British Prime Minister Boris Johnson urged lawmakers to support an October 31 <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/food-sector-is-absolutely-clear-that-a-no-deal-exit-is-a-disastrous-outcometrade-body-241342&amp;sa=U&amp;ved=2ahUKEwjD-bqNmvPjAhWY7HMBHSNwChMQFjADegQIDxAC&amp;usg=AOvVaw1B8F75BnlgyJjJ0HjnYsHo">Brexit</a>, saying they had promised to honour the result of the country's 2016 decision to leave the European Union.

"I think that MPs (Members of Parliament) should get on and deliver on what they have promised over and over and over again to the people of this country: they will deliver on the mandate of 2016 and leave the EU on Oct. 31," Johnson told reporters.

Asked about the prospect of losing a confidence vote in parliament and whether he would then delay an election until after Brexit he said: "We are going to leave the European Union on October 31, which is what the people of this country voted for."

British Prime Minister Boris Johnson urged lawmakers to support an October 31 Brexit, saying they had promised to honour the result of the country's 2016 decision to leave the European Union.

British Prime Minister Boris Johnson urged lawmakers to support an October 31 Brexit, saying they had promised to honour the result of the country's 2016 decision to leave the European Union. "I think that MPs (Members of Parliament) should get on and deliver on what they have promised over and over and over again to the people of this country: they will deliver on the mandate of 2016 and leave the EU on Oct. 31," Johnson told reporters. Asked about the prospect of losing a confidence vote in parliament and whether he would then delay an election until after Brexit he said: "We are going to leave the European Union on October 31, which is what the people of this country voted for."

British Prime Minister Johnson urges lawmakers to back October 31 Brexit

A disorderly no-deal <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/germany-we-are-prepared-for-all-brexit-scenarios-but-want-to-get-a-deal-240855&amp;sa=U&amp;ved=2ahUKEwiIkfHvvvDjAhVT8XMBHdQVCiMQFjADegQIDhAC&amp;usg=AOvVaw3aJOntm2NiVYso8i-oxEzm">Brexit</a> would disrupt some food supplies for weeks or months if delays at ports leave fresh produce rotting in lorries, the industry's trade body warned on Wednesday.

Retailers such as Tesco have warned that leaving the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/eu-open-to-brexit-discussions-but-prepared-for-no-deal-spokeswoman-241097&amp;sa=U&amp;ved=2ahUKEwiIkfHvvvDjAhVT8XMBHdQVCiMQFjABegQIEBAC&amp;usg=AOvVaw0ay1X69XvFW429bmC8eyGe">European Union</a> on October 31 without a trade deal would be hugely problematic for the industry as much of the fresh produce is imported and warehouses are stocked full ahead of Christmas.

Ahead of the original Brexit deadline of March 29, supermarkets and retailers worked with suppliers to increase stocks of dried goods including pasta, bottled water and toilet roll.

They have warned however that fresh fruit and vegetables, which have a short shelf-life of only a few days, cannot be stored and that customs checks at Britain's biggest port of Dover could lead to delays for arrivals.

The industry has also tested different ports to avoid the main route of Dover-Calais while pharmaceutical companies have reserved space on airlines to fly in supplies if needed.

"The food sector is absolutely clear that a no-deal exit is a disastrous outcome for us," the Food and Drink Federation's Chief Operating Officer Tim Rycroft told BBC Radio.

"There will be selective shortages and they will to some extent be random because it depends on which trucks get through and which don't. We think there will be some serious disruption and it will go on for weeks or months after our exit."

The trade body has urged the government to waive some competition rules to allow retailers and suppliers to be able to work together to provide the most effective coverage for the country in such a situation.

Rycroft said the industry had repeatedly asked the government to provide a guarantee that companies would not be fined by the regulator for engaging in anti-competitive behaviour.

"In the event of no-deal disruption, if the government wants the food supply chain to work together to tackle likely shortages - to decide where to prioritise shipments - they will have to provide cast-iron written reassurances that competition law will not be strictly applied to those discussions," Rycroft said.

