Is Brexit about to come to a halt?

One of the biggest worries to the global share market two years ago was the UK voting to leave the EU, commonly known as Brexit.

Two years later and not much progress has happened in relation to the UK and the EU coming to an understanding about what the various economic, judicial and political agreements will look like.

In-fact, the last few days of goings on in the UK may mean Brexit comes to a halt – at least for the time being.

The UK is scheduled to leave the EU on 29 March 2019. However, Brexit Secretary David Davis and Foreign Secretary Boris Johnson both resigned, unable to support Prime Minister Theresa May’s half-Brexit vision for the UK.

There are some Conservative Party MPs who want the UK to completely separate itself from the EU and be as structurally tied to Europe as much as Canada or Australia are.

However, many ‘Brexiteers’ were hoping that it would be possible to leave the EU whilst still retaining access to the single economic goods market but dropping some of the EU pillars like free movement of people.

The problem for investors and businesses is that this creates enormous uncertainty. The UK government doesn’t appear to have the political strength to get anything through Parliament.

The pound is already weakening and could do so further if anyone challenges the PM’s leadership.

Foolish takeaway

A Brexit with no negotiations in place could be bad news for ASX businesses like CYBG Plc (ASX: CYB), Ramsay Health Care Limited’s (ASX: RHC) UK operations, Janus Henderson Group (ASX: JHG) and Pendal Group Limited (ASX: PDL).

For now I wouldn’t want to invest any new money into heavily-UK-related businesses until the path to a stable Brexit is known.

Instead, I’d much rather put my investing cash into one of these top growth shares.

3 Top Blue Chips To Buy This Year

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison owns shares of Ramsay Health Care Limited. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.