UK: Economy guided by the politics – Danske Bank

Analyst, Aila Mihr at Danske Bank, points out that yesterday, the UK and EU agreed on a draft political declaration on the future relationship, which is expected to be approved by EU leaders at the summit on Sunday.

Key Quotes

“We think this is going to be relatively easy despite some concerns among some member states, most notably Spain on Gibraltar. A strong qualified majority (i.e. 20 out of 27 member states representing 65% of the population) is needed to pass the deal.”

“GBP rallied on the news as investors gained confidence that the final negotiation stage is falling into place and sterling kept its gains overnight. But the risk of a leadership challenge for Theresa May continues to linger and the real test for the Brexit deal still looms with the vote in the House of Commons.”