UK: Opportunity to conclude a good, sustainable agreement remains – Deutsche Bank

Analysts at Deutsche Bank notes that on Brexit, German Chancellor Merkel said that “the opportunity to conclude a good, sustainable agreement in a timely fashion remains” while adding Germany “also has begun preparing” for a no-deal Brexit. 

Key Quotes

“So a big bid-offer here although there was a headline later saying that she thought the Brexit deal was 90% done. If the 10% is Ireland, final completion could still be a long way off.”

“Elsewhere, French Economy and Finance Minister Bruno Le Maire said that there is hope for a Brexit deal in the “coming weeks” after the UK has made concessions to the Chequers blueprint. Separately, Prime Minister May told Parliament that the "implementation period" might need to extend beyond its December 2020 deadline, through to the end of 2021. This will be difficult to sell to hard-line Brexiteers but something has to give in this highs stakes game.”

“Elsewhere, the UK’s Brexit Secretary Dominic Raab said, in a letter and a six-page memorandum outlining the procedure for the UK parliament vote on Brexit deal, that the vote will be a choice between accepting PM May’s deal or a no-deal Brexit. This didn’t go down well with the backbench lawmakers in the Conservative Party and the opposition Labour Party as it was interpreted as an attempt to undermine Parliamentary authority on not being able to send PM May back to the negotiating table in case parliament rejects her Brexit deal.”