UK: Willing to accept another Scottish referendum if it takes place after it leaves EU - BBH

Press reports suggest that UK Prime Minister May appears to be willing to accept another Scottish referendum if it takes place after the UK leaves the EU notes analyst at BBH.  

Key Quotes

“This is on top of reports that the UK may seek to end free movement of EU migrants immediately after triggering Article 50, which is expected to take place in the coming weeks.  The EU is likely to object on grounds that the UK is still an EU member until the end of the negotiations, and that such action is a clear violation of the operative rules.  This would seem to poison the already anticipated awkward and strained negotiations.” 

“The UK reports the January PMIs starting in the middle of the week.  The economy remained firm in H2 16 despite the wobble and fears around the referendum.  While the low rates and sterling's depreciation have been important shock absorbers, the risk seems to be on the downside.  Most of the benefits will likely dissipate by Q3.  The PMIs are likely to be largely steady with a slight softer bias.”