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Brexit Update: These 2 Pros Are Unconcerned

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Brexit Update: These 2 Pros Are Unconcerned
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British Prime Minister Theresa May will go down in history after her Brexit proposal suffered the biggest defeat ever by 230 votes in Parliament. But on Wednesday, many of the politicians who didn't support her Brexit proposal agreed to keep her in power.

This could be seen as a sign that the "people who hate her policy don't wan't anyone else to be prime minister," CNBC's Steve Sedgwick said Thursday.

What Happened

May is calling for all political parties to come together and draft a new Brexit agreement. The problem is that the appearance of this agreement is "as opaque as ever," with Labour leader Jeremy Corbyn refusing to enter any talks unless May completely eliminates the possibility of a "no-deal Brexit," Sedgwick said.

A "no-deal Brexit" outcome could very well become reality, as the government's March 29 deadline to exit the European Union is the law, he said.

Pro: No Deal An Acceptable Outcome 

Nichola James, co-head of the sovereign ratings group at DBRS, told CNBC her firm reaffirmed its AAA rating on the U.K. in December. A "no-deal Brexit" outcome could be properly managed by the government to mitigate any near-term economic shocks, she said. 

Over the longer term, there are both known and unknown risks surrounding Brexit — but for the time being, Brexit is an "event risk," and more information will need to be gathered before a rating change can be justified, James said. 

Related Link: GBP/USD Forecast: Sterling Rangebound After May Wins A No-Confidence Vote

CIO: Brexit Is Good For Investors

The U.K. was once "one of the greatest empires in the world," but was reduced to "ceding control to unelected bureaucrats in Belgium," CNBC's Joe Kernen said on "Squawk Box" Thursday morning.

David Bahnsen, chief investment officer of the Bahnsen Group, responded: "When has freedom ever been bad for markets, just in a basic sense? The answer is never." 

The CIO said he does not believe Brexit represents "a wall" to trade deals.

"It saved their economy. It saved their country when they did not join that debacle of a currency 20-plus years ago," Bahnsen said of the U.K. declining to adopt the euro. 

Related Link: Industry Fears Hard Brexit Is Closer; Markets Believe Soft Exit Is Possible

Posted-In: Brexit british pound David Bahnsen Jeremy Corbyn Joe KernenEurozone Markets Media Best of Benzinga

 

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