Brexit Chaos Erupts As Ministers Resign In Revolt, Pound Tumbles

Brexit Chaos Erupts As Ministers Resign In Revolt, Pound Tumbles from ZeroHedge

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Update VI: The Telegraph is reporting that Gove has been offered the position of Brexit secretary, but he’s unsure whether to accept following Raab’s resignation, as he also has reservations about the deal.

Meanwhile, rumors are circulating that Penny Mordaunt may become the third senior minister to resign on Thursday.

Here’s a quick roundup of Thursday’s most notable developments, courtesy of RanSquawk.

  • UK Brexit Secretary Raab has resigned
  • Secretary of State for Work and Pensions Esther McVey
  • Parliamentary Under-Secretary of State for Exiting the European Union Suella Braverman
  • Parliamentary Private Secretary in the Department of Education Anne-Marie Trevelyan
  • James Rothwell Telegraph Brexit correspondent tweeted that “a plugged-in Tory source, not a Brexiteer, reckons 6 Cabinet
  • resignations to follow Raab, three unknowns, the rest will back the deal. (Newswires)
  • Those who will not resign:
  • Steven Swinford of the Telegraph tweets “Jeremy Hunt and Sajid Javid are going nowhere, I’m told”. (Newswires)
  • Steven Swinford Telegraph Deputy Political editor tweets that Gove isn’t in the Commons because of a personal issue. He decided
  • to stay because stakes so high – if he left it would have precipitated exodus. Now Raab’s gone everything changes.. (Newswires)
  • Beth Rigby tweets “Understand that Leadsom is not resigning before business questions”. (Newswires)
  • No confidence vote:
  • ITV’s Peston says that Tory MP’s tell him that 48 letters of no-confidence are to be lodged by lunchtime today. (Newswires)
  • Steven Swinford Telegraph Deputy Political Editor tweets Jacob Rees-Mogg just threatened to submit his letter of no confidence in
  • the Chamber, which he later submitted. (Newswires)
  • Parliament Vote:
  • DUP MP Shannon says they feel betrayed and will “certainly” vote against May’s Brexit deal. (Newswires)
  • Recent reports suggest that the Parliamentary meaningful vote on Brexit could take place on December 18th. (Newswires)

* * *

Update V: In comments to the BBC, Raab accused the EU of “blackmailing us” and insisted that the deal wouldn’t make it through Parliament. He added that it would be better to walk away and accept short term pain than sign up to terms that could damage the country for years.

Meanwhile, the FT is reporting that Michael Gove, May’s Secretary for the environment, food and rural affairs, is rumored to be May’s pick to replace Raab as Brexit Secretary.

* * *

Update IV: With the eurosceptic European Research Group set to meet Thursday at 12:45 London Time, reports have surfaced claiming that the leader of the Brexiteers, Jacob Reese Mogg, is preparing to submit a letter of no-confidence in May to the 1922 committee.

Meanwhile, Wall Street analysts believe there could be more pain ahead for the pound following Raab’s resignation. Indeed, the pound could fall to $1.25, according to Mizuho’s head of hedge fund sales Neil Jones.

“Sentiment was sensing the cabinet would remain intact so personally I am surprised and so is the pound-dollar market,” Jones said.

That would put the pound at its lowest level in 18 months.

Just in case Parliament didn’t get the message yesterday, German Chancellor Angela Merkel said Thursday that there’s “no chance” of more negotiations on Brexit.

However, in May’s time of trouble, there is a silver lining: Many conservative MPs remain in her corner, including Amber Rudd, who resigned earlier this year in a scandal about deportation targets, and who, as Steven Swinford points out, “has every reason to be aggrieved.”

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