Baku. 22 November. REPORT.AZ/ Brexit-related reports are affecting stock and financial markets.
Report’s analytical group says that though Brexit process is to be implemented starting March 2019 within two years, the sides cannot yet find the way to agree how to do that and this situation clouds perspectives of the securities, as well as pound sterling.
It is only known that the ruling Conservative Party supports Hard Brexit. However, party leader Theresa May faced the protest of her party members and of other parties when she submitted the initial plan. Though the details of Hard Brexit have not been announced yet, the main conditions are supposedly as follows:
- Independent migration policy will continue till the transition period (2020). Later on, official London will set new conditions and EU citizens intending to work and live in Great Britain will have to follow those rules;
- A concession will be made to Northern Ireland on border issue with EU. If there is any misunderstanding between the sides on customs, special customs procedures against Northern Ireland will be enacted;
- Great Britain owes EU GBP 37 billion.
After the initial submission of this plan, the two leading powers of the government resigned. And this resulted in a decline in price in share market and depreciation of pound sterling. Brexit-related urgent summit of the heads of states and governments of the EU countries to be held on November 25 in Brussels may put an end to investors’ uncertainties. If the sides reach an agreement, interest in England’s economy, including pound sterling, may rise again, USD/GBP rate may rise to 1.35. Otherwise, GBP will probably fall to USD 1.25.