ that underpin it — including the free movement of people – and be subject to the jurisdiction of the European Court of Justice ... Instead, we want a bold and ambitious Free Trade Agreement with the EU. This will enable free-flowing trade in both goods and services, and ensure the freedom for UK companies to trade with and operate within European markets. We also intend to leave the Common Commercial Policy and for the UK not to be bound by the EU’s Common External Tariff so that we can pursue our own independent trade policy, securing trade deals with new partners. The Prime Minister created the Department for International Trade for this purpose."

"Will there be a second referendum or an alternative to leaving the EU? No. The country voted to leave the EU and it is the duty of the Government and Parliament to make sure we do just that."

A fairer society | PlanforBritain.gov.uk: "We will build a fairer society where success is based on merit, not privilege. We have started to rebalance our society in favour of ordinary working people, but now need to do more to turn Britain into a union where success is defined by work and talent, not birth or circumstance. The Government’s Plan for Britain seeks to

• provide access to a good school place for every child – one that gives them the skills and knowledge they need to succeed in the future
• ensure there is control of immigration so that it serves the national interest and is fair to everyone who lives and works in this country
• deliver one million new homes, so that more people have the chance to own or rent an affordable home of their own
• continue to invest in the NHS to help people at every stage of their life and support a vital national institution
• help people who can work get back into work so that our welfare system is fair to those who need it and fair to those who pay for it
• tackle historic injustices, like racial and gender discrimination, that hold too many people back.

Prime Minister's Commons statement on triggering Article 50 | GOV.UK

Prime Minister’s letter to Donald Tusk triggering Article 50 | GOV.UK (embed below):

EU Taskforce on Article 50 negotiations with the United Kingdom | European Commission | ec.europa.eu See also: https://ec.europa.eu/info/news/notification-article-50-teu-united-kingdom_en

--original post--
Brexit: ahead of UK Prime Minister Theresa May triggering Article 50 by delivery of a letter to the EU's European Council President Donald Tusk, on March 29, 2017, which will start negotiations between UK and the EU, both benchmark indexes of the London Stock Exchange (LSE), the FTSE 100 and FTSE 250, closed up on Tuesday, March 28:

FTSE 100 up 22.75% since June 27, 2016

FTSE 250 up 26.63% since June 27, 2016

What to expect after Article 50 | FT.com Opinion

Video above published Mar 21, 2017, by FT.com.

Theresa May may need to read Trump's "Art of the Deal"--

"Know when to walk away from the table." The Art of the Deal

— Donald J. Trump (@realDonaldTrump) July 27, 2011

UK Should Prepare To Walk Away--“Paying Any Exit Fee is absurd”--"... The primary problem in these negotiations is the EU nannycrat fools believe they can force the UK to pay ridiculous exit charges on top of other demands. The ideal approach for the UK is to simply walk away. What can the EU possibly do that does not hurt the EU even more than it does the UK? The sooner Theresa May sets the appropriate tone for negotiations the better off everyone will be. I wrote about this long ago in Brexit Stacked Deck? Which Way? Don’t Negotiate, Just Leave! Serious negotiations can only begin once Theresa May sets the proper tone. The proper tone is the UK is prepared to walk away and pay the EU nothing."--MishTalk.com

EU Needs To Fill Gap In Budget Once Brexit Becomes Official:

Mar 27, 2017: UK says it will not pay a 60 billion euro bill to leave the EU.

See also:

• Brexit: How Theresa May will trigger Article 50 | dailymail.co.uk: delivery of a letter to EU Council President Donald Tusk on March 29, at 12.30pm.
• Article 50: The people who will negotiate Brexit | BBC.com
• The Lisbon Treaty Article 50
• What is Article 50? The only explanation you need to read | telegraph.co.uk
• There's Always a Bull Market in Fearmongering | Bloomberg.com
• Years-long dream of European exchange ended in half an hour | Reuters.com
• Brexit Bulletin: What Will Theresa May Say to Donald Tusk? | Bloomberg.com
• Why 2017 Could See the Collapse of the Euro | Fortune.com: ".... it may be only a matter of time before Europe looks back on the euro as an interesting, well-intentioned experiment that failed—at great cost to the citizens of Europe and their democracies."--Joseph E. Stiglitz, Professor at Columbia University, recipient of the Nobel Memorial Prize in Economics, 2001, and most recently, author of The Euro: How a Common Currency Threatens the Future of Europe, W.W. Norton, 2016."
• Three Ways the Euro Could Break Up—and Three Ways it Could Be Saved | Bloomberg.com: March 7, 2017 ... Break Up Scenario No. 3: Greece Can't Take It Any More--What the experts say the chances are: 50%--"This implosion of the euro zone is getting closer. The most vulnerable are Italy, France, Portugal and Greece. I expect one to be gone in 18 months’ time. There will be no warning or negotiations."—Jim Mellon, chairman of the Burnbrae Group

