Gold prices held steady on Thursday as weak United States retail sales data fanned concerns that the country's economy may be feeling the pinch of the long-drawn trade war with China, while palladium held close to a record high hit the previous day.

Spot gold&nbsp;inched 0.1 per cent&nbsp;higher to $1,490.37 per ounce as of 0044 GMT&nbsp;US gold futures&nbsp;rose 0.1 per cent&nbsp;to $1,495.60.

Asian shares were subdued as the soft US&nbsp;sales data pointed to signs that the US&nbsp;economy was beginning to show signs of weakness, and a global recession was looming.

US&nbsp;retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy, keeping the door open for the Federal Reserve to cut interest rates again later this month.

Investors awaited further news on the <a href="https://www.wionews.com/world/united-states-china-trade-mini-deal-being-papered-trump-256340">US-China trade front</a>. US&nbsp;Treasury Secretary Steven Mnuchin said on Wednesday that trade negotiators are working on nailing down a phase 1 trade deal text for their presidents to sign next month.

Elsewhere, a European Union leaders' two-day summit in Brussels starting on Thursday will be dominated by last-gasp efforts to <a href="https://www.wionews.com/world/brexit-deal-at-hand-in-brussels-boris-johnson-struggles-to-win-support-at-home-256400">seal a deal on Britain's exit</a> from the bloc despite a raft of other pressing issues, from the crisis in the Middle East to the EU budget.

Investors have welcomed optimistic comments from key officials during last few days. British culture minister Nicky Morgan said late on Wednesday there is a good chance of a deal.

Indicative of sentiment, SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.16 per cent&nbsp;to 918.19 tonnes on Wednesday from 919.66 tonnes on Tuesday.

Palladium rose 0.2 per cent&nbsp;to $1,770.54 an ounce on Thursday after notching a fresh high of $1,779.23 on Wednesday.

Gold prices held steady on Thursday as weak United States retail sales data fanned concerns that the country's economy may be feeling the pinch of the long-drawn trade war with China, while palladium held close to a record high hit the previous day.

Gold prices held steady on Thursday as weak United States retail sales data fanned concerns that the country's economy may be feeling the pinch of the long-drawn trade war with China, while palladium held close to a record high hit the previous day. Spot gold inched 0.1 per cent higher to $1,490.37 per ounce as of 0044 GMT US gold futures rose 0.1 per cent to $1,495.60. Asian shares were subdued as the soft US sales data pointed to signs that the US economy was beginning to show signs of weakness, and a global recession was looming. US retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy, keeping the door open for the Federal Reserve to cut interest rates again later this month. Investors awaited further news on the US-China trade front. US Treasury Secretary Steven Mnuchin said on Wednesday that trade negotiators are working on nailing down a phase 1 trade deal text for their presidents to sign next month. Elsewhere, a European Union leaders' two-day summit in Brussels starting on Thursday will be dominated by last-gasp efforts to seal a deal on Britain's exit from the bloc despite a raft of other pressing issues, from the crisis in the Middle East to the EU budget. Investors have welcomed optimistic comments from key officials during last few days. British culture minister Nicky Morgan said late on Wednesday there is a good chance of a deal. Indicative of sentiment, SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.16 per cent to 918.19 tonnes on Wednesday from 919.66 tonnes on Tuesday. Palladium rose 0.2 per cent to $1,770.54 an ounce on Thursday after notching a fresh high of $1,779.23 on Wednesday.

Gold steady as disappointing US retail sales weigh on risk appetite

Britain and the European Union were on the verge of a last-minute Brexit deal on Wednesday but Prime Minister Boris Johnson still has work to do at home to ensure his government and factious parliament approve the plan.

"The basic foundations of this agreement are ready and theoretically we could accept a deal tomorrow," said European Council President Donald Tusk, who will chair a summit of EU leaders, including Johnson, on Thursday and Friday.

However, Tusk said in comments broadcast by Polish broadcaster TVN 24 that "certain doubts have appeared from the British side", a reference to Johnson's need to win over politicians who fear he may have conceded too much.

French President Emmanuel Macron said an agreement was being finalised and hoped it could be approved on Thursday.

"I want to believe an agreement is being finalised and that we will be able to endorse it tomorrow," Macron said at a news conference with German Chancellor Angela Merkel in Toulouse.

Merkel said she believed slightly more that a deal was possible.

Any approval by the EU of a deal at their summit would be conditional on the British House of Commons backing it at a special sitting on Saturday. A short delay of Britain's October&nbsp;31 departure date would follow to polish the detail.

If Johnson fails to nail down the terms of Britain's exit from the European Union or fails to get a deal ratified in the UK house, he will almost certainly have to seek a longer extension of the departure date more than three years after the country voted in a referendum to leave.

After another day of technical talks in Brussels, EU officials said an agreement had been reached on customs arrangements for Northern Ireland, 'level playing field' provisions on labour and environment standards that the EU has insisted on to ensure fair competition under a new trade deal after Brexit.

That also went for the consent by the Northern Irish assembly renewable every four years to go on aligning the province's regulations with the EU ones after Brexit.

VAT was the only outstanding element, EU sources said, and a UK government source expected no further movement on Wednesday towards finalising the deal. The person said that there were issues holding up the deal both at home and with the EU.

While differences over the divorce between the world's fifth-largest economy and its biggest trading bloc had almost all been resolved, "overall backing from the British government" was still needed to seal an agreement, an EU diplomat said.

The main stumbling block remaining for Johnson appeared to be objections from a small Northern Ireland political party whose votes he must secure to get any deal through parliament.

Winning over the dup

The sticking point in the long-running talks with Brussels over Brexit, which has already been delayed twice, was the border between EU member Ireland and the British province of Northern Ireland.

The conundrum for London was how to prevent the frontier becoming a backdoor into the EU's single market without erecting controls which could undermine the 1998 peace agreement that ended decades of conflict in the province.

It eventually proposed that Northern Ireland remain in the UK customs area. However, tariffs would apply on goods crossing from mainland Britain to Northern Ireland if they were deemed to be headed further, to Ireland and the bloc's single market.

To get a deal that hinges on this through parliament, where he does not have a majority, Johnson will likely need backing from the Democratic Unionist Party (DUP), which says maintaining the United Kingdom's economic integrity is sacrosanct.

Pro-Brexit lawmakers from Johnson's governing Conservative Party say they will only back a deal if it has gained the support of the DUP, which fears Northern Ireland could be left behind in the EU's orbit when Britain leaves.

A central figure in the 2016 referendum who came to power as leader of the Conservative Party in July, Johnson has pledged to take Britain out of the EU on Oct. 31 with or without a deal.

But parliament has passed a law saying Britain cannot leave without one, and Johnson has not explained how he can get around that.

Emergency brexit summit ahead?&nbsp;

Irish Prime Minister Leo Varadkar said earlier on Wednesday that if an agreement cannot be reached before the summit, there was still time left to act before the Oct. 31 deadline.

"October 31 is still a few weeks away and there is the possibility of an additional summit before that if we need one ... Although time is running short, I am confident that (Ireland's) objectives can be met," he said.

Sterling was on a roller-coaster ride through the day as varying reports suggested a deal was nigh or pointed to last-minute hurdles.

Britain's Brexit minister, Steve Barclay, said he would not accept a delay beyond Oct. 31, even if it was only used to tie up the necessary legal requirements of an agreement. Extension options mulled by the EU range from an additional month to half a year or more.

If necessary, the bloc may hold an emergency summit later in October to either approve a deal, grant an extension or make final preparations for a chaotic split.

Britain and the European Union were on the verge of a last-minute Brexit deal on Wednesday but Prime Minister Boris Johnson still has work to do at home to ensure his government and factious parliament approve the plan.

Britain and the European Union were on the verge of a last-minute Brexit deal on Wednesday but Prime Minister Boris Johnson still has work to do at home to ensure his government and factious parliament approve the plan. "The basic foundations of this agreement are ready and theoretically we could accept a deal tomorrow," said European Council President Donald Tusk, who will chair a summit of EU leaders, including Johnson, on Thursday and Friday. However, Tusk said in comments broadcast by Polish broadcaster TVN 24 that "certain doubts have appeared from the British side", a reference to Johnson's need to win over politicians who fear he may have conceded too much. French President Emmanuel Macron said an agreement was being finalised and hoped it could be approved on Thursday. "I want to believe an agreement is being finalised and that we will be able to endorse it tomorrow," Macron said at a news conference with German Chancellor Angela Merkel in Toulouse. Merkel said she believed slightly more that a deal was possible. Any approval by the EU of a deal at their summit would be conditional on the British House of Commons backing it at a special sitting on Saturday. A short delay of Britain's October 31 departure date would follow to polish the detail. If Johnson fails to nail down the terms of Britain's exit from the European Union or fails to get a deal ratified in the UK house, he will almost certainly have to seek a longer extension of the departure date more than three years after the country voted in a referendum to leave. After another day of technical talks in Brussels, EU officials said an agreement had been reached on customs arrangements for Northern Ireland, 'level playing field' provisions on labour and environment standards that the EU has insisted on to ensure fair competition under a new trade deal after Brexit. That also went for the consent by the Northern Irish assembly renewable every four years to go on aligning the province's regulations with the EU ones after Brexit. VAT was the only outstanding element, EU sources said, and a UK government source expected no further movement on Wednesday towards finalising the deal. The person said that there were issues holding up the deal both at home and with the EU. While differences over the divorce between the world's fifth-largest economy and its biggest trading bloc had almost all been resolved, "overall backing from the British government" was still needed to seal an agreement, an EU diplomat said. The main stumbling block remaining for Johnson appeared to be objections from a small Northern Ireland political party whose votes he must secure to get any deal through parliament. Winning over the dup The sticking point in the long-running talks with Brussels over Brexit, which has already been delayed twice, was the border between EU member Ireland and the British province of Northern Ireland. The conundrum for London was how to prevent the frontier becoming a backdoor into the EU's single market without erecting controls which could undermine the 1998 peace agreement that ended decades of conflict in the province. It eventually proposed that Northern Ireland remain in the UK customs area. However, tariffs would apply on goods crossing from mainland Britain to Northern Ireland if they were deemed to be headed further, to Ireland and the bloc's single market. To get a deal that hinges on this through parliament, where he does not have a majority, Johnson will likely need backing from the Democratic Unionist Party (DUP), which says maintaining the United Kingdom's economic integrity is sacrosanct. Pro-Brexit lawmakers from Johnson's governing Conservative Party say they will only back a deal if it has gained the support of the DUP, which fears Northern Ireland could be left behind in the EU's orbit when Britain leaves. A central figure in the 2016 referendum who came to power as leader of the Conservative Party in July, Johnson has pledged to take Britain out of the EU on Oct. 31 with or without a deal. But parliament has passed a law saying Britain cannot leave without one, and Johnson has not explained how he can get around that. Emergency brexit summit ahead? Irish Prime Minister Leo Varadkar said earlier on Wednesday that if an agreement cannot be reached before the summit, there was still time left to act before the Oct. 31 deadline. "October 31 is still a few weeks away and there is the possibility of an additional summit before that if we need one ... Although time is running short, I am confident that (Ireland's) objectives can be met," he said. Sterling was on a roller-coaster ride through the day as varying reports suggested a deal was nigh or pointed to last-minute hurdles. Britain's Brexit minister, Steve Barclay, said he would not accept a delay beyond Oct. 31, even if it was only used to tie up the necessary legal requirements of an agreement. Extension options mulled by the EU range from an additional month to half a year or more. If necessary, the bloc may hold an emergency summit later in October to either approve a deal, grant an extension or make final preparations for a chaotic split.

Brexit deal at hand in Brussels, Boris Johnson struggles to win support at home

British PM Boris Johnson Agrees New Brexit Deal With European Union. The Next Test Is In House Of Commons. #Gravitas

Gravitas: Brexit: Done Deal?

UK PM Boris Johnson tweeted that 'UK & EU agreed on a great new deal for Brexit'. But this deal still needs the approval of both UK & EU Parliament. European Union leaders reach Brussels for the make-or-break summit. The major showdown in the UK Parliament is on Saturday. Watch this video to know more.

Joint presser post EU summit meeting

UK PM Boris Johnson tweeted that 'UK & EU agreed on a great new deal for Brexit'. But this deal still needs the approval of both UK & EU Parliament. Let's listen to Boris Johnson...

Brexit: Deal done, biggest challange awaits

European Commission chief Jean-Claude Juncker congratulated Prime Minister Boris Johnson on their Brexit withdrawal deal Thursday and said it meant there would be "no further delay".&nbsp;

"We have a deal, and this deal means there is no need for any kind of prolongation," Juncker told reporters as he welcomed the British leader to EU headquarters ahead of summit talks.

British MPs are expected to vote on the deal on Saturday. &nbsp;Pro-EU parliamentarians hope they can defeat it and Brexit can still be delayed to allow a general election or a new referendum on whether to leave the EU at all.

Arriving later at an EU summit of leaders expected to endorse the new withdrawal plan, Juncker said he hoped British MPs would pass the plan as agreed so that Britain can leave on October 31.

"There will be no prolongation. There is not an argument for further delay -- it has to be done now," he said.

"We have a deal. The British prime minister has to make sure it passes the hurdles of the British parliament. I was ruling out any sort of prolongation. We have a deal.

"I'm satisfied that we were able to find a deal. I'm sad that Britain will be leaving the European Union," he said, adding that Johnson agreed that there should be no more delay.

 
&nbsp;

European Commission chief Jean-Claude Juncker congratulated Prime Minister Boris Johnson on their Brexit withdrawal deal Thursday and said it meant there would be "no further delay".

European Commission chief Jean-Claude Juncker congratulated Prime Minister Boris Johnson on their Brexit withdrawal deal Thursday and said it meant there would be "no further delay". "We have a deal, and this deal means there is no need for any kind of prolongation," Juncker told reporters as he welcomed the British leader to EU headquarters ahead of summit talks. British MPs are expected to vote on the deal on Saturday. Pro-EU parliamentarians hope they can defeat it and Brexit can still be delayed to allow a general election or a new referendum on whether to leave the EU at all. Arriving later at an EU summit of leaders expected to endorse the new withdrawal plan, Juncker said he hoped British MPs would pass the plan as agreed so that Britain can leave on October 31. "There will be no prolongation. There is not an argument for further delay -- it has to be done now," he said. "We have a deal. The British prime minister has to make sure it passes the hurdles of the British parliament. I was ruling out any sort of prolongation. We have a deal. "I'm satisfied that we were able to find a deal. I'm sad that Britain will be leaving the European Union," he said, adding that Johnson agreed that there should be no more delay.

EU's Jean-Claude Juncker says Brexit will not be delayed

The British pound had a tumultuous session on Thursday as a <a href="https://www.wionews.com/world/uks-johnson-says-great-new-deal-reached-on-brexit-256464">draft Brexit deal between London and Brussels</a> sparked both hope and scepticism in a volatile forex market.

Sterling soared to within a whisker of $1.30, striking five-month peaks, when news flashed across traders' screens that the European Union had reached a draft Brexit withdrawal deal with London.

The pound held on to most of those gains for a while, absorbing a bout of profit-taking, but then the currency plunged when it dawned on investors that there was no guarantee of UK parliamentary backing for the agreement.

"After the initial relief that the UK government and EU have done a deal, markets are worried that it still does not have enough support to get through parliament on Saturday," independent economist Julian Jessop told AFP.

By 1330 GMT, the currency was pretty much back to where it started from against the dollar.

