JP Morgan warns on extending Article 50
PROLONGING Brexit uncertainty by extending Article 50 would be the worst-case scenario for markets and the UK economy, JP Morgan has warned.
Extending Article 50 would lead firms to “choose other countries over the UK” to build their businesses and could lead to a “death by a thousand cuts” for the UK economy, according to Karen Ward, chief market strategist at the asset management arm of the US investment bank.
It comes after a parliamentary vote on an amendment to the Finance Bill on Tuesday night confirmed there was no majority in the Commons for a “no-deal” Brexit.
There was a fundamental trade-off between sovereignty and market access that had been debated for two years, and could be debated for a further decade if a resolution in the form of a compromise deal was not found, Ms Ward said.
She added: “Where we’re stuck in the UK is we want to have access to the EU [single market, customs union] in some way … but we want to be sovereign. That’s impossible.
“We could talk about it for the next 10 years but you cannot square that circle.”