Courtesy of: Visual Capitalist

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DISCLAIMER

Global Markets Addicted to Central Bank and Government Manipulation

Video above--Europe Stocks Rebound as Chinese Selloff Halts--August 27, 2015: European stocks joined a global relief rally as Chinese shares snapped a five-day losing streak. Shares rose in Europe and Asia after the biggest advance in U.S. stocks in four years on Wednesday helped restore some appetite for riskier assets. Developing-nation currencies rebounded from a record low and a surge in the last hour of trading in Shanghai sent Chinese stocks to their biggest gains in seven weeks. 

The REAL Liquidity Trap: Global Markets are now addicted to Central Banks and Governments intervening and manipulating everything from interest rates to currencies to equities (stocks).

Want proof?

Seeking Alpha: "Shares across the globe are skyrocketing after Wall Street cracked a six-day losing streak with its best rally in nearly four years. With momentum turning to the upside, investors seem to be covering their positions, while long-term bulls snap up perceived bargains. The rebound is also being attributed to falling expectations the Fed will soon raise interest rates. On Wednesday, NY Fed President William Dudley said a September hike seemed "less compelling" given recent global economic uncertainty."

China Intervened Today to Shore Up Stocks Ahead of Military Parade - Bloomberg: "China’s government resumed its intervention in the stock market on Thursday and has been cutting holdings of U.S. Treasuries this month to support the yuan, according to people familiar with the matter. Authorities want to stabilize equities before a Sept. 3 military parade celebrating the 70th anniversary of the World War II victory over Japan, said two of the people, who asked not to be identified because the move wasn’t publicly announced. Treasury sales allow policy makers to raise dollars needed to bolster the yuan after a shock devaluation two weeks ago, according to different people familiar with the matter. China revived its equity purchases after the government’s absence from the market earlier this week contributed to the biggest two-day selloff since 1996. Under a new exchange-rate regime announced Aug. 11, the central bank relies on intervention to manage the yuan instead of its daily fixing. China’s surprise policy shifts have jolted markets worldwide as investors struggle to gauge their impact on the world’s second-largest economy."

China’s Stocks Surge in Late Trading to Halt Five-Day Plunge - Bloomberg: "Stocks failed to sustain gains on Wednesday after the central bank cut interest rates and reduced the amount of required reserves for banks. The index tumbled 42 percent from its mid-June peak through Wednesday to erase more than $5 trillion of value as margin traders closed out bullish bets and concern deepened that valuations are unjustified by the weak economic outlook. Stocks on mainland bourses trade at a median 49 times reported earnings, according to data compiled by Bloomberg. That’s the most among the 10 largest markets and more than three times the 18 multiple for the Standard & Poor’s 500 Index."

Forget the headlines--nothing has changed from a few days ago--governments and central banks are intervening and actively manipulating global markets, even in secret, unannounced ways (see China stories above). This never ends well.

But when will it end? Probably when a sufficient number of market investors lose confidence in central banks' and governments' ability or willingness to continue to manipulate. Right now, enough "market investors" are still willing to be "market speculators" -- in effect placing casino-like bets on future "Fed policy" and "Chinese government manipulation." How high will valuations go in this giant global Ponzi-like scheme?

The "smart money" in China has already abandoned Chinese stock markets. Wealthy Chinese are moving money out of China. But the Chinese masses, and the rest of the world, are still "playing along" for now. When will expectations and speculations meet reality?


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