On Tuesday 13^th November, the UK and the EU agreed a draft Brexit withdrawal deal.

• The deal covers the terms under which the UK will leave the EU: the financial settlement, residency rights, a backstop to avoid a hard border in Northern Ireland and the transition period;
• It does not establish the future trading relationship between the two sides, but it includes a statement outlining a trade deal;
• The UK cabinet approved the deal following a lengthy meeting on Wednesday 14^th November;
• Mrs May must now bring the deal to parliament where she will need to secure the support of a majority of MPs;
• Parliamentary approval is, at present, far from assured and three cabinet ministers have already resigned. The date for the vote has not been confirmed;
• The EU will hold a special summit on Sunday 25^th November to formalise the deal; 
• UK government bonds rallied on the morning of Thursday 15^th November and sterling weakened against the US dollar;
• Stocks deemed exposed to the domestic economy drifted lower, though broader measures of the UK stock market were little changed;
• UK assets could remain volatile ahead of the parliamentary vote.

A withdrawal agreement between the UK and the EU would be an important milestone but only the first step in a Brexit process which does not yet seem to have a definite end date. Our portfolios are globally diversified, so they remain well positioned to weather short-term volatility in UK assets. Unless we end up with an extreme outcome, clarity should prove supportive for domestic assets.