April 4, 2019 / 11:21 AM / 2 months ago

Brexit: UBS WM sees long extension to Article 50

FILE PHOTO: A man walks past a UBS logo projected on a screen in Singapore, January 14, 2019. REUTERS/Feline Lim/File Photo

MILAN (Reuters) - UBS Global Wealth Management said on Thursday it foresees a long extension to Article 50 as it expects UK PM Theresa May’s attempt to build a cross-party consensus on the country’s exit from the European Union is unlikely to win enough support in parliament.

“The lack of trust between the negotiating parties is likely to hinder their ability to find common ground and reach a sustainable consensus. Compromises by either side could well be met with strong resistance in their own parties,” Dean Turner, economist at UBS Global Wealth Management, said in a statement.

UBS also said it expected the pound to remain susceptible to volatility at each stage of what is becoming an increasingly protracted Brexit process.

“Until some clarity emerges, UBS does not advocate taking directional views in sterling and advises investors to hedge downside risk,” the statement added.

Reporting by Danilo Masoni, Editing by Helen Reid

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