[ad_1]
Pound sterling fell half-a-percent to $1.2808, and also slumped to a three-week low against the euro, down 0.4 percent to 88.82 pence.
On Thursday, European Central Bank President Mario Draghi said the longer Brexit talks drag on, the more the private sector will have to prepare for the possibility of Britain tumbling out of the bloc without an agreement on future relations.
Investors weren’t able to pinpoint a specific driver for the pound’s sudden fall, but warned with just over five months until Brexit day, the chances of an no-deal outcome are rising.
Alexandra Dumitru, an economist at Rabobank, said: “Domestic politics have flared up again and the cumbersome dynamics will make it challenging for Theresa May to get an eventual deal through the UK Parliament.
We are striving for a good deal with our partners but we will be ready for all outcomes from negotiations
Dominic Raab
“We still regard a last-minute deal as the most likely outcome but due to recent events we now estimate the chances of a ‘hard Brexit’ as almost as high as the base case.”
Earlier, Lord Sugar told the House of Lords that Boris Johnson and Michael Gove should be in jail for the “lies” they told during the EU referendum.
He said the Brexiteers should be jailed for the £350 million red bus “lie” they told during the campaign trail.
Moscow along with more than a dozen other countries, which include the United States and New Zealand, have raised objections to the UK’s post-Brexit trade proposals.
The members voiced concern at the UK’s separate plan to replicate the EU’s WTO trade terms.
The EU and the UK agreed to maintain tariffs at a certain level between them, but the trading partners have complained this amount does not take into consideration movement of goods within the bloc.
According to mlexmarketinsight, a WTO official who was at the meeting where Russia delivered its objection said: “The Russian Federation reiterated that the resolution of the issue of certification of the EU schedule seems to be pivotal to proceed with the new UK schedule.”
Follow Express.co.uk below for live Brexit updates:
Brexit latest: The pound fell to a seven-week low as no-deal fears resurfaced (Image: GETTY)
9pm update: Banks warned to hold enough money back for messy exit from EU
British banks have been told they must hold enough cash to withstand a disorderly Brexit hitting financial markets.
The warning came from Bank of England Deputy Governor Sam Woods, who was speaking to an audience of bankers at the annual City of London dinner in the capital’s financial district.
He said: “Just in case things go badly we have been working with firms to ensure they have in place liquidity sufficient to accommodate a severe dislocation in financial markets.
“We all need to be ready for a range of outcomes.”
Britain is legislating to enable banks and insurers in the EU to continue serving UK customers after Brexit, even in the event of a no-deal scenario.
Mr Woods added: “We encourage all firms to opt into the regime because it will provide certainty until March 2022, independent of the existence and duration of any wider implementation period.
“This is a straightforward, common sense way of lowering the risk of disruption to the City of London.”
8.45pm update: Barnier told by opposition leaders of ‘cross-party resistance’ to May’s proposed deal
Michel Barnier has been told by representatives of four opposition parties there is “cross-party resistance” in Westminster to the withdrawal deal being pursued by Theresa May.
Liberal Dimocrat leader Sir Vince Cable, the SNP’s Westminster leader Ian Blackford, Plaid Cymru Westmonster leader Liz Saville Roberts and Green MEP Molly Scott Cato met the EU’s chief Brexit negotiator in Brussels.
They accused the Labour leadership of waving through a “destructive” Tory Brexit, but told Mr Barnier “sensible politicians” from all parties still believe the UK’s exit from the bloc should not be taken for granted.
Sir Vince urged Mr Barnier to start making plans to respond to a People’s Vote, adding supporters of a second referendum now make up the “biggest and most cohesive bloc in Westminster”.
In a joint statement following the meeting, they said: “In a constructive hour-long meeting with Michel Barnier, we emphasised that there is a cross-party resistance in Westminster to the destructive Brexit being pursued by the Tories.
“We also pointed out that this is being waved through by the Labour frontbench, but no majority exists in Parliament for the current Brexit trajectory.
“With sensible politicians from all parties uniting, we pointed out to Mr Barnier that there is a genuine cross-party consensus that our exit from the European Union must not be badumed.”
Brexit latest: Sir John asked ‘how could the UK have voted to enact such a policy of self-harm?’ (Image: GETTY)
8.15pm update: No-deal Brexit could cost youngsters more than £100,000 in lost earnings by 2050 – report backed by Sir John Major
Youngsters could lose £108,000 in lost earnings by 2050 – equal to more than £3,000 a year – if Britain tumbles out of the EU without a deal, a new report backed by Sir John Major has claimed.
The paper from Our Future Our Choice, which is campaigning for a second referendum, claimed the total bill for teenagers of a Brexit no-deal could amount to three-times the cost of university tuition fees or twice the deposit to buy their first house.
