Brexit Bulletin: Hanging By a Thread
Brexit Bulletin: Hanging By a Thread
(Bloomberg) -- Today in Brexit: After a brutal 24 hours in Westminster, Theresa May’s premiership hangs by a thread. Brexit is as uncertain as ever.
What’s Happening?
Britain’s prime minister is on the brink of finally losing power.
The resignation of high-profile Cabinet minister Andrea Leadsom late Wednesday escalated a growing revolt against Theresa May, capping a bruising day in Parliament where her authority appeared to visibly drain away.
Leadsom and other ministers spent much of yesterday privately plotting how to stop May’s last-ditch plan for getting her Brexit deal over the line, Bloomberg's Alex Morales, Kitty Donaldson and Tim Ross report. As she spoke in the Commons, May’s colleagues paid little attention to what she said. Many didn’t even show up to watch May set out her new plan.
With intrigue buzzing in the corridors of Parliament and May’s Brexit deal widely seen as likely to fail again, many Tories and senior government officials believe it’s a matter of days before she's forced to resign. Her departure would mean a new Tory leader tasked with redefining what Brexit will mean and even whether it will happen at all.
It could come to a head on Friday: Graham Brady, head of the powerful so-called 1922 Committee of Conservatives, will meet with May and then discuss next steps with the committee executive. The Times of London reports that May’s allies believe she’ll announce her departure after meeting Brady.
Meanwhile, May’s Conservatives will take part in European elections she never wanted to happen, with recent polling showing the Tories face a drubbing at the hands of Nigel Farage's Brexit Party.
Today’s Must-Reads
- How would you run the European Union? Assume the role of French President Emmanuel Macron or German Chancellor Angela Merkel in Bloomberg's new game.
- May clinging to power is a “national emergency” and she must go immediately, the traditionally pro-Tory Telegraph newspaper writes. “What can the Prime Minister be thinking? It's over,” the paper says.
- Pound investors are bailing out as Brexit chaos is back on the radar, Bloomberg's Charlotte Ryan reports.
Brexit in Brief
What's Next? | Bloomberg's Rob Hutton lists the possible key dates to watch for in the weeks ahead. Assuming she quits soon, the Tory leadership ballot could happen in July to August, with the new leader taking over August to September.
Bad Omens | Trouble for three well-known British brands — British Steel, Thomas Cook and Jamie Oliver's U.K. restaurant chain — is a poor omen for Britain's post-Brexit economic experiment.
On The Markets | The pound fell for a record 13th day against the euro Wednesday, as May came under renewed pressure to step down. Sterling dropped to its lowest level in over four months against the dollar.
On the Front Pages | British newspapers present a grim portrait of Theresa May.
Domestic Difficulty | U.K. local stocks such as Barratt Developments Plc and J Sainsbury Plc tumbled along with the pound, reversing a late-Tuesday rally.
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To contact the editor responsible for this story: Anne Pollak at apollak@bloomberg.net, Leila Taha
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