Cable Volatile On Reports Of Cabinet Resignations As May Faces Last-Minute Rebellion

Update (10 am ET): While May struggles to win support from her cabinet ministers, hedge fund manager Crispin Odey - who is betting against UK stocks he believes will suffer from a hard Brexit - appears to be talking his book. The notoriously pro-Brexit hedge fund manager said Theresa May "got completely rolled over by Brussels" during the negotiations and that "if Brussels had wanted to write their own script six months ago, this is the script they would have written."

Meanwhile, Secretary for Scotland David Mundell is also rumored to be considering a resignation after signing on to a letter blasting the draft Brexit plan's treatment of the Common Fisheries Policy. Scotland has repeatedly insisted that anything less than an agreement to exit the CFP and negotiate access and quotas as an independent nation. Already, Mundell's agreement to countenance remaining in the CFP during the transition has been very uncomfortable for the Scottish fishing industry. The plan must stipulate a complete withdrawal, or he is going to walk. It's unclear where Mundell's qualms lie since the text of the draft plan won't be released until tonight. Twelve other Scottish conservatives signed the letter below, which was delivered to 10 Downing Street right before the start of what could be a three-hour marathon cabinet meeting.

Meanwhile, Democratic Unionist Party leader Arlene Foster has arrived in London for "showdown" talks with May over the backstop's treatment of Northern Ireland. He DUP, which props up May's government, is insisting that the backstop stipulate that there be no chance of trade barriers between Northern Ireland and the UK. Several of her colleagues have warned that the draft deal in its current form could lead to the breakup of the UK.

May is said to have won the support of five 'key' cabinet ministers, though some, including Brexit Secretary Dominic Raab, have expressed reservations, according to the Telegraph.

The Prime Minister is thought to have won the support of five β€˜pivotal’ Cabinet ministers - Jeremy Hunt, the Foreign Secretary, Sajid Javid, the Home Secretary, Dominic Raab, the Brexit Secretary, Michael Gove, the Environment Secretary and Geoffrey Cox, the Attorney General.

Others, including Mordaunt and McVey, have expressed serious reservations.Β 

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This should make for one awkward meeting.

No sooner did Theresa May and her cabinet members gather for what was expected to be a crucial cabinet meeting - with the opportunity for an orderly Brexit hanging in the balance - then political reporters poured cold water on reports from last night that May's senior leadership had agreed to "begrudgingly" support her draft Brexit plan in the name of the "national interest."

Shortly after 2 pm London Time (9 am ET), the Telegraph reported that two members of May's cabinet, Esther McVey and Penny Mordaunt, are planning to resign Wednesday instead of backing the deal. As of last night, it was reported that Mordaunt was on the fence, but that May had expected to win her support during a private meeting Wednesday morning. Other cabinet ministers, including Brexit Secretary Dominic Raab, are said to be unhappy with the deal.

The pound dropped on the news, and was headed back toward $1.29 in recent trade.

Pound

A mutiny by May's cabinet ministers would not only risk sending the UK back to the drawing board for the umpteenth time, it could very well mean the end of May's government, as conservative Brexiteers would likely move to oust her and seize control of the process. It would also greatly reduce the chances that a Brexit treaty will be forged before the March 29 Brexit Day, and increase the likelihood of a "no-deal" Brexit, and all of the disastrous economic consequences that would be expected to follow.