* PM Johnson heads to military base in ScotlandMany investors say a no-deal Brexit would send shock waves through the world economy, tip Britain’s economy into a recession, roil financial markets and weaken London’s position as the pre-eminent international financial centre.
The 27 other EU members, though, say publicly and privately that the divorce settlement – including the Irish border backstop – is not up for barter. Many EU diplomats says an election is highly likely. Hedge funds increased their net short sterling positions to the highest level in nearly a year. And in a sign investors are scrambling for protection against currency swings around the time of the Oct. 31 exit, three-month implied volatility surged to a four-month high.
Varadkar also suggested that a so-called hard Brexit could undermine Scotland’s place in the United Kingdom. “So as we prepare for our bright future after Brexit, it’s vital we renew the ties that bind our United Kingdom.”
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