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Barclays said UK Conservative Party conf....>

UK VIEW
UK VIEW: Barclays said UK Conservative Party conf. provides "show of unity." It
added  "absence of new news and the focus" on UK issues in Wed close speech "may
provide a more stable political backdrop. It now looks more likely that Theresa
May will remain prime min. in the medium term. Together with a more constructive
stance" at "Florence spch, this removes some of the tail scenarios" into "5th
round of EU-UK negotiations next wk. We believe announcements made" Wed "will
likely lead the govt to ease the pace of deficit reduction" ahead of Nov. 22
2018 budget.
- They added UK PM May "closing speech delivered little new news with regards to
Brexit negotiations. Political events over the wknd" into conference "had caused
some media speculation that PM May's leadership could be undermined during the
conference by key supporters of Brexit. Boris Johnson outlined his 4 red lines
for Brexit negotiations," caused initial "controversy." 1) "The transition
period post-Brexit must be a maximum of 2 years; 2) UK must refuse to accept new
EU or ECJ rulings during transition; 3) No payments for single mkt access when
transition ends; 4) UK must not agree to shadow EU rules to gain access to mkt"

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