“The probability of a no-deal is higher than of a deal,” according to a European Commission (EU) official quoting the commission President Ursula von der Leyen remarks in an EU summit in Brussels, reports Reuters. EU and Britain wanted to agree on the fate of nearly $1 trillion in annual trade on Thursday, but talks did not materialize, paving the way for a no-deal Brexit
- British Prime Minister Boris Johnson and EU’s von der Leyen have given negotiators until Sunday to break the impasse over fishing rights and allow Britain to be punished if, in future, it diverged from bloc’s rules.
- A no-trade deal Brexit would harm northern Europe, send shockwaves through financial markets, snarl borders, and disrupt the delicate supply chains in Europe and beyond.
- Most big investment banks expect a deal, but some investors are cautious, saying that investors were poorly prepared for Britain’s 2016 Brexit referendum as few believed it would vote to leave.
- EU diplomats have criticized Johnson for wanting to please domestic Brexit supporters through deal theatrics and rhetorics.
- British officials insist they won’t accept EU demands and cautioned that a no-deal is on the cards.
- Bank of England Governor Andrew Bailey has warned of a limit to the central bank’s ability to avoid volatilities in financial markets after Britain’s Brexit transition period, which ends on December 31.
British stocks and the pound are currently declining. FTSE 100 is down 0.61%, GBPUSD is down 1.08%
