Morgan Stanley hikes chance of WTO-style Brexit to 40%
"The risks are skewed to a harder outcome"
The corporate logo of financial firm Morgan Stanley is pictured on a building in San Diego, California September 24, 2013. REUTERS/Mike Blake
Investment bank Morgan Stanley has ramped up the risk of Britain and the European Union flopping onto World Trade Organisation terms to 40 percent from 25 percent, after the UK signalled a willingness this week to walk away from Brexit talks.
"Although we still expect a deal in the end, the probabilities have shifted," the bank's analysts said in a research note.
"The risks are skewed to a harder outcome... bumping up the probability of our bear case of a WTO-style outcome to 40 percent. We still expect a delay in implementing the deal," it added.
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