'Still chance of no deal'

It is unclear how many of Prime Minister Boris Johnson's Conservative MPs will back the deal when he brings it to lawmakers for approval Saturday, and whether the opposition will try to vote it down or attempt to force a fresh referendum.

"There is still a chance for a no-deal Brexit – although the more likely scenario would be for the Prime Minister to follow the law and request the EU for a Brexit deadline extension, which then opens up more uncertainty," said Fawad Razaqzada at Forex.com.

Northern Ireland's DUP said Thursday it was "unable to support" the draft deal. A pre-emptive DUP announcement to the same effect issued before the draft deal had already weighed on sterling, before news from Brussels gave the currency wings, if not for long.

The London stock market, which usually moves in the opposite direction from sterling, enjoyed a rise Thursday, becoming the day's star performer in otherwise lacklustre European equity trading.&nbsp;

On Wall Street, the Dow Jones index rose at the start of business.

Earlier in Asia, most markets ended in the red, with traders unable to take advantage of weak US retail data that raised the chances of another Federal Reserve interest rate cut.

Comments in the Fed's Beige Book update on the economy also pointed to a slowdown in the world's biggest economy.

Oil prices fell as data pointed to a sharp rise in US stockpiles that reinforced worries about the impact on demand from the China-US trade war and the global economic slowdown.

Key figures around 1330 GMT

Pound/dollar: DOWN at $1.2831 from $1.2832 at 2100 GMT

Euro/pound: UP at 86.68 pence from 86.28 pence

Euro/dollar: UP at $1.1124 from $1.1033&nbsp;

Dollar/yen: DOWN at 108.62 yen from 108.76 yen

London - FTSE 100: UP 0.8 percent at 7,223.88 points

Paris - CAC 40: UP 0.1 percent at 5,699.52

Frankfurt - DAX 30: UP 0.6 percent at 12,740.91

EURO STOXX 50: UP 0.2 percent at 3,606.10

New York - Dow: UP 0.3 percent at 27,078.39

Tokyo - Nikkei 225: DOWN 0.1 percent at 22,451.86 (close)

Hong Kong - Hang Seng: UP 0.7 percent at 26,848.49 (close)

Shanghai - Composite: DOWN 0.1 percent at 2,977.33 (close)

Brent North Sea crude: DOWN 0.7 percent at $59.03 per barrel

West Texas Intermediate: DOWN 0.8 percent at $52.93

The British pound had a tumultuous session on Thursday as a draft Brexit deal between London and Brussels sparked both hope and scepticism in a volatile forex market.

The British pound had a tumultuous session on Thursday as a draft Brexit deal between London and Brussels sparked both hope and scepticism in a volatile forex market. Sterling soared to within a whisker of $1.30, striking five-month peaks, when news flashed across traders' screens that the European Union had reached a draft Brexit withdrawal deal with London. The pound held on to most of those gains for a while, absorbing a bout of profit-taking, but then the currency plunged when it dawned on investors that there was no guarantee of UK parliamentary backing for the agreement. "After the initial relief that the UK government and EU have done a deal, markets are worried that it still does not have enough support to get through parliament on Saturday," independent economist Julian Jessop told AFP. By 1330 GMT, the currency was pretty much back to where it started from against the dollar. 'Still chance of no deal' It is unclear how many of Prime Minister Boris Johnson's Conservative MPs will back the deal when he brings it to lawmakers for approval Saturday, and whether the opposition will try to vote it down or attempt to force a fresh referendum. "There is still a chance for a no-deal Brexit – although the more likely scenario would be for the Prime Minister to follow the law and request the EU for a Brexit deadline extension, which then opens up more uncertainty," said Fawad Razaqzada at Forex.com. Northern Ireland's DUP said Thursday it was "unable to support" the draft deal. A pre-emptive DUP announcement to the same effect issued before the draft deal had already weighed on sterling, before news from Brussels gave the currency wings, if not for long. The London stock market, which usually moves in the opposite direction from sterling, enjoyed a rise Thursday, becoming the day's star performer in otherwise lacklustre European equity trading. On Wall Street, the Dow Jones index rose at the start of business. Earlier in Asia, most markets ended in the red, with traders unable to take advantage of weak US retail data that raised the chances of another Federal Reserve interest rate cut. Comments in the Fed's Beige Book update on the economy also pointed to a slowdown in the world's biggest economy. Oil prices fell as data pointed to a sharp rise in US stockpiles that reinforced worries about the impact on demand from the China-US trade war and the global economic slowdown. Key figures around 1330 GMT Pound/dollar: DOWN at $1.2831 from $1.2832 at 2100 GMT Euro/pound: UP at 86.68 pence from 86.28 pence Euro/dollar: UP at $1.1124 from $1.1033 Dollar/yen: DOWN at 108.62 yen from 108.76 yen London - FTSE 100: UP 0.8 percent at 7,223.88 points Paris - CAC 40: UP 0.1 percent at 5,699.52 Frankfurt - DAX 30: UP 0.6 percent at 12,740.91 EURO STOXX 50: UP 0.2 percent at 3,606.10 New York - Dow: UP 0.3 percent at 27,078.39 Tokyo - Nikkei 225: DOWN 0.1 percent at 22,451.86 (close) Hong Kong - Hang Seng: UP 0.7 percent at 26,848.49 (close) Shanghai - Composite: DOWN 0.1 percent at 2,977.33 (close) Brent North Sea crude: DOWN 0.7 percent at $59.03 per barrel West Texas Intermediate: DOWN 0.8 percent at $52.93

Pound goes on rollercoaster ride after Brexit draft deal

UK PM Boris Johnson tweeted that 'UK & EU agreed on a great new deal for Brexit'. But this deal still needs the approval of both UK & EU Parliament. EU summit to kick off in a few hours.

WION Dispatch: EU summit to kick off in few hours

UK PM Boris Johnson tweeted that 'UK & EU agreed on a great new deal for Brexit'. But this deal still needs the approval of both UK & EU Parliament.

UK & EU holds a new Brexit deal, both still need approval of their respective Parliaments

British&nbsp;retailer&nbsp;WH&nbsp;Smith&nbsp;Plc&nbsp;said on Thursday it will&nbsp;buy&nbsp;Marshall&nbsp;Retail&nbsp;Group for about $400&nbsp;million, betting that the American peer's network of stores at&nbsp;US&nbsp;airports will help boost profits soured by turmoil on the British high street.

Business at&nbsp;WH&nbsp;Smith's stores at airports and railway stations has been booming as the over 200-year-old company benefits from rising passenger footfall and new larger-format outlets.

The company,&nbsp;which sells everything from books and sandwiches to Bluetooth headphones, began its&nbsp;push&nbsp;into the United States last year&nbsp;when it bought digital accessories&nbsp;retailer InMotion.

WH&nbsp;Smith&nbsp;said it would fund the all-cash deal for&nbsp;Marshall&nbsp;through a combination of 200&nbsp;million&nbsp;pounds&nbsp;in new debt and a 155&nbsp;million&nbsp;pound equity raise. The company will suspend its share&nbsp;buyback programme&nbsp;while it pays off debt.

The reliance on travelling consumers was highlighted on Thursday&nbsp;when&nbsp;WH&nbsp;Smith&nbsp;reported a 7 per cent&nbsp;rise in headline annual pre-tax profit, boosted by a 14 per cent&nbsp;jump in earnings from its travel business.

Headline profit before tax rose to 155&nbsp;million&nbsp;pounds from 145&nbsp;million&nbsp;pounds in the year ended August&nbsp;31, marginally beating analyst estimates of 154.2&nbsp;million&nbsp;pounds, according to IBES data from Refinitiv.

The company also said it was prepared for Brexit and has put in place contingency plans, including increasing the stock of convenience products.

British retailer WH Smith Plc said on Thursday it will buy Marshall Retail Group for about $400 million, betting that the American peer's network of stores at US airports will help boost profits soured by turmoil on the British high street.

British retailer WH Smith Plc said on Thursday it will buy Marshall Retail Group for about $400 million, betting that the American peer's network of stores at US airports will help boost profits soured by turmoil on the British high street. Business at WH Smith's stores at airports and railway stations has been booming as the over 200-year-old company benefits from rising passenger footfall and new larger-format outlets. The company, which sells everything from books and sandwiches to Bluetooth headphones, began its push into the United States last year when it bought digital accessories retailer InMotion. WH Smith said it would fund the all-cash deal for Marshall through a combination of 200 million pounds in new debt and a 155 million pound equity raise. The company will suspend its share buyback programme while it pays off debt. The reliance on travelling consumers was highlighted on Thursday when WH Smith reported a 7 per cent rise in headline annual pre-tax profit, boosted by a 14 per cent jump in earnings from its travel business. Headline profit before tax rose to 155 million pounds from 145 million pounds in the year ended August 31, marginally beating analyst estimates of 154.2 million pounds, according to IBES data from Refinitiv. The company also said it was prepared for Brexit and has put in place contingency plans, including increasing the stock of convenience products.

WH Smith to buy Marshall Retail for $400 million in US push

Britain and the European Union reached a last-ditch <a href="https://www.wionews.com/world/irish-prime-minister-says-there-are-outstanding-brexit-issues-may-need-more-time-256248">Brexit deal</a> on Thursday, just hours before an EU summit that is expected to give it a seal of approval.&nbsp;

But <a href="https://www.wionews.com/world/brexit-deal-at-hand-in-brussels-boris-johnson-struggles-to-win-support-at-home-256400">Prime Minister Boris Johnson</a> will still have to take the accord to a sceptical British parliament for its backing on Saturday, and it is far from certain that it will pass.

Johnson, who has pledged to take Britain out of the EU with or without an agreement, tweeted: "We've got a great new deal that takes back control — now Parliament should get Brexit done on Saturday."

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
We’ve got a great new deal that takes back control — now Parliament should get Brexit done on Saturday so we can move on to other priorities like the cost of living, the NHS, violent crime and our environment <a href="https://twitter.com/hashtag/GetBrexitDone?src=hash&amp;ref_src=twsrc%5Etfw">#GetBrexitDone</a> <a href="https://twitter.com/hashtag/TakeBackControl?src=hash&amp;ref_src=twsrc%5Etfw">#TakeBackControl</a>
— Boris Johnson (@BorisJohnson) <a href="https://twitter.com/BorisJohnson/status/1184764798107602944?ref_src=twsrc%5Etfw">October 17, 2019</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

EU officials are pleased they avoided an immediate crisis at the European Council summit, and European Commission President Jean-Claude Juncker recommended that the other 27 EU leaders endorse the deal.

"Where there is a will, there is a deal -- we have one! It's a fair and balanced agreement for the EU and the UK and it is testament to our commitment to find solutions," Juncker tweeted.

The draft agreement was forged just weeks before Britain was due to leave the bloc on October 31, ending more than four decades of close economic and political ties with its nearest neighbours. &nbsp;&nbsp;

Watch: Make-or-break week for Brexit deal

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/make-or-break-week-for-brexit-deal-256038/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Chief EU negotiator Michel Barnier said: "We have managed to find solutions that fully respect the integrity of the single market.&nbsp;

"We created a new and legally operative solution to avoid a hard border, and protect peace and stability on the island of Ireland," he said.

"It is a solution that works for the EU, for the UK and for people and businesses in Northern Ireland."

One immediate hurdle is opposition from Johnson's allies in Northern Ireland's Democratic Unionist Party (DUP), which pre-emptively rejected the compromise. &nbsp; &nbsp;

The agreement would see the British-ruled province remain under EU customs and Value Added Tax (VAT) rules, and the loyalist DUP announced that it can not support it.

It is not clear how many of Johnson's Conservative MPs will back the deal, and if the British opposition could vote it down or attempt to force a nationwide referendum to approve or reject it.

Before setting off for Brussels, German Chancellor Angela Merkel noted approvingly that London had been ready to negotiate and put "concrete proposals on the table".

Economic disruption

Under the measures to replace the so-called "Irish backstop" in the previous failed agreement, the plan would see Northern Ireland remain British legal territory but trade under EU regulations.

This is intended to prevent the return of a hard border with EU-member Ireland. But, because it would involve some customs and tax checks with the rest of the UK, it raised the hackles of the DUP. &nbsp; &nbsp;

EU negotiator Michel Barnier was to give a news conference to outline more details of the deal.

But one EU source told AFP the agreement "is politically fragile in London" because of Johnson's reliance on votes from the DUP and Conservative eurosceptics.

The leaders also hope the summit will rise above the Brexit mire and focus on the EU budget debate, bids by North Macedonia and Albania to start talks to join the bloc, and the crisis in relations with Turkey.&nbsp;

The Brexit issue is first on the agenda, with the EU's 27 other leaders to hear Johnson speak then retire to mull their response. But the issue could be delayed to Friday if the deal text needs more work.

&nbsp;

&nbsp;

Britain and the European Union reached a last-ditch Brexit deal on Thursday, just hours before an EU summit that is expected to give it a seal of approval. But Prime Minister Boris Johnson will still have to take the accord to a sceptical British parliament for its backing on Saturday, and it is far from certain that it will pass.

Britain and the European Union reached a last-ditch Brexit deal on Thursday, just hours before an EU summit that is expected to give it a seal of approval. But Prime Minister Boris Johnson will still have to take the accord to a sceptical British parliament for its backing on Saturday, and it is far from certain that it will pass. Johnson, who has pledged to take Britain out of the EU with or without an agreement, tweeted: "We've got a great new deal that takes back control — now Parliament should get Brexit done on Saturday." We’ve got a great new deal that takes back control — now Parliament should get Brexit done on Saturday so we can move on to other priorities like the cost of living, the NHS, violent crime and our environment #GetBrexitDone #TakeBackControl — Boris Johnson (@BorisJohnson) October 17, 2019 × EU officials are pleased they avoided an immediate crisis at the European Council summit, and European Commission President Jean-Claude Juncker recommended that the other 27 EU leaders endorse the deal. "Where there is a will, there is a deal -- we have one! It's a fair and balanced agreement for the EU and the UK and it is testament to our commitment to find solutions," Juncker tweeted. The draft agreement was forged just weeks before Britain was due to leave the bloc on October 31, ending more than four decades of close economic and political ties with its nearest neighbours. Watch: Make-or-break week for Brexit deal × Chief EU negotiator Michel Barnier said: "We have managed to find solutions that fully respect the integrity of the single market. "We created a new and legally operative solution to avoid a hard border, and protect peace and stability on the island of Ireland," he said. "It is a solution that works for the EU, for the UK and for people and businesses in Northern Ireland." One immediate hurdle is opposition from Johnson's allies in Northern Ireland's Democratic Unionist Party (DUP), which pre-emptively rejected the compromise. The agreement would see the British-ruled province remain under EU customs and Value Added Tax (VAT) rules, and the loyalist DUP announced that it can not support it. It is not clear how many of Johnson's Conservative MPs will back the deal, and if the British opposition could vote it down or attempt to force a nationwide referendum to approve or reject it. Before setting off for Brussels, German Chancellor Angela Merkel noted approvingly that London had been ready to negotiate and put "concrete proposals on the table". Economic disruption Under the measures to replace the so-called "Irish backstop" in the previous failed agreement, the plan would see Northern Ireland remain British legal territory but trade under EU regulations. This is intended to prevent the return of a hard border with EU-member Ireland. But, because it would involve some customs and tax checks with the rest of the UK, it raised the hackles of the DUP. EU negotiator Michel Barnier was to give a news conference to outline more details of the deal. But one EU source told AFP the agreement "is politically fragile in London" because of Johnson's reliance on votes from the DUP and Conservative eurosceptics. The leaders also hope the summit will rise above the Brexit mire and focus on the EU budget debate, bids by North Macedonia and Albania to start talks to join the bloc, and the crisis in relations with Turkey. The Brexit issue is first on the agenda, with the EU's 27 other leaders to hear Johnson speak then retire to mull their response. But the issue could be delayed to Friday if the deal text needs more work.

