"The Financial Times has got hold of a research note from Germany’s Commerzbank, which says investors fear a Brexit ‘disaster’ unless the UK produces a decent strategy for leaving the EU.
Commerzbank’s Esther Reichelt argues that Theresa May’s opposition to “keeping bits” of EU membership raise the chances of a hard Brexit, and the loss of full access to the single market.
Here’s the key section:
Until the government finally presents a concrete and convincing strategy market participants will increasingly fear a disaster. In particular as she [May] signalled once again that the aim of controlling immigration was a red line she would not be willing to cross. That means that following Brexit the country is likely to lose access to the single market.
Even though the US President-elect has already signalled an interest in closer ties with its former colonial masters which may well cushion the economic impact of the decision for the UK, what Larry Summers said in his interview about the US also applies to the UK: “if our strategy is to trade only with people that speak English that’s going to be a poor strategy”.
The FX market shares this view and as a result Sterling has come under pressure again this morning."
https://www.theguardian.com/business...b0be03bff441d9
DOOMED!!!
Commerzbank’s Esther Reichelt argues that Theresa May’s opposition to “keeping bits” of EU membership raise the chances of a hard Brexit, and the loss of full access to the single market.
Here’s the key section:
Until the government finally presents a concrete and convincing strategy market participants will increasingly fear a disaster. In particular as she [May] signalled once again that the aim of controlling immigration was a red line she would not be willing to cross. That means that following Brexit the country is likely to lose access to the single market.
Even though the US President-elect has already signalled an interest in closer ties with its former colonial masters which may well cushion the economic impact of the decision for the UK, what Larry Summers said in his interview about the US also applies to the UK: “if our strategy is to trade only with people that speak English that’s going to be a poor strategy”.
The FX market shares this view and as a result Sterling has come under pressure again this morning."
https://www.theguardian.com/business...b0be03bff441d9
DOOMED!!!
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