A real Labour split isn’t automatically good for the pound

Investors predicting a sterling rally if there’s a full-blown split in the U.K.’s opposition party are likely to be sorely mistaken. The U.K.’s Labour party has leaned increasingly to the left since veteran politician Jeremy Corbyn took the reins in 2015. Many currency experts have warned on his policies, saying they fear a Labour government would be more negative for sterling than any disastrous Brexit outcome. Seven Labour lawmakers (out of 256) split from the party on Monday citing its direct


Investors predicting a sterling rally if there’s a full-blown split in the U.K.’s opposition party are likely to be sorely mistaken. The U.K.’s Labour party has leaned increasingly to the left since veteran politician Jeremy Corbyn took the reins in 2015. Many currency experts have warned on his policies, saying they fear a Labour government would be more negative for sterling than any disastrous Brexit outcome. Seven Labour lawmakers (out of 256) split from the party on Monday citing its direct
A real Labour split isn’t automatically good for the pound Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: matt clinch, jeff j mitchell, getty images
Keywords: news, cnbc, companies, automatically, gbp, real, labour, split, isnt, brexit, pound, election, sterling, snap, mean, party, good, uks


A real Labour split isn't automatically good for the pound

Investors predicting a sterling rally if there’s a full-blown split in the U.K.’s opposition party are likely to be sorely mistaken.

The U.K.’s Labour party has leaned increasingly to the left since veteran politician Jeremy Corbyn took the reins in 2015. Many currency experts have warned on his policies, saying they fear a Labour government would be more negative for sterling than any disastrous Brexit outcome.

Seven Labour lawmakers (out of 256) split from the party on Monday citing its direction on Brexit, as well as a failure to address anti-Semitism in its ranks. There is now natural speculation that more could follow, ripping a gaping hole in the U.K.’s second-largest party.

While this might diminish Corbyn’s chances of being prime minister, a sterling surge is not guaranteed.

“Perhaps at the margin you could argue it’s GBP positive … But a Labour split would not necessarily mean that a single party has a chance of forming a stable government in the event of a snap election, and that is also a factor GBP bulls need to be wary of,” Stephen Gallo, the European head of foreign exchange strategy at BMO Capital Markets, told CNBC via email.

Gallo’s hypothetical argument is that a snap election this year — if the Brexit negotiations are indeed prolonged — could also mean a split in the Conservative Party with its own Brexit rebels showing frustration at the current management.


Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: matt clinch, jeff j mitchell, getty images
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Seven UK lawmakers resign from Labour party citing ‘Brexit,’ ‘bullying’ and ‘anti-Semitism’

Seven U.K. lawmakers announced their resignation from the U.K.’s main opposition Labour party on Monday. “I have become embarrassed and ashamed to remain in the Labour Party,” the Liverpool Wavertree MP said. Fellow lawmaker Chris Leslie lambasted the Labour party for forgetting its earlier Brexit commitments and said the party had been hijacked by the “machine politics of the hard left.” While Labour’s leadership has opposed the U.K. Conservative Party’s Brexit plan, there has been signs in rec


Seven U.K. lawmakers announced their resignation from the U.K.’s main opposition Labour party on Monday. “I have become embarrassed and ashamed to remain in the Labour Party,” the Liverpool Wavertree MP said. Fellow lawmaker Chris Leslie lambasted the Labour party for forgetting its earlier Brexit commitments and said the party had been hijacked by the “machine politics of the hard left.” While Labour’s leadership has opposed the U.K. Conservative Party’s Brexit plan, there has been signs in rec
Seven UK lawmakers resign from Labour party citing ‘Brexit,’ ‘bullying’ and ‘anti-Semitism’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-18  Authors: david reid, leon neal, getty images news, getty images, dan kitwood
Keywords: news, cnbc, companies, lawmakers, antisemitism, lawmaker, seven, opposition, bullying, brexit, resign, party, citing, prime, main, leslie, labour, uk, minister


Seven UK lawmakers resign from Labour party citing 'Brexit,' 'bullying' and 'anti-Semitism'

Seven U.K. lawmakers announced their resignation from the U.K.’s main opposition Labour party on Monday.

