Brexit Bulletin: Radical Overhaul

(Bloomberg) -- Today in Brexit:  Boris Johnson wasted no time in making his Brexit mark and culling his predecessor’s top team.

What’s Happening?

New Prime Minister Boris Johnson has overhauled the inner circle of government as he ushers in a Brexiteer administration to deliver Britain’s departure from the European Union. 

By Wednesday evening, 18 of the 29 ministers in Theresa May’s cabinet were out of their jobs. Sajid Javid was named chancellor of the exchequer, while Priti Patel became home secretary and Dominic Raab the new foreign secretary.

The premier has put his one-time nemesis, Michael Gove, in charge of Brexit preparations, alongside his former aide Dominic Cummings. The duo last worked together on the 2016 referendum, and their appointment is seen by some as a sign that Johnson may be preparing for an election. 

Some did keep their jobs, including Brexit Secretary Steve Barclay, Work and Pensions Secretary Amber Rudd and Health Secretary Matt Hancock. Others, like former Chancellor Philip Hammond and Justice Secretary David Gauke, had already resigned.

The reshuffle is seen as a clear signal of Johnson’s priorities in delivering Brexit, but it could also paradoxically make the task more difficult. By pushing out cabinet ministers with less of his “do or die” Brexit zeal, he has given them nothing to lose in opposing any attempt to exit with no deal from the back benches.

Today’s Must-Reads

• Here’s how Boris Johnson celebrated his transformation from a politician derided as a failure into the most powerful man in Britain.
• Johnson’s comeback is a reflection of two things: His megawatt charisma and the Conservatives’ complete desperation, writes Bloomberg’s Robert Hutton.
• The new prime minister’s Brexit stance means another extension to the departure date is likely, and with it the risk of an emboldened populist surge, according to Bloomberg Opinion’s Lionel Laurent.

Brexit in Brief

Political Revolution | Dominic Cummings, the director of the 2016 campaign to get Britain out of the European Union, is one of the most acerbic and divisive figures in British politics. His appointment as one of Johnson’s senior advisers could signal a radical shake-up in Westminster.

Gang is Back | The maverick trio who tore up the British political establishment in 2016 and delivered the Brexit vote have now taken over the government and will attempt to complete the task they started.

Time to Act | In his first speech outside the door to Number 10, Johnson vowed to get a better deal or leave the EU without one. “The British people have had enough of waiting,’’ he said. “The time has come to act.”

Brexit Chancellor | Javid becomes the first ever ethnic minority chief of the Treasury. He is also the first since Norman Lamont in the 1990s to have previously worked in finance. He will have plenty on his plate when he takes up the role, from appointing the next governor of the Bank of England to deciding on the next spending review.

What’s Going On? | The threat of a no-deal Brexit is back, and companies on both sides of the English Channel are gearing up once again for the scenario they consider the worst case. Here’s what it actually means.

Only Way Is Up | The market is worrying too much about Britain crashing out of the European Union, and the pound is set to recover from here, according to UBS Wealth Management. The money manager sees the currency at $1.29 in three months. The pound traded at $1.2475 early this morning. 

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To contact the editor responsible for this story: Anne Pollak at apollak@bloomberg.net, Leila Taha

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