Never mind the Brexit sideshow – recession is the real worry | Larry Elliot

Markets are more jittery about the prospect of a downturn than May's doomed deal

It is crunch time for and Theresa May and the financial markets are in turmoil. The drama at Westminster has been mirrored by drama on stock markets, with share prices tumbling and money flooding into the customary safe haven assets - gold and government bonds. Squeaky bum time all round.

None of this really has much to do with May's doomed Brexit agreement, because the City has known since the minute the deal was signed that it had zero chance of getting parliamentary approval. Investors will only really get interested in events at Westminster if defeat for May is followed by a period of political paralysis or - even worse as far as the financial markets are concerned - the prospect of a Labour government.