Sterling falls as Brexit talks between the UK's two main parties collapse - CNBC

Prime Minister Theresa May and opposition Labour Party leader Jeremy Corbyn during the State Opening of Parliament on June 21, 2017 in London, United Kingdom.

Stefan Wermuth | WPA Pool | Getty Image

Hopes that the U.K.'s two largest political parties can hash out a Brexit agreement have ended.

Six weeks of talks between the most senior lawmakers from the ruling Conservative Party and main opposition Labour party have ended with no deal. Labour leader Jeremy Corbyn told reporters Friday morning that talks had gone as far as they can go and his party will oppose Prime Minister Theresa May's Brexit proposal.

As skepticism grew over a cross-party deal, the pound has embarked on nine straight sessions of losses versus the euro, marking the longest unbroken run of losses this century. Versus the dollar it dipped to $1.2760 on Friday, marking a four-month low. This after almost reaching $1.34 as recently as March.

It is now expected that the U.K. government will put various options, known as indicative votes, to Parliament instead. The last time lawmakers in the lower house of Parliament — the House of Commons — held such a series of votes on Brexit there was no majority preference for any outcome.

According to ITV's political editor, a document shows that Prime Minister Theresa May will hold these indicative votes next week, before the EU parliamentary elections.

One of the motions that the government would reportedly like to put to a vote would ask members to agree that any deal should not be subject to a second Brexit referendum.

Speaking on BBC Radio Friday, the chair of a cross-party committee designed to probe the Brexit process said a failure of talks meant a second vote would be more likely.

"There are only two ways out of the Brexit crisis that we've got: Either parliament agrees a deal, or we go back to the British people and ask them to make the choice," Hilary Benn said.

"This brings the prospect of a confirmatory referendum closer, although there's not yet a majority for that in parliament," he added.

May's attempts to agree a deal with Labour appears to have been the final straw for lawmakers within her own party who are demanding that she spell out her resignation date.

On Thursday, May met with a powerful committee of MPs (Member of Parliament) within her own party, with reports suggesting that she has been told to depart by June 30 at the latest.

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https://www.cnbc.com/2019/05/17/sterling-falls-as-brexit-talks-break-down.html

2019-05-17 09:46:17Z
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