Monday, 9 January 2017

UK TO LEAVE THE SINGLE MARKET?

Theresa May appeared on TV at the weekend in order to counter the impression that she does not know what she is doing. Unfortunately, it only seemed to confirm that she doesn't. We learned very little as usual.

What she did say was the UK would have control of its borders and the best possible trade deal with the EU. She didn't commit to maintaining "single market access", and she suggested that people who thought the country could keep "bits of EU membership" were missing the point that it "would be leaving". If one believes that the single market is indeed a "bit" of the EU then it looks like we're leaving.

I note the pound dropped 0.87% against the dollar ($1.21770) and 1.04% against the Euro (now trading at 1.15440). Every time she suggests we will have a hard brexit the pound falls.  If this turns out to be the actual plan the markets will pronounce on it.

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