Hammond Warns Against No-Deal Brexit

GBP

Britain’s Finance Minister Phillip Hammond warned those in his party vying for Prime Minister Theresa May’s job that a no-deal Brexit would endanger the economy. “We need to get the spectre of a no-deal exit off the table,” he told the BBC. “Leaving with no deal would be a very bad outcome for the economy.” Hammond also indicated he could be prepared to vote to collapse his party’s government if he felt it was heading in the wrong direction.

Figures released on Thursday from the Society of Motor Manufacturers and Traders (SMMT) said car production fell 44.5% year-on-year to 70,971 units in April, the sharpest fall since exactly 10 years ago when Britain was stuck in recession. A driving factor in the fall is that Car factories shut down last month to sidestep the risk of supply chain disruption from a potentially chaotic “no-deal” Brexit at the end of March, the original date for Britain’s departure from the European Union. This is concerning for the pound and the British economy as the manufacture of motor vehicles accounts for about 9 per cent of overall manufacturing output in Britain.

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13:45 - USD: Chicago PMI Index (May) Expected to be higher at 53.7 from 52.6