26 Mar 2019

Brexit: Letwin amendment passes

Shortly after 10pm last night, British MPs voted for an amendment put forward by Tory MP Oliver Letwin, passing by a vote of 329 to 302. This effectively allows MPs to take control of House of Commons business this Wednesday and provides time for a series of ‘indicative votes’ to be held.



Notably, 30 Tory MPs supported the amendment, with three Tory MPs resigning from their junior ministerial positions in order to support the amendment. At present we do not know what the exact propositions the indicative votes will be on, some suggestions include May’s deal plus a customs union or Nick Bole’s Common Market 2.0 (May’s deal plus custom union and single market access), and neither do we know how the voting process will take shape. It is still not clear whether there is a majority in the House for any one Brexit plan.


Results non-binding 

Whatever the outcome of the indicative votes it is worth remembering that the results are non-binding on the government. In terms of the third meaningful vote there is still a lack of clarity as to when this might take place, previously there had been some expectation that it would take place today but given that the government still lacks the support of the DUP and Tory Eurosceptics for PM May’s deal the exact date remains unclear. PM May did say yesterday that that she will “continue to have discussions with colleagues across the House to build support, so that we can bring the vote forward this week, and guarantee Brexit.” Rampant uncertainty is still the order of the day.  

Market Orders – Take advantage of volatility  

EUR/GBP still remains below 0.86 level this morning, with MPs having voted for an amendment enabling them to take control of the House of Commons and stage a series of “Indicative” votes on the way forward for Brexit. 

With markets hyper sensitive to any Brexit related news, orders are an excellent tool to take advantage of volatility. For more information, please call the Treasury team.


Economic releases

11.00 UK BoE MPC Member Broadbent Speaks

12.30 US Building Permits

14.00 US CB Consumer Confidence

19.00  US FOMC Member Daly Speaks