"No News Is Bad News": May Calls For 2 Year brexit "Transition Period", No Mention Of Early Departure

Tyler Durden's picture

Theresa May's speech has concluded, and while she did not confirm prior rumors that she may call for early EU departure prior to 2019, cable is lower on what has been called a "no news is bad news" speech, because as Danske Bank said, May's remarks in which she confirmed that the UK will be leaving the EU, highlight the Brexit remains a headwind for the pound.

Among the key highlights of her speech, May said that there should be a transition phase to allow businesses, people, and public services to “adjust to new arrangements in a smooth and orderly way."
The UK PM said that “access to one another’s markets should continue” on existing terms during transition and that the framework for this transition should be “the existing structure of EU rules” and regulations.

She also said that there will be a registration system for EU workers coming to U.K. during transition adding that the transition or “implementation” period will last “around two years” and should be agreed on “as early as possible.” 

Finally, May calls for a clear “double lock” guaranteeing transition but also guaranteeing that period will be “time-limited” so public knows “that this will not go on forever”

Cable has slumped 80 pips, having started its decline ahead of the speech, and bottoming around 1.35

As Bloomberg adds, May's acknowledgment of the Brexit bill is perhaps helping the pound's resilience, yet the lack of details is proving problematic for investors. While May said "the U.K. will honor commitments we have made," Brits "want to continue working together," and "would want to make an ongoing contribution to cover our fair share," she sidestepped mentioning any amount and didn't really say how that amount would be determined. All she did say was that she "would not want our partners to fear they need to pay more or receive less over the remainder of the current budget plan."

Also, with cable slumping, both the FTSE100 and 10Y yields have rebounded on May's speech.

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Déjà view's picture

Difficult to figure out how to retain club privileges without paying dues and adhere to club policies...

spastic_colon's picture

in the mean time it is cover for stock index manipulation in broad daylight.

EddieLomax's picture

The privileges of paying £18 billion pounds a year of tax payers money to an foreign bureaucracy and the policies of having to slap tariffs of up to 40% on imports seem like things we aught to ditch immediately.

Only a fool pays for work.

Ghordius's picture

1975, the UK electorate voted for joining this club with "a foreign bureaucracy". and sent in British bureaucrats in, and of course elected MEPs like Nigel Farage

2016, the UK electorate voted for leaving this club, and it's privileges, and it's duties

meanwhile... the UK is not ready yet for all this. several key IT systems are lacking, for example

even immigration is getting only today a promise from the PM, in her speech, to finally get a registration system

I repeat: Brits are moaning since long about immigration, one of the alleged key reasons for the Brexit vote... and today one key system for getting even a handle on it has been promised

thesonandheir's picture

Looks like cable is a BTFD for now

Sky flyer's picture

Bullish. As usual.

Banana Republican's picture

Next time I need a band-aid removed, no way am I calling her.

Dr. Engali's picture

How much do you want to bet that two years from now the U.K. will still be in the EU? BTW, we haven’t talked about Greece in a while.

E.F. Mutton's picture

Yep.  What she means is "Let's stall until we can undo this somehow"

aliens is here's picture

She is a nasty c*&t. That's all we need to know what she is.

EddieLomax's picture

Nope, she is a empty suit.

She talks tough sometimes, she has the right looks and manners to look like a good leader, but basically goes which ever way the poltiical winds blow.

Only the lefties here are railing against her, anyone with a brain can see she has no convictions, values or beliefs, one moment she is talking tough on terrorism, the next she is praising Sharia law.

Dr. Engali's picture

“Implimention”...., lol

Everybodys All American's picture

Only the limeys could turn this Brexit bs into an ongoing saga.

quasi_verbatim's picture

Wait until we start smooching Trump in earnest. You will shit yourselves.

Muppet's picture

Reunification of Germany came and went without a hitch and was/is a great success.

Deunification of the U.K. will be a great success but for the NWO push.  Shameful.

east of eden's picture

As it has always been for the Brits (who are actually faux Germans, from Northern Germany, with Viking blood mixed with Moorish blood), they have not only failed repeatedly on the battle field but are now failing in finance, trade, diplomacy, and the most basic of government functions, protecting their own citizens.

They have sucked America dry for 200 years, but now, with America going down the tubes, they have nothing left, and the consequences for 'British' society are going to be profound.

Soon, the Great Serpent will reveal itself, and offer up gold as a way of preserving it's hold over the little furry creatures, in it's cage, that it intended to eat for dinner. Take the gold and kill the serpent.

This is the battle of armageddon. Do you have the courage to face the snake, and defeat it? That is really the only important or significant question of the day. Those that want to run and hide in some kind of walled-in enclave, will wither and perish.

The only ones that will survive are those that do have the courage to confront the most evil, vicious and deadly foe any of us will ever face.

I AM A CANADIAN. We have significant experience in defeating 'serpents'. We have even more experience in defeating Germans. 

Choose your side wisely, for I guarantee you this. 'We' will not be defeated.

FarCanal's picture

As a Brit I have Anglo Saxon and Viking blood according to my DNA results. Where do you get the Moorish blood story from , never heard that apart from the Barbary Pirates and North African slave trades taking 1000000 Europeans to Morocco and North Africa, they never came back.

EddieLomax's picture

No idea how you came to that conclusion.

Yes, Britons have saxon blood in them, but we have done rather well on the battlefield even though as an island nation our priorities are the sea.  Today Britain is another western cucked nation full of morons, imbeciles and the blissfully unaware, all corroded by over 100 years of ever increasing socialism.

Just like in America the obligations get ever larger, one day everything will break when we cannot fund health+pensions+infrastructure etc, but until it does the party will carry on.

FarCanal's picture

The Party won't carry on much longer now the Credit Cycle is turning.Interest rates are starting to tighten, the Fed ,BOE etc. have recently announced this , in the last week in fact. Once the Fed rate reaches 2.5 to 3% then the debt mountain will collapse and Asset bubbles burst, it will be one for the record books.
King Cnut the Viking King United England as a single country for the first time exactly 1000 years ago as a Christian kingdom.Shame it won't be like that for another 1000 years
( or 50 years as the Marxist have deemed it a bad thing) it has served us well.
Brexit is just a useful distraction anyway, while they shovel as many Immigrants in as they can find, while we are in the EU we are borderless as they intended it to be.The Border guards job is to keep the Immigrants in.

Village-idiot's picture

There are many decent Brits spread around the world.

Thousands of us emmigrated from Britain in the 1950s and 1960s (the Brain-Drain).

 We saw what direction Britain was headed and got out. All that was left was the dregs of British society, including the aristocracy.

We now sit back and watch, with sadness, as it all falls apart.

"A nice place to visit, but I wouldn't want to live there."

NoWayJose's picture

Was that a speech, or an English soccer match played on a road with a 'Can'?

Rex Andrus's picture

representative government

FarCanal's picture

Oh I see, no we don't have any of that.