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The British economy unexpectedly shrank in the second quarter for the first time since 2012 as Brexit uncertainties heaped pressure on firms, official figures showed Friday. The decline is set to raise alarm that the economy could experience its first recession in a decade. Traders in currency markets appeared to reflect that concern, sending the pound down across the board, including to another 2½-year low against the dollar of $1.2065.

Europe stepped up preparations for a no-deal Brexit on Monday after giving key parts of the City of London temporary access to EU customers in the event of a cliff-edge departure. The European Securities and Markets Authority, the EU financial regulator, has granted three UK-based clearing houses — LCH, ICE Clear Europe and LME Clear — licences to carry on doing business with European-based customers over the next 12 months even if politicians fail to strike an agreement. London dominates clearing for derivatives traded by European customers and clears nearly all over-the-counter derivatives, mainly interest-rates swaps, traded in euros. Clearing...

Theresa May was handed a two-week deadline to resuscitate her Brexit deal last night after she caved to Tory Eurosceptics and pledged to go back to Brussels to demand changes to the Irish backstop. With just 59 days to go until exit day, MPs narrowly passed a government-backed amendment, tabled by the senior Tory Graham Brady, promising to replace the Irish backstop with unspecified “alternative arrangements”. But within minutes of the Commons result the European council president, Donald Tusk, announced that the EU was not prepared to reopen the deal. “The withdrawal agreement is, and remains, the best and only...

... The UK stands just two months away from a no-deal Brexit that will crash the world's economy. As it stands, no plan to prevent it commands a majority of its own MPs -- let alone the support of MPs and European negotiating partners. And no one is panicking. Perhaps they should be.

Only days after a surprise visit to Downing Street, Boris Johnson is predicting a Brexit fightback by Theresa May and a breakthrough in her battle with rebel Tory MPs in crucial Commons votes. On the eve of a second showdown with MPs on her Brexit proposals, two weeks after her humiliating defeat by 230 votes, the prime minister has received an unexpected boost from Mr Johnson. After his Downing Street visit last week, it was reported that after long talks with government chief whip Julian Smith, Mr Johnson was close to backing Mrs May's Brexit deal with a time limit...

Brussels, Dublin and London have all stated they do no want a hard border between the Republic of Ireland and Northern Ireland after Brexit. But the EU has given apparent confirmation they would enforce such a scenario should the UK leave the bloc without a withdrawal agreement, known as a no-deal outcome. The comments prompted Ireland's deputy prime minister Simon Coveney, also his country's foreign minister, to repeat Dublin's position that it is not planning for a hard border, even with the possibility of a no-deal Brexit. "The Irish government will not support the re-emergence of border security on this...

Nigel Farage is being lined up as leader of a new pro-Brexit party if Britain’s departure from the European Union is delayed beyond 29 March. The former Ukip leader said he had offered his enthusiastic support to the Brexit party after being sounded out as its potential leader. Catherine Blaiklock, Ukip’s former economics spokeswoman, confirmed she had applied to register the party with the Electoral Commission on 11 January and that it would be ready to fight any snap general election or the local elections across England in May. She told the Guardian on Sunday: “I think people feel treason...

Following the resounding defeat of U.K. Prime Minister Theresa May's Brexit deal in the U.K. Parliament last night, the global media are giving their reactions to the vote - and they're not holding back. May's deal was roundly rejected by British members of Parliament (MP) with 432 MPs voting against it and 202 approving it, marking the worst political defeats in parliamentary history. The leader of the opposition Labour party, Jeremy Corbyn, tabled a motion of no-confidence in May's government following the vote on the contentious "Withdrawal Agreement", essentially it's blueprint for leaving the European Union. The U.K. government now...

[T]he best course of action for Great Britain would be to move forward with a “no deal” Brexit, under which there is a complete separation from the European Union. A “no deal” scenario would place Britain completely outside the EU’s Customs Union and Single Market, with no transition period. Britain would trade with the EU under World Trade Organization rules. Meanwhile, it would be free to fully control its borders and negotiate and sign free trade agreements with nations across the world. A “no deal” Brexit is the best path forward to ensure that Britain is a truly free sovereign...

London (CNN Business) - The British pound shrugged off a dramatic vote in the UK parliament that left the government's Brexit plans in tatters. Parliament on Tuesday struck down the divorce deal that Prime Minister Theresa May had negotiated with the rest of the European Union by a record margin. The defeat was expected, but the size of the loss — 432 votes to 202 — was a surprise. The pound, which had fallen below $1.27 earlier on Tuesday, erased its losses after the vote and strengthened to $1.28. Some analysts had predicted the pound would rally if May suffered...

A day after her Brexit plan suffered the worst parliamentary defeat in modern British political history, U.K. Prime Minister Theresa May has survived a motion of no-confidence brought by Labour leader Jeremy Corbyn by a vote of 325-306. Why it matters: May's job has been under threat for months, and yet she keeps on surviving. Having already seen off one challenge from rebels in her own party, she's now defeated a motion from the opposition. Still, May is no closer to delivering on Brexit with 10 weeks left until the U.K. is scheduled to leave the European Union.

German firms must begin planning for a worst-case “hard Brexit” that would slash trade between Britain and the EU if no deal is reached at an EU summit next week, a powerful industry body said on Tuesday. The Federation of German Industry (BDI) urged British Prime Minister Theresa May and the remaining 27 EU leaders to agree a “status quo” transition period preserving present trade arrangements beyond Britain’s departure date of March 29th 2019. “Otherwise, some companies will be forced to bring their contingency plans into focus for the worst-case scenario, which no one wants, and which will damage everyone,”...

Brexit Britain and the U.S. tighter than ever. Welcome to the emerging new world order Taking a cue from soon to be President Donald Trump, British Prime Minister Theresa May put the economic and financial interests of Britons ahead of its relations with their fellow Europeans. May went hard Brexit, that is, a complete break from her European partners. No half measures.