Raab resignation tanks pound:

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Raab resignation tanks pound:

Shrey Srivastava

16/11/18

Dominic Raab is the most prominent in a series of resignations of senior Conservatives, following Theresa May’s proposed Brexit deal with the EU. [1] The news comes after Jeremy Corbyn confirmed that the Labour Party would not support the deal [1]. Further backlash has included the MP for North East Somerset Jacob Rees-Mogg writing a letter of no confidence against Theresa May [2]. These recent events have triggered a sudden loss of confidence in the future prospects of the UK economy, as shown by the pound falling more than a percent against the dollar in the immediate aftermath of Raab’s announcement [3]. Moreso, events in the UK have been a major contributing factor in the slide in global markets, with major indices in Wall Street down after the opening bell, and all major European indices in the red. A major issue with Theresa May’s proposal is that the UK would potentially remain tied in to the EU customs union for a number of years, likely to draw the ire of Brexiteers [1].

 

Bibliography:

[1] BBC News. (2018). Raab quits over ‘flawed’ Brexit agreement. [online] Available at: https://www.bbc.co.uk/news/uk-politics-46219495 [Accessed 15 Nov. 2018].

[2] Maidment, J. and Graham, C. (2018). Brexit deal latest news: Jacob Rees-Mogg submits letter of no confidence and calls on Theresa May to ‘stand aside’. [online] The Telegraph. Available at: https://www.telegraph.co.uk/politics/2018/11/15/brexit-deal-latest-news-theresa-may-braced-backlash-commons/ [Accessed 15 Nov. 2018].

[3] Monaghan, A. (2018). Pound falls sharply as May faces mounting pressure over Brexit plan – business live. [online] the Guardian. Available at: https://www.theguardian.com/business/live/2018/nov/15/firms-digest-draft-brexit-plan-business-live [Accessed 15 Nov. 2018].

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