Jo Swinson, the leader of the Liberal Democrats, described the meeting as “very positive”. She added that the alliance was ready to “act as soon as possible”. A joint statement released earlier said: “The leaders of the opposition parties held a productive and detailed meeting on stopping a disastrous no-deal exit from the EU. The attendees agreed on the urgency to act together to find practical ways to prevent no deal, including the possibility of passing legislation and a vote of no confidence.”
The show of solidarity and the pro-active stand against Boris Johnson’s unyielding no-deal objective eased Brexit fears and saw a positive reaction from Sterling investors.
Meanwhile, confirmation of a 0.1 percent German growth contraction in the second quarter saw the euro fall this morning.
Andrew Kenningham, the Chief Europe Economist at Capital Economics, painted a sober picture: “The real concern now is that early indications for Q3 show things getting worse… The chances are [now more likely] that the [German] economy will slip into recession in Q3.”
Italy’s ongoing political uncertainty also continues to haunt European markets.
The country’s Five-Star Movement (M5S) are threatening to suspend coalition talks if the Democratic Party fail to offer assurances that Giuseppe Conte will remain Prime Minister.
After yesterday’s talks, M5S released a statement, saying: “After four hours of talks, nothing was achieved. We cannot any longer work like this. Either the attitude changes or it’s difficult.”
The euro could sink further against the pound tomorrow with the publication of September’s German GfK consumer confidence survey.
This is expected to ease from 9.7 to 9.6.