— This is the script of CNBC's news report for China's CCTV on October 18, 2019, Friday.
The pound initially rallied against the dollar, hitting its highest level in five months, while British and other European markets gained, when Boris Johnson announced his new Brexit bill between UK and EU.
However, that optimism quickly reversed, with sterling and the main equity indices declined.
The main reason for that is because this bill is hard to be approved at home.
While little is known about the terms of the deal, Britain's biggest opposition party, the Labour party, has spoken out against it. In a statement, they said the new agreement between Johnson and the EU was worse than the previous version by Theresa may, which was overwhelmingly rejected in a parliamentary vote. The liberal Democrats said they'd like to block Brexit and seek a second referendum. Nigel Farage, who supports Brexit, said the deal should not be supported. The democratic unionist party, seen as a key ally in Johnson's government, said it is not rooting for the deal.
Parliament is now scheduled to vote on the New Deal on Saturday, 19th. And Johnson needs 320 votes.
However, leading bookmaker SportingIndex, who accurately predicted the outcome of the vote on Theresa may's deal, predicted only 313 votes in favor of the new deal, with Johnson losing by seven.
Analysts believe that Johnson's breakthrough is to win votes from a small number of pro-brexit Labour MPS. There is not much time left for the vote, and there will be anti-brexit protests in Britain on the 19th.
It remains to be seen whether lawmakers will change their position at the last minute, But Johnson himself may not worry too much about the deal, , even though the deal may not get final approval in the British parliament.
University of Sydney
Director, Sydney Policy Lab
former Chief Speechwriter to UK Labour Party (2012-2015)
Because if is labour who vote down this deal he would then go to the country and say look i did exactly what i promised to do i bring back a new deal i took it to the parliament and parliament again said no because of those labour opposition and then he must think he can have a strong position for the general election campaign
Vote day is also Johnson's deadline, if the deal is not approved, then he will have to apply to the European Union for an extension of Brexit, and the Brexit issue could become a political "drama".