17/01/2019 - May Survives Vote of No Confidence

GBP

Theresa May survived a vote of no confidence on Wednesday by evening winning the vote by 325 to 306. May narrowly won the vote of ‘no confidence’ and the pound was little changed after a short rally as the outcome was expected.

After winning the vote of no confidence, May invited other party leaders to discuss a way forward with Brexit. May went into say ‘we must find solutions that are negotiable and command sufficient support in this house’.

May’s attention now turns to finding a way to get Brexit over the line with the deadline for leaving the EU fast approaching. May must return to Parliament on Monday to set out her Plan B according to a familiar person with the matter. Furthermore May is now open to talking to rival parties in hope of finding a blueprint that parliament can agree to support. May is also expected to talk to EU leaders in the coming days.

It’s unclear how much help the EU can be. The bloc is willing to extend the Article 50 negotiating period beyond the summer to find a deal if necessary, according to diplomats. EU’s Chief Brexit negotiator Michel Barnier said there’s no way to remove the so called backstop plan for the Irish boarder which is a stumbling block for any Brexit deal.

Bank of England governor Mark Carney spoke on Wednesday and warned that Britain’s current account deficit remained a big risk ahead of Brexit and that a jump in sterling should not give too much comfort. He went into say “I wouldn’t put much weight on these very short term moves. The market is waiting.”

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