JP Mor­gan warns on ex­tend­ing Ar­ti­cle 50

The Daily Telegraph - Business - - Front Page - By Anna Isaac

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.”

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