*By Brian Henry*
Even as British Prime Minister Theresa May suffered an embarrassing defeat as her Brexit vote was voted down in Parliament, and then only narrowly survived a no-confidence vote, investors remained relatively unrattled.
According to Chris Demetriou, the U.S. CEO at Aberdeen Standard Investments, the mild response to the vote was not a surprise.
"There are two elements to it," he told Cheddar Wednesday.
"The vote \[Tuesday\] and the no confidence vote \[Wednesday\] weren't really a surprise to anybody. It's long been speculated Theresa May didn't have the votes to carry the deal through Parliament."
Demetriou said that the decision by British lawmakers to reject the Brexit deal by such a historic margin ー 432 to 202 ーearlier this week actually has investors feeling confident.
"The resounding defeat, the size of the defeat, really suggests that a tweak to the deal probably isn't going to help get it through either. I think that, perhaps, is giving investors confidence that the can will be kicked down the road or potentially even a more formal withdrawal of Article 15."
"Investors want as a little change as possible in the current arrangement," he added.
Demetriou says productive trade talks between the U.S. and China as well as the Federal Reserve displaying patience on future rate hikes have led to less market volatility.
"A lot of the uncertainty we saw in the back end of the year, the escalation of trade discussions, perhaps concern around fed policy coming into 2019 ー a lot of that has reversed in the beginning of January."
But will the relative market peace last?
"There's a lot of positive news or certainly constructive news out there to offset some of the uncertainty that exists," Demetriou said.
"We do expect continued uncertainty, which breeds volatility in the markets and that will continue throughout the year."
For full interview [click here](https://cheddar.com/videos/the-uk-government-survives-no-confidence-vote-after-brexit-defeat).
California Rep. Ro Khanna has a novel idea about how to solve the government shutdown: call in some experts."Why don't we get an independent group of experts? The President appoints two people. The House appoints two people. The Senate appoints two people," the Silicon Valley-based Democrat suggested. "Put them in a room ー six folks ー and have them come up with proposals that are going to be 6-0."
With Los Angeles public schools ending a third day without their striking teachers, a deal between the union and the district remains elusive, according to Joseph Zeccola, a 2018-19 L.A. County Teacher of the Year and one of more than 30,000 educators currently protesting in the country's second-largest school district. "We're at a standstill," Zeccola told Cheddar from the picket line on Wednesday. "The offers right now have not been good."
The U.S. needs to work on improving its relationship with China as well as stabilizing its own economy by ending the government shutdown, JPMorgan Chase chairman and CEO Jamie Dimon said on Wednesday.
The ongoing government shutdown will hurt franchisees, Fat Brands CEO Andrew Wiederhorn told Cheddar on Monday. The closure of the Securities and Exchange Commission may inconvenience companies like Fat Brands, which need access to the public markets, but its franchisees, who run outposts of Fat Brands restaurants like Fatburger and Ponderosa Steakhouse, can't seek loans or expand their businesses. "There is a trickle down effect to us, but it's pretty small. I think really it affects the small business owner ... and it's coming out of their pocket," Wiederhorn told Cheddar.
Airline passengers are facing long security lines as unpaid TSA officers have begun calling in sick due to the government shutdown. Staffing shortages led to the closure of an entire terminal at Houston's George Bush International Airport. Local Houston TSA President, Freddie Cuellar, says closing the terminal is the best way to utilize the staff who are able to come to work.
These are the headlines you Need 2 Know for Wednesday Jan. 16, 2019.
President Trump has taken the government hostage, and House Democrats refuse to negotiate with a hostage-taker, House Majority Leader Steny Hoyer (D-Md.) told Cheddar on Tuesday. "This is not about the wall, it's not about health care, it's not about ... spending. This is about a promise the president made, and he has now taken the government hostage," Hoyer told Cheddar's J.D. Durkin as the 25th day of the partial government shutdown dragged to a close.
Canopy Growth is planning its entry to the U.S. on the back of the new Farm Bill ー and aims to establish a hemp "hub" in New York, according to CEO Bruce Linton."New York is setting up a pretty progressive approach and we have an earlier first license under that system so we can actually create a hub," Linton told Cheddar on Tuesday.
As the government shutdown drags on, calls from some conservative corners have increased for President Trump to declare a national emergency in order to get federal employees back to work while diverting funds to build a border wall. However, conservative radio show host Erick Erickson is cautioning the president against doing just that.
The cannabis industry enjoyed a productive 2018, but the government shutdown may be turning the industry's green light to yellow. Cannabis stocks are up overall, but according to Debra Borchardt, co-founder and CEO of Green Market Report, the government shutdown has left some farmers and companies in limbo.