Speaking first, lawmaker Luciana Berger said that from today the group would sit in the U.K. Parliament as a new batch of MPs, known as “The Independent Group.”

Berger cited the party leadership’s failure to address racism against Jewish people as her main reason for leaving as well as an ongoing culture of “bullying.”

“I have become embarrassed and ashamed to remain in the Labour Party,” the Liverpool Wavertree MP said. “I have come to the sickening conclusion that it is institutionally anti-Semitic.”

Fellow lawmaker Chris Leslie lambasted the Labour party for forgetting its earlier Brexit commitments and said the party had been hijacked by the “machine politics of the hard left.”

While Labour’s leadership has opposed the U.K. Conservative Party’s Brexit plan, there has been signs in recent weeks that it could offer support to U.K. Prime Minister Theresa May. Leslie called Labour’s position on Brexit a “betrayal on Europe”.

The lawmaker then took a direct shot at the leader of the Labour party Jeremy Corbyn accusing him and his senior party allies of abuse, anti-Semitism, and closing down debate with a “narrow, outdated vision.”

“The past three years have shown how irresponsible it would be to allow this leader of the opposition to take the office of prime minister of the United Kingdom,” he said.

Angela Smith, Gavin Shuker, Chuka Umunna, Ann Coffey And Mike Gapes are the remaining five lawmakers that make up the breakaway group.


Company: cnbc, Activity: cnbc, Date: 2019-02-18  Authors: david reid, leon neal, getty images news, getty images, dan kitwood
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Brexit won’t necessarily lead to an EU army

There is no consensus on what constitutes a European army. It remains ambiguous whether it would be a centralized institution operating like traditional armed forces, or a looser integration of European military personnel. “For a European army to happen it would have to have one centralized command,” she explained. “If you think of a national armed forces, they have a government that decides when to deploy armed forces. In the 1950s, the French attempted to establish the European Defense Committ


There is no consensus on what constitutes a European army. It remains ambiguous whether it would be a centralized institution operating like traditional armed forces, or a looser integration of European military personnel. “For a European army to happen it would have to have one centralized command,” she explained. “If you think of a national armed forces, they have a government that decides when to deploy armed forces. In the 1950s, the French attempted to establish the European Defense Committ
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Company: cnbc, Activity: cnbc, Date: 2019-02-18  Authors: jordan stevens, steffen kugler, afp, getty images, thierry monasse
Keywords: news, cnbc, companies, eu, think, armed, forces, lead, military, proposal, army, require, brexit, necessarily, defense, european, wont, budget


Brexit won't necessarily lead to an EU army

There is no consensus on what constitutes a European army. It remains ambiguous whether it would be a centralized institution operating like traditional armed forces, or a looser integration of European military personnel.

Yet for Elisabeth Braw, the director of the modern deterrence program and associate fellow at RUSI, a European army would require an unimaginable shift in the EU’s governing structure.

“For a European army to happen it would have to have one centralized command,” she explained. “If you think of a national armed forces, they have a government that decides when to deploy armed forces. A European army would require the same thing, it would need a European government that could decide on its own and I just think that this is extremely unlikely.”

European nations would have to forego an unprecedented level of autonomy, something which they have rejected once before. In the 1950s, the French attempted to establish the European Defense Committee and create a pan-European defense force. The proposal was supranational in nature, involving common institutions, budget and military equipment.

“Unsurprisingly the French Parliament decided they wouldn’t stand for that and they voted it down,” explained Anand Menon, associate fellow at U.K. think tank Chatham House.

“It would have involved having a defense budget as part of the European Union which came under the European Union’s budget. Now no member state is going to accept that.”

Given the current period of anti-EU sentiment from Poland to Italy, it’s difficult to imagine a new proposal concluding any differently.


