GBP

Yesterday parliament approved proposals to make it harder for the next prime minister to force through a no-deal Brexit by suspending parliament, showing again their resolve to stop a divorce from the European Union without an agreement.

Johnson, the favorite to become PM has refused to rule out “suspending, the House of Commons to prevent lawmakers from passing legislation to block his Brexit plan if he tries to exit without a deal. In a bid to complicate any such move, parliament voted by a 315-274 margin a proposal that would require parliament to be sitting to consider Northern Irish affairs for several days in September and October even if it was suspended.

The measures do not amount to an outright block on suspending parliament but could make it much more difficult to bypass lawmakers. It is yet to become law, but it is not expected to be rejected.

Yesterday the Office for Budget Responsibility (OBR) said Britain may already be on the verge of a “full-blown” recession but crashing out of the European Union without a deal would damage growth further.

It said in its no-deal scenario, which was “less severe than some”, investment would fall as uncertainty rose and higher trade barriers with the EU would damage exports. The government would have to borrow £30bn a year more than previously forecast from 2020 to make up for a slump in tax receipts caused by falling output.

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14:00 – USD: Michigan Consumer sentiment Expected to be higher at 98.5 from 98.2