Pound gives up post-election rise as Johnson signals hard Brexit deadlineFT

  • Sterling has surrendered its post-election gains as Boris Johnson signalled he will seek to pass legislation that could cause a “cliff-edge” Brexit at the end of next year.
  • The currency slid as much as 1.4 per cent to $1.3141 in afternoon action, bringing it below the $1.3173 level the pound traded at just before an exit poll projected Mr Johnson’s election victory. It fell by a similar margin against the euro to €1.1792.
  • The pound has tumbled 2.8 per cent from the peak of around $1.35 that was reached on Thursday night after it became clear Mr Johnson had secured a sweeping victory.
  • London’s FTSE 250 index, which includes medium-sized UK companies that are considered to be sensitive to shifts in the domestic economy, dropped more than 1 per cent in its worst day since October after sharp rises in the two trading days following the poll.
  • Companies that were seen as beneficiaries of Mr Johnson’s victory such as banks — including Barclays, Lloyds and RBS — and homebuilders pulled back.
  • Analysts had warned that even as the election result would help to alleviate political uncertainty, risks over Brexit and domestic politics still lingered.

Boris Johnson’s Brexit extension block ‘will limit UK options’ The Guardian

  • Boris Johnson’s plan to make it illegal for the government to extend the Brexit transition period beyond 11 months has been described as “strange” by Ireland’s deputy prime minister, as Brussels prepares to limit the scope of the coming negotiations.
  • Simon Coveney said it amounted to the “UK deciding to tie itself in terms of options”, while the director general for trade in the European commission, Sabine Weyand, said the ambition of any deal would need to be pared back.
  • When the UK leaves the EU on 31 January, difficult and complex negotiations over the future relationship will begin. The country will remain in the single market and customs union until 31 December 2020, with an extension of the arrangement permitted for up to two years if it is both found necessary and agreed before 1 July.
  • The government has said, however, it will legislate to prevent such an extension.

Brexit bill to rule out extension to transition periodBBC

  • The government is to add a new clause to the Brexit bill to rule out any extension to the transition period beyond the end of next year.
  • The post-Brexit transition period – due to conclude in December 2020 – can currently be extended by mutual agreement for up to two years.
  • But an amended Withdrawal Agreement Bill the Commons is set to vote on this week would rule out any extension.
  • The PM told MPs it would put an end to years of “deadlock, dither and delay”.
  • As the House of Commons assembled for the first time since the election, Boris Johnson said his priority was to “get Brexit done”. He also promised to seek “common ground” and to approach politics with a “new and generous spirit” after the rancour of recent years.
  • Jeremy Corbyn congratulated the Conservative leader on his victory but said he would be “judged” on whether he delivered on the “many, many promises” he had made during the campaign, including to longstanding Labour voters.