Company: cnbc, Activity: cnbc, Date: 2019-02-18  Authors: jordan stevens, steffen kugler, afp, getty images, thierry monasse
Keywords: news, cnbc, companies, eu, think, armed, forces, lead, military, proposal, army, require, brexit, necessarily, defense, european, wont, budget


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UK PM May to hold Brexit talks with EU’s Juncker; urges party unity

British Prime Minister Theresa May is to hold Brexit talks with European Commission President Jean-Claude Juncker next week, her office said on Saturday, following this week’s symbolic defeat in parliament which was widely interpreted as undermining her negotiating strength with the EU. Her office did not give a date for the talks but said May planned to speak to the leader of every EU member state over the coming days. On Monday, Brexit Secretary Steve Barclay will meet EU chief negotiator Mich


British Prime Minister Theresa May is to hold Brexit talks with European Commission President Jean-Claude Juncker next week, her office said on Saturday, following this week’s symbolic defeat in parliament which was widely interpreted as undermining her negotiating strength with the EU. Her office did not give a date for the talks but said May planned to speak to the leader of every EU member state over the coming days. On Monday, Brexit Secretary Steve Barclay will meet EU chief negotiator Mich
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Company: cnbc, Activity: cnbc, Date: 2019-02-17  Authors: bloomberg, getty images
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UK PM May to hold Brexit talks with EU's Juncker; urges party unity

British Prime Minister Theresa May is to hold Brexit talks with European Commission President Jean-Claude Juncker next week, her office said on Saturday, following this week’s symbolic defeat in parliament which was widely interpreted as undermining her negotiating strength with the EU.

Her office did not give a date for the talks but said May planned to speak to the leader of every EU member state over the coming days.

On Monday, Brexit Secretary Steve Barclay will meet EU chief negotiator Michel Barnier, it added in a statement.

On Tuesday, Attorney General Geoffrey Cox, will make a speech setting out what changes would be required to eliminate the legal risk that Britain could be trapped in a Northern Irish backstop indefinitely.

May’s defeat in last Thursday’s symbolic vote undermined her pledge to EU leaders that she could pass her deal with concessions primarily around the Irish backstop – a guarantee that there can be no return of border controls between the British province of Northern Ireland and EU-member Ireland.

The issue has become one of the main points of contention ahead of Britain’s planned departure from the EU next month after 45 years.

May’s office said she had written to her divided Conservative lawmakers urging them to overcome their differences over leaving the EU in the national interest.

“Our party can do what it has done so often in the past: move beyond what divides us and come together behind what unites us; sacrifice if necessary our own personal preferences in the higher service of the national interest …,” she wrote.


Company: cnbc, Activity: cnbc, Date: 2019-02-17  Authors: bloomberg, getty images
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Hard Brexit is being used as a negotiating tactic: Investor

Hard Brexit is being used as a negotiating tactic: Investor7 Hours AgoJames Andrews of Redmayne Bentley says the U.K. is running out of time, and a delay of Article 50 is “inevitable” if a hard Brexit is to be avoided.


Hard Brexit is being used as a negotiating tactic: Investor7 Hours AgoJames Andrews of Redmayne Bentley says the U.K. is running out of time, and a delay of Article 50 is “inevitable” if a hard Brexit is to be avoided.
Hard Brexit is being used as a negotiating tactic: Investor Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-15
Keywords: news, cnbc, companies, used, running, inevitable, investor7, tactic, investor, uk, negotiating, redmayne, brexit, hard


Hard Brexit is being used as a negotiating tactic: Investor

Hard Brexit is being used as a negotiating tactic: Investor

7 Hours Ago

James Andrews of Redmayne Bentley says the U.K. is running out of time, and a delay of Article 50 is “inevitable” if a hard Brexit is to be avoided.