'Great new deal' reached on Brexit: UK PM Boris Johnson

Clocking is ticking for the UK Parliament as 13 days is remaining for the UK to exit from the European Union.

Will EU, UK sign Brexit deal today?

British shoppers grew more cautious about their spending in the three months to September despite rising wages, official figures showed on Thursday, raising concerns about the <a href="https://www.wionews.com/business-economy/uk-economy-starts-to-shows-cracks-under-brexit-and-global-strains-254409">health of the economy</a> in the run-up to Brexit.

Consumer spending has been the biggest driver of British economic growth since June 2016's referendum to leave the European Union, but there have been increasing signs that this is starting to soften.

Looking at the third quarter as a whole, which strips out monthly volatility, quarterly sales growth held steady at 0.6 per cent&nbsp;while the annual pace of expansion dropped to 3.1 per cent&nbsp;from 3.6 per cent&nbsp;in the second quarter, the weakest since the late 2018.

Stripping out inflation adjustments, growth in retail spending was the weakest in more than three years.

Sterling showed little reaction to the data, with markets focused on whether Prime Minister Boris Johnson can broker a<a href="https://www.wionews.com/world/uks-johnson-says-great-new-deal-reached-on-brexit-256464"> Brexit deal</a> that is acceptable both to Brussels and Britain's parliament before the country is due to leave on October&nbsp;31.

"September's retail sales figures were perhaps a bit of a relief given the intense Brexit uncertainty, but were hardly a picture of strength," economist Ruth Gregory of consultancy Capital Economics said.

Monthly retail sales volumes were flat in September and annual sales growth picked up to 3.1 per cent&nbsp;from a weak 2.6 per cent&nbsp;in August, the Office for National Statistics said - slightly less of a recovery than economists had forecast in a Reuters poll.

"Food shops bounced back after a weak few months, but there was yet more bad news for department stores, with sales continuing to fall in September," ONS statistician Rhian Murphy said.

Some retailers said unusually rainy weather had hurt demand too, the ONS added.

Sales in the 'non-specialised stores' category - which includes department stores - dropped by an annual 2.0 per cent&nbsp;in the third quarter, the biggest decline since the first three months of 2009 when Britain was mired in recession.

At the start of this month, major retailer John Lewis Partnership said it would cut a third of senior managers and merge its supermarket and department store divisions to better tackle challenges from online stores.

The lacklustre ONS figures are less bleak than a British Retail Consortium survey that showed the biggest fall in retail spending of any September since at least the mid-1990s.

In recent months, surveys by the BRC and Confederation of British Industry have painted a weaker picture of the retail sector than subsequent official data - in part due to the former focusing more on large high-street chains.

The ONS data has a broader sample that includes more online and small retailers, and its measure of retail spending showed annual growth slowing to 3.5 per cent&nbsp;in the third quarter from 4.1 per cent&nbsp;in the second quarter, the weakest since the second quarter of 2016.

Until recently consumers appeared to have largely taken Brexit in their stride, helped by weaker inflation and stronger growth in wages which are rising at the fastest pace in more than a decade.

That has aided the world's fifth-biggest economy at a time when many companies have been cutting back on investment because of uncertainty about Brexit.

A separate Bank of England survey on Thursday showed British lenders expect business loans will dry up in the next few months at the fastest rate since the financial crisis, boding poorly for investment as Brexit nears.

There have also been signs that consumers are turning more cautious as Britain's political crisis drags on.

Several British retailers, including supermarkets Asda and Morrisons&nbsp;and home improvement group Kingfisher, have highlighted the drag of Brexit uncertainty on bigger purchases.

But clothing retailer Next&nbsp;attributed a disappointing start to autumn trading to unusually warm weather in parts of Britain, rather than shoppers holding back on buying new items because of Brexit.

British shoppers grew more cautious about their spending in the three months to September despite rising wages, official figures showed on Thursday, raising concerns about the health of the economy in the run-up to Brexit.

British shoppers grew more cautious about their spending in the three months to September despite rising wages, official figures showed on Thursday, raising concerns about the health of the economy in the run-up to Brexit. Consumer spending has been the biggest driver of British economic growth since June 2016's referendum to leave the European Union, but there have been increasing signs that this is starting to soften. Looking at the third quarter as a whole, which strips out monthly volatility, quarterly sales growth held steady at 0.6 per cent while the annual pace of expansion dropped to 3.1 per cent from 3.6 per cent in the second quarter, the weakest since the late 2018. Stripping out inflation adjustments, growth in retail spending was the weakest in more than three years. Sterling showed little reaction to the data, with markets focused on whether Prime Minister Boris Johnson can broker a Brexit deal that is acceptable both to Brussels and Britain's parliament before the country is due to leave on October 31. "September's retail sales figures were perhaps a bit of a relief given the intense Brexit uncertainty, but were hardly a picture of strength," economist Ruth Gregory of consultancy Capital Economics said. Monthly retail sales volumes were flat in September and annual sales growth picked up to 3.1 per cent from a weak 2.6 per cent in August, the Office for National Statistics said - slightly less of a recovery than economists had forecast in a Reuters poll. "Food shops bounced back after a weak few months, but there was yet more bad news for department stores, with sales continuing to fall in September," ONS statistician Rhian Murphy said. Some retailers said unusually rainy weather had hurt demand too, the ONS added. Sales in the 'non-specialised stores' category - which includes department stores - dropped by an annual 2.0 per cent in the third quarter, the biggest decline since the first three months of 2009 when Britain was mired in recession. At the start of this month, major retailer John Lewis Partnership said it would cut a third of senior managers and merge its supermarket and department store divisions to better tackle challenges from online stores. The lacklustre ONS figures are less bleak than a British Retail Consortium survey that showed the biggest fall in retail spending of any September since at least the mid-1990s. In recent months, surveys by the BRC and Confederation of British Industry have painted a weaker picture of the retail sector than subsequent official data - in part due to the former focusing more on large high-street chains. The ONS data has a broader sample that includes more online and small retailers, and its measure of retail spending showed annual growth slowing to 3.5 per cent in the third quarter from 4.1 per cent in the second quarter, the weakest since the second quarter of 2016. Until recently consumers appeared to have largely taken Brexit in their stride, helped by weaker inflation and stronger growth in wages which are rising at the fastest pace in more than a decade. That has aided the world's fifth-biggest economy at a time when many companies have been cutting back on investment because of uncertainty about Brexit. A separate Bank of England survey on Thursday showed British lenders expect business loans will dry up in the next few months at the fastest rate since the financial crisis, boding poorly for investment as Brexit nears. There have also been signs that consumers are turning more cautious as Britain's political crisis drags on. Several British retailers, including supermarkets Asda and Morrisons and home improvement group Kingfisher, have highlighted the drag of Brexit uncertainty on bigger purchases. But clothing retailer Next attributed a disappointing start to autumn trading to unusually warm weather in parts of Britain, rather than shoppers holding back on buying new items because of Brexit.

United Kingdom retail sales growth softens as department stores disappoint

Northern Ireland's Democratic Unionist Party announced Thursday it cannot support Boris Johnson's current Brexit plan, dealing a major blow to the British prime minister just hours before a crunch EU summit.

"As things stand, we could not support what is being suggested on customs and consent issues, and there is a lack of clarity on VAT (value-added tax)," the DUP, which backs Johnson's government, said in a brief statement on Twitter.

"We will continue to work with the government to try and get a sensible deal that works for Northern Ireland and protects the economic and constitutional integrity of the United Kingdom."

The statement was seen as a major setback for Johnson, who would most likely need the support of his DUP allies in parliament for any deal agreed in Brussels.

It came as British and EU negotiators worked late into the night in the hopes of presenting a<a href="https://www.wionews.com/world/brexit-deal-at-hand-in-brussels-boris-johnson-struggles-to-win-support-at-home-256400"> last-minute Brexit deal</a> to leaders meeting for a European summit.

Both sides said they were close to finding a basis for a treaty to ensure Britain heads for a managed withdrawal from the European bloc it has been part of for nearly half a century.

But officials had to iron out details on how Northern Ireland, which is part of the UK, would remain under the European scheme for sales tax.

The pound fell 0.5 per cent against the dollar and the euro within minutes of the announcement. A pound was worth 1.2759 dollars and 1.1525 euros.

Housing Secretary Robert Jenrick told BBC television: "We always knew these negotiations were going to be difficult and we're going to go down to the line."

Asked whether Johnson would meet the DUP again on Thursday, Jenrick said: "The prime minister and his team are in intensive negotiations with all parties, including with the DUP.

"We want to provide sufficient comfort for the DUP and unionists in Northern Ireland to feel that the arrangements we would put in place with this deal are sufficient to give them comfort to support it."

British politics expert Professor Tim Bale, deputy director of The UK in a Changing Europe think-tank, said the DUP would struggle with any deal that created new divisions between the province and the rest of the UK -- the antithesis of Northern Irish unionism.

"It would be seen by some on their side as representing a surrender," he said.

"They would have to explain what on Earth the last two years have been about if they were to fold."

Johnson's governing Conservatives relied on the DUP's support for a majority in parliament before a series of expulsions from the Conservative ranks last month left the government well short of a majority, even with the DUP's support.

Mairead McGuinness, first vice president of the European Parliament, from Ireland's governing Fine Gael party, told BBC radio: "Whatever optimism we had last night has been dampened a little.

"It would be quite concerning if one political party can delay everything or have a veto over everything. The numbers in the House of Commons are very tight.

"It is of concern that one party is holding this up."

Northern Ireland's Democratic Unionist Party announced Thursday it cannot support Boris Johnson's current Brexit plan, dealing a major blow to the British prime minister just hours before a crunch EU summit.

Northern Ireland's Democratic Unionist Party announced Thursday it cannot support Boris Johnson's current Brexit plan, dealing a major blow to the British prime minister just hours before a crunch EU summit. "As things stand, we could not support what is being suggested on customs and consent issues, and there is a lack of clarity on VAT (value-added tax)," the DUP, which backs Johnson's government, said in a brief statement on Twitter. "We will continue to work with the government to try and get a sensible deal that works for Northern Ireland and protects the economic and constitutional integrity of the United Kingdom." The statement was seen as a major setback for Johnson, who would most likely need the support of his DUP allies in parliament for any deal agreed in Brussels. It came as British and EU negotiators worked late into the night in the hopes of presenting a last-minute Brexit deal to leaders meeting for a European summit. Both sides said they were close to finding a basis for a treaty to ensure Britain heads for a managed withdrawal from the European bloc it has been part of for nearly half a century. But officials had to iron out details on how Northern Ireland, which is part of the UK, would remain under the European scheme for sales tax. The pound fell 0.5 per cent against the dollar and the euro within minutes of the announcement. A pound was worth 1.2759 dollars and 1.1525 euros. Housing Secretary Robert Jenrick told BBC television: "We always knew these negotiations were going to be difficult and we're going to go down to the line." Asked whether Johnson would meet the DUP again on Thursday, Jenrick said: "The prime minister and his team are in intensive negotiations with all parties, including with the DUP. "We want to provide sufficient comfort for the DUP and unionists in Northern Ireland to feel that the arrangements we would put in place with this deal are sufficient to give them comfort to support it." British politics expert Professor Tim Bale, deputy director of The UK in a Changing Europe think-tank, said the DUP would struggle with any deal that created new divisions between the province and the rest of the UK -- the antithesis of Northern Irish unionism. "It would be seen by some on their side as representing a surrender," he said. "They would have to explain what on Earth the last two years have been about if they were to fold." Johnson's governing Conservatives relied on the DUP's support for a majority in parliament before a series of expulsions from the Conservative ranks last month left the government well short of a majority, even with the DUP's support. Mairead McGuinness, first vice president of the European Parliament, from Ireland's governing Fine Gael party, told BBC radio: "Whatever optimism we had last night has been dampened a little. "It would be quite concerning if one political party can delay everything or have a veto over everything. The numbers in the House of Commons are very tight. "It is of concern that one party is holding this up."

Northern Ireland's Democratic Unionist Party oppose United Kingdom government's Brexit plan

Domino's&nbsp;Pizza&nbsp;Group Plc, Britain's biggest&nbsp;pizza&nbsp;delivery company, said on Thursday it will&nbsp;exit&nbsp;its&nbsp;international&nbsp;markets, where it has been facing mounting losses.

"We have concluded that, whilst they represent attractive&nbsp;markets, we are not the best owners of these businesses," outgoing Chief Executive Officer David Wild said.

The company, which is a franchise of US-based&nbsp;Domino's&nbsp;Pizza&nbsp;Inc, said third-quarter group system sales rose 3.4 per cent&nbsp;to 313.5 million pounds&nbsp;on strong demand in the UK and Ireland.

The British company owns&nbsp;Domino's&nbsp;operations in Switzerland, Iceland, Norway and Sweden, and is a minority shareholder in the Germany operations as well.

However, it reported a 2.7 per cent&nbsp;dip in&nbsp;international&nbsp;system sales, which have taken a hit from macroeconomic events, including declining tourist numbers in Iceland.

Europe's economy has slowed this year as the <a href="https://www.wionews.com/world/united-states-china-trade-mini-deal-being-papered-trump-256340">US-China trade</a> tensions weakened global growth, and consumers and businesses in and around the United Kingdom worried about the impact of<a href="https://www.wionews.com/business-economy/united-kingdom-hiring-falls-by-most-in-over-four-years-as-brexit-nears-256066"> Brexit&nbsp;on jobs and incomes.</a>

The company, which has 57 stores in Norway, said it had implemented a turnaround plan in the country during the quarter, but early signs have been mixed and improvement in sales were weaker than expected.

The decision to&nbsp;exit&nbsp;these&nbsp;markets&nbsp;comes a few months after the company announced the retirement of its CEO Wild, while in the midst of trying to resolve a profit sharing row with disgruntled franchisees in the UK and Ireland.

Domino's Pizza Group Plc, Britain's biggest pizza delivery company, said on Thursday it will exit its international markets, where it has been facing mounting losses.

Domino's Pizza Group Plc, Britain's biggest pizza delivery company, said on Thursday it will exit its international markets, where it has been facing mounting losses. "We have concluded that, whilst they represent attractive markets, we are not the best owners of these businesses," outgoing Chief Executive Officer David Wild said. The company, which is a franchise of US-based Domino's Pizza Inc, said third-quarter group system sales rose 3.4 per cent to 313.5 million pounds on strong demand in the UK and Ireland. The British company owns Domino's operations in Switzerland, Iceland, Norway and Sweden, and is a minority shareholder in the Germany operations as well. However, it reported a 2.7 per cent dip in international system sales, which have taken a hit from macroeconomic events, including declining tourist numbers in Iceland. Europe's economy has slowed this year as the US-China trade tensions weakened global growth, and consumers and businesses in and around the United Kingdom worried about the impact of Brexit on jobs and incomes. The company, which has 57 stores in Norway, said it had implemented a turnaround plan in the country during the quarter, but early signs have been mixed and improvement in sales were weaker than expected. The decision to exit these markets comes a few months after the company announced the retirement of its CEO Wild, while in the midst of trying to resolve a profit sharing row with disgruntled franchisees in the UK and Ireland.

