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13 December 2018

Little market movement as May survives confidence vote

The morning after Theresa May survives the vote of confidence, James Rowbury, Investment Research Coordinator, looks at where we are now.

“During a whirlwind week, we’re now in much the same place as we started: facing the absolute possibility of a hard exit from the European in Union. If the Prime Minister was facing a tough challenge with EU negotiators before, she now has as about as much bargaining power in Brussels as a kid who won’t eat their sprouts.
“Not only does Mrs May go back to Belgium with a futile mandate, she has now conceded she will not be able to run as Conservative leader in 2022. That said, the details remain unclear as to whether she will even stick around after her Brexit deal (or lack of). Her promise to leave, once her mission is complete, highlights the desperation in her last clinch of power, while exemplifying the out-and-out lack of confidence in her ability to run the country outside of Brexit. She says she will stay for the time being, but what happens next?

“The only options that seem to remain are: a) her deal does not pass through the delayed parliamentary vote and the UK exits without a deal; b) the deal goes through and the UK exits with a half-baked Brexit; or c) the Labour party triggers a vote of no confidence in the government, seizes its moment to revoke Article 50 and throw a pie in the face of the last 800 years of democracy. One thing is clear, EU leaders will be even less enthusiastic to negotiate any further on the widely criticised backstop agreement, as they have so plainly expressed.

“Financial markets have experienced little in the way of any movement this morning (13th December 2018). It was widely considered that a win for the Prime Minister was priced into Sterling, and this morning’s small uptick of 2p to £1.27 against the Dollar would appear to confirm this.”
Ends


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Notes to Editors

Redmayne Bentley provides a full range of investment services, from bespoke investment management suitable for different life stages, through to traditional stockbroking, dealing with advice and tax efficient investments.

Redmayne Bentley’s service has repeatedly been recognised with quality service and administration awards, most recently Best Full Service Stockbroker, Best Stockbroker for Customer Service, Best Self Select ISA and overall Stockbroker of the Year at the Investors Chronicle / Financial Times Investment and Wealth Management Awards 2018.
 
 
 
Little market movement as May survives confidence vote
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