In the cosmic collision of dreams and dread Brexit has become, one hope refuses to die: That a full-blown market panic can force politicians to overcome bitter division and agree a path to save the U.K. from economic catastrophe. It’s known as the TARP scenario, after the Troubled Asset Relief Program passed by U.S. lawmakers to avert disaster in the financial crisis. In a hint of the pressures that some investors hope could focus Westminster minds, the pound slid to the lowest since April 2017 on Monday after Prime Minister Theresa May delayed a crunch vote on her deal to exit the European Union, pushing the U.K. even closer to a cliff edge. “Stress in financial markets and pressure from businesses should lead to a last-minute approval of the deal in Parliament,” said Silvia Dall’Angelo, senior economist at Hermes Investment Management. Still, she admits this is a “low confidence” base case. The trouble is that, so far, the markets aren’t playing ball. Despite the pound’s d...
Komentar
Posting Komentar