Company: cnbc, Activity: cnbc, Date: 2019-02-15
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RBS beats full-year profit expectations, warns of ‘heightened’ Brexit uncertainty

Royal Bank of Scotland has slightly beaten expectations by reporting a net income of £1.62 billion ($2.07 billion) for 2018 on Friday. Analysts were expecting a net income of £1.58 billion for the full-year, according to Reuters’ Eikon. In terms of quarterly performance, net income stood at £286 million versus £448 million in the third quarter. In the summer last year, the bank proposed its first dividend in 10 years. However, there are significant concerns over Brexit and the future of the U.K.


Royal Bank of Scotland has slightly beaten expectations by reporting a net income of £1.62 billion ($2.07 billion) for 2018 on Friday. Analysts were expecting a net income of £1.58 billion for the full-year, according to Reuters’ Eikon. In terms of quarterly performance, net income stood at £286 million versus £448 million in the third quarter. In the summer last year, the bank proposed its first dividend in 10 years. However, there are significant concerns over Brexit and the future of the U.K.
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Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: silvia amaro
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RBS beats full-year profit expectations, warns of 'heightened' Brexit uncertainty

Royal Bank of Scotland has slightly beaten expectations by reporting a net income of £1.62 billion ($2.07 billion) for 2018 on Friday.

Analysts were expecting a net income of £1.58 billion for the full-year, according to Reuters’ Eikon.

In terms of quarterly performance, net income stood at £286 million versus £448 million in the third quarter.

Here are some other highlights for the full-year:

Profit stood at £3.34 billion versus £2.24 billion in 2017

Common Equity Tier 1 ratio of 16.2 percent versus 15.9 percent at the end of 2017

It proposed a full-year ordinary dividend of 3.5 pence per share

The U.K. lender has been at the center of a long legal saga with the DOJ over its selling of toxic mortgages in the U.S. in the run-up to the 2008 financial crisis. The lengthy settlement agreement process had prevented the bank from providing dividends to its shareholders. In the summer last year, the bank proposed its first dividend in 10 years.

RBS’ chief executive Ross McEwan said in a statement: “2018 was a year of strong progress on our strategy – we settled our remaining major legacy issues, paid our first dividend in ten years and delivered another full year bottom line profit.”

However, there are significant concerns over Brexit and the future of the U.K. economy.


Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: silvia amaro
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Goldman Sachs expects Brexit talks to go right down to the wire

Britain’s embattled Prime Minister Theresa May is running down the clock with Brexit talks, Goldman Sachs said on Friday. With six weeks to go before the U.K. is scheduled to leave the EU, the political and economic future of the world’s fifth-largest economy remains as uncertain as ever. That’s because unless May can get a Brexit deal approved by a majority of U.K. lawmakers over the coming weeks, she will either have to ask the bloc to delay the process or thrust the country into chaos by leav


Britain’s embattled Prime Minister Theresa May is running down the clock with Brexit talks, Goldman Sachs said on Friday. With six weeks to go before the U.K. is scheduled to leave the EU, the political and economic future of the world’s fifth-largest economy remains as uncertain as ever. That’s because unless May can get a Brexit deal approved by a majority of U.K. lawmakers over the coming weeks, she will either have to ask the bloc to delay the process or thrust the country into chaos by leav
Goldman Sachs expects Brexit talks to go right down to the wire Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: sam meredith, adrian dennis, afp, getty images
Keywords: news, cnbc, companies, weeks, goldman, talks, sachs, vote, deal, expects, worlds, view, wire, right, uk, prime, brexit, minister


Goldman Sachs expects Brexit talks to go right down to the wire

Britain’s embattled Prime Minister Theresa May is running down the clock with Brexit talks, Goldman Sachs said on Friday.

With six weeks to go before the U.K. is scheduled to leave the EU, the political and economic future of the world’s fifth-largest economy remains as uncertain as ever.

That’s because unless May can get a Brexit deal approved by a majority of U.K. lawmakers over the coming weeks, she will either have to ask the bloc to delay the process or thrust the country into chaos by leaving without a deal.

