Risk & Economy » Brexit » Brexit briefing 20/8/18

Foreign secretary on no-deal

The UK foreign secretary Jeremy Hunt warns that a no-deal Brexit could lead to a sharp fall in sterling as he tried to rally European support for the UK’s plan for leaving the EU.

Asked about market reaction, particularly a fall in the currency, if Britain and the EU did not reach a deal by March 2019, Mr Hunt said at a press conference in Riga, the Latvian capital, “of course there will be significant short-term impact”.

He separately said that Britain would undergo a “choppy and difficult period” in the coming months, regardless of whether negotiations were successful.

Credit agency warning

Credit rating agency Fitch scales back its expectations of the UK reaching an orderly transition deal with the EU on Brexit, warning that “an acrimonious and disruptive no-deal Brexit is a material and growing possibility”.

Since Britain’s vote to leave the EU in June 2016, the leading credit rating agencies have anticipated that an orderly departure, including a transition period, was the most likely outcome.

However Fitch said that this was no longer the case, in its view.

Danish FM speaks out

Time is running out to strike a Brexit deal, according to the Danish finance minister, who echoes warnings that there is a 50-50 chance of Britain crashing out of the EU without an agreement in place.

Kristian Jensen said the window of opportunity for striking a deal that was positive for both Britain and the EU was closing.

No-deal advice

The government says it will publish the first in a series of technical notices designed to prepare the UK for the possibility of a no-deal Brexit.

The notices will include advice for businesses, citizens and public bodies.

Brexit Secretary Dominic Raab said securing a deal was still “the most likely outcome” – but added making alternative arrangements was the “responsible” thing to do.

Superdry tycoon backs referendum

Fashion tycoon Julian Dunkerton gives £1m to the campaign group fighting for a referendum on the final Brexit deal.

The donation by the co-founder of the British clothing brand Superdry is the largest received by the People’s Vote and will be spent on one of the biggest polling operations undertaken in the UK.