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FILE PHOTO: People take photos by the Morgan Stanley building in Times Square in New York City, New York U.S., February 20, 2020. REUTERS/Brendan McDermid

Morgan Stanley hikes chance of WTO-style Brexit to 40per cent

Investment bank Morgan Stanley has ramped up the risk of Britain and the European Union flopping onto World Trade Organisation terms to 40per cent from 25per cent, after the UK signalled a willingness this week to walk away from Brexit talks.

LONDON: Investment bank Morgan Stanley has ramped up the risk of Britain and the European Union flopping onto World Trade Organisation terms to 40per cent from 25per cent, after the UK signalled a willingness this week to walk away from Brexit talks.

"Although we still expect a deal in the end, the probabilities have shifted," the bank's analysts said in a research note.

"The risks are skewed to a harder outcome... bumping up the probability of our bear case of a WTO-style outcome to 40per cent. We still expect a delay in implementing the deal," it added.

(Reporting by Marc Jones; editing by Thyagaraju Adinarayan)