Sterling falls as dollar rebounds, UK minister says no-deal Brexit likely

Lloyd Doyle
August 8, 2018

Theresa May still believes that a Brexit deal with the European Union is likelier than not, according to her spokesman, despite her Trade Secretary Liam Fox saying the opposite over the weekend.

As the clock ticks down, British Prime Minister Theresa May's Conservative government remains split over how close an economic relationship it should seek with EU.

The benchmark FTSE 100 was down 17 points or 0.22 percent at 7,642 in late opening deals after rallying 1.1 percent on Friday.

Labour's shadow Brexit secretary, Keir Starmer, Tweeted on Sunday that "no deal would be a catastrophic failure of government, which no government should survive".

Former minister George Freeman said that after the "failure of the 2016-18 Brexit Cabinet to plan, prepare for and negotiate a sensible, smooth and pro-business bespoke Brexit" more Tories were coming round to the view that an EEA/EFTA solution was necessary.

"I think the intransigence of the commission is pushing us towards no deal", he said. A hardline pro-Brexiteer will say that's a good thing - no European Union regulations whatsoever, freedom to create our own individual deals with different countries, a "clean break".

The pound on Monday fell to its lowest in almost three weeks, succumbing to a stronger dollar and comments by officials suggesting Britain could crash out of the European Union next year without securing a trade deal.

The prime minister has said she plans to publish some 70 technical notes in August and September outlining contingency plans for different sectors in the event Britain tumbles out of the bloc without a deal. Hammond told a meeting of City executives that while the bloc will initially minimize disruption, it's likely to pass regulation over time that hampers United Kingdom banks, according to the paper.

Last week, Mrs May cut short her summer holiday to meet with French president Emmanuel Macron.

But unlike Mr. Fox, Ms Patel does not back the Chequers deal, which has already led to a number of resignations from the government, including David Davis as Brexit secretary and Boris Johnson as foreign secretary.

Other reports by Iphone Fresh

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