Domino's Pizza to exit four international markets

Sterling came off five-month highs and stocks traded sideways on Wednesday as the European Union and Britain sought to avert a disorderly Brexit before an EU summit on Thursday.

Hopes of a breakthrough lifted markets on Tuesday, but investors turned more cautious after looking for a deal during the night that never came.

Conflicting reports about the ongoing talks triggered a series of sharp moves on the pound. Reports that Germany might use emergency measures to counter any market panic from a hard Brexit, such as banning bets on falling share prices, also weighed on morale.

"Most of the good news that could have been anticipated has been priced in, and now there's caution it seems on whether we get a deal today or not," said Kallum Pickering, senior economist at Berenberg.

Sterling was down by 0.4 per cent&nbsp;against the dollar with investors trading volatility levels not seen since the 2016 June Brexit referendum.

The pound had strengthened by close to 5 per cent&nbsp;over the past week as investors rushed to reprice the prospect of a last-minute Brexit deal before the October 31 deadline.

Eurozone government bonds were also volatile on Wednesday as investors watched the eleventh-hour talks.

German 10-year government bond yields were last flat at -0.42 per cent, after reaching an 11-week high of -0.397 per cent&nbsp;as Bunds extended a sell-off that began on Tuesday.

British government 10-year bond yields were down 2.7 basis points at 0.67 per cent, unaffected by data showing inflation in September reached 1.7 per cent&nbsp;year-on-year, below market expectations.

The pan-European STOXX 600&nbsp;retreated 0.1 per cent, but Britain's domestically focused midcaps, a gauge of Brexit anxiety, fell 0.8 per cent. Ireland's ISEQ, another vulnerable index, lost 0.6 per cent.

Earlier, shares rose in Asia. MSCI's broadest index of Asia-Pacific shares outside Japan&nbsp;gained 0.5 per cent. MSCI's gauge of stocks across the globe&nbsp;was flat.

"Even though we are most optimistic that a deal does happen, we don't think the most likely outcome is that it happens by October 31, so you would be looking at some form of extension and potentially elections," said, Andrew Sheets, chief cross-asset strategist at Morgan Stanley.

Third-quarter earnings are expected to show an overall decline in earnings, which could also weigh on morale, Sheets said. Morgan Stanley had a below-consensus view on how companies would fare this quarter, he said.

Europe's companies are struggling with uncertainties ranging from Brexit and the US-China trade war to Germany's manufacturing recession.

Companies listed on the STOXX 600&nbsp;index are now expected to report a decline in third-quarter earnings of as much as 3.7 per cent, worse than the 3 per cent&nbsp;expected a week ago, according to I/B/E/S data from Refinitiv.

Bloomberg reported, citing sources, that China will struggle to buy $50 billion of US&nbsp;farm goods annually unless it removes retaliatory tariffs on American products, which would require reciprocal action by US&nbsp;President Donald Trump.

The US-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warned on Tuesday.

Global gross domestic product is now expected grow 3 per cent&nbsp;in 2019, the IMF said its latest World Economic Outlook projections, down from 3.2 per cent&nbsp;in a July forecast, largely because of global trade friction.

US&nbsp;stocks, which typically track the ups and downs of the trade war, were set to open in the red. S&amp;P 500 futures&nbsp;and Nasdaq futures&nbsp;were both down 0.3 per cent.

In commodities, Brent crude&nbsp;shed about 0.1 cent to $58.66 a barrel. US&nbsp;crude&nbsp;rose 10 cents to $52.91 after falling the day before over fears the trade war would keep squeezing the global economy.

In emerging markets, Turkey's Halkbank saw its shares and bonds plunge after US&nbsp;prosecutors charged the state-owned lender with taking part in a multibillion-dollar scheme to evade US&nbsp;sanctions on Iran. A day earlier, Washington had imposed sanctions on Turkish officials, raised tariffs and halted trade talks after Turkey invaded northeastern Syria in a campaign again Kurdish fighters. Before Turkish markets opened, authorities banned short selling on seven large Turkish bank stocks, including Halkbank. Selling shares in the banks only to buy them later in the session was also banned, authorities said.

Sterling came off five-month highs and stocks traded sideways on Wednesday as the European Union and Britain sought to avert a disorderly Brexit before an EU summit on Thursday.

Sterling came off five-month highs and stocks traded sideways on Wednesday as the European Union and Britain sought to avert a disorderly Brexit before an EU summit on Thursday. Hopes of a breakthrough lifted markets on Tuesday, but investors turned more cautious after looking for a deal during the night that never came. Conflicting reports about the ongoing talks triggered a series of sharp moves on the pound. Reports that Germany might use emergency measures to counter any market panic from a hard Brexit, such as banning bets on falling share prices, also weighed on morale. "Most of the good news that could have been anticipated has been priced in, and now there's caution it seems on whether we get a deal today or not," said Kallum Pickering, senior economist at Berenberg. Sterling was down by 0.4 per cent against the dollar with investors trading volatility levels not seen since the 2016 June Brexit referendum. The pound had strengthened by close to 5 per cent over the past week as investors rushed to reprice the prospect of a last-minute Brexit deal before the October 31 deadline. Eurozone government bonds were also volatile on Wednesday as investors watched the eleventh-hour talks. German 10-year government bond yields were last flat at -0.42 per cent, after reaching an 11-week high of -0.397 per cent as Bunds extended a sell-off that began on Tuesday. British government 10-year bond yields were down 2.7 basis points at 0.67 per cent, unaffected by data showing inflation in September reached 1.7 per cent year-on-year, below market expectations. The pan-European STOXX 600 retreated 0.1 per cent, but Britain's domestically focused midcaps, a gauge of Brexit anxiety, fell 0.8 per cent. Ireland's ISEQ, another vulnerable index, lost 0.6 per cent. Earlier, shares rose in Asia. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.5 per cent. MSCI's gauge of stocks across the globe was flat. "Even though we are most optimistic that a deal does happen, we don't think the most likely outcome is that it happens by October 31, so you would be looking at some form of extension and potentially elections," said, Andrew Sheets, chief cross-asset strategist at Morgan Stanley. Third-quarter earnings are expected to show an overall decline in earnings, which could also weigh on morale, Sheets said. Morgan Stanley had a below-consensus view on how companies would fare this quarter, he said. Europe's companies are struggling with uncertainties ranging from Brexit and the US-China trade war to Germany's manufacturing recession. Companies listed on the STOXX 600 index are now expected to report a decline in third-quarter earnings of as much as 3.7 per cent, worse than the 3 per cent expected a week ago, according to I/B/E/S data from Refinitiv. Bloomberg reported, citing sources, that China will struggle to buy $50 billion of US farm goods annually unless it removes retaliatory tariffs on American products, which would require reciprocal action by US President Donald Trump. The US-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warned on Tuesday. Global gross domestic product is now expected grow 3 per cent in 2019, the IMF said its latest World Economic Outlook projections, down from 3.2 per cent in a July forecast, largely because of global trade friction. US stocks, which typically track the ups and downs of the trade war, were set to open in the red. S&P 500 futures and Nasdaq futures were both down 0.3 per cent. In commodities, Brent crude shed about 0.1 cent to $58.66 a barrel. US crude rose 10 cents to $52.91 after falling the day before over fears the trade war would keep squeezing the global economy. In emerging markets, Turkey's Halkbank saw its shares and bonds plunge after US prosecutors charged the state-owned lender with taking part in a multibillion-dollar scheme to evade US sanctions on Iran. A day earlier, Washington had imposed sanctions on Turkish officials, raised tariffs and halted trade talks after Turkey invaded northeastern Syria in a campaign again Kurdish fighters. Before Turkish markets opened, authorities banned short selling on seven large Turkish bank stocks, including Halkbank. Selling shares in the banks only to buy them later in the session was also banned, authorities said.

Sterling falters as Brexit approaches its endgame

There are still issues to be resolved in <a href="https://www.wionews.com/business-economy/united-kingdom-hiring-falls-by-most-in-over-four-years-as-brexit-nears-256066">Brexit negotiations</a>, Irish Prime Minister Leo Varadkar said on Wednesday, as European Union sources said the eleventh-hour talks with London were at a standstill.

"There is a pathway to a possible deal but there are many issues that still need to be fully resolved," Varadkar said in a speech.

He said he had spoken to British Prime Minister Boris Johnson earlier in the day.

"I do think we are making progress but there are issues yet to be resolved and hopefully that can be done today."

"But if it's not, there is still more time. October 31 is still a few weeks away and there is the possibility of an additional summit before that if we need one ... Although time is running short, I am confident that (Ireland's) objectives can be met."

Shortly before Varadkar spoke, EU sources said the talks had reached a "standstill" over a future trade deal between <a href="https://www.wionews.com/world/european-unions-brexit-minister-says-united-kingdoms-proposals-fall-short-need-agreement-by-end-of-day-256061">Britain and the bloc</a>, as well as the rejection by Northern Ireland's Democratic Unionist Party of customs solutions tentatively agreed by negotiators.

Britain's Brexit minister Steve Barclay said he would not consider accepting a delay to Britain's EU exit beyond October&nbsp;31, even if it was only used to tie up the necessary legal requirements of an agreement.

"No, I think it is important that we leave on the&nbsp;October 31," Barclay told a British parliamentary committee.

Reports that the last-ditch talks <a href="https://www.wionews.com/business-economy/london-retains-global-finance-throne-amid-brexit-chaos-256018">to seal a Brexit deal</a>, to be approved by a summit of EU leaders in Brussels on Thursday and Friday before Britain is due out on October 31, hit sterling and stocks in London.

There are still issues to be resolved in Brexit negotiations, Irish Prime Minister Leo Varadkar said on Wednesday, as European Union sources said the eleventh-hour talks with London were at a standstill.

There are still issues to be resolved in Brexit negotiations, Irish Prime Minister Leo Varadkar said on Wednesday, as European Union sources said the eleventh-hour talks with London were at a standstill. "There is a pathway to a possible deal but there are many issues that still need to be fully resolved," Varadkar said in a speech. He said he had spoken to British Prime Minister Boris Johnson earlier in the day. "I do think we are making progress but there are issues yet to be resolved and hopefully that can be done today." "But if it's not, there is still more time. October 31 is still a few weeks away and there is the possibility of an additional summit before that if we need one ... Although time is running short, I am confident that (Ireland's) objectives can be met." Shortly before Varadkar spoke, EU sources said the talks had reached a "standstill" over a future trade deal between Britain and the bloc, as well as the rejection by Northern Ireland's Democratic Unionist Party of customs solutions tentatively agreed by negotiators. Britain's Brexit minister Steve Barclay said he would not consider accepting a delay to Britain's EU exit beyond October 31, even if it was only used to tie up the necessary legal requirements of an agreement. "No, I think it is important that we leave on the October 31," Barclay told a British parliamentary committee. Reports that the last-ditch talks to seal a Brexit deal, to be approved by a summit of EU leaders in Brussels on Thursday and Friday before Britain is due out on October 31, hit sterling and stocks in London.

Irish Prime Minister says there are outstanding Brexit issues, may need more time

Reaching a divorce deal between Britain and the European Union is still possible this week, even if it more and more difficult, the EU's chief negotiator <a href="https://www.wionews.com/world/eu-warns-a-lot-of-work-to-be-done-before-brexit-deal-255708">Michel Barnier said</a> on Tuesday.

Speaking to reporters before a meeting of Europe ministers of the EU, Barnier said it was high time for London to "turn good intentions into a legal text."

"Even if an agreement has been difficult, more and more difficult, it’s still possible this week," Barnier said.

"Reaching an agreement is still possible. Obviously, any agreement must work for all. The whole of the UK and the whole of the EU. Let me add also that it is high time to turn good intentions in a legal text," he said.

Earlier, Barnier warned diplomats that "a lot of work remains to be done" in withdrawal talks between London and Brussels.

Meanwhile, <a href="https://www.wionews.com/world/brexit-on-october-31-a-priority-for-british-government-queen-255851">Queen Elizabeth II</a> said that Britain is still aiming for Brexit at the end of the month.

The government wants a new partnership with the European Union, based on free trade, the Queen said.

If <a href="https://www.wionews.com/world/britains-johnson-plays-down-brexit-breakthrough-hopes-255701">Prime Minister Boris Johnson</a> is not able to come to an agreement with the other 27 EU leaders this month, Britain may crash out without a follow-on treaty.&nbsp;

Reaching a divorce deal between Britain and the European Union is still possible this week, even if it more and more difficult, the EU's chief negotiator Michel Barnier said on Tuesday.

Reaching a divorce deal between Britain and the European Union is still possible this week, even if it more and more difficult, the EU's chief negotiator Michel Barnier said on Tuesday. Speaking to reporters before a meeting of Europe ministers of the EU, Barnier said it was high time for London to "turn good intentions into a legal text." "Even if an agreement has been difficult, more and more difficult, it’s still possible this week," Barnier said. "Reaching an agreement is still possible. Obviously, any agreement must work for all. The whole of the UK and the whole of the EU. Let me add also that it is high time to turn good intentions in a legal text," he said. Earlier, Barnier warned diplomats that "a lot of work remains to be done" in withdrawal talks between London and Brussels. Meanwhile, Queen Elizabeth II said that Britain is still aiming for Brexit at the end of the month. The government wants a new partnership with the European Union, based on free trade, the Queen said. If Prime Minister Boris Johnson is not able to come to an agreement with the other 27 EU leaders this month, Britain may crash out without a follow-on treaty.

Brexit deal 'possible this week', says European Union chief negotiator Michel Barnier

Asian markets mostly rose but investor caution returned as the optimism fanned by Donald Trump's much-vaunted <a href="https://www.wionews.com/world/us-president-donald-trump-announces-partial-trade-deal-with-china-255358">China trade deal</a> wore off, while the pound was boosted by a report saying a <a href="https://www.wionews.com/world/brexit-on-october-31-a-priority-for-british-government-queen-255851">Brexit </a>deal was taking shape.

While Friday's mini agreement between the world's economic superpowers put off fresh tariffs and saw them reach common ground on some issues, observers pointed out it was light on detail and left other major levies in place.

And, despite Trump's insistence that the "phase one" agreement was "the greatest and biggest deal", Beijing said it wanted to hold more talks and called for a delay in more tariffs before it would sign.

Equity traders, who have been under pressure from the trade war as well as the slowing global economy and worries about Brexit among others, seized on the news and sent regional markets surging Monday.

But they struggled to build on that as questions swirled over the value of the deal.

"It has taken precisely one working day of the new week for optimism to fade about the US-China trade deal lite/mini/part one," said Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA.

"The rhetoric-high, but detail-light trade announcement in Washington DC on Friday has been tempered by China being both a lot more circumspect and requesting additional talks before signing an agreement."

He said that while he expected the two to hammer out something for Trump and counterpart Xi Jinping to sign before they are due to meet next month, "the pseudo-deal itself represents nothing more than a holding action".

"Everyone's a winner, but everything stays the same, as no progress on the hard stuff has occurred in reality."

Still, US Treasury Secretary Steven Mnuchin said on Monday that officials would hold further talks by phone this week and next to finalise the deal, while he also defended it on CNBC.

"There is a fundamental agreement in principle," he said. "There are still some issues that need to be worked out in wording but I would say we have every expectation that phase one will close.

In early trade, Hong Kong and Sydney were each down 0.1 percent, and Shanghai slipped 0.6 percent.

Manila and Jakarta also fell but Tokyo jumped 1.7 percent by lunch as dealers returned from a long weekend to play catch-up with the rest of Asia.

Singapore, Seoul and Wellington were all 0.2 percent higher while Taipei added 0.4 percent.

