Brexit Bulletin: Acrimony in the House

Brexit is 35 days away.

(Bloomberg) --

Today in Brexit: Boris Johnson comes out fighting as acrimony reigns in Parliament.

What’s happening? In an extraordinary evening session in the House of Commons, Boris Johnson sparked uproar with a take-no-prisoners response to the U.K.’s political crisis. The prime minister refused to resign or apologize for acting unlawfully and challenged his opponents to trigger an election through a no-confidence vote. 

Johnson’s language riled opposition lawmakers.  In a raucous and heated atmosphere, he repeatedly referred to the law designed to prevent a no-deal Brexit as a “surrender bill.” Johnson also said the best way to honor the memory of Jo Cox, the pro-Remain Labour lawmaker murdered during the 2016 referendum, would be to deliver Brexit ⁠— sparking cries of “disgusting” and “shame” from the opposition. This Parliamentary tension creates another obstacle for getting Brexit done — as Johnson is angering the opposition just when he's going to need their support to get any deal through the Commons.

And Johnson is standing firm as ever. In an ITV News interview, he reiterated that Brexit would occur on Oct. 31 even if a deal hasn’t passed through Parliament. The prospects of a breakthrough are still looking tricky, with the European Commission telling a confidential meeting of national diplomats on Wednesday that the British government’s latest ideas for the post-Brexit Irish border aren’t acceptable.

Wanting to stop Johnson, Parliament is plotting again. Now that lawmakers are back in Westminster, they’re planning their next assault on the prime minister’s strategy. The options in play include legislating for a fresh Brexit referendum and tightening the law banning a no-deal divorce. 

Today’s Must-Reads

• No one can be seen to win if Brexit is to be resolved, Jenni Russell writes in the Times.
• What to do with 24 tons of stockpiled beetroot? Bloomberg’s Lucy Meakin looks at the challenges faced by companies preparing for a no-deal split.
• In the Brexit “Comedy of Errors,” the pound is holding up far too well, writes Bloomberg Opinion’s John Authers.

Brexit in Brief

Food Warnings | The U.K.’s two biggest grocers – Tesco and Sainsbury’s – warned of possible threats to the food supply if Britain crashes out of the European Union without a deal next month.

On the Markets | Investors are hunting for cheap ways to protect against the worst-case Brexit scenarios, which is showing in currency-market derivatives, writes Bloomberg’s Charlotte Ryan. Options remain the most efficient pound bets amid the possibility of a chaotic divorce, according to Allianz Global Investors.

Bond Rush | Carmaker BMW and insurer Just Group are among the companies rushing to issue sterling-denominated bonds ahead of the Oct. 31 Brexit deadline, aiming to get in ahead of any upcoming market upheaval. Sterling sales for the month are at their highest since January.

A $74 Trillion Battle | A Brexit wrangle that threatens London’s dominance in the derivatives market is rearing its head again, with European firms at risk of being blocked from using clearinghouses in the British capital within six months, writes Bloomberg’s Alexander Weber and Silla Brush.

Cameron’s Legacy | David Cameron admits failings over his handling of the Brexit referendum in his recently-published memoirs, yet his account is frequently defensive and occasionally resentful, Tim Ross writes in a review for Bloomberg Businessweek.

Want to keep up with Brexit?

You can follow us @Brexit on Twitter and join our Facebook group, Brexit Decoded. For all the latest news, visit bloomberg.com/brexit. Got feedback? Send us an email.

To contact the editor responsible for this story: Chris Kay at ckay5@bloomberg.net, Leila Taha

©2019 Bloomberg L.P.