Brexit supporters say there may be short-term disruption from a no-deal exit but that the United Kingdom will thrive if cut free from what they cast as a doomed experiment in integration that has led to Europe falling behind China and the United States.

A disorderly no-deal Brexit would disrupt some food supplies for weeks or months if delays at ports leave fresh produce rotting in lorries, the industry's trade body warned on Wednesday.

A disorderly no-deal Brexit would disrupt some food supplies for weeks or months if delays at ports leave fresh produce rotting in lorries, the industry's trade body warned on Wednesday. Retailers such as Tesco have warned that leaving the European Union on October 31 without a trade deal would be hugely problematic for the industry as much of the fresh produce is imported and warehouses are stocked full ahead of Christmas. Ahead of the original Brexit deadline of March 29, supermarkets and retailers worked with suppliers to increase stocks of dried goods including pasta, bottled water and toilet roll. They have warned however that fresh fruit and vegetables, which have a short shelf-life of only a few days, cannot be stored and that customs checks at Britain's biggest port of Dover could lead to delays for arrivals. The industry has also tested different ports to avoid the main route of Dover-Calais while pharmaceutical companies have reserved space on airlines to fly in supplies if needed. "The food sector is absolutely clear that a no-deal exit is a disastrous outcome for us," the Food and Drink Federation's Chief Operating Officer Tim Rycroft told BBC Radio. "There will be selective shortages and they will to some extent be random because it depends on which trucks get through and which don't. We think there will be some serious disruption and it will go on for weeks or months after our exit." The trade body has urged the government to waive some competition rules to allow retailers and suppliers to be able to work together to provide the most effective coverage for the country in such a situation. Rycroft said the industry had repeatedly asked the government to provide a guarantee that companies would not be fined by the regulator for engaging in anti-competitive behaviour. "In the event of no-deal disruption, if the government wants the food supply chain to work together to tackle likely shortages - to decide where to prioritise shipments - they will have to provide cast-iron written reassurances that competition law will not be strictly applied to those discussions," Rycroft said. Brexit supporters say there may be short-term disruption from a no-deal exit but that the United Kingdom will thrive if cut free from what they cast as a doomed experiment in integration that has led to Europe falling behind China and the United States.

No-deal Brexit would cause food shortages and leave fruit and vegetables rotting in lorries, industry leaders warn

Is it too late to hold an election before Brexit? Yes, probably

The European Commission is willing to discuss Brexit with Britain over the coming weeks, a spokeswoman said on Tuesday.

She said while the bloc's executive was hoping to avoid a "no-deal" exit, the EU was prepared for such an outcome.

"The Commission does remain available over the coming weeks should the United Kingdom wish to hold talks and clarify its position in more detail, whether by phone or in person," the spokeswoman told a news briefing.

Earlier on Tuesday a senior British government source said London was "ready and willing" to do a deal to leave the EU if Brussels renegotiated the agreement, denying that a no-deal Brexit was Prime Minister Boris Johnson's central plan.

Johnson, who took over as prime minister two weeks ago, has taken a hard line with the EU, demanding that it show willingness to change the divorce deal it agreed with his predecessor before negotiations can restart to secure Britain's smooth departure from the bloc.

The deal agreed with Theresa May in November has been rejected three times by the British parliament.

"A no-deal scenario is not our preferred option," the Commission spokeswoman said, adding the agreement reached was the "best possible" and could not be re-negotiated.

"Our no-deal preparedness protects the EU 27 and the interests in the case of a no-deal Brexit," she said.

The European Commission is willing to discuss Brexit with Britain over the coming weeks, a spokeswoman said on Tuesday. She said while the bloc's executive was hoping to avoid a "no-deal" exit, the EU was prepared for such an outcome.

