Marcus Ashworth, Columnist

Jeremy Corbyn Is Worse Than a ‘No-Deal’ Brexit

The pound has kept most of its gains despite the chances of a messy departure increasing. That’s because of signs of unity from the ruling Tories.

January 30, 2019 at 11:17 AM UTC

By Marcus Ashworth

Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. Previously, he was chief markets strategist for Haitong Securities in London.

People thought the pound was rallying because of the diminishing chances of a no-deal Brexit. Tuesday's drama in Parliament suggests otherwise.
Photographer: WPA Pool/Getty Images Europe

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What exactly is sterling up to? There was a theory that the recent mini-rally in the pound was all down to the receding prospects of a “no-deal” Brexit as moderate lawmakers tried to seize control of the process from Prime Minister Theresa May.

On Tuesday night that idea was tested to destruction. A parliamentary proposal from MPs Nick Boles and Yvette Cooper to delay Brexit rather than leave without a deal was comfortably beaten. Meanwhile, May and her fractious euroskeptic lawmakers made peace around another proposal that will see her return to Brussels to try to rework the U.K./EU withdrawal agreement. If anything, the chances of a “no-deal” exit have increased and those for the softest options such as a second referendum diminished.