Research Team at Deutsche Bank points out that the Brexit headlines were slightly overshadowed yesterday but make no mistake, we are getting to the point when binary outcomes are coming closer.
Key Quotes
“In terms of trading, the pound originally pared losses in the early afternoon yesterday as the EU’s Barnier confirmed yesterday that although an agreement had still not been reached the main elements of an exit treaty are ready to present to the UK cabinet according to the FT. Sterling gave up the Barnier related gains on the below Buzzfeed news and fell -0.93% on the day. This news was that Brexit secretary Raab is leading some cabinet ministers towards telling Mrs May that the EU offer on the table is unacceptable. Mrs May herself last night said talks were “in the endgame”.”
“The general view is that unless we have a deal by the end of tomorrow the November EU summit is unlikely. As we know a deal is pretty much on the table however the issue remains whether or not the UK can run with it first based on whether the cabinet will accept it and secondly whether Parliament can. At the moment we are struggling to get past the first hurdle let alone the second. There was supposed to be a cabinet meeting on Brexit today but its status has been played down.”
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