>> Political turmoil over here, means financial turmoil over here. British stocks, bonds, and currency markets all churned by uncertainty over Brexit. Asset prices see-sawing on every twist and rumor coming from Westminster. This is sterling versus the dollar. By Friday, a few trends did look clear amid the chaos.
Stocks closely tied to the domestic economy the most vulnerable, that includes home builders who fear a house price slump if Britain crashes out of the EU with no deal. And maybe worse hit of all, the big banks. RBS share is down 10% on Thursday. The draft Brexit deal only gives lenders access to European markets as long as UK regulations remain equivalent to the EUs.
Reuters banking correspondent, Lawrence White.>> Equivalence gives us access to EU markets, but with either side able to revoke that access on just thirty days notice. So from the banks point of view, while in theory, it would be business as usual for them. In practice, they'd be very worried about losing their access to the EU.
It's really one of the most disappointing outcomes from the range of possibilities as into how they could access Europe.>> Also apparent by Friday, board room doubts about the Brexit deal hopes. The boss of jet engine maker Rolls Royce summing it up, hope for the best, but prepare for the worst.
Warren East says the company is pressing ahead with preparations for a no-deal Brexit. Similar comments from BMW, whose Mini factory accounts for more than 10% of British car output. Friday did see some calm return to markets. Stocks and the pound recovering some losses in the absence of more cabinet resignations.
But Britain's financial markets are at the mercy of events.