Bloomberg with a sources story out
- UK sees a Brexit break down if UE doesn’t compromise
- Senior gov ministers are losing faith in EU’s willingness to strike a deal
- May took a political risk by promissing to pay into EU budget in Florence speech
GBPUSD taking a hit on the headlines. Trades down to 1.3245.
The full article is now out and the take from it is that some people within Mya’s government are starting to blink in this EU/UK game of Brexit chicken.
Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”
Read how Ryan got into trading here
Philosophy: “Don’t be a Dick for a tick”
Read how Ryan got into trading here
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I think the EU will be unable to do a deal as their position is quite clear and for the UK to get any concessions will just encourage others to push back against closer integration, the situation in Spain is a poignant reminder. The long term goal is the formation of a European State with common currency, common fiscal policy and a European army and they will not countenance any deviation. Therefore a no deal situation is inevitable. The only question is can the politicians paint a picture of Brexit so horrific that the electorate will be convinced we just have to stay in. My money says they will.
I tend to disagree. Yes the EU has to be seen to be tough on the UK but money talks and there is a hell of a lot of money at stake on both sides that cannot be ignored. The EU can posture that they don’t need the UK but when you tot up how much our imports are worth to some country’s exports, it’s not a throw-away amount.
Forget posturing by countries like Italy , who over the Prosecco debate insisted that they have 27 other countries to sell to, my question to them and others would be, why aren’t they selling to the other EU countries then?
My belief is that the EU will talk tough on the surface but will make sure that the right deals are done on the quiet to suit those member that need it.
Interesting perspective, I agree money talks and there is a lot of money at stake but a no deal does not mean no more trade it just means reverting to WTO rules so we will still trade with the EU. We can still buy Italian Prosecco and German cars so there will be very little change in the amount of goods traded. The big risk is to our service industry which will hurt the UK more than the EU. This is our Achilles heal. The EU will know this gives them the upper hand.
Agreed. The thing with having to go the WTO route is the costs involved, so both sides will definitely see some inflation, more so the UK.