The Brexit deal is dead!
16 January

The Brexit deal is dead!

The Brexit deal is dead; there can be no doubt about that after last night’s crushing defeat for the government. A motion of no confidence has been called for today, although this is expected to be defeated, with the DUP staying on the government’s side.

 

So what next? After consulting across the political spectrum, the PM will head back to Brussels next week to try to salvage something that will allow the UK to leave the Union in an orderly fashion. In true EU democratic style, Donald Tusk suggests that we just forget about the whole thing and stay - scary. "If a deal is impossible, and no one wants no-deal, then who will finally have the courage to say what the only positive solution is – quotes don’t close and is this what Tusk said?

 

The pound is unperturbed by the current twist, although that resilience against the euro has been aided by weak German GDP data, with the German economy growing at its slowest rate for five years at +1.5% in 2018 compared to +2.2% in 2017. Sterling trades up +0.12% against the dollar and euro respectively at $1.2876 and €1.1283. The state of the pound remains heavily dependent on Brexit developments, PM Theresa May will at 12.00 GMT go head-to-head with Labour leader Jeremy Corbyn in Prime Ministers Questions. Chancellor of the Exchequer, Philip Hammond has moved to reassure business leaders on that a no-deal Brexit could be blocked, simultaneously raising for the first time the possibility of a delay to Article 50.

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