Brexit deal defeat makes 'softer, later' exit more likely: Goldman Sachs

LONDON (Reuters) – A vote in Britain’s parliament on Tuesday crushing Prime Minister May’s deal to leave the European Union has made a softer, later Brexit, or even no Brexit at all, slightly more likely, Goldman Sachs said on Wednesday.

“We think the prospect of a disorderly ‘no deal’ Brexit has faded further,” Goldman Sachs’ European economist Adrian Paul wrote in a note.

The bank maintains its base case scenario that “a close variant” of the current Brexit deal will ultimately command a majority in the House of Commons.

British lawmakers defeated Prime Minister Theresa May’s Brexit divorce deal by a heavy margin on Tuesday, triggering political chaos that could lead to a disorderly exit from the EU or even to a reversal of the 2016 decision to leave.

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