26/02/2019 - May Considering Brexit Concessions

GBP

The pound spiked to a four-week high late yesterday after reports came out that stated Theresa May was considering ruling out a no deal Brexit and delaying the Brexit deadline. The report mentioned that May is going to allow the cabinet to discuss extending the deadline at a meeting scheduled for today. Ruling out a no-deal Brexit is seen by many political commentators as a last-ditch effort to get the changes that she needs in order to get the divorce package through parliament.

Yesterday also saw Bank of England Governor Mark Carney state the possibility of Britain leaving the European Union next month without a transition deal ranked as the riskiest Brexit scenario for the stability of the financial services industry. Carney announced that UK and US markets regulators have finalised a sweeping long-term agreement to jointly oversee each other’s derivatives markets. Carney vowed to put in place emergency policies to ensure trading continues uninterrupted in the event of a no-deal Brexit.

Dutch PM Mark Rutte warned her the UK was "sleepwalking into a no-deal scenario" and needed to "wake up". The UK will leave the EU on 29 March, whether it has agreed a deal or not and some of Mays Conservative colleagues have suggested she should consider delaying Brexit to avoid leaving without a deal.

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