November 28, 2018
The Brexit-related chaos of the past month sent European stocks reeling and made the pound “untradeable” (at least, for a brief time). But traders could have avoided these headaches if they had simply looked past the squabbling to understand a larger truth: Most of the squabbling between May, the Tory Brexiteers and the EU was essentially political theater orchestrated to make a revised Brexit plan where the UK achieves something closer to the “Norway-plus” model politically palatable.
And after markets were given their first peek behind the curtain earlier this week after reports that the EU wouldn’t consider a renegotiation until Parliament rejects the deal, Bloomberg has followed up with the latest indication that May’s insistence on her deal being the “best and only” deal on the table was just an example of the prime minister saying what needed to be said.
Believing that her deal stood any chance of passing would border on delusional, so any practical tactician – and by all accounts, May is nothing but practical – would, accepting this, pivot toward the next-best thing: doing “everything in their power” to strengthen the UK’s negotiating position to win more favorable terms. And it appears May has done just that.
Because, according to Bloomberg, just days after her Brexit plan was “finalized” during a meeting of EU states over the weekend, the prime minister is reportedly ready to public acknowledge a longstanding reality: That, ultimately, Parliament must be allowed to write their own deal if anything is expected to pass. And to that end, May has reportedly dropped her resistance to parliamentary rewrites, and is instead moving toward holding a “meaningful vote”, which would allow Parliament to propose amendments to her deal before voting on which amendments to accept, and which to deny, before approving the revised…