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Trade war fears and Brexit crisis keep markets on edge - business live

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Rolling coverage of the latest economic and financial news, as Treasury secretary Stephen Mnuchin plays down hopes of a breakthrough with Beijing

There’s now a 50-50 chance that Britain crashes out of the EU without a deal in two months time, says Deutsche Bank analyst Jim Reid. The decision to prorogue parliament will trigger a major political battle next month, they say, which could potentially lead to a unity government. Reid says: The reality now is that under the new schedule, UK parliament has just under a week in early September followed by just over a week in late October to prevent a no deal outcome.

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