Rolling coverage of the latest economic and financial news
- Introduction: markets fear cliff-edge Brexit
- Pound has fallen back to $1.325
- Full story: Brexit: Boris Johnson will amend bill to outlaw extension
Some City investors had thought that Boris Johnson would ‘pivot’ to the centre ground now he has a solid majority in parliament.
The plan for a new cliff-edge Brexit deadline in a year’s time has dashed those hopes.
Sterling tripped over its heels as Boris Johnson is looking to legislate for Britain to leave the EU fully in Dec 2020 with or without a trade deal. That means no possible way to extend the transition period. I must confess to believing he wouldn’t need to be so drastic, that a large majority offered the flexibility yet strength a government craves in deal making.
This sets up another cliff-edge and could create yet more months of uncertainty for investors just when we thought all was squared away.
$GBP getting hammered on this legislation on the transition period
Sterling loses all gains from before GE poll day vs $ and euro as PM decides to legislate against his Government’s room for manoeuvre on extending UK-EU trade talks beyond next year, as an attempt to leverage a quick deal.. raising chance of WTO terms in a year: pic.twitter.com/W5BIfe5dno
Brexit isn’t the only thing hurting the stock market today.