conflicting signals on Brexit and braced for the weekend G-20 meeting.
The FTSE 100 Index was lower on the week and the pound dropped against the U.S. dollar, as the future of Brexit hung in the
balance.
Stocks got a boost after news of a Brexit deal the previous Sunday between the European Union (EU) and the UK.
While the EU endorsed British Prime Minister Theresa May’s proposed Brexit plan, she will still need to win the approval of
Parliament on December 11, which some analysts predict will result in a humiliating defeat.
May will need to win the backing of 320 of the 650 members of Parliament. Trade Secretary and Brexit supporter Liam Fox rallied
behind May, urging euro-skeptics to back her withdrawal agreement.
President Trump on the other hand suggested that May’s deal could threaten a U.S.-UK trade agreement.
As Brexit worries persist, Bank of England (BoE) Governor Mark Carney warned that many British companies would have difficulties
if the UK left the EU without a formal exit agreement.
Mark Carney noted that less than half of UK companies had initiated their contingency plans for a no-deal Brexit. In an interview with
the BBC, Carney said that companies would struggle with import/export demands in the absence of trade arrangements and that he
is especially concerned that small companies are not well prepared.
BoE stress tests showed resilience in the financials sector, but the central bank said that its worst-case scenarios of a no-deal Brexit
without a transitional period showed British gross domestic product would be as much as 10.5% lower by the end of 2023 relative to
the economy’s earlier growth trend.
