Even though EU leaders signed the withdrawal agreement on Sunday morning and offered a few words of support to Theresa May’s cause, sterling ended Monday’s trading session unchanged. PM May took questions from Parliament yesterday and her deal was attacked from all sides of the room. It’s becoming increasing hard to see just where she will get the necessary votes from. She requires 320 votes out of the 650 MPs in Parliament. However, the Conservatives do not have a working majority with 316 MPs. Looking at how many Conservative MPs could rebel, circa 80+, the task looks seriously tough. Lastly, factoring in the DUP Members of Parliament who categorically stated they will not back the agreement and May faces the reality of being voted down. To all companies banking on her deal being passed please take a few minutes to consider the implications of the opposite outcome and its impact on your business. Feel free to consult your Cornhill contact to discuss ways to protect against any potential downside the pound may encounter.
Today’s calendar is rather light, many will be preparing for this weekend’s G20 meeting. This follows comments from Trump last night that he’s prepared to go ahead with new tariffs on China.
Written by Vivek Savani. 3:04pm, November 27th 2018
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