The European Commission is willing to discuss Brexit with Britain over the coming weeks, a spokeswoman said on Tuesday. She said while the bloc's executive was hoping to avoid a "no-deal" exit, the EU was prepared for such an outcome. "The Commission does remain available over the coming weeks should the United Kingdom wish to hold talks and clarify its position in more detail, whether by phone or in person," the spokeswoman told a news briefing. Earlier on Tuesday a senior British government source said London was "ready and willing" to do a deal to leave the EU if Brussels renegotiated the agreement, denying that a no-deal Brexit was Prime Minister Boris Johnson's central plan. Johnson, who took over as prime minister two weeks ago, has taken a hard line with the EU, demanding that it show willingness to change the divorce deal it agreed with his predecessor before negotiations can restart to secure Britain's smooth departure from the bloc. The deal agreed with Theresa May in November has been rejected three times by the British parliament. "A no-deal scenario is not our preferred option," the Commission spokeswoman said, adding the agreement reached was the "best possible" and could not be re-negotiated. "Our no-deal preparedness protects the EU 27 and the interests in the case of a no-deal Brexit," she said.

European Union open to Brexit discussions but prepared for no-deal: Spokeswoman

EU open to Brexit discussions but prepared for no-deal: Spokeswoman

The German government is prepared for all possible scenarios regarding Britain's expected departure from the European Union, a spokeswoman said on Monday, adding that Berlin was still aiming to secure a Brexit deal.

<a href="https://www.wionews.com/opinions/heres-how-boris-johnson-can-unite-a-country-mired-in-a-brexit-identity-crisis-239628">British Prime Minister Boris Johnson</a> has promised to lead Britain out of the EU on October 31 with or without a deal.

"We still want Britain to have an orderly exit <a href="https://www.wionews.com/world/divided-european-union-taps-bulgarias-kristalina-georgieva-as-international-monetary-fund-candidate-240499">from the European Union</a>," a spokeswoman told a news conference. "A no deal Brexit would be in nobody's interests."

The German government is prepared for all possible scenarios regarding Britain's expected departure from the European Union, a spokeswoman said on Monday, adding that Berlin was still aiming to secure a Brexit deal.

The German government is prepared for all possible scenarios regarding Britain's expected departure from the European Union, a spokeswoman said on Monday, adding that Berlin was still aiming to secure a Brexit deal. British Prime Minister Boris Johnson has promised to lead Britain out of the EU on October 31 with or without a deal. "We still want Britain to have an orderly exit from the European Union," a spokeswoman told a news conference. "A no deal Brexit would be in nobody's interests."

Germany: We are prepared for all Brexit scenarios but want to get a deal

Asian shares slid to 6-1/2-month lows on Monday and the yuan plunged as a rapid escalation in the Sino-US trade war drove nervous investors to safe-havens such as the yen, bonds and gold.

US President Donald Trump abruptly decided on Thursday to slap 10% tariffs on $300 billion in Chinese imports, stunning markets and ending a month-long trade truce. China vowed on Friday to fight back.

In response, China's yuan weakened beyond the key 7-per-dollar threshold in a move that threatens to lead to massive capital outflows.

"We could see a more prolonged period of risk aversion," analysts at Singapore-based TD Securities wrote in a note.

"We think the latest development reiterates our view that trade will remain a lingering headwind for the economy and business investment in particular."

Asian shares sold off broadly with every single market posting steep losses.

Japan's Nikkei tumbled almost 2% to the lowest since early June, while Australian shares slipped about 1% to spend their fourth straight session in the red. South Korea's Kospi tumbled 1.2% to hit the lowest since December 2016.

That left MSCI's broadest index of Asia-Pacific shares outside Japan down 1.7% to 495.68, a level not seen since late January and marking the longest stretch of losses since October 2018.

In China, shares opened lower, with the blue-chip index skidding 1% while Hong Kong's Hang Seng index declined 2.2%.

E-Mini futures for the S&amp;P500 fell 1% in Asian trading.

Oil prices were also pulled down again on demand worries.