On currency markets, the pound rebounded after Britain's Daily Telegraph said a divorce deal was taking shape,<a href="https://www.wionews.com/world/eu-and-uk-bid-to-save-brexit-talks-before-key-summit-255299"> EU and British negotiators </a>hailing a positive day of talks on the Northern Ireland issue.

The paper quoted unnamed sources as saying there was "cautious optimism", while the BBC said the EU is considering holding an emergency summit to push through a possible deal. It said there was not enough time to get anything done before a summit set for this week.

The reports will come as welcome news after European officials played down the chances of an agreement that had been aired by British Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar last week.

Sterling was up against the dollar and euro on Tuesday, with David Kelly at JP Morgan Asset Management saying the Johnson-Varadkar talks had sparked a "whirlwind of diplomacy between the British government and the Europeans to try to come up with an agreement this week".

He added in a note: "While it is by no means certain that the UK and Europe can agree to a deal or that such a deal can make it through the UK parliament, there does appear to be recognition from the British side that any Brexit deal will have to treat Northern Ireland very differently from the rest of the UK.

"In the multiple permutations of Brexit endgames, this has reduced the risk of a damaging 'no deal' Brexit."

Asian markets mostly rose but investor caution returned as the optimism fanned by Donald Trump's much-vaunted China trade deal wore off, while the pound was boosted by a report saying a Brexit deal was taking shape.

Asian markets mostly rose but investor caution returned as the optimism fanned by Donald Trump's much-vaunted China trade deal wore off, while the pound was boosted by a report saying a Brexit deal was taking shape. While Friday's mini agreement between the world's economic superpowers put off fresh tariffs and saw them reach common ground on some issues, observers pointed out it was light on detail and left other major levies in place. And, despite Trump's insistence that the "phase one" agreement was "the greatest and biggest deal", Beijing said it wanted to hold more talks and called for a delay in more tariffs before it would sign. Equity traders, who have been under pressure from the trade war as well as the slowing global economy and worries about Brexit among others, seized on the news and sent regional markets surging Monday. But they struggled to build on that as questions swirled over the value of the deal. "It has taken precisely one working day of the new week for optimism to fade about the US-China trade deal lite/mini/part one," said Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA. "The rhetoric-high, but detail-light trade announcement in Washington DC on Friday has been tempered by China being both a lot more circumspect and requesting additional talks before signing an agreement." He said that while he expected the two to hammer out something for Trump and counterpart Xi Jinping to sign before they are due to meet next month, "the pseudo-deal itself represents nothing more than a holding action". "Everyone's a winner, but everything stays the same, as no progress on the hard stuff has occurred in reality." Still, US Treasury Secretary Steven Mnuchin said on Monday that officials would hold further talks by phone this week and next to finalise the deal, while he also defended it on CNBC. "There is a fundamental agreement in principle," he said. "There are still some issues that need to be worked out in wording but I would say we have every expectation that phase one will close. In early trade, Hong Kong and Sydney were each down 0.1 percent, and Shanghai slipped 0.6 percent. Manila and Jakarta also fell but Tokyo jumped 1.7 percent by lunch as dealers returned from a long weekend to play catch-up with the rest of Asia. Singapore, Seoul and Wellington were all 0.2 percent higher while Taipei added 0.4 percent. On currency markets, the pound rebounded after Britain's Daily Telegraph said a divorce deal was taking shape, EU and British negotiators hailing a positive day of talks on the Northern Ireland issue. The paper quoted unnamed sources as saying there was "cautious optimism", while the BBC said the EU is considering holding an emergency summit to push through a possible deal. It said there was not enough time to get anything done before a summit set for this week. The reports will come as welcome news after European officials played down the chances of an agreement that had been aired by British Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar last week. Sterling was up against the dollar and euro on Tuesday, with David Kelly at JP Morgan Asset Management saying the Johnson-Varadkar talks had sparked a "whirlwind of diplomacy between the British government and the Europeans to try to come up with an agreement this week". He added in a note: "While it is by no means certain that the UK and Europe can agree to a deal or that such a deal can make it through the UK parliament, there does appear to be recognition from the British side that any Brexit deal will have to treat Northern Ireland very differently from the rest of the UK. "In the multiple permutations of Brexit endgames, this has reduced the risk of a damaging 'no deal' Brexit."

Asian markets edge up but caution keeps traders in check

''It is too soon to say whether <a href="https://www.wionews.com/business-economy/united-kingdom-hiring-falls-by-most-in-over-four-years-as-brexit-nears-256066">Britain's parliament</a> will need to sit on Saturday'', Jacob Rees-Mogg, leader of the lower house of parliament, said on Tuesday, in a reference to ongoing talks in Brussels over a Brexit deal.

Last week, a source said the government planned to hold a special sitting of parliament on October&nbsp;19, following an EU summit on October&nbsp;17-18 when Prime Minister Boris Johnson hopes to secure a deal to leave the European Union.

Saturday could become one of the most critical days in <a href="https://www.wionews.com/world/european-unions-brexit-minister-says-united-kingdoms-proposals-fall-short-need-agreement-by-end-of-day-256061">Britain's Brexit</a> crisis after parliament passed a law which would force Johnson to seek a delay to his deadline of October 31 if he has not agreed to an exit deal by October&nbsp;19.

"A Saturday sitting is an extremely unusual process dependent upon events but the events that may require a Saturday sitting have not yet reached their fruition and it is only after that point has been reached that it would be sensible to confirm what exactly will be happening on Saturday," Rees-Mogg told parliament when asked if the sitting would go ahead.

''It is too soon to say whether Britain's parliament will need to sit on Saturday'', Jacob Rees-Mogg, leader of the lower house of parliament, said on Tuesday, in a reference to ongoing talks in Brussels over a Brexit deal.

''It is too soon to say whether Britain's parliament will need to sit on Saturday'', Jacob Rees-Mogg, leader of the lower house of parliament, said on Tuesday, in a reference to ongoing talks in Brussels over a Brexit deal. Last week, a source said the government planned to hold a special sitting of parliament on October 19, following an EU summit on October 17-18 when Prime Minister Boris Johnson hopes to secure a deal to leave the European Union. Saturday could become one of the most critical days in Britain's Brexit crisis after parliament passed a law which would force Johnson to seek a delay to his deadline of October 31 if he has not agreed to an exit deal by October 19. "A Saturday sitting is an extremely unusual process dependent upon events but the events that may require a Saturday sitting have not yet reached their fruition and it is only after that point has been reached that it would be sensible to confirm what exactly will be happening on Saturday," Rees-Mogg told parliament when asked if the sitting would go ahead.

Too soon to say if Britain's parliament will sit on Saturday: United Kingdom parliament leader

France welcomed on Tuesday the "positive momentum" in talks aimed at securing a deal on the terms of Britain's exit from the European Union, an aide to <a href="https://www.wionews.com/world/macron-vows-unrelenting-fight-against-islamist-terror-after-police-killings-254514">President Emmanuel Macron said</a>.

"There is a possibility of an accord, everyone recognises that. We're hoping for a deal but we don't know yet," the adviser said at a briefing for journalists ahead of a last-ditch EU summit in Brussels on Thursday.

"We're hoping for a clear assessment tonight so we can know if there will be a deal or not," the adviser added, requesting anonymity to discuss the negotiations underway in Luxembourg.

There are no plans to hold any "technical talks" at the <a href="https://www.wionews.com/world/germanys-merkel-and-frances-macron-to-meet-ahead-of-crunch-brexit-summit-254798">European Council meeting in Brussels</a>, which will be "a political moment to take note of the situation," the aide said.

The EU's Brexit negotiator Michel Barnier said in Luxembourg earlier Tuesday that a deal with Britain could still be reached this week.

"This work has been intense all along the weekend and yesterday because even if the agreement will be difficult, more and more difficult to be frank, it's still possible this week," Barnier said before briefing the other 27 EU states on the state of the closed-door talks.

European diplomats said London has already given ground on customs rules for Northern Ireland, but must go further quickly if a deal is to be done this month, allowing Prime Minister Boris Johnson to fulfil his pledge to lead Britain out on October 31.

France welcomed on Tuesday the "positive momentum" in talks aimed at securing a deal on the terms of Britain's exit from the European Union, an aide to President Emmanuel Macron said.

France welcomed on Tuesday the "positive momentum" in talks aimed at securing a deal on the terms of Britain's exit from the European Union, an aide to President Emmanuel Macron said. "There is a possibility of an accord, everyone recognises that. We're hoping for a deal but we don't know yet," the adviser said at a briefing for journalists ahead of a last-ditch EU summit in Brussels on Thursday. "We're hoping for a clear assessment tonight so we can know if there will be a deal or not," the adviser added, requesting anonymity to discuss the negotiations underway in Luxembourg. There are no plans to hold any "technical talks" at the European Council meeting in Brussels, which will be "a political moment to take note of the situation," the aide said. The EU's Brexit negotiator Michel Barnier said in Luxembourg earlier Tuesday that a deal with Britain could still be reached this week. "This work has been intense all along the weekend and yesterday because even if the agreement will be difficult, more and more difficult to be frank, it's still possible this week," Barnier said before briefing the other 27 EU states on the state of the closed-door talks. European diplomats said London has already given ground on customs rules for Northern Ireland, but must go further quickly if a deal is to be done this month, allowing Prime Minister Boris Johnson to fulfil his pledge to lead Britain out on October 31.

France sees 'positive momentum' for Brexit deal: Presidential aide

Britain's jobs boom has weakened in the <a href="https://www.wionews.com/world/european-unions-brexit-minister-says-united-kingdoms-proposals-fall-short-need-agreement-by-end-of-day-256061">approach to Brexit</a> with the number of people in work unexpectedly falling by the most in over four years and unemployment rising, official data showed on Tuesday.

Employment fell by 56,000 to 32.69 million in the three months to August, the Office for National Statistics said. Economists polled by Reuters had expected growth of 23,000.

The number of people out of work rose by 22,000 to just over 1.31 million, the ONS said.

Britain's strong labour market has been the silver lining for the economy since the <a href="https://www.wionews.com/world/brexit-deal-possible-this-week-says-european-union-chief-negotiator-michel-barnier-256023">Brexit referendum in 2016</a>, something many analysts attribute, in part, to firms hiring workers that they can later lay off rather than making longer-term commitments to investment.

But there were signs in Tuesday's figures that employers were turning more cautious.

The unemployment rate unexpectedly rose to 3.9 per cent&nbsp;from 3.8 per cent, which had been its joint-lowest since the mid-1970s, while vacancies fell to their lowest level since the three months to November 2017.

"Challenging economic conditions are starting to take the shine off the UK’s job boom," Tej Parikh, chief economist at the Institute of Directors, an employers group, said.

"Business leaders’ long-lasting drive to expand their workforce has put the labour market in a strong position. However, firms are now increasingly coming up against uncertainty and the shrinking supply of available talent."

Many employers are worried about Prime Minister Boris Johnson's pledge to take Britain out of the European Union on October 31 without a transition deal to smooth the economic shock if necessary. However, lawmakers have passed legislation that they say will force him to seek a delay from Brussels.

A survey published separately on Tuesday by Britain's main auto industry group showed jobs cuts at one in three firms in the sector, which risks being a big loser from Brexit. That was up from one in eight just under a year ago.

As well as worries about Brexit, Britain's economy is feeling the drag from rising US-China trade tensions which have weighed on global growth.

The ONS labour market data showed a dip in the pace of pay growth which recently hit its fastest in more than 10 years.

Total earnings growth, including bonuses, rose by an annual 3.8 per cent&nbsp;in the three months to August, slowing from 3.9 per cent&nbsp;in the three months to July and weaker than the median forecast of 4.0 per cent&nbsp;in the Reuters poll.

Excluding bonuses, which smoothes out some volatility, pay growth similarly slowed slightly to 3.8 per cent, but was a touch ahead of the Reuters poll forecast of 3.7 per cent.

The trend in pay growth is being watched closely by the Bank of England.

Deputy Governor Dave Ramsden said in a newspaper interview published on Sunday that wage costs were "picking up quite significantly, which will drive domestic inflationary pressure."

However, the BoE is waiting for more clarity on Brexit before any decision to resume its gradual and limited programme of interest rates hikes.

Britain's jobs boom has weakened in the approach to Brexit with the number of people in work unexpectedly falling by the most in over four years and unemployment rising, official data showed on Tuesday.

Britain's jobs boom has weakened in the approach to Brexit with the number of people in work unexpectedly falling by the most in over four years and unemployment rising, official data showed on Tuesday. Employment fell by 56,000 to 32.69 million in the three months to August, the Office for National Statistics said. Economists polled by Reuters had expected growth of 23,000. The number of people out of work rose by 22,000 to just over 1.31 million, the ONS said. Britain's strong labour market has been the silver lining for the economy since the Brexit referendum in 2016, something many analysts attribute, in part, to firms hiring workers that they can later lay off rather than making longer-term commitments to investment. But there were signs in Tuesday's figures that employers were turning more cautious. The unemployment rate unexpectedly rose to 3.9 per cent from 3.8 per cent, which had been its joint-lowest since the mid-1970s, while vacancies fell to their lowest level since the three months to November 2017. "Challenging economic conditions are starting to take the shine off the UK’s job boom," Tej Parikh, chief economist at the Institute of Directors, an employers group, said. "Business leaders’ long-lasting drive to expand their workforce has put the labour market in a strong position. However, firms are now increasingly coming up against uncertainty and the shrinking supply of available talent." Many employers are worried about Prime Minister Boris Johnson's pledge to take Britain out of the European Union on October 31 without a transition deal to smooth the economic shock if necessary. However, lawmakers have passed legislation that they say will force him to seek a delay from Brussels. A survey published separately on Tuesday by Britain's main auto industry group showed jobs cuts at one in three firms in the sector, which risks being a big loser from Brexit. That was up from one in eight just under a year ago. As well as worries about Brexit, Britain's economy is feeling the drag from rising US-China trade tensions which have weighed on global growth. The ONS labour market data showed a dip in the pace of pay growth which recently hit its fastest in more than 10 years. Total earnings growth, including bonuses, rose by an annual 3.8 per cent in the three months to August, slowing from 3.9 per cent in the three months to July and weaker than the median forecast of 4.0 per cent in the Reuters poll. Excluding bonuses, which smoothes out some volatility, pay growth similarly slowed slightly to 3.8 per cent, but was a touch ahead of the Reuters poll forecast of 3.7 per cent. The trend in pay growth is being watched closely by the Bank of England. Deputy Governor Dave Ramsden said in a newspaper interview published on Sunday that wage costs were "picking up quite significantly, which will drive domestic inflationary pressure." However, the BoE is waiting for more clarity on Brexit before any decision to resume its gradual and limited programme of interest rates hikes.

United Kingdom hiring falls by most in over four years as Brexit nears

<a href="https://www.wionews.com/world/brexit-deal-possible-this-week-says-european-union-chief-negotiator-michel-barnier-256023">Britain's latest proposals on the terms of its departure from the European Union are still not enough for an agreement</a> and a legal text is needed by the end of Tuesday for a deal to be agreed at a leaders' summit this week, three diplomatic sources said.

Relaying comments made by the EU's Brexit negotiator, Michel Barnier, at a meeting of the bloc's ministers in Luxembourg, they said that if the Tuesday deadline was missed then talks would have to continue after the Thursday-Friday summit.

"We need to land this tonight," an EU official told Reuters.

However, British Brexit Minister Stephen Barclay struck a more positive note as he arrived in Luxembourg for talks with ministers from the 27 countries that will remain in the EU.