It calculates lost earnings by 2050 resulting from the impact on Britain’s GDP of a World Trade Organisation-style Brexit at between £44,000 and £108,000 – with the most likely cost amounting to £76,000.
The range for a Brexit with a free-trade agreement of that favoured by Boris Johnson was calculated at £30,000-£72,000, with the most likely cost at around £51,000.
A Brexit deal resulting in membership of the European Economic Area was estimated to cost each youngster £7,000-£32,000 by 2050, with the most likely outcome at around £20,000.
Based on Theresa May’s Brexit plan, the report claimed there would be an immediate loss of around £400 a year for 18-21-year-olds and £500 a year for 22-29-year-olds.
In a foreword to the report, Sir John said Brexit “was never the choice of the young – who voted overwhelmingly to remain in the EU, while their elders voted to leave”.
He said: “As negotiations have proceeded – and the downsides become ever more clear – the inevitable question arises: how could the UK have voted to enact such a policy of self-harm?
“And how can the fervent Brexiteers remain so deaf, dumb and blind to every single warning – even when those warnings seem ever more likely to be true?
“History may well judge that – for a time – the world’s most pragmatic of nations took leave of her senses.”
Brexit latest: Michel Barnier met Sir Vince Cable, Ian Blackford, and Liz Saville-Roberts (Image: EPA)
7pm update: ‘Scotland must be and will be heard!’
Scottish constitution minister Michael Russell said the country’s devolved Parliament will hold its own vote on Britain’s withdrawal deal from the EU before the agreement is put to Britain’s Parliament.
A Scottish vote would not be binding on the UK Parliament but could potentially heap more embarrbadment on Theresa May, highlighting the dwindling relations between London and Edinburgh over Brexit.
During the referendum in June 2016, Scotland actually voted 62-38 percent in favour of remaining in the EU.
Mr Russell told Scotland’s Holyrod Parliament: “On this most crucial of matters, Scotland must be and will be heard.
“If the UK Government puts the option of staying in the EU single market and customs union on the table, we will commit ourselves to support it.
“We will reject every other option short of staying in the EU.”
He added: “If a withdrawal agreement and political declaration are in the end concluded and offered to the House of Commons, then we make this commitment: before the Westminster parliament votes on that deal, the Scottish government will seek to ensure the Scottish parliament will pbad its own judgement on it.”
Brexit latest: Theresa May and Philip Hamnmond will meet business leaders next week (Image: GETTY)
6pm update: Pound falls to seven-week low as no-deal fears resurface
The pound has fallen to a six-week low against the US dollar as positivity about Conservative lawmakers backing Theresa May’s Brexit plan gave way to fresh fears over the risk of a no-deal.
Sterling fell half-a-percent to $1.2808, and also slumped to a three-week low against the euro, down 0.4 percent to 88.82 pence.
On Thursday, European Central Bank President Mario Draghi said the longer Brexit talks drag on, the more the private sector will have to prepare for the possibility of Britain tumbling out of the bloc without an agreement on future relations.
Investors weren’t able to pinpoint a specific driver for the pound’s sudden fall, but warned with just over five months until Brexit day, the chances of an no-deal outcome are rising.
Alexandra Dumitru, an economist at Rabobank, said: “Domestic politics have flared up again and the cumbersome dynamics will make it challenging for May to get an eventual deal through the UK Parliament.
“We still regard a last-minute deal as the most likely outcome but due to recent events we now estimate the chances of a ‘hard Brexit’ as almost as high as the base case.”
4.20pm update: Britain defeated with accelerated plan to seal terms for post-Brexit membership of WTO
Britain must now enter likely lengthy negotiations after an attempt to seal terms for its post-Brexit membership of the WTO by a fast-track procedure had failed.
International Trade Minister Liam Fox said this followed objections raised by several other WTO states, which he didn’t name.
Britain is a full member of the WTO, but its terms are tied up with those of the EU, and when it leaves the bloc in March 2019, it needs to have an independent membership document that outlines the terms of its trade.
Mr Fox had tried to yse rapid “recification” for a seamless transition, essentially copying the EU text into a new WTO agreement covering the UK.
The International Trade Minister, said in a written statement to Parliament: “As expected, some trading partners have expressed reservations about our proposed treatment of Tariff Rate Quotas.”
Mr Fox conceded he will have to switch to “modification” of the British WTO agreement, providing other countries with the right to negotiate and demand concessions from London.
If Britain is unable to satisfy its trading partners, they could retaliate with trade disputes, which could go on for several years.
Dominic Raab speaks to MPs about Brexit uncertainties (Image: ParliamentLive )
4.05pm update: EU citizens needing support when applying for settled status boosted with £9m fund
The Home Office said the grant will be used to help voluntary and community organisations inform people about the need to apply for settled status and support them to complete their applications.
