J.P.Morgan Still Look For A Skinny Brexit Deal

In terms of the Brexit endgame, J.P.Morgan suggest that "having tested each other's resolve, a late intervention by political leaders will generate a messy compromise which provides for a "skinny" deal, with both sides opting to avoid the disruption absence of agreement would entail. As we have written many times, this process cannot be expected to be completed without the two sides testing each other, and the possibility that disagreement becomes so entrenched that an inelegant compromise is impossible is real. We continue to think that the likelihood of no-deal is about a third, and would expect the mood around the talks to continue to look bleak at least until we get closer to the EU's mid October summit."