"The talks are ongoing we need to give them space to proceed," he told reporters. "Detailed conversations are&nbsp;underway and a deal is still very possible."

The main sticking point to reaching a deal before the <a href="https://www.wionews.com/world/eu-warns-a-lot-of-work-to-be-done-before-brexit-deal-255708">October&nbsp;31 scheduled date for Britain's exit</a> is customs and security arrangements for the border between EU member Ireland and the British province of Northern Ireland - the only land frontier between the EU and the United Kingdom after Brexit.

Barnier said earlier that while an agreement was still possible this week, it was still possible and it was "high time to turn good intentions in a legal text".

Finland's EU affairs minister, Tytti Tuppurainen, said the EU must prepare for a no-deal and a third extension of the tortuous divorce process.

"All scenarios are open," she said, adding that leaders at the summit would discuss pushing back the departure date beyond October&nbsp;31.

British Prime Minister Boris Johnson, a leading figure in the 2016 referendum in which Britons opted to leave the EU, has pledged to take the United Kingdom out of the bloc on that day whether or not a withdrawal agreement has been reached.

But the British parliament has passed a law saying the country cannot leave without an agreement, and Johnson has not explained how he can get around that.

Malta's EU minister, asked if he would bet on there being a Brexit deal this month, said: "I would not."

Watch:&nbsp;Make-or-break week for Brexit deal

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/make-or-break-week-for-brexit-deal-256038/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Deal, No-Deal, Delay

As ministers met in Luxembourg, British Brexit negotiator David Frost was starting another round of negotiations with the EU's executive European Commission in Brussels. <a href="https://www.wionews.com/world/brexit-on-october-31-a-priority-for-british-government-queen-255851">Britain was due to make new proposals</a> in an attempt to break the Brexit deadlock, RTE said.

There was no comment from Johnson's office and the British mission to the EU declined to comment.

A British government source said separately that new texts have been shared repeatedly with Brussels during talks.

The main obstacle is around customs, with London proposing that Northern Ireland stays in the UK customs area but that EU tariffs are applied on all goods crossing from mainland Britain to the island.

Businesses would be eligible for a refund if it turns out their goods stay in Northern Ireland under the plan, which the EU has many doubts about, saying the system is too complicated, untested and not detailed enough at this stage.

The EU believes the only possible deal to be had at the summit is a return to a solution - already rejected by Britain previously - of keeping Northern Ireland in the bloc's customs union.

It would require a major shift from London and Johnson will face his factious parliament at a rare Saturday session after the summit.

Deal or no deal, the EU believes another delay to Britain's October&nbsp;31 departure date will be needed. Extension options range from as short as an extra month to half a year or longer. The other EU states would need to agree unanimously to grant it.

"Time alone is not a solution. However, if a significant political change takes place in the UK then that could potentially justify a discussion on an extension if we were asked for it," France's Amelie de Montchalin said.

"A significant political change is the prospect of an election, a referendum, something that changes the political dynamic so that the triangle between the government, parliament and the British people could align with each other a bit more."

Should no final resolutions come at the summit later this week, the EU is mulling an extraordinary one in late October to approve any deal or a delay or give marching orders for a damaging no-deal split.

Britain's latest proposals on the terms of its departure from the European Union are still not enough for an agreement and a legal text is needed by the end of Tuesday for a deal to be agreed at a leaders' summit this week, three diplomatic sources said.

Britain's latest proposals on the terms of its departure from the European Union are still not enough for an agreement and a legal text is needed by the end of Tuesday for a deal to be agreed at a leaders' summit this week, three diplomatic sources said. Relaying comments made by the EU's Brexit negotiator, Michel Barnier, at a meeting of the bloc's ministers in Luxembourg, they said that if the Tuesday deadline was missed then talks would have to continue after the Thursday-Friday summit. "We need to land this tonight," an EU official told Reuters. However, British Brexit Minister Stephen Barclay struck a more positive note as he arrived in Luxembourg for talks with ministers from the 27 countries that will remain in the EU. "The talks are ongoing we need to give them space to proceed," he told reporters. "Detailed conversations are underway and a deal is still very possible." The main sticking point to reaching a deal before the October 31 scheduled date for Britain's exit is customs and security arrangements for the border between EU member Ireland and the British province of Northern Ireland - the only land frontier between the EU and the United Kingdom after Brexit. Barnier said earlier that while an agreement was still possible this week, it was still possible and it was "high time to turn good intentions in a legal text". Finland's EU affairs minister, Tytti Tuppurainen, said the EU must prepare for a no-deal and a third extension of the tortuous divorce process. "All scenarios are open," she said, adding that leaders at the summit would discuss pushing back the departure date beyond October 31. British Prime Minister Boris Johnson, a leading figure in the 2016 referendum in which Britons opted to leave the EU, has pledged to take the United Kingdom out of the bloc on that day whether or not a withdrawal agreement has been reached. But the British parliament has passed a law saying the country cannot leave without an agreement, and Johnson has not explained how he can get around that. Malta's EU minister, asked if he would bet on there being a Brexit deal this month, said: "I would not." Watch: Make-or-break week for Brexit deal Deal, No-Deal, Delay As ministers met in Luxembourg, British Brexit negotiator David Frost was starting another round of negotiations with the EU's executive European Commission in Brussels. Britain was due to make new proposals in an attempt to break the Brexit deadlock, RTE said. There was no comment from Johnson's office and the British mission to the EU declined to comment. A British government source said separately that new texts have been shared repeatedly with Brussels during talks. The main obstacle is around customs, with London proposing that Northern Ireland stays in the UK customs area but that EU tariffs are applied on all goods crossing from mainland Britain to the island. Businesses would be eligible for a refund if it turns out their goods stay in Northern Ireland under the plan, which the EU has many doubts about, saying the system is too complicated, untested and not detailed enough at this stage. The EU believes the only possible deal to be had at the summit is a return to a solution - already rejected by Britain previously - of keeping Northern Ireland in the bloc's customs union. It would require a major shift from London and Johnson will face his factious parliament at a rare Saturday session after the summit. Deal or no deal, the EU believes another delay to Britain's October 31 departure date will be needed. Extension options range from as short as an extra month to half a year or longer. The other EU states would need to agree unanimously to grant it. "Time alone is not a solution. However, if a significant political change takes place in the UK then that could potentially justify a discussion on an extension if we were asked for it," France's Amelie de Montchalin said. "A significant political change is the prospect of an election, a referendum, something that changes the political dynamic so that the triangle between the government, parliament and the British people could align with each other a bit more." Should no final resolutions come at the summit later this week, the EU is mulling an extraordinary one in late October to approve any deal or a delay or give marching orders for a damaging no-deal split.

European Union's Brexit minister says United Kingdom's proposals fall short, need agreement by end of day

Make-or-break week for Brexit deal as 14 days is remaining for the country to exit from the EU. Reaching a divorce deal between Britain and the European Union is still possible this week, even if it more and more difficult, the EU's chief negotiator Michel Barnier said on Tuesday. Watch this video to know more.

Make-or-break week for Brexit deal

From the pinnacle of the City of London's largest skyscraper, Stuart Lipton is wagering a $1.2 billion bet that the British capital remains a master of the international financial universe no matter what happens with <a href="https://www.wionews.com/world/brexit-on-october-31-a-priority-for-british-government-queen-255851">Brexit</a>.

The 76-year-old property developer is not alone. Bankrolled by a host of global investors, including France's Axa, his big-ticket gamble in London's financial district is - so far - on the money.

The cataclysmic warnings during the 2016 referendum that London would lose its financial throne if it voted to leave the European Union (EU) have, so far, been proven wrong. London is still the world's banker, only bigger by some measures.

"London is extraordinarily resilient and its future as a finance centre is secure because what we have here is unique," Lipton told Reuters on the 61st floor of 22 Bishopsgate, set to become western Europe's second tallest skyscraper when it opens next year.

In the year to June, London has attracted more cross border commercial real estate investment than any other city. It has overtaken New York as a destination for fintech investment and it has increased its dominance of the world's $6.6 trillion daily foreign exchange market.

Since the vote to leave the EU, Britain has leapfrogged the United States to become the largest centre for trading interest rate swaps, despite calls by ex-French President Francois Hollande to end London's dominance in clearing euro-denominated derivatives.

That London has expanded its influence as an international finance centre is one of the biggest riddles of the United Kingdom's tortuous three-year <a href="https://www.wionews.com/business-economy/uk-economy-starts-to-shows-cracks-under-brexit-and-global-strains-254409">Brexit crisis.</a>

The city's standing ensures the United Kingdom keeps one of its last big chips at the top table of world politics just as it splits from the EU.

It also means EU companies will still come to London to raise finance outside the bloc after Brexit, a fact not lost on Wall Street heavyweights such as Goldman Sachs and JP Morgan.

Just a mile away from 22 Bishopsgate, Goldman opened its new 1 million square foot European headquarters - complete with mothers' rooms and wildflowers on the roof - in July, three years on from the 2016 referendum.

Largely abandoned by the British government during Brexit talks, ten senior industry officials told Reuters London's financial services sector has grown since 2016 because there is no realistic competitor in its time zone.

And high-rolling bankers are too attached to its Anglo-Saxon, work-hard, play-hard culture.

The chief executive of the British division of one of Europe's largest banks said although some business will move to the EU, most senior bankers will be reluctant to leave London. He would consider taking a 20 per cent&nbsp;pay cut to remain in the city.

"If you are an Italian banker, who moved out to London 20 years ago, and your kids go to private school around the corner then you are not going to move to Frankfurt," he said.

A global hub for trading, lending and investing, London is the largest net exporter of financial services in the world, with the EU accounting for a quarter of the business.

The 2016 referendum shocked many of the masters of London's financial universe, triggering the biggest one-day fall of the pound since the era of free-floating exchange rates was introduced in the early 1970s.

But so far, most major financial institutions have opted against moving large numbers of people and activities until the loss of access to the EU's lucrative single market is confirmed.

Banks, insurers and asset managers have shifted over a trillion euros of assets such as derivatives and bonds from London to the continent and opened new EU hubs as a hedge against London suddenly being cut off from the bloc if Britain exits the EU without a formal agreement.

The Bank of England estimates around 4,000 people may have moved by the time Britain has exited the EU. But the key decisions are still taken in London.

Reuters contacted JP Morgan and Goldman, and rivals Citi, Bank of America, UBS, Morgan Stanley, Credit Suisse&nbsp;and Deutsche Bank, to seek details on how a 'no-deal Brexit' might accelerate the transfer of resources and activities from London.

All banks said they were prepared for a no-deal Brexit, and had been since the first quarter.

Earlier this year, Morgan Stanley's chief executive, James Gorman, said that he scarcely worried about Brexit. "That's not in my top 200 issues," he said.

British data shows the total number of people employed in the City between 2016 and 2018 overall rose by 31,000, though the total number of people employed specifically in banking and insurance is down 3,000 over the period.

It is not clear how much of that drop is due to Brexit and how much is due to new regulations or structural changes, such as higher numbers of tech specialists at lenders while traditional banking jobs shrink.

Initial estimates of potential job losses ranged from about 30,000 roles within a year of Britain leaving the EU, estimated by the Brussels-based Bruegel research group, to up to 75,000 by 2025 by Oliver Wyman.

Oliver Wyman said they stand by their predictions because it is important to distinguish between job losses on the first day of Brexit and over the longer term. The final number will depend upon the level of market access, which is not clear yet.

Bruegel did not respond to a request for comment.

Financial capitals such as London have remarkable longevity and their rise and fall typically happens at a glacial pace, said Youssef Cassis, a professor of economic history who specialises in financial centres.

"There is no precedent for decoupling between a major economic power- in this case, the European Union- and its financial centre, London," he said.

Some key activities have moved out of London ahead of Brexit. Eurozone government bond and repurchase agreements trading worth around 230 billion euros a day, along with clearing, switched to Amsterdam, Milan and Paris earlier this year.

London-based CBOE Europe, the EU's largest share trading venue, began trading euro shares at its new Amsterdam hub at the start of October.

Nicolas Mackel, who heads a body promoting Luxembourg's financial centre, said it would be a shift in activities and not jobs that will affect London most.

"It's not between now and Christmas you have to look, but on a five, 10, 15 and 20-year framework. It's a false comfort that you are providing by only focusing on jobs," Mackel said.

After Brexit, the $15.9 trillion EU 27 economy will still be reliant on a financial capital outside its borders, which could be politically hard for Brussels to stomach indefinitely.

One European Commission official, speaking on condition of anonymity, told Reuters that the EU had no intention of smothering Britain's financial sector to accelerate its own plans for an EU capital markets union.

But there is scepticism in the market about the longevity of such pledges.

"Why should one expect the EU to give an economic answer to what is a political challenge?" said Xavier Rolet, former head of London Stock Exchange and CEO of investment manager CQS.

"I would expect them to respond politically, even if those answers are not necessarily in the best economic interests of EU-based investors, corporates and banks."

Rolet, who said in the aftermath of the referendum that half of all finance jobs in London may disappear if derivatives clearing left the capital, said it was too early to assess the implications of Brexit.

"I do stand by my statement," he said of the potential job losses.

From the pinnacle of the City of London's largest skyscraper, Stuart Lipton is wagering a $1.2 billion bet that the British capital remains a master of the international financial universe no matter what happens with Brexit.