Immigration Minister Caroline Nokes said: “EU citizens are our neighbours, our friends and our family and we want them to stay.
“It is essential that those who are more vulnerable and require support are able to access the help that they need.
“This funding and our work with the voluntary and community sector will help ensure that every EU citizen who is eligible to stay has their status protected.”
3.50pm update: Second referendum only viable option after ‘disastrous’ Brexit talks
Independent crossbencher Lord Kerslake, a former head of the Civil Service, admitted he has made a complete u-turn on a another vote by joining last Saturday’s march in support of it.
He attributed his change in mind to the “truly disastrous process of the negotiations”, insisting nobody could have predicted how badly they would go.
In a debate on the case for a ‘People’s Vote’ on the outcome of Brexit talks, Lord Kerslake blasted Theresa May and her Government for the “series of grievous misjudgements”.
He said: “As a direct consequence of these misjudgments, we are now faced with some very unenviable choices.
“We will become a rule-taker and risk being perpetually on the wrong end of future EU trade negotiations.
“Contrary to all the badurances at the time, the reality is of a diminished Britain and it’s there for all of us to see.
“I’m aware of the challenges that holding a second referendum will bring but in the circumstances we now find ourselves it seems the only viable option.”
Brexit latest: Owen Patterson, David Trimble and Iain Duncan Smith met Michel Barnier in Brussels (Image: REUTERS)
3.30pm update: Ireland and UK relations ‘strained’ over Brexit – Irish PM Varadkar
The Taoseach claimed parts of the British establishment expected Ireland to “fall into line” after the Brexit vote.
He said some people in Britain failed to consider the impact of Brexit on Ireland before the referendum in June 2016.
Ireland’s leader and Foreign Affairs Minister Simon Coveney were both speaking at the Getting Ireland Brexit Ready workshop at the Convention Centre in Dublin about the ongoing struggle to complete a deal.
Mr Varadkar said: “I think there are different strains in Britain and a lot of people in Britain have great affection for Ireland and they understand our concerns and they did think of the impact in Ireland before the referendum.
“But quite frankly there are others who didn’t and you do come across people in the British establishment who can’t believe we won’t fall into line.
“They thought ‘sure you’ll be leaving too, won’t you’ and the fact that we aren’t and the fact we stood up for ourselves has made some of them quite annoyed, but so be it.
“That’s elements of the establishment. You’d swear we created the problem.”
He said while his personal relationship with Theresa May is “very good”, relations in the wider sense are strained.
Mr Varadkar added: “They are strained because of Brexit which has created a disturbance in the force.”
Pedro Sanchez has branded Brexit a “tragedy” (Image: GETTY)
2:30pm update: Alan Sugar says Johnson and Gove should be in prison for Brexit ‘lies’
Businessman Lord Sugar has claimed Boris Johnson and Michael Gove should be sent to prison for the “lies” they told during the EU referendum.
He made the comments in a House of Lords debate for a second Brexit referendum, known as a “People’s Vote”.
He said: “However, there is a very good argument to void that vote if it can be concluded that the public were totally misled and it is my belief that a large section of the British public were misled, informing their decision to vote to leave.”
Speaking to the peers, Lord Sugar said: Applying the public company principle, it should follow that those people who will be responsible for putting this country into five to 10 years of post-Brexit turmoil based on lies should be in prison or at least prosecuted.
“Such as Boris Johnson and Michael Gove for the £350 million lie they put on the red bus.”
Paul Withers taking over live reporting from Laura Mowat.
2pm update: Dominic Raab warns EU ‘intransigence’ could increase risk of no-deal Brexit
The Brexit Secretary also warned that French authorities in Calais could adopt a “go-slow” approach which would cause chaos for trade across the English Channel.
The European Commission rejected Mr Raab’s criticisms, insisting it was working to reach a deal.
Mr Raab told MPs in the Commons: “We also need to prepare for the worst-case scenario where the authorities at Calais are deliberately directing a go-slow approach by supporting a diversion of the flow to more amenable ports in other countries.
“We need to make sure that we’re in a position regardless of what the EU or the French or any other EU member state does to be able to, were there are any short term disruptions, we will make sure not only do we have the money and the investment in place.
“But we have the cooperation with businesses and the port authorities, not just in the UK but also in Belgium and the Netherlands and other parts of the EU.”
1pm Auditors warn Northern Ireland is not prepared for Brexit
Northern Ireland is not well prepared for a no-deal Brexit in areas such as trade and customs, according to auditors.
Auditor general of the Northern Ireland Audit Office Kieran Donnelly said: “In respect of those areas where policy is reserved, Northern Ireland is not well prepared for leaving the EU without a deal.
“The civil service remains engaged with the UK government to ensure that Northern Ireland’s interests are recognised in the negotiations, although without a functioning Executive its influence has undoubtedly been limited.”