“In our view, the Prime Minister will repeatedly try to defer the definitive parliamentary vote on her negotiated Brexit deal, and the intensification of tail risks will continue to play a role in incentivising the eventual ratification of that deal in a divided House of Commons,” Goldman said in a note to clients on Friday.


Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: sam meredith, adrian dennis, afp, getty images
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European markets: China trade data beats expectations, Brexit in focus

Europe’s industrials stocks led the gains during early morning deals, up around 1 percent amid earnings news. France’s Airbus was one of the top sectoral performers, after the company announced stronger-than-anticipated fourth-quarter results. Looking at individual stocks, Germany’s Gerresheimer surged to the top of the European benchmark on Thursday morning. The medical equipment maker said it was “back on the growth path” after reporting fourth-quarter results, prompting shares to advance over


Europe’s industrials stocks led the gains during early morning deals, up around 1 percent amid earnings news. France’s Airbus was one of the top sectoral performers, after the company announced stronger-than-anticipated fourth-quarter results. Looking at individual stocks, Germany’s Gerresheimer surged to the top of the European benchmark on Thursday morning. The medical equipment maker said it was “back on the growth path” after reporting fourth-quarter results, prompting shares to advance over
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Company: cnbc, Activity: cnbc, Date: 2019-02-14  Authors: sam meredith
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European markets: China trade data beats expectations, Brexit in focus

The pan-European Stoxx 600 was up around 0.4 percent shortly after the opening bell, with most sectors and major bourses in positive territory.

Europe’s industrials stocks led the gains during early morning deals, up around 1 percent amid earnings news. France’s Airbus was one of the top sectoral performers, after the company announced stronger-than-anticipated fourth-quarter results. Europe’s largest aerospace group also said it was scrapping its flagship A380 cruiseliner. Shares of the Paris-listed stock rose more than 4 percent on the news.

Looking at individual stocks, Germany’s Gerresheimer surged to the top of the European benchmark on Thursday morning. The medical equipment maker said it was “back on the growth path” after reporting fourth-quarter results, prompting shares to advance over 10 percent.

Britain’s Convatec slumped to the bottom of the index during morning trade. The catheter and colostomy bag maker reported adjusted operating profit had slipped 6 percent in 2018. It said the risk of a no-deal Brexit had prompted the group to stockpile appropriately to deal with any potential supply disruptions. Shares of Convatec almost 20 percent.

Meanwhile, lawmakers in the U.K. are set to debate and vote on the next steps in the Brexit process later in the session.

It comes as Prime Minister Theresa May continues to try to get a deal through Parliament, with time running out before the country leaves the European Union next month.


Company: cnbc, Activity: cnbc, Date: 2019-02-14  Authors: sam meredith
Keywords: news, cnbc, companies, group, data, focus, shares, brexit, stocks, maker, results, morning, fourthquarter, expectations, beats, china, deal, convatec, european, trade, markets


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Airbus is spending tens of millions on Brexit preparations, CEO says

Brexit costs in the double-digit millions and rising, Airbus CEO says 11 Mins Ago | 02:47The outgoing CEO of European plane maker Airbus has said the firm is continuing to spend millions to prepare for the effects of Britain’s exit from the European Union. The wider firm generates £6 billion ($7.7 billion) of turnover in the UK and has more than 14,000 employees. Speaking to CNBC on Thursday Tom Enders, CEO of Airbus refused to divulge the exact cost of Brexit preparations but admitted it was in


Brexit costs in the double-digit millions and rising, Airbus CEO says 11 Mins Ago | 02:47The outgoing CEO of European plane maker Airbus has said the firm is continuing to spend millions to prepare for the effects of Britain’s exit from the European Union. The wider firm generates £6 billion ($7.7 billion) of turnover in the UK and has more than 14,000 employees. Speaking to CNBC on Thursday Tom Enders, CEO of Airbus refused to divulge the exact cost of Brexit preparations but admitted it was in
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Airbus is spending tens of millions on Brexit preparations, CEO says

Brexit costs in the double-digit millions and rising, Airbus CEO says 11 Mins Ago | 02:47

The outgoing CEO of European plane maker Airbus has said the firm is continuing to spend millions to prepare for the effects of Britain’s exit from the European Union.

