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Will UK election result derail Brexit talks?

Friday, June 09, 2017 - 01:44

Euro zone government bond yields have dipped after Britain's ruling party lost its majority in parliament just days before talks on the country's exit from the European Union are due to start. Ivor Bennett reports on the implications of the UK election for Brexit.

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You didn't have to speak the language to understand what was dominating headlines in France. In Germany too, Britain's shock election result had top billing and it's little wonder why. With Brexit negotiations due to begin in just 10 days time, there's a fear talks could be delayed. (SOUNDBITE) (German) GERMAN FOREIGN MINISTER, SIGMAR GABRIEL, SAYING: "I can only hope that a government is formed quickly with which we can negotiate seriously and that, if possible, we keep Britain as close as possible to the EU." The chief negotiator for Brussels appeared to leave the door open to a delay, tweeting that talks would only begin when the UK is ready. but it seems that would not mean an extension EU council president Donald Tusk warning 'we know when they must end'. Even if the timeline doesn't change, the tone of the talks undoubtedly will. Many predicting a much softer Brexit than Theresa May originally laid out. SOUNDBITE (English) KEN ODELUGA, MARKET ANALYST, CITY INDEX, SAYING: "It will force them to actually seek greater checks and balances and a wider range of viewpoints in negotiations particularly and I think the market would prefer that." Some even pondering whether there'll be a Brexit at all. SOUNDBITE (English) MIKE INGRAM, MARKET STRATEGIST, BGC PARTNERS, SAYING: "Well maybe we're going to have a second referendum. My goodness a second referendum on whether there should be a Brexit. And as I said maybe that's a factor in supporting sterling somewhat today." The French prime minister played down the prospect of a Brexit u-turn which would require EU-wide agreement. Perhaps the only certainty then when it comes to Brexit, is that nothing is in fact certain at all.

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Will UK election result derail Brexit talks?

Friday, June 09, 2017 - 01:44