- Mahindra & Mahindra stock hits 52-week high as brokerages bullish on counter post Scorpio-N launch; check target prices
- GST Council meet begins today: Know agendas of Finance Minister Nirmala Sitharaman's led two-day meeting
- Security deposit on commercial LPG connection goes up by Rs 1050 for 19-kg cylinder; check new rates
- Cash-starved Sri Lanka to end fuel duopoly to ease fuel shortages
- Xiaomi 12S series set to launch with Leica cameras on July 4: Check key details here
Factbox: No-deal Brexit risk is receding, some banks say
The risk that Britain will crash out of the EU without an agreement on March 29 has receded in the past two weeks, some banks and asset managers say, citing expectations that the exit deadline will be extended to allow lawmakers to reach a deal.
At the end of January, banks informally canvassed by Reuters for their forecasts saw the no-deal probability as low but rising. Some of those banks have since revised down that risk.
Prime Minister Theresa May on Tuesday offered parliament the chance to vote on delaying Brexit or opting for a no-deal outcome if lawmakers again reject in a planned vote on March 12 the agreement she has negotiated with the European Union.
Sterling surged to 21-month highs against the euro of 85.88 pence and against the dollar it hit four-month highs of $1.3238, up around 3.3 percent this year.
For an interactive version of the below chart, click here https://tmsnrt.rs/2Ua88yG:
Below are the views from a selection of investment banks and asset managers:DEUTSCHE BANK
Has reduced its probability of a no-deal Brexit to 10 percent from 15 percent previously. GOLDMAN SACHS
Says the probability of no-deal Brexit remains at 15 percent. It still sees a 35 percent chance of Britain remaining in the EU and a 50 percent probability of May`s Brexit deal eventually being agreed. That view embodies a three-month extension of Article 50 through June, according to the bank.BNP PARIBAS
Its view of a 20 percent chance of a no-deal Brexit and a 35 percent chance of a second Brexit referendum remains unchanged. It said last month that a delay to the March 29 deadline was "inevitable". STANDARD CHARTERED
Maintains its view of a 20 percent chance of no-deal Brexit. Says even if risks for the March 29 deadline recede, an extension of Article 50 could still result in a no-deal outcome. BERENBERG
Reckons no-deal risks have slipped to 25 percent versus its previous forecast of 30 percent. The bank said this probability could be revised lower if an extension of Article 50 is confirmed.ING BANK
Sees the probability at 20 percent, same as previously.MUFG
Assigns 10 percent chance of a no-deal Brexit, lowering it slightly from 10-15 percent in January. It predicts the deadline for leaving will have to be extended. NORDEA
Has revised down its forecast of no-deal scenario to 20 percent, from 25-30 percent last month. It is "very confident" the deadline will be extended and sees chances of a second referendum as high as 30 percent. BMO
Is an outlier in that it sees a hefty 53 percent odds of no-deal. It reckons the path to delaying Brexit and removing no-deal will be more convoluted than sterling moves imply.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.