Airbus shares are soaring after the aerospace firm revealed stronger-than-anticipated fourth-quarter earnings on Thursday, projected higher profits for 2019 and announced it will end production of its A380 jet after years of poor sales.

Every wing on Airbus commercial aircraft is designed and manufactured in the UK. The wider firm generates £6 billion ($7.7 billion) of turnover in the UK and has more than 14,000 employees.

Speaking to CNBC on Thursday Tom Enders, CEO of Airbus refused to divulge the exact cost of Brexit preparations but admitted it was in the tens of millions.

“It is a significant double-digit million amount of money and certainly rising, so this not peanuts,” Enders said.

Airbus has previously said it spends in excess of £5 billion across more than 4,000 U.K. suppliers. Enders told CNBC on Thursday that the firm was upping its inventory to get past any Brexit “turmoil.”

The CEO added that while it didn’t make current economic sense to relocate out of the U.K., Brexit could impact future operations.

“The questions is as we launch new programs down the road, would we find that the UK is still the right place?”

End of the A380


Company: cnbc, Activity: cnbc, Date: 2019-02-14  Authors: david reid
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UK growth won’t hit the Bank of England’s target and it could cut rates this year, economist says

The United Kingdom’s growth rate will likely fall below the central bank’s forecast this year, according to one economist, who believes that interest rates could also be cut if Brexit talks continue to head south. Consumers are sort of retrenching, the housing market is looking dismal, business investment isn’t really happening,” said Rob Carnell. As recently as November, the Bank had projected growth of 1.7 percent this year. “I think there’s a case for a (rate) cut later this year were things


The United Kingdom’s growth rate will likely fall below the central bank’s forecast this year, according to one economist, who believes that interest rates could also be cut if Brexit talks continue to head south. Consumers are sort of retrenching, the housing market is looking dismal, business investment isn’t really happening,” said Rob Carnell. As recently as November, the Bank had projected growth of 1.7 percent this year. “I think there’s a case for a (rate) cut later this year were things
UK growth won’t hit the Bank of England’s target and it could cut rates this year, economist says Cached Page below :
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UK growth won't hit the Bank of England's target and it could cut rates this year, economist says

The United Kingdom’s growth rate will likely fall below the central bank’s forecast this year, according to one economist, who believes that interest rates could also be cut if Brexit talks continue to head south.

Speaking to CNBC’s “Squawk Box Asia” Monday, ING’s chief economist and head of research for Asia-Pacific based these predictions on the state of the current negotiations between Britain and the EU, and how the U.K. economy is “looking quite bad on all fronts.”

“(Growth of less than 1.2 percent) looks pretty likely, judging just by the way that the economy seems to finally be waking up to what’s about to happen to it. Consumers are sort of retrenching, the housing market is looking dismal, business investment isn’t really happening,” said Rob Carnell.

The Bank of England sharply downgraded its 2019 economic outlook to 1.2 percent last week. As recently as November, the Bank had projected growth of 1.7 percent this year.

“I think there’s a case for a (rate) cut later this year were things to really seriously deteriorate in the face of a bad Brexit deal … (a) bad Brexit deal basically being any deal that took us out of the EU, in my personal view,” Carnell added.

The Brexit impasse continues to drag as Prime Minister Theresa May struggles to negotiate a deal with both the U.K. Parliament and her European counterparts.

Later Thursday, the U.K. leader and lawmakers will be in Parliament to debate the next steps for the Brexit process, as the March 29 deadline for the country to leave the European Union draws closer.


Company: cnbc, Activity: cnbc, Date: 2019-02-14  Authors: shirley tay, wiktor szymanowicz, barcroft media, getty images
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