Brexit situation continues to simmer – Deutsche Bank
|In view of analysts at Deutsche Bank, the Brexit situation continues to simmer, as Prime Minister May talked about “an option to extend the implementation period,” which would delay the politically difficult decisions regarding the Irish border.
Key Quotes
“Deputy DUP Leader Nigel Dodds said that such a plan would do “nothing significant on the key issue,” while the eurosceptic Tory MP Jacob Rees-Mogg said that such a plan is “a poorly thought-through idea.” May has to navigate between these two flanks of her Government, and the next major test could be the budget vote in 10 days time as the DUP have previously threatened to withhold support.”
“There’s lots of additional talk in the press about domestic political dissatisfaction with May’s approach so things remain on a knife-edge here. The pound fell -0.69% versus the dollar yesterday, and DB continue to think the market is underpricing the risk of a political crisis in the UK even if the base case is a deal by year-end.”
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