After being rebuffed by her junior coalition partner while she was at lunch with Juncker, UK Prime Minister May exposed her other flank and reports suggest that the hardliner Brexit cabinet members, Johnson and Gove are nipping at her heels again, explains the research team at BBH.
“May is in a bind. The more she tries to meet the new deadline to get to the next stage of talks, the more her domestic vulnerabilities are clear. May cannot deliver the kind of movement that the EU wants. The DUP threatened to force elections, despite the fact that Labour, who is ahead in most polls, would sacrifice their interests. A compromise on the European Court of Justice or even offering to stay close to the EU regulatory regime risks dividing her cabinet.”
“Sterling is extending its losses for a second session. It is off about 0.5% at $1.3380. It had been testing $1.3550 a few days ago, Initial support is seen now near $1.3350, and below there $1.3300.”
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