(Bloomberg) — U.K. politicians got a first view Thursday of the financial market turmoil that may be triggered if they fail to approve the Brexit deal struck with the European Union.
It didn’t look pretty. A drop of almost 2 percent in currency markets; banks, builders and utilities tumbling 5 percent or more; rising credit risks and a debt sale that was pulled — these are the sort of moves that draw comparisons with emerging-market economies. And volatility markets point to the possibility of things getting much worse before they get better.
That rebuke may chasten lawmakers and ultimately force them into action, analysts say.
“The assumption that a Brexit deal will be reached and ratified by all sides has now been called into question,” writes Lena Komileva, an economist in London at G Plus Economics. “For a deal to happen, the threat of a no deal has to become realistic, causing serious financial disruption, and a possible business and consumer confidence shock.”