• Pound hits 11-month low on Brexit no-deal fears: The pound hit an 11-month low on Monday after UK trade secretary Liam Fox said at the weekend that the UK was more likely than not to crash out of the EU without a deal in March. Sterling slipped to $1.2924, down 0.6 per cent against the dollar and past the July 19 level of $1.2955. The currency is at its lowest since September 5 last year. Sterling analysts are turning increasingly bearish, noting that last week’s Bank of England rate rise barely registered on the forex market as political risks attract greater attention. Traders and analysts are now worried that both sides in the exit negotiations are becoming entrenched, increasing the risk of a no-deal Brexit. “We think the timescale is unrealistic and, as this starts to dawn on the market, it could just prove another factor tipping risk assets over the edge in the autumn,” said Steven Barrow at Standard Bank. (The Financial Times) (The Guardian)
  • Theresa May confident of reaching Brexit deal, sources say: Downing Street has insisted that Theresa May is confident of securing a Brexit deal with Brussels despite Liam Fox’s assertion that the UK appears set to crash out of the EU without reaching an agreement. Whitehall sources said they believed there was only a very small chance of the government failing to secure a deal, but that preparations were being stepped up in what they described as the unlikely event of that taking place. They suggested that the international trade secretary remarks on Sunday were part of a deliberate strategy to talk up the prospect of a no-deal Brexit in order to put EU leaders under pressure to take the prime minister’s Chequers plan seriously. (The Guardian)
  • No-deal Brexit poses serious risk to public safety, say police leaders: A no-deal Brexit poses a substantial risk to public safety, with police officers instantly losing vital access to cross-border investigative powers and databases, the home secretary has been told in a damning letter from the national body of police and crime commissioners.
  • In the leaked document – marked “official sensitive” – the police leaders urge Sajid Javid to immediately draft contingency plans, warning that officers faced “a significant loss of operational capacity” should the UK crash out of the EU in March. They say that they are becoming “increasingly concerned that such a loss of capacity could pose significant risks to our local communities”, and urge the home secretary to act swiftly to address their fears. (The Guardian)