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00:00I mean I'm all confused. We're not calling it Bragg is it . We're calling it clean or actually we're sovereign debt meaning it all goes to the fact that there are red lines. If this country wants immigration to be free flowing or to be able to stop it then they won't have access like we do at this moment single market. End of story. I agree. And I don't think there anything particularly surprising about Theresa May speech yesterday. I think what is interesting is that she has confirmed the speculation that the internal political arithmetic in the tory party is going to push the UK government to prioritize immigration control. And if we do that that will come at the expense of access to the single market certainly in terms of goods but also most likely services as well. And that I think is going to be the frame within which the negotiations take place with the rest of Europe. I know it's impossible almost to guess to guesstimate at this point. But when you think Article 50 will be triggered. So she says by March. Is it better to do it January or is it better to do it in March. I think the government will probably need to give itself as much time as possible to come up with a coherent position No.10 and the Treasury are obviously working out the Brexit problem from different perspectives the Treasury looking to prioritize the single market. Number 10 obviously as we as we heard yesterday thinking more about the problem from the perspective of immigration. So I think there needs to be more coherence in the UK government's position that probably will take a little bit of time to figure out. So I would say I mean we're telling our clients January February at some point in Q1 is it too early to try and again speculate what the UK will look like in three years from now we don't know whether EU nationals will be able to stay here. We don't know what access or tariffs we'll have to pay for example to import goods and also to sell them to the . So I think the end point is clearly a bilateral deal on trade with a component on services and I think again if you look at the internal political conversation in the UK that's been clear for some time now I think the conversation now is very much focused on the transitional arrangement. So in 2019 when we exit the EU. But the final framework is not yet fully agreed . There will need to be some transitional arrangement to limit the impact both on the UK but also the European economy and I think the politics of those transitional arrangements are also going to be highly complex and highly problematic and that's really where I think the conversation is now focused. How do you look at Switzerland. And for me it was quite significant that they had a referendum saying look we want to curb immigration. Then you said right will you do that. And you and you lose actually the rooms that we've had and they've overturned their own referenda. Right. You know is it different for the UK or should UK politicians look at Switzerland and say actually holy cow this could happen to us if we're not softer. I don't think the Swiss as a template Francine right. The Swiss don't like their relationship with Europe. The Europeans don't like their relationship with Switzerland. I don't think the UK is going to look to converge on that as a template. I just don't think it can work. It is a bespoke agreement limiting immigration while still trying to get some access to the single market certainly in the area of services and that's where I think the political conversation will focus but it's going to be difficult .

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What Type of Brexit Deal Should May Seek?

European Union governments complained U.K. Prime Minister Theresa May’s plan to begin Brexit negotiations by April still lacks detail and signaled she will not get the informal talks she’s seeking before then. May said on Sunday for the first time that she will trigger the U.K.’s two-year withdrawal from the EU in the first quarter and told the BBC that by giving such a timetable she hoped her EU counterparts will allow “some preparatory work” to ensure a “smoother process.” Eurasia Group Managing Director for Europe Mujtaba Rahman discusses with Bloomberg's Francine Lacqua on "The Pulse."

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