There is ongoing uncertainty despite sterling moving up on Theresa May’s latest move
Thursday 04 Apr 2019 Author: Tom Sieber

The latest twist in the Brexit negotiations is raised hopes that a no-deal Brexit on 12 April can be averted but the risk remains and is probably not yet being fully priced into UK assets.

After an epic meeting with her cabinet colleagues, Theresa May appears to have concluded that her previous approach of seeking to keep hardliners in her own party and her DUP partners happy has failed. She is now reaching out to Labour leader Jeremy Corbyn to come up with a Brexit solution that can pass through the House of Commons.

Sterling rose on 3 April following May’s move, but it remains to be seen if the talks with Corbyn will achieve anything tangible and there is also no guarantee the EU will grant a further extension.

This is likely to hinge on the European elections, with a possible solution being that the UK prepares as if it will participate in the poll but with the ability to pull out if it can get a deal over the line by 22 May.

Nigel Green, chief executive of financial advisory group DeVere, says: ‘With so many question marks hanging over the Brexit process, it’s essential for those who are serious about safeguarding, creating and growing their wealth to ensure that their portfolios are properly diversified.’

 

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