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21 November, 2018

Nakhil Makra

Yesterday was another low key day in terms of any major data announcements, the markets still being driven by Brexit talks and whether or not Theresa May will still be in charge come the end of the week. All eyes have been on the 1922 committee making an announcement that they have received 48 letters to trigger a vote of no confidence in Theresa May, that number now standing at 46 according to some reports. Two more votes would sufficient to state a leadership challenge but with no clear challenger to lead the Tories, should the number reach 48, there could be further uncertainty as to who actually will take up that position.

The DUP put further pressure on Theresa May by stating they will not vote through the Brexit deal in parliament and that Mrs. May should hold up her end of the deal with the DUP. DUP’s Sammy Wilson, stating to media ‘the deal was broken by the government’. This pressure is sure to mount on Mrs. May as one her key allies refuse to support her as things start. In addition, Jacob Rees – Mogg again speaking publicly and urging other Tory Brexiteers to ‘topple the PM or face her leading them going into the 2022 election’. The current climate is quite telling on the Pound, as rates remain low and under pressure struggling to break key resistance levels. Should we see 48 letters go in and her deal being struck down by parliament, the rates could drop as low as 1.08, is your budget flexible enough to cover for these changes? Speak to your account manager to be kept up to date.

Today again is another low key day data wise, with all attention on any further Brexit news.