From the pinnacle of the City of London's largest skyscraper, Stuart Lipton is wagering a $1.2 billion bet that the British capital remains a master of the international financial universe no matter what happens with Brexit. The 76-year-old property developer is not alone. Bankrolled by a host of global investors, including France's Axa, his big-ticket gamble in London's financial district is - so far - on the money. The cataclysmic warnings during the 2016 referendum that London would lose its financial throne if it voted to leave the European Union (EU) have, so far, been proven wrong. London is still the world's banker, only bigger by some measures. "London is extraordinarily resilient and its future as a finance centre is secure because what we have here is unique," Lipton told Reuters on the 61st floor of 22 Bishopsgate, set to become western Europe's second tallest skyscraper when it opens next year. In the year to June, London has attracted more cross border commercial real estate investment than any other city. It has overtaken New York as a destination for fintech investment and it has increased its dominance of the world's $6.6 trillion daily foreign exchange market. Since the vote to leave the EU, Britain has leapfrogged the United States to become the largest centre for trading interest rate swaps, despite calls by ex-French President Francois Hollande to end London's dominance in clearing euro-denominated derivatives. That London has expanded its influence as an international finance centre is one of the biggest riddles of the United Kingdom's tortuous three-year Brexit crisis. The city's standing ensures the United Kingdom keeps one of its last big chips at the top table of world politics just as it splits from the EU. It also means EU companies will still come to London to raise finance outside the bloc after Brexit, a fact not lost on Wall Street heavyweights such as Goldman Sachs and JP Morgan. Just a mile away from 22 Bishopsgate, Goldman opened its new 1 million square foot European headquarters - complete with mothers' rooms and wildflowers on the roof - in July, three years on from the 2016 referendum. Largely abandoned by the British government during Brexit talks, ten senior industry officials told Reuters London's financial services sector has grown since 2016 because there is no realistic competitor in its time zone. And high-rolling bankers are too attached to its Anglo-Saxon, work-hard, play-hard culture. The chief executive of the British division of one of Europe's largest banks said although some business will move to the EU, most senior bankers will be reluctant to leave London. He would consider taking a 20 per cent pay cut to remain in the city. "If you are an Italian banker, who moved out to London 20 years ago, and your kids go to private school around the corner then you are not going to move to Frankfurt," he said. A global hub for trading, lending and investing, London is the largest net exporter of financial services in the world, with the EU accounting for a quarter of the business. The 2016 referendum shocked many of the masters of London's financial universe, triggering the biggest one-day fall of the pound since the era of free-floating exchange rates was introduced in the early 1970s. But so far, most major financial institutions have opted against moving large numbers of people and activities until the loss of access to the EU's lucrative single market is confirmed. Banks, insurers and asset managers have shifted over a trillion euros of assets such as derivatives and bonds from London to the continent and opened new EU hubs as a hedge against London suddenly being cut off from the bloc if Britain exits the EU without a formal agreement. The Bank of England estimates around 4,000 people may have moved by the time Britain has exited the EU. But the key decisions are still taken in London. Reuters contacted JP Morgan and Goldman, and rivals Citi, Bank of America, UBS, Morgan Stanley, Credit Suisse and Deutsche Bank, to seek details on how a 'no-deal Brexit' might accelerate the transfer of resources and activities from London. All banks said they were prepared for a no-deal Brexit, and had been since the first quarter. Earlier this year, Morgan Stanley's chief executive, James Gorman, said that he scarcely worried about Brexit. "That's not in my top 200 issues," he said. British data shows the total number of people employed in the City between 2016 and 2018 overall rose by 31,000, though the total number of people employed specifically in banking and insurance is down 3,000 over the period. It is not clear how much of that drop is due to Brexit and how much is due to new regulations or structural changes, such as higher numbers of tech specialists at lenders while traditional banking jobs shrink. Initial estimates of potential job losses ranged from about 30,000 roles within a year of Britain leaving the EU, estimated by the Brussels-based Bruegel research group, to up to 75,000 by 2025 by Oliver Wyman. Oliver Wyman said they stand by their predictions because it is important to distinguish between job losses on the first day of Brexit and over the longer term. The final number will depend upon the level of market access, which is not clear yet. Bruegel did not respond to a request for comment. Financial capitals such as London have remarkable longevity and their rise and fall typically happens at a glacial pace, said Youssef Cassis, a professor of economic history who specialises in financial centres. "There is no precedent for decoupling between a major economic power- in this case, the European Union- and its financial centre, London," he said. Some key activities have moved out of London ahead of Brexit. Eurozone government bond and repurchase agreements trading worth around 230 billion euros a day, along with clearing, switched to Amsterdam, Milan and Paris earlier this year. London-based CBOE Europe, the EU's largest share trading venue, began trading euro shares at its new Amsterdam hub at the start of October. Nicolas Mackel, who heads a body promoting Luxembourg's financial centre, said it would be a shift in activities and not jobs that will affect London most. "It's not between now and Christmas you have to look, but on a five, 10, 15 and 20-year framework. It's a false comfort that you are providing by only focusing on jobs," Mackel said. After Brexit, the $15.9 trillion EU 27 economy will still be reliant on a financial capital outside its borders, which could be politically hard for Brussels to stomach indefinitely. One European Commission official, speaking on condition of anonymity, told Reuters that the EU had no intention of smothering Britain's financial sector to accelerate its own plans for an EU capital markets union. But there is scepticism in the market about the longevity of such pledges. "Why should one expect the EU to give an economic answer to what is a political challenge?" said Xavier Rolet, former head of London Stock Exchange and CEO of investment manager CQS. "I would expect them to respond politically, even if those answers are not necessarily in the best economic interests of EU-based investors, corporates and banks." Rolet, who said in the aftermath of the referendum that half of all finance jobs in London may disappear if derivatives clearing left the capital, said it was too early to assess the implications of Brexit. "I do stand by my statement," he said of the potential job losses.

London retains global finance throne amid Brexit chaos

Britain is still aiming for Brexit at the end of the month, Queen Elizabeth II said on Monday, as she set out the executive's legislative programme for a new parliamentary session.

Britain is still aiming for Brexit at the end of the month, Queen Elizabeth II said on Monday, as she set out the executive's legislative programme for a new parliamentary session. "My government's priority has always been to secure the United Kingdom's departure from the European Union on October 31," she told lawmakers, as last-minute talks continued in Brussels to secure a divorce deal. The government wants a new partnership with the European Union, based on free trade, the Queen said. Promising steps to deliver stability in financial services, the Queen said an immigration bill, ending free movement, will be introduced. The Queen also promised steps to protect the integrity of democracy during her speech. The UK will continue to play a leading role in global affairs, she said. The Queen also said that the government was committed to the environment and added, there will be measures to improve air and water quality, and to promote the welfare of animals. There will also be laws to help the victims of domestic abuse and to minimise the impact of divorce, she further said. (With inputs from AFP)

Brexit on October 31 a 'priority' for British government: Queen Elizabeth II

By Simon Usherwood

If you’re looking to make sense of why Brexit is blocked, it’s worth considering that it has two basic dimensions. The first is the negotiation between the European Union and the UK on the terms for the latter leaving the former. The second is the negotiation – or, more often, the power plays – between the British government and the rest of the UK’s political system. If Theresa May’s premiership was focused on the first dimension, then Boris Johnson’s has shifted very much to the second.

As a brief reflection might demonstrate, neither approach has been particularly successful. The reason is that both, in their own ways, have assumed that if you’re able to secure a deal on one dimension, then the other will automatically snap into place. That misunderstanding has been especially evident since Johnson announced his more formal proposals for a new legal text on the Irish dimension of the withdrawal agreement.

In essence, the proposals sought to replace the Irish backstop, which was designed to ensure a permanent fall-back system would be in place after Brexit to preserve the Good Friday Agreement but provoked an insurmountable backlash against May’s original deal. Johnson instead proposed that Northern Ireland should continue to be aligned with the EU on regulations on goods and committed to discussing customs arrangements.

Number 10 has also suggested that the Northern Ireland Assembly should give its consent to the introductions of the new arrangements, and renew that consent every four years thereafter.

In so doing, Johnson was seeking to address a number of fundamental problems with May’s deal on the backstop. First, there had been opposition from Tory ranks about the maintenance of a customs relationship in the backstop, which would have covered the entire UK. This would have meant that the scope for concluding free trade deals with other parts of the world would be limited, since the UK would be bound by the EU’s rules.

Second, and more critically, the backstop was specifically designed to be “all-weather” – that is, it would kick in at any point that there wasn’t an alternative arrangement (agreed by both the UK and EU) in place. In practice, that meant once it was activated, the UK would not be able to deactivate it without the EU’s approval. Such a potential lock on British action raised very many hackles.

So Johnson’s team floated this alternative, taking a considerable amount of care to craft a document that could get the buy-in of the harder end of the Conservative party, the DUP and even some of the non-aligned rebels in parliament.

And, indeed, various figures have announced that they could live with the deal –maybe not a robust majority of MPs, but certainly something that reached parts May’s deal never had.

At this point, the price of that buy-in became clear: the EU is not minded to go for it. From its perspective, there has been very little to commend Johnson’s text. Crucially, the proposal is largely a promise to talk, but with nothing said about what happens if talks are inconclusive. This runs entirely contrary to the purpose of the original backstop.

This is only amplified by the intention to give Stormont a vote on the arrangements. Quite apart from the absence of a functioning Northern Irish executive that might manage the discussions, the mechanism would raise the prospect of recurring debates about the durability of any provisions that were to be agreed. These problems are self-evident to those involved in the negotiations, which is a key reason in explaining why they didn’t get taken through the draft text agreed by May at the end of last year.

So why advance them now? The generous interpretation would be that Johnson hoped that the log-rolling of a majority in parliament would be enough to move the EU: the process has been stuck for nearly a year now and approval of the current text by the Commons looks all but impossible (remember it has voted against it explicitly on three occasions already), so why not go with a new text that would win the backing of MPs? There’s something to this, especially if the rumours of an EU concession to allow some role for Stormont turn out to be accurate.

But the broad thrust from Brussels and other EU capitals has been much more negative, not at all aided by the very negative briefings coming from Number 10. This points to a less generous view of Johnson’s approach. The looming general election – held back only by the need for an extension to Article 50 – has created an incentive for him to show that he has tried to secure a deal, only for it to be rejected by others: If returned to power, then he will be able to finally escape the constraints put on him, by parliament and by the EU, and make Brexit happen.

To put that back into our dimensions, it’s a renewed focus on the domestic competition. If it comes off, Johnson will find that the European dimension is still there, for any future deal he might want to do. And at that point, his recent actions might very well come back to haunt him.

(Simon Usherwood is Professor in Politics, University of Surrey)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/why-brexit-talks-have-stalled-over-boris-johnsons-plans-for-the-irish-border-125018">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) &nbsp; 
&nbsp;

By Simon Usherwood If you’re looking to make sense of why Brexit is blocked, it’s worth considering that it has two basic dimensions. The first is the negotiation between the European Union and the UK on the terms for the latter leaving the former.

By Simon Usherwood If you’re looking to make sense of why Brexit is blocked, it’s worth considering that it has two basic dimensions. The first is the negotiation between the European Union and the UK on the terms for the latter leaving the former. The second is the negotiation – or, more often, the power plays – between the British government and the rest of the UK’s political system. If Theresa May’s premiership was focused on the first dimension, then Boris Johnson’s has shifted very much to the second. As a brief reflection might demonstrate, neither approach has been particularly successful. The reason is that both, in their own ways, have assumed that if you’re able to secure a deal on one dimension, then the other will automatically snap into place. That misunderstanding has been especially evident since Johnson announced his more formal proposals for a new legal text on the Irish dimension of the withdrawal agreement. In essence, the proposals sought to replace the Irish backstop, which was designed to ensure a permanent fall-back system would be in place after Brexit to preserve the Good Friday Agreement but provoked an insurmountable backlash against May’s original deal. Johnson instead proposed that Northern Ireland should continue to be aligned with the EU on regulations on goods and committed to discussing customs arrangements. Number 10 has also suggested that the Northern Ireland Assembly should give its consent to the introductions of the new arrangements, and renew that consent every four years thereafter. In so doing, Johnson was seeking to address a number of fundamental problems with May’s deal on the backstop. First, there had been opposition from Tory ranks about the maintenance of a customs relationship in the backstop, which would have covered the entire UK. This would have meant that the scope for concluding free trade deals with other parts of the world would be limited, since the UK would be bound by the EU’s rules. Second, and more critically, the backstop was specifically designed to be “all-weather” – that is, it would kick in at any point that there wasn’t an alternative arrangement (agreed by both the UK and EU) in place. In practice, that meant once it was activated, the UK would not be able to deactivate it without the EU’s approval. Such a potential lock on British action raised very many hackles. So Johnson’s team floated this alternative, taking a considerable amount of care to craft a document that could get the buy-in of the harder end of the Conservative party, the DUP and even some of the non-aligned rebels in parliament. And, indeed, various figures have announced that they could live with the deal –maybe not a robust majority of MPs, but certainly something that reached parts May’s deal never had. At this point, the price of that buy-in became clear: the EU is not minded to go for it. From its perspective, there has been very little to commend Johnson’s text. Crucially, the proposal is largely a promise to talk, but with nothing said about what happens if talks are inconclusive. This runs entirely contrary to the purpose of the original backstop. This is only amplified by the intention to give Stormont a vote on the arrangements. Quite apart from the absence of a functioning Northern Irish executive that might manage the discussions, the mechanism would raise the prospect of recurring debates about the durability of any provisions that were to be agreed. These problems are self-evident to those involved in the negotiations, which is a key reason in explaining why they didn’t get taken through the draft text agreed by May at the end of last year. So why advance them now? The generous interpretation would be that Johnson hoped that the log-rolling of a majority in parliament would be enough to move the EU: the process has been stuck for nearly a year now and approval of the current text by the Commons looks all but impossible (remember it has voted against it explicitly on three occasions already), so why not go with a new text that would win the backing of MPs? There’s something to this, especially if the rumours of an EU concession to allow some role for Stormont turn out to be accurate. But the broad thrust from Brussels and other EU capitals has been much more negative, not at all aided by the very negative briefings coming from Number 10. This points to a less generous view of Johnson’s approach. The looming general election – held back only by the need for an extension to Article 50 – has created an incentive for him to show that he has tried to secure a deal, only for it to be rejected by others: If returned to power, then he will be able to finally escape the constraints put on him, by parliament and by the EU, and make Brexit happen. To put that back into our dimensions, it’s a renewed focus on the domestic competition. If it comes off, Johnson will find that the European dimension is still there, for any future deal he might want to do. And at that point, his recent actions might very well come back to haunt him. (Simon Usherwood is Professor in Politics, University of Surrey) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Why Brexit talks have stalled over Boris Johnson’s plans for the Irish border

The European Union's chief Brexit negotiator warned diplomats Sunday that "a lot of work remains to be done" in withdrawal talks between London and Brussels. The European Commission issued a statement shortly after Barnier briefed EU ambassadors on the negotiations, just four days before a key European summit.

The European Union's chief Brexit negotiator warned diplomats Sunday that "a lot of work remains to be done" in withdrawal talks between London and Brussels. The European Commission issued a statement shortly after Barnier briefed EU ambassadors on the negotiations, just four days before a key European summit. "Michel Barnier briefed EU27 ambassadors this afternoon, following constructive technical-level talks with the United Kingdom over the weekend," it said. "He will also inform the European Parliament's Brexit Steering Group this evening. A lot of work remains to be done," it warned. A European diplomat familiar with Sunday's briefing confirmed that there had not been any sign of a quick resolution to the crisis, and suggested Britain's position had not moved far enough. "No breakthrough yet. Intensive discussions continue. Overall not an easy starting position -- also because only a few days remain until the European Council," the source said. "If the British government wants a solution, it must move quickly now. The clock is ticking." Technical talks with British officials will continue on Monday, and on Tuesday Barnier will head to Luxembourg to brief EU ministers preparing the summit. The European Council summit on Thursday and Friday has been billed as a key date in efforts to negotiate Britain's orderly withdrawal from the EU on October 31. If Prime Minister Boris Johnson is not able to come to an agreement with the other 27 EU leaders this month, Britain may crash out without a follow-on treaty.

European Union warns a lot of work to be done before Brexit deal

<a href="https://www.wionews.com/world/eu-and-uk-bid-to-save-brexit-talks-before-key-summit-255299">British Prime Minister Boris Johnson played down hopes of a breakthrough in his last-ditch bid to strike an amicable divorce deal with the European Union</a>.

Negotiators went behind closed doors for intensive talks in Brussels after Johnson outlined a new set of proposals to Irish Prime Minister Leo Varadkar on Thursday.

They have very little time left to succeed.

EU leaders will meet on Thursday and Friday for a summit held under the pressures of the October 31 Brexit deadline just two weeks away.

The 27 would ideally like to have a full proposal to vote on by then.

But the sides are trying to achieve in a few days what they had failed to in the more than three years since Britons first voted to leave the European Union after nearly 50 years.

German Chancellor Angela Merkel will discuss the available options with French President Emmanuel Macron late Sunday.

European officials said the bloc's Brexit negotiator Michel Barnier will also brief EU ambassadors on the state of play on Sunday evening.

Downing Street said Johnson told his cabinet to brace for a cliff-hanger finish in the coming days.

Johnson reiterated "that a pathway to a deal could be seen but that there is still a significant amount of work to get there and we must remain prepared to leave on October 31," a Downing Street spokesman said.

<a href="https://www.wionews.com/world/make-significant-concessions-if-you-want-brexit-deal-eu-to-british-pm-johnson-254948">Outgoing EU chief Jean-Claude Juncker said British politics were getting more difficult to decipher</a> than the riddle of an "Egyptian sphinx".

