We leave EU on October 31 'no matter what': PM Johnson

LONDON (Reuters) - Prime Minister Boris Johnson told his Irish counterpart Leo Varadkar on Tuesday that Britain will be leaving the European Union “no matter what” on Oct. 31, stressing that the so-called Irish backstop had to be removed from any exit deal. “The prime minister made clear that the UK will be leaving the EU on October 31, no matter what,” said a statement from Johnson’s office about a phone call between the two. “The prime minister made clear that the government will approach any negotiations which take place with determination and energy and in a spirit of friendship, and that his clear preference is to leave the EU with a deal, but it must be one that abolishes the backstop.”

Sterling slides again amid scramble to price no-deal Brexit

Sterling tumbled towards $1.21 on Tuesday as growing concerns about the chances of a disorderly Brexit spurred investors to hedge or slash their exposure to British assets. The pound, its fortunes tied to the years-long process of negotiating Britain’s exit from the European Union, is suffering from signals of panic among investors that the UK is headed for a no-deal Brexit under new Prime Minister Boris Johnson. Financial markets had regarded that eventuality, which many economists believe would severely damage the British economy, as relatively unlikely. The British currency has now shed around 2.4% of its value since Johnson took over last week and is headed for its worst monthly performance since October 2016, not long after the country voted to leave the EU. Sterling traded as high as $1.32 in May. “The tail risk of either a general election or no-deal Brexit were seen as a lower probability earlier but are increasingly getting priced in as a base case scenario,” said Supriya Menon, a strategist at Pictet Asset management. There seemed to be less room for compromise between London and Brussels, she added. Johnson said on Tuesday that Britain would leave the EU on Oct. 31 “no matter what”. Ireland warned that the bloc would not renegotiate a Brexit withdrawal deal rejected three times by British lawmakers.