Now Seeing a No-Deal BREXIT

Now Seeing a No-Deal BREXIT

FLASH: BREXIT Agreement Negotiated by EU and U.K. Government Won’t be Reopened, EU Chief Tusk Says

JPMorgan Chase & Co. CEO Jamie Dimon said UK PM Theresa May’s request to the European Union for a 3-month extension of the BREXIT deadline will not remove uncertainty associated with the impasse and raises the odds of a messy exit.

“There is a growing risk that in 10 days you have what we would call a hard BREXIT,” Mr. Dimon, who is also Chairman of Business Roundtable, said on a call with reporters Wednesday after announcing that US executives are less optimistic amid greater uncertainty about global economic growth.

“If you do have 1, it is a huge negative to the UK, not that big a negative to Europe, and far less negative to the United States.”

Mr. Dimon said last week that the UK is unprepared for a no-deal BREXIT and that he saw a 10% risk of such an outcome. The EU is playing hardball with May, saying it might not give her a final answer on the 3-month extension until next week, perhaps even the day before Britain is due to leave. Mr. Dimon said in January a hard Brexit was unlikely but would be a “disaster.”

“It just adds to the straws on the camel’s back,” Mr. Dimon said Wednesday when asked how much Britain’s potential exit is weighing on expectations. “BREXIT is obviously a negative. It’s been a negative for a while. Its uncertainty has not been removed.”

Stay tuned…

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