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Brexit deal “essentially impossible”, says No 10

The chances of reaching a Brexit deal are slimmer than ever as both sides are playing a blame game.

Centtrip: Brexit deal “essentially impossible”, says No 10

Boris Johnson’s allies accused Angela Merkel of making a Brexit deal “essentially impossible”. Following a phone call between the UK prime minister and German chancellor yesterday, 8 October, a Downing Street source claimed Merkel made it clear that a deal was “overwhelmingly unlikely” unless the UK agreed to shift its position on Northern Ireland.

Johnson met with President of the European Parliament David Sassoli who said there had been “no progress” in negotiations and that the two options left available were “extension or no deal”.

Currency markets reflected the latest round of uncertainty, with the Pound losing a cent against the Dollar and over half a cent against the Euro as the risk of a no-deal Brexit rises. Talks will continue this week as Johnson will head to Ireland today to meet with Taoiseach Leo Varadkar.

Meanwhile, Donald Trump ramped up pressure ahead of trade talks with China, due to start tomorrow, 10 October by blacklisting Chinese video surveillance company Hikvision amid other 28 firms and government organisations, restricting them from doing business with US companies.

US stock markets fell as traders believe that the upcoming trade talks are unlikely to end the year-long trade war this week, with the S&P 500 finishing 1.6 per cent lower on the day and Nasdaq falling 1.7 per cent.

Federal Reserve Chair Jerome Powell said in a speech last night that the central bank will resume purchases of US treasuries in an effort to avoid the recent turmoil in funding markets. The comments caused a spike in rates as liquidity dried up two weeks ago. In a Q&A session after the speech, Powell stated that “in no sense is this QE” and that the Fed was keeping an open mind about further rate cuts to help stimulate the US economy.

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