JP Morgan flags risk on fresh elections in UK hit by Brexit woes

JP Morgan said it no longer thought the single most likely outcome for Brexit would be Prime Minister Theresa May getting approval in parliament for her deal in the first half of 2019, and a new national election was now more likely.

In a note to clients, analyst Malcolm Barr gave May's deal passing parliament a 20 per cent probability, down from 35 per cent previously. The most likely outcome listed by Barr, with a 30 per cent probability, was Britain holding a national election with a likely extension of the Article 50 European Union exit process into the second half of this year.