May defeated by Lords vote over customs union with the EU
Yesterday the House of Lords voted 348 to 225 to re-view the proposed breakaway from the EU customs union after Brexit. Whilst largely expected the number of votes in favour of this course of action from the House of Lords took many by surprise. The vote ensures the Prime Minster will have to reopen the issue of a soft customs union with the EU. This is in contrast to her earlier instance that a union could not exist in a clean Brexit. This vote will undoubtedly throw the issue of a hard boarder with Ireland back into the spotlight. Whilst markets have reacted positively to the prospect of a softer Brexit, the step backwards in British policy spells the potential for further volatility for both UK stocks and the pound in 2018.