Pound strengthens after parliamentary defeat leaves Brexit plan in tatters

Collusion News Network ^ | Updated 4:40 PM ET, Tue January 15, 2019 | Ivana Kottasová, CNN Business

[E. Pluribus Unum]

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 major defeat because that would raise the chance of Brexit being delayed.

The crushing loss means parliament may now wield greater control over the process. Capital Economics said lawmakers could move to delay Brexit while they work on alternatives. "Most importantly the size of the defeat appears to reduce the chances of the United Kingdom leaving the European Union without a deal," said Paul Dales, chief UK economist at Capital Economics.

[jz638]

The most dangerous thing for the EU is not Brexit, but a UK that doesn’t collapse after leaving. If the UK economy just pays a bit more for oranges and vacations to the mainland require a bit of a delay, the EU itself will be under threat and it knows it.

[politicket]

Mays will not lose the "no confidence" vote tomorrow, so Corbyn has no opportunity at PM.

The British newspapers are reporting that she has a broad enough coalition to keep her from stepping down.