British Prime Minister Theresa May's Conservative Party faces a "catastrophic split" if she persists with her proposals on Brexit, which 80 or more of her lawmakers are prepared to vote against, a former junior minister said.
"If the currency market is anything to go by, the markets are too pessimistic about the possibility of a no-deal Brexit", said Mike Bell, a global markets strategist at JP Morgan Asset Management in London.
Mr Baker, a former chairman of the influential pro-Brexit European Research Group of Conservatives, urged Mrs May to negotiate a free trade agreement instead of the Chequers plan.
Comments at the meeting were said to have included "everyone I know says she has to go" and "she's a disaster", the BBC reported.
"I hope that the Prime Minister will take on board what she's heard and chuck Chequers".
His comments were echoed by former Brexit secretary David Davis, who quit the Government over the Chequers plan which would see Britain maintain a "common rule book" with the European Union for trade in goods and agriculture. The EU and Britain hope to clinch a deal later this year so parliaments on both sides can ratify it before Brexit. "She should stay in place because we need stability and we need decent government as the backdrop to what we are doing in the coming six months", he said.
Hopes of a deal breakthrough have helped sterling to rally almost 2.5 percent from Wednesday's lows below $1.28 and tighten five-year credit default swaps by more than a basis point from a near 1-1/2 year high hit this month.
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According to The Guardian, the special gathering is likely to be held on 13 November and will allow a political declaration on the terms of the UK's future relationship with the EU.
Even a small rebellion inside May's party on a vote over a final deal could spell the end of her minority government and throw Britain's exit into chaos.
May's soft Brexit platform sparked the resignations of her Brexit secretary David Davis and foreign secretary Boris Johnson, who quit the cabinet in protest in July. "The truth is that we reconsidered", he added. We have wrapped a suicide vest around the British constitution - and handed the detonator to Michel Barnier.
A number at the meeting said they had already submitted letters of no confidence in May, the source told the BBC. Under Conservative rules, a leadership election is triggered if 15 percent of Conservative lawmakers demand a vote of no confidence.
In a sign the Government remained committed to its plan, he told BBC's Andrew Marr Show: "I think the only deal that we've got on the table, that's the Chequers deal".
A debate in Parliament has been triggered by a petition signed by nearly 200,000 people arguing that the Article 50 notice to leave the European Union should be withdrawn due to Brexit campaign Vote Leave's overspending.
Jacob Rees-Mogg, the ERG leader, said on Tuesday his group would unveil its proposal on Wednesday for how Britain could leave the European Union without constructing a hard border between Northern Ireland and Ireland, one of the main sticking points in securing a Brexit deal.