Deutsche Bank says still 50/50 chance of no-deal Brexit
Germany’s largest bank reiterated on Wednesday that there is still a 50/50 chance that Britain will bail out of the EU without a deal in the wake of Boris Johnson suspending Parliament in September.
Deutsche Bank said that there is still a 50% chance that Britain will crash out of the EU without a deal on October 31 after UK Prime Minister Boris Johnson opted to suspend Parliament in September.
In a note to investors, the German lender’s macro strategist Oliver Harvey said that the best path forward to block a no-deal Brexit is for opposition parties to form a national unity government in early September or late October.
Queen grants Boris Johnson’s request to suspend Parliament
Parliament will be suspended just days after British lawmakers return to on September 3, leaving opposition parties little time to block a no-deal Brexit.
The Queen’s Speech – which officially opens Parliament – will now take place on October 14 just weeks away from the October 31 Brexit deadline.
‘Boris Johnson’s attempt to suspend parliament to avoid scrutiny of his plans for a reckless No Deal Brexit is an outrage and a threat to our democracy,’ Labour leader Jeremy Corbyn tweeted on Wednesday.
‘Labour will work across Parliament to hold the government to account and prevent a disastrous No Deal,’ he added.
Pound falls on no-deal Brexit fears
Unsurprisingly, the pound has fallen now that the prospect of a no-deal has increased in light of Johnson’s actions.
Sterling fell by 0.44% against the dollar, closing at $1.2236 on Wednesday.
The pound also lost ground against the euro, dropping below €1.1 levels and moving towards a 10-year low which the currency previously hit earlier in August.
Trading around Brexit
Find out how the UK’s exit from the EU continues to affect traders, and discover:
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