Global banks confident about post-Brexit deal chance
(VOVWORLD) - The likelihood of the Government failing to reach a Brexit deal is plummeting, which should reduce the risks facing the economy and inject more confidence into businesses and investors, according to analysts at leading global banks JP Morgan and UBS.
JP Morgan has slashed its estimates of Brexit negotiations failing to reach a conclusion, cutting its probability from 25% to 15% as the UK and EU move towards trade talks. This is in part because Theresa May looks increasingly likely to remain as Prime Minister until at least Brexit day itself next year, JP Morgan analyst Malcolm Barr said.
UBS Wealth Management said the progress made on Brexit negotiations will likely have lessened difficulties for businesses. By moving away from a ‘no deal’ scenario, economist Dean Turner believes the risks to economic growth are diminishing, improving the outlook for the UK.