12:30pm update: Theresa May and Philip Hammond to meet business leaders to discuss Brexit and the Budget
Theresa May and Philip Hammond are due to address and take questions from 120 chief executives and investors next Wednesday.
The Prime Minister’s official spokesman said: “The Budget is always a significant event for business and the country at large so it is an opportunity to update some of the core messages from the Budget.
“But equally we are approaching March 29 next year and the Prime Minister wants to make sure that business are fully engaged in what the Government are doing and to provide them with information and updates.”
Amber Rudd said Theresa May got a warm welcome at the meeting of backbenchers (Image: GETTY)
11am update: Blackrock will keep its European HQ in London after Brexit
The global investment company will keep its headquarters in London following speculation that it would move it to an EU member state after Brexit.
The badet manager has told its 3,000 staff in the UK that any changes will have a minimal impact on jobs.
The company said: “We have been preparing for the operational, legal and strategic impacts of Brexit for several years and, at this stage, we can tell you that very few roles will be affected by our decision to extend the regulatory permissions for existing entities in continental Europe.”
10:30am update: Spanish Prime Minister Pedro Sanchez calls Brexit a “tragedy” and warns Catalonia to take note
Mr Sanchez described Brexit as a “historic error” and said that it will leave the UK with less influence on the world stage.
He said: “Unfortunately, it was not possible to reject the request of the U.K. to withdraw from the EU.
“Brexit is a tragedy for the British and for the Europeans.”
Speaking to Catalonians, who voted for independence from Spain in October last year in a non-binding referendum, he said: “Let’s take note of foreign mistakes, let’s learn from the historic error which Brexit represents for the United Kingdom and think about the prosperity of our citizens.”
The cross-party MPs are heading to Brussels to meet Barnier (Image: PA )
10am update: Dominic Raab says: “We are ready for ALL outcomes”
Speaking in the House of Commons, Brexit Secretary Mr Raab said: “We are striving for a good deal with our partners but we will be ready for all outcomes from negotiations”.
When questioned about stockpiling due to border delays, Mr Raab said it would be kept under review but is something the medical industry “is used to doing”.
He said: “We want to make sure we are in the best position to manage, avoid and mitigate any risks in a no-deal scenario but of course we are striving for the best deal with our European partners.”
Mr Raab made it clear that if MPs reject the deal Theresa May brings back from Brussels, it could lead to a no-deal situation.
He urged MPs on all sides of the Brexit debate to get behind the Government so it could clinch a deal.
He said: “Every honourable member in this house will have a choice to make between a good deal we are confident we will bring back and the alternatives”.
The Brexit Secretary said there would be no hard border in Northern Ireland following the divorce.
Raab said the Government would heal the division caused by the EU referendum by “delivering” on Brexit.
He said: ”A second referendum would erode public trust in the system and take us back to square one.”
9:30am update: Barnier to meet Remainer MPs at 4:45pm today as they demand a People’s Vote
Lib Dem leader Vince Cable, SNP’s Westminster chief Ian Blackford, Plaid Cymru’s Liz Saville Roberts and Green Party MEP Molly Scott Cato will meet the EU’s Brexit supremo Michel Barnier in Brussels at 4.45 p.m. this afternoon.
They will be arriving with the message of ensuring the UK remains in the single market and the customs union.
A joint statement said: “The campaign to resolve Brexit through a People’s Vote will also be discussed”.
Sir Vince said: “It is vital that Michel Barnier and the European Commission know that there is another view in Parliament, one that has cross-party support and that can get the EU and the UK out of this mess.”
Brexit latest: Michael Gove has been told he is unprepared for a no-deal scenario (Image: GETTY)
9am update: Michael Gove is ‘unprepared’ for a no-deal outcome
A Lords Committee has warned that a no-deal outcome would still result in waste piling up and havoc in the agricultural sector.
The House of Lords committee warned that the government’s lack of preparation for a no-deal Brexit would cause chaos.
The letter to Michael Gove has raised concerns about the government’s ability to cope if there is a no-deal Brexit.
Committee chair Lord Tiverton said to Mr Gove: “You acknowledged that this process could take six months, during which time no animal exports could take place.
“This would be catastrophic for the UK’s agri-food sector”.
8:30am update: Theresa May holds successful meeting with backbench MPs and is ‘not going anywhere’
Mrs May spoke to the 1922 committee of backbenchers on parliament on Wednesday evening with one Tory MP saying she “is not going anywhere”.
Former Home Secretary Amber Rudd said the Prime Minister had “won the room” and was in a “strong position”.
Cabinet minister Nicky Morgan has predicted that Mrs May would still be in her role in a year’s time.
The meeting came at a time of uncertainty for Mrs May and speculation that there could be a vote of no confidence.
Source link
