Goldman Sachs says there could be Brexit drama ahead and then a thin deal

FILE PHOTO: An hybrid flag depicting the EU and the British flags is seen during a debate on the last EU summit and Brexit at the European Parliament in Strasbourg, France, October 22, 2019. REUTERS/Vincent Kessler

LONDON (Reuters) - Goldman Sachs said on Thursday that there could be drama at the EU summit over Brexit but that a thin Brexit trade deal was likely to struck by early November.

“Neither the UK Prime Minister’s 15 October deadline nor the European Commission’s 31 October deadline constitutes a hard stop on Brexit negotiations,” Goldman analyst Sven Jari Stehn said in a note to clients. “This week’s European Council may well feature an additional dose of political drama.”

“We think the perceived probability of ‘no deal’ will persist through the course of October. But our core view remains that a ‘thin’ zero-tariff/zero-quota trade agreement will likely be struck by early November,” Goldman said.

Reporting by Guy Faulconbridge; editing by Sarah Young