Sterling remained volatile on Wednesday as cross-party talks between May and Corbyn failed. Labour wants the U.K. to be a part of a customs union with the EU after Brexit but May is refusing to give in as she believes it will stop the U.K. from striking its own trade deals. Rebeca Long Bailey, a business spokesman for the Labour Party went onto say ‘the government needs to move on from its red lines and we expect compromises to be made, but without a government that is willing to compromise, it’s difficult to see how any agreement can be reached’. The pound suffered and fell as talks stalled between May and the Labour Party on Wednesday.
Furthermore, May’s future as Prime Minister is safe for now as a key panel of rank and file lawmakers from her own party kept the rules unchanged regarding her leadership. May has said in the past she will be looking to step down as soon as she can delivery Brexit but bench-backers are now putting pressure on May to name a date of her departure even if she cannot get a deal through Parliament. Due to a no-confidence vote in December, May’s leadership is under no threat for a year but May has now agreed to meet with the 1922 committee next week which means the rules can be changed and she will give a clear indication of her next steps in regards to her leadership and Brexit. MPs are frustrated with the current situation and the U.K. are increasingly likely to participate in the EU elections, something which most MPs wanted to avoid. Attention turns to next week when May will give a clear indication of her next moves in terms of her leadership and Brexit.
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