Britain Braces for Impact
The Brits are kitting out their bomb shelters with beans and spam, as a bumpy exit from the European Union creeps closer and closer. As ‘BoJo’ talks Brexit, the country’s new Prime Minister has upped “no-deal” preparations and left market watchers sharing sideways glances.
In case you’ve been living under a rock for three years, divorce negotiations between the United Kingdom and the European Union (EU) are not going so swimmingly. Deals have been blocked, tempers have flared, and political casualties litter the battlefield. Investors’ questions about an independent future for the UK seem to be drawing a blank stare from the government. Since Boris Johnson promised a “no ifs, no buts” Brexit in his inaugural speech, his earmarking of much bigger provisions to a “no-deal” outcome have left the market biting its nails. As the cliff edge comes into view, yearly stock market gains are back at risk.
The country’s leaving it until right before the deadline, three months left until deadline day. The British economy is strangled by the uncertainty of this, as no margin will be given until the last minute. Stocks in that region of the world could get an abrupt plunging into cold water if no compromise is thrashed out between London and Brussels at the last minute.
The EU won’t budge. Britain is equally stubborn. Time to throw business a few life rings in that cold water… “just in case.” With days bearing down on the Brexit deadline, investors are squinting to see the daily progress towards a deal. A withdrawal deal with the EU… a new trade deal with Trump… any deal! The sandbags are stacking. Everyone for themselves!
