© Reuters. People take photos by the Morgan Stanley building in Times Square in New York
LONDON (Reuters) – Investment bank Morgan Stanley (NYSE:MS) has ramped up the risk of Britain and the European Union flopping onto World Trade Organisation terms to 40% from 25%, after the UK signalled a willingness this week to walk away from Brexit talks.
“Although we still expect a deal in the end, the probabilities have shifted,” the bank’s analysts said in a research note.
“The risks are skewed to a harder outcome… bumping up the probability of our bear case of a WTO-style outcome to 40%. We still expect a delay in implementing the deal,” it added.