"If the British ask for more time, which they would probably will not, it would in my view be historic&nbsp;nonsense to refuse them," Juncker told Austria's Kurier newspaper.

Johnson rose to power in July on a promise not to extend Brexit for the third time -&nbsp;even for a few weeks.

Breaking that pledge could come back to haunt him in an early general election that most predict for the coming months.

Johnson is under parliamentary orders to seek an extension until January 31 of next year if no deal emerges by Saturday.

He has promised to both follow the law and get Britain out by October 31 -&nbsp;a contradiction that might end up being settled in court.

Watch: Typhoon Hagibis: 19 killed, at least 70 injured

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/typhoon-hagibis-19-killed-at-least-70-injured-255666/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Parliamentary pressure

Ireland's Varadkar hinted on Thursday that he could support the talks running on up to the October 31 deadline if a deal seemed within reach.

<a href="https://www.wionews.com/world/eu-ready-to-make-major-concession-on-brexit-deal-the-times-newspaper-254717">The few details that have leaked out suggest a compromise around the contentious Irish border issue</a>&nbsp;with Britain's Northern Ireland partially aligned with EU customs rules.

Whether such a fudge suits both Brussels and the more ardent Brexit backers in parliament who must still approve a deal should become clearer by the end of the week.

Britain will only avoid a chaotic breakup with its closest trading partners if the agreement is also passed by the UK parliament -&nbsp;something it has failed to do three times.

Johnson heads a minority government and must rely on the full backing of not only his own fractured Conservatives but also Northern Ireland's small Democratic Unionist Party.

DUP's parliamentary leader&nbsp;Nigel Dodds warned Johnson that "Northern Ireland must remain entirely in the customs union of the United Kingdom" and not the EU.

"And Boris Johnson knows it very well," Dodds told Italy's La Repubblica newspaper.

The comments do not necessarily rule out DUP support.

<a href="https://www.wionews.com/world/uk-brexit-minister-to-meet-eu-negotiator-thursday-london-254756">UK media are presenting Johnson's mooted compromise as a "double customs"</a> plan that could be interpreted to mean that Northern Ireland is leaving EU rules.

Yet details are still under discussion and the prime minister's allies are urging lawmakers to give the British leader a chance.

Main opposition Labour Party leader Jeremy Corbyn signalled Sunday that he would wait for the outcome of the EU summit before trying to force an early election.

But he added that there there was "a strong possibility" that those polls would come before the Christmas break.

British Prime Minister Boris Johnson played down hopes of a breakthrough in his last-ditch bid to strike an amicable divorce deal with the European Union. Negotiators went behind closed doors for intensive talks in Brussels after Johnson outlined a new set of proposals to Irish Prime Minister Leo Varadkar on Thursday.

British Prime Minister Boris Johnson played down hopes of a breakthrough in his last-ditch bid to strike an amicable divorce deal with the European Union. Negotiators went behind closed doors for intensive talks in Brussels after Johnson outlined a new set of proposals to Irish Prime Minister Leo Varadkar on Thursday. They have very little time left to succeed. EU leaders will meet on Thursday and Friday for a summit held under the pressures of the October 31 Brexit deadline just two weeks away. The 27 would ideally like to have a full proposal to vote on by then. But the sides are trying to achieve in a few days what they had failed to in the more than three years since Britons first voted to leave the European Union after nearly 50 years. German Chancellor Angela Merkel will discuss the available options with French President Emmanuel Macron late Sunday. European officials said the bloc's Brexit negotiator Michel Barnier will also brief EU ambassadors on the state of play on Sunday evening. Downing Street said Johnson told his cabinet to brace for a cliff-hanger finish in the coming days. Johnson reiterated "that a pathway to a deal could be seen but that there is still a significant amount of work to get there and we must remain prepared to leave on October 31," a Downing Street spokesman said. Outgoing EU chief Jean-Claude Juncker said British politics were getting more difficult to decipher than the riddle of an "Egyptian sphinx". "If the British ask for more time, which they would probably will not, it would in my view be historic nonsense to refuse them," Juncker told Austria's Kurier newspaper. Johnson rose to power in July on a promise not to extend Brexit for the third time - even for a few weeks. Breaking that pledge could come back to haunt him in an early general election that most predict for the coming months. Johnson is under parliamentary orders to seek an extension until January 31 of next year if no deal emerges by Saturday. He has promised to both follow the law and get Britain out by October 31 - a contradiction that might end up being settled in court. Watch: Typhoon Hagibis: 19 killed, at least 70 injured Parliamentary pressure Ireland's Varadkar hinted on Thursday that he could support the talks running on up to the October 31 deadline if a deal seemed within reach. The few details that have leaked out suggest a compromise around the contentious Irish border issue with Britain's Northern Ireland partially aligned with EU customs rules. Whether such a fudge suits both Brussels and the more ardent Brexit backers in parliament who must still approve a deal should become clearer by the end of the week. Britain will only avoid a chaotic breakup with its closest trading partners if the agreement is also passed by the UK parliament - something it has failed to do three times. Johnson heads a minority government and must rely on the full backing of not only his own fractured Conservatives but also Northern Ireland's small Democratic Unionist Party. DUP's parliamentary leader Nigel Dodds warned Johnson that "Northern Ireland must remain entirely in the customs union of the United Kingdom" and not the EU. "And Boris Johnson knows it very well," Dodds told Italy's La Repubblica newspaper. The comments do not necessarily rule out DUP support. UK media are presenting Johnson's mooted compromise as a "double customs" plan that could be interpreted to mean that Northern Ireland is leaving EU rules. Yet details are still under discussion and the prime minister's allies are urging lawmakers to give the British leader a chance. Main opposition Labour Party leader Jeremy Corbyn signalled Sunday that he would wait for the outcome of the EU summit before trying to force an early election. But he added that there there was "a strong possibility" that those polls would come before the Christmas break.

Britain's Johnson plays down Brexit breakthrough hopes

British and EU negotiators held a "constructive" breakfast meeting Friday in a last-ditch bid to restart Brexit talks, as leaders insisted a deal might yet be possible despite time running out fast.

British Brexit minister <a href="https://www.wionews.com/world/uk-brexit-minister-to-meet-eu-negotiator-thursday-london-254756">Stephen Barclay and EU negotiator</a> Michel Barnier met for two hours in the Brussels headquarters of the European Union.

"We had a constructive meeting with Steve Barclay and the British team," Barnier told reporters. "I have already said that the Brexit is like climbing a mountain and we need vigilance, determination and patience."

A British spokesman also described the closed-door talks as a "constructive meeting".

Neither side would reveal any detail about what was discussed, but a European diplomat told AFP: "At this stage, the less we hear, the better. If stuff starts leaking out, it means it's not serious."

Another European official close to the discussions suggested the restart was at an early stage, but that the process might suddenly accelerate: "We're completing the qualifiers for the 100-metre dash."

The meeting came one day after talks between Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar, and just six days before the EU summit that is seen as the key date in efforts to find a deal before a chaotic divorce on October 31.

As the negotiators reviewed their options, the president of the European Council and host of next week's Brussels summit Donald Tusk said that he would have pulled the plug on talks this Friday if Britain had not come forward with evidence of a workable proposal.

"However, yesterday, when the Irish taoiseach and the UK prime minister met they both saw, for the first time, a pathway to a deal. I have received promising signals from the taoiseach that a deal is still possible," Tusk said, during a trip to Cyprus.

"Of course, there is no guarantee of success and the time is practically up. But even the slightest chance must be used," he warned.

The key sticking point in the Brexit negotiations is how to handle trade and customs on the border between EU member Ireland and the British province of Northern Ireland, and on the role of the British province's devolved assembly.

After a meeting in northwest England on Thursday Johnson and Varadkar said they had "agreed that they could see a pathway to a possible deal".

Varadkar later said separately the meeting was "very positive", suggesting it would be a "short pathway, rather than a long one".

The European Council summit starts on October 17 and, in normal circumstances, European diplomats would want draft texts of any agreements to be prepared before close of business on Friday.

Even if, as UK officials hope, Brussels shows flexibility on the timeline, they have yet to enter the "diplomatic tunnel" of final text negotiations.

After his "stock-taking" breakfast with Barclay, Barnier will brief ambassadors from the other EU members on the state of play and then a skeptical Brexit steering group of the European Parliament.

"Barnier will have to say whether we can or can't start negotiating a text," a European source told AFP.

"After that, it's a long road. It's wacky to think we'd have a treaty text before the October 17 and 18 summit."

But Varadkar appears to be looking slightly further forward, implying that he and Johnson are now aiming for a deal in the next three weeks.

"I think it's possible for us to come to an agreement, to have a treaty agreed... by the end of October," he said.

<a href="https://www.wionews.com/world/british-pm-boris-johnson-warns-european-union-he-will-not-delay-brexit-254136">Johnson has vowed</a> Britain will end its five-decade membership of the EU on October 31, with or without agreeing exit terms.

But he could be forced to seek a third delay to Brexit if he fails to agree a deal by October 19, thanks to a law passed by <a href="https://www.wionews.com/world/johnson-faces-cabinet-revolt-over-no-deal-brexit-report-254678/amp">rebellious MPs</a>.

Some European sources in Brussels have suggested that EU leaders may offer Britain an extension even if Johnson does not ask for one.

British and EU negotiators held a "constructive" breakfast meeting Friday in a last-ditch bid to restart Brexit talks, as leaders insisted a deal might yet be possible despite time running out fast.

British and EU negotiators held a "constructive" breakfast meeting Friday in a last-ditch bid to restart Brexit talks, as leaders insisted a deal might yet be possible despite time running out fast. British Brexit minister Stephen Barclay and EU negotiator Michel Barnier met for two hours in the Brussels headquarters of the European Union. "We had a constructive meeting with Steve Barclay and the British team," Barnier told reporters. "I have already said that the Brexit is like climbing a mountain and we need vigilance, determination and patience." A British spokesman also described the closed-door talks as a "constructive meeting". Neither side would reveal any detail about what was discussed, but a European diplomat told AFP: "At this stage, the less we hear, the better. If stuff starts leaking out, it means it's not serious." Another European official close to the discussions suggested the restart was at an early stage, but that the process might suddenly accelerate: "We're completing the qualifiers for the 100-metre dash." The meeting came one day after talks between Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar, and just six days before the EU summit that is seen as the key date in efforts to find a deal before a chaotic divorce on October 31. As the negotiators reviewed their options, the president of the European Council and host of next week's Brussels summit Donald Tusk said that he would have pulled the plug on talks this Friday if Britain had not come forward with evidence of a workable proposal. "However, yesterday, when the Irish taoiseach and the UK prime minister met they both saw, for the first time, a pathway to a deal. I have received promising signals from the taoiseach that a deal is still possible," Tusk said, during a trip to Cyprus. "Of course, there is no guarantee of success and the time is practically up. But even the slightest chance must be used," he warned. The key sticking point in the Brexit negotiations is how to handle trade and customs on the border between EU member Ireland and the British province of Northern Ireland, and on the role of the British province's devolved assembly. After a meeting in northwest England on Thursday Johnson and Varadkar said they had "agreed that they could see a pathway to a possible deal". Varadkar later said separately the meeting was "very positive", suggesting it would be a "short pathway, rather than a long one". The European Council summit starts on October 17 and, in normal circumstances, European diplomats would want draft texts of any agreements to be prepared before close of business on Friday. Even if, as UK officials hope, Brussels shows flexibility on the timeline, they have yet to enter the "diplomatic tunnel" of final text negotiations. After his "stock-taking" breakfast with Barclay, Barnier will brief ambassadors from the other EU members on the state of play and then a skeptical Brexit steering group of the European Parliament. "Barnier will have to say whether we can or can't start negotiating a text," a European source told AFP. "After that, it's a long road. It's wacky to think we'd have a treaty text before the October 17 and 18 summit." But Varadkar appears to be looking slightly further forward, implying that he and Johnson are now aiming for a deal in the next three weeks. "I think it's possible for us to come to an agreement, to have a treaty agreed... by the end of October," he said. Johnson has vowed Britain will end its five-decade membership of the EU on October 31, with or without agreeing exit terms. But he could be forced to seek a third delay to Brexit if he fails to agree a deal by October 19, thanks to a law passed by rebellious MPs. Some European sources in Brussels have suggested that EU leaders may offer Britain an extension even if Johnson does not ask for one.

EU and UK bid to save Brexit talks before key summit

<a href="https://www.wionews.com/world/irish-pm-says-very-difficult-to-secure-brexit-deal-by-next-week-254692">The European Union is ready to make a 'major concession'&nbsp;on a Brexit deal</a> by offering a mechanism for the Northern Irish assembly to leave a new so-called backstop after a number of years, The Times newspaper reported on Wednesday.

Talks with the EU to reach an agreement on Britain's departure have&nbsp;hit an impasse over the backstop, an insurance policy to prevent the return to a hard border between the British province of Northern Ireland and EU member Ireland if a future trade deal falls short of keeping the border open.

Johnson says he wants to remove what he calls the 'undemocratic backstop'&nbsp;and has proposed replacing it by suggesting that Northern Ireland stay under EU regulations, customs checks should be made away from the border, and that Northern Ireland's assembly, Stormont, would have the right to vote on the arrangements.

But Brussels fears handing Northern Ireland 'consent'&nbsp;would give Johnson's allies, the Democratic Unionist Party, a veto.

The new idea, as reported by the Times, <a href="https://www.wionews.com/world/johnson-faces-cabinet-revolt-over-no-deal-brexit-report-254678">would be a modified version of the consent principle</a>.

Citing diplomatic sources close to the talks, the Times said European governments were prepared to "concede a unilateral revocation of the withdrawal treaty by Stormont after a period of time. The date of 2025 has been mooted, as long as both communities agree to it.''

A European source was quoted by the Times as saying: "A landing zone on consent could be a double majority within Stormont, to leave, not to continue with the arrangements after X years."

The European Union is ready to make a 'major concession' on a Brexit deal by offering a mechanism for the Northern Irish assembly to leave a new so-called backstop after a number of years, The Times newspaper reported on Wednesday.

The European Union is ready to make a 'major concession' on a Brexit deal by offering a mechanism for the Northern Irish assembly to leave a new so-called backstop after a number of years, The Times newspaper reported on Wednesday. Talks with the EU to reach an agreement on Britain's departure have hit an impasse over the backstop, an insurance policy to prevent the return to a hard border between the British province of Northern Ireland and EU member Ireland if a future trade deal falls short of keeping the border open. Johnson says he wants to remove what he calls the 'undemocratic backstop' and has proposed replacing it by suggesting that Northern Ireland stay under EU regulations, customs checks should be made away from the border, and that Northern Ireland's assembly, Stormont, would have the right to vote on the arrangements. But Brussels fears handing Northern Ireland 'consent' would give Johnson's allies, the Democratic Unionist Party, a veto. The new idea, as reported by the Times, would be a modified version of the consent principle. Citing diplomatic sources close to the talks, the Times said European governments were prepared to "concede a unilateral revocation of the withdrawal treaty by Stormont after a period of time. The date of 2025 has been mooted, as long as both communities agree to it.'' A European source was quoted by the Times as saying: "A landing zone on consent could be a double majority within Stormont, to leave, not to continue with the arrangements after X years."

EU ready to make 'major concession' on Brexit deal: Report

brexit-0

Brexit, News on Brexit, stories on Brexit, articles on Brexit, Brexit stories at Wion, Brexit news, Brexit latest news

brexit 0