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Trump Says He Might Meet Johnson, Farage in U.K.: Brexit Update

Hammond Says Referendum Preferable to an Election: Brexit Update

(Bloomberg) --

Candidates to succeed Theresa May are honing their pitches to Conservative members of Parliament. Brexit is the central issue, with deep divisions over whether to leave the European Union without a deal in October.

Key Developments:

  • President Donald Trump says he might meet Boris Johnson, Brexit Party’s Nigel Farage during U.K. visit
  • Chancellor of the Exchequer Philip Hammond says a second referendum preferable to general election to resolve Brexit
  • Brexit minister James Cleverly says he wants to renegotiate Irish backstop

Trump Says He Might Meet Johnson, Farage (1:20 p.m.)

U.S. President Donald Trump told reporters he could meet Tory leadership contender Boris Johnson and leading Brexiteer Nigel Farage during his visit to the U.K. next week.

When Trump came to Britain last year, Trump embarrassed May when he said Johnson -- who had resigned the government over her Brexit plan -- would make a good prime minister. The question is whether a meeting now will help Johnson in the race for the top job, given Trump is a divisive figure in the U.K. and certain to draw widespread protests during his visit.

Farage is a long-time ally of Trump, visiting him in New York following the presidential election in 2016. Trump has previously called for Farage to be the U.K.’s ambassador to the US.

Cleverly: Irish Border Key to Resolving Brexit (9:55 a.m.)

Tory leadership candidate James Cleverly told Bloomberg TV the Irish border is the “sticking point” in Brexit and must be resolved by finding “alternative arrangements” to the contentious backstop provision.

“That’s where we’ve got to focus our attention, that’s where the answer lies,” he said. If a deal wasn’t possible, the U.K. must be prepared to leave the European Union without one on Oct. 31. “That’s not my desired outcome.”

“Extension breeds indecision,” he said, adding that the uncertainty was hurting U.K. businesses. He reiterated that he’s opposed to either a second referendum or general election to resolve the impasse.

Will Jo Johnson Back His Brother? (9:10 a.m.)

Boris Johnson, the current favorite to succeed Theresa May, still has some work to do gather support among Tory members of Parliament. His brother Jo Johnson, asked by the BBC which candidate he would support, replied: “That’s a question for another day.”

The two Johnsons both resigned from the government over Brexit, but in different directions: Boris because he thought May’s Brexit wasn’t hard enough, and Jo because he wanted a second referendum.

Hammond: Referendum Better Than Election (9 a.m.)

Chancellor of the Exchequer Philip Hammond said that if Parliament can’t find a Brexit solution, he’d prefer a second referendum to a general election to solve the impasse.

“If we do get to the point where Parliament has to admit that it cannot resolve this issue, then clearly it will have to be remitted back to the British people,” Hammond told BBC Radio 4. “I’m not sure that a general election can resolve the question. Both the main political parties are divided on this issue. My strong preference is that Parliament resolve this issue.”

Hammond said he was in the process of meeting the candidates to succeed May to decide who he would support. He was clear that he couldn’t back anyone who was pursuing a no-deal Brexit, and hinted he’d be ready to vote to bring down a government that chose such a course. His other message to the various runners was that they should resist the temptation to make too many promises on tax and spending.

King: Brexit Has Broken U.K. Party System (Earlier)

Brexit has split not only the country but also the Conservative and Labour parties, Bloomberg columnist and former Bank of England Governor Mervyn King wrote on Thursday, arguing that a general election is preferable to a second referendum to resolve the issue.

“The best way forward would be for the two main parties to develop clear opposing positions on Brexit, and put the disagreement to voters at another general election,” King wrote. “If either party won a majority in the Commons, it could then claim a mandate on Brexit and set about delivering it.”

Earlier:

To contact the reporters on this story: Robert Hutton in London at rhutton1@bloomberg.net;Jessica Shankleman in London at jshankleman@bloomberg.net

To contact the editors responsible for this story: Tim Ross at tross54@bloomberg.net, Stuart Biggs, Alex Morales

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