UK government loses Brexit ruling:

  • In a surprise move, UK government lost High Court lawsuit over whether it has the right to start the formal process of Britain’s exit from the EU without a vote in parliament. Sterling rallied on the ruling. In response, government said it will appeal decision in the Supreme Court between 5-Dec and 8-Dec. High Court said it does not accept argument put forward by government on Article 50. Ruled Brexit question is purely legal and UK government accepts Article 50 irrevocable. Ruling stated that parliamentary approval is needed to trigger the formal Brexit process. Unlikely to derail a Brexit as plenty of pro-EU MPs have already said they will vote in favor of triggering Article 50 given June referendum reflected will of the people. However, decision still presents some complications for UK Prime Minister May as parliament overwhelmingly in favor of access to single market. Some thoughts government may have to change dialogue toward a so-called “soft-Brexit”. Recall rhetoric from May has been widely interpreted as favoring a clean break from the EU.