The grim mood followed declines on Wall Street on Friday with MSCI's gauge of world stocks posting its largest weekly loss of the year.

The trade war between the world's two largest economies has already disrupted global supply chains and slowed economic growth.

The abrupt escalation capped a critical week for global markets after the US&nbsp;Federal Reserve delivered a widely anticipated interest rate cut and played down expectations of further easing.

However, investors were not buying Fed Chair Jerome Powell's claim that the 25-basis-point rate reduction was a mere "mid-cycle adjustment to policy".

Futures are now pricing in deeper cuts than before last week's Fed meeting. The terminal US rate is now seen at 1.22%, 93 basis points below the current effective rate.

TD is forecasting five more cuts from the Fed, amounting to 125 basis points of easing, over next year.

Expectations of further monetary policy easing sent the dollar skidding. It slipped to a seven-month trough of 105.78 against the Japanese yen while the dollar index against a basket of six major rivals inched lower to 97.91 after two straight days of losses.

The Australian dollar, a liquid proxy for emerging market assets, slipped to a fresh seven-month trough at $0.6748 after losing 1.6% last week.

The yen and the Swiss franc were boosted by safe-haven demand from the escalating trade tensions. Trump is also eyeing tariffs on the European Union but is yet to make any formal announcements.

The euro held firm after two days of gains against the dollar at $1.1119.

Sterling hovered near 2017 lows at $1.2159, pressured by concerns about Britain exiting the European Union without a deal in place. The pound has been whiplashed since late last month when Boris Johnson, a figurehead for the "leave" campaign in the 2016 Brexit referendum, became the country's prime minister.

Safe-haven assets have been in vogue with yields on benchmark 10-year Treasury notes at 1.7890%, their lowest since Trump's election in November 2016, from 1.8550% on Friday.

German 10-year government bond yields on Friday dropped to an all-time low of -0.502% and the country's entire government bond yield curve turning negative for the first time ever.

Spot gold firmed to $1,451.61, within striking distance of a recent high of $1,452.60.

Oil extended losses with US crude off 26 cents at 55.40 and Brent down 35 cents at $61.54.

Asian shares slid to 6-1/2-month lows on Monday and the yuan plunged as a rapid escalation in the Sino-US trade war drove nervous investors to safe-havens such as the yen, bonds and gold.

Asian shares slid to 6-1/2-month lows on Monday and the yuan plunged as a rapid escalation in the Sino-US trade war drove nervous investors to safe-havens such as the yen, bonds and gold. US President Donald Trump abruptly decided on Thursday to slap 10% tariffs on $300 billion in Chinese imports, stunning markets and ending a month-long trade truce. China vowed on Friday to fight back. In response, China's yuan weakened beyond the key 7-per-dollar threshold in a move that threatens to lead to massive capital outflows. "We could see a more prolonged period of risk aversion," analysts at Singapore-based TD Securities wrote in a note. "We think the latest development reiterates our view that trade will remain a lingering headwind for the economy and business investment in particular." Asian shares sold off broadly with every single market posting steep losses. Japan's Nikkei tumbled almost 2% to the lowest since early June, while Australian shares slipped about 1% to spend their fourth straight session in the red. South Korea's Kospi tumbled 1.2% to hit the lowest since December 2016. That left MSCI's broadest index of Asia-Pacific shares outside Japan down 1.7% to 495.68, a level not seen since late January and marking the longest stretch of losses since October 2018. In China, shares opened lower, with the blue-chip index skidding 1% while Hong Kong's Hang Seng index declined 2.2%. E-Mini futures for the S&P500 fell 1% in Asian trading. Oil prices were also pulled down again on demand worries. The grim mood followed declines on Wall Street on Friday with MSCI's gauge of world stocks posting its largest weekly loss of the year. The trade war between the world's two largest economies has already disrupted global supply chains and slowed economic growth. The abrupt escalation capped a critical week for global markets after the US Federal Reserve delivