Brexit Bulletin: The Waiting Game

Brexit is (officially) 7 days away.

(Bloomberg) --

Today in Brexit: Boris Johnson is being forced to wait for the EU to set the length of an extension he never wanted.

What’s happening? Boris Johnson’s Brexit plans remain stuck in limbo. Officials in Brussels are leaving him hanging on as they debate whether to grant a third extension to the U.K.-EU divorce process.

EU ambassadors agreed in Brussels last night that they should accept the British prime minister’s request for more time, which Johnson says is really Parliament’s delay, not his. But there’s no consensus yet on how long he will get. While many other countries want to give the U.K. the three months it has asked for, the French, led by President Emmanuel Macron, are pushing for a tight deadline of Nov. 15.

While Macron’s stance may ultimately help the British premier to use the specter of a no-deal split into pressuring MPs into backing his calls for a fast-track approval process, the reality among officials in Brussels is that no one wants to be blamed for triggering a chaotic rupture with the U.K., Bloomberg’s Ian Wishart and Alex Morales report.

 “There’s no chance that we don’t give them a chance,” Bulgarian Prime Minister Boyko Borissov said yesterday. “We’ll write ‘postpone’, and ‘postpone’ and ‘postpone’, and we’ll keep on like that for another 90 to 100 years.”

Ambassadors resolved to reach a decision when they meet again Friday, and a three-month extension would likely put the U.K. on course for an early general election. Johnson hosted his arch-rival, Labour leader Jeremy Corbyn, for talks in Parliament on a new timetable for MPs to debate and scrutinize the Brexit deal, and Corbyn reiterated that Labour would back an election once the threat of a no-deal Brexit has been removed, according to an opposition spokesman. Johnson could make a new attempt to trigger an election as early as Thursday, the Times reported. 

Today’s Must-Reads

• With Brexit remaining as elusive as ever, companies have little choice but to prepare for any outcome. We’re tracking what firms have done, or are planning to do, to prepare. 

• The U.K. needs some Brexit honesty and another referendum, according to the Bloomberg Opinion editorial board.

• Members of Johnson’s top team are at war with one another over whether to seek an election or continue pushing his deal through Parliament, according to BuzzFeed News.

Brexit in Brief

Johnson Cancels | Johnson pulled out of Thursday’s scheduled appearance before a parliamentary scrutiny hearing at the eleventh hour yesterday, citing the need to focus on Brexit. The prime minister, who was due to give evidence to the Liaison Committee of senior MPs at 10 a.m., canceled the appointment via a handwritten note to its chair, who quickly vented her frustrations on Twitter.

Javid Presses Ahead | One government appearance that will be going ahead amid the potential delay looks to be the budget, with Chancellor Sajid Javid confirming on ITV’s Peston show last night it is on track for Nov. 6.

Branson Defiant | Billionaire U.K. entrepreneur Richard Branson said opponents of Brexit should hold out for a second referendum and not be seduced into backing Johnson’s revised deal. Concern about avoiding a no-deal split combined with a sense of fatigue surrounding the Brexit debate risks eroding political and public opposition to the schism, the Virgin Group founder said Wednesday in an interview.

Services Concern | The value of U.K. services exports fell in the second quarter, driven by a decline in trade to the EU, official figures showed Wednesday. Overseas sales in the nation’s dominant sector decreased to £72.2 billion ($93.3 billion) in the three months through June, with those to the EU dropping by £1.7 billion.

On the Markets | Investor hopes for either clarity or closure on Brexit have lifted British stocks, credit and the pound in recent weeks. But with neither scenario materializing, a few nerves are starting to show, Bloomberg’s Samuel Potter and Michael Msika report.

Coining It | The prospect of another Brexit delay means a small batch of special 50p coins minted to commemorate the Oct. 31 exit day look set to be become collectors' items, according to the Telegraph. At least 1,000 of the coins bearing that date have already been created as part of a trial, and could quickly be highly sought after items if an extensions renders them incorrect.

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To contact the editor responsible for this story: Adam Blenford at ablenford@bloomberg.net

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