Brexit Deal Collapse

Published / Last Updated on 15/11/2018

Yesterday, the Cabinet agreed the draft contents for an EU Brexit deal although there appears to be a big fall out from the proposed deal this morning.

Brexit Secretary, Dominic Raab, has resigned saying he does not support the proposed deal with the EU.  Not bad, that’s both Brexit Secretary resignations in a matter of months.

Minister of State at the Northern Ireland Office, Shailesh Vara resigned first citing ‘being locked in a Customs Union indefinitely’ and the ‘Agreement does not provide for the United Kingdom being a sovereign, independent country leaving the shackles of the EU, however it is worded.’

Work and Pensions Secretary Esther McVey and Suella Braverman, Brexit Minister/Dominic Raab’s number 2, have both also resigned (and it is only 10.30am at the time of writing).

Result:  The pound has not strengthened, it has weakened marginally.  Impact: as expected, FTSE 100 stocks have risen this morning (companies with earnings overseas, bring back larger profits into the UK).

Comment

This fall out was not unexpected.  Like it or not, the ‘poison chalice’ keeps being passed around with all sides never going to be satisfied.  Will this draft deal make it through Parliament let alone the remaining 27 EU states?  We suspect not - a vote of no confidence and a new Prime Minister is more likely.  More turmoil to follow, more market volatility to follow.

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