UK Telegraph: EU to urge members to prepare for no deal Brexit

BOE Carney warned of no deal Brexit earlier in the day

The UK Telegraph is saying that the EU is urging members to prepare for no deal Brexit.

That happened to what BOE Carney commented about earlier in the day.

BOE Carney warned that:

• the negative consequences on the continent of failure to agree terms would be "cold comfort" for as the city would effectively be cut off from EU.
• Said that no deal would lead to an extreme fragmentation of the European capital markets
• he added "There'll be a shortage of capital collateral capacity in the EU without question, which will take some time to adjust to"
• British bankers will be "left idle" by sharp drop in demand for their services

Carney seemed to endorse Mays proposal to keep services out of any deal with the EU. He feels the city needed flexibility to vary financial regulations, and that the UK would need to be able to set tougher standards on regulation than those in the EU.