UK government remains in turmoil - BBH

The government of UK Prime Minister May remains in turmoil as another member of her cabinet resigned yesterday for holding unauthorized talks with Israeli officials, explains the research team at BBH.  

Key Quotes

“The weakened government continues to weigh on sterling, though it has managed to stay above $1.30.”  

“Brexit also continues to hang over the UK.  Those talks resumed today, and many are skeptical that any breakthroughs will be seen at the planned December summit.  Indeed, reports suggest that the EU is preparing two draft versions of summit conclusions:  one for a breakthrough and one for continued stalemate.”

“Note that the EU forecasts UK growth to slump, assuming that the trade relationships between the two are unchanged.  The EU said this assumption was made only because the talks are ongoing.  Growth is seen at 1.5% this year, slowing to 1.3% in 2018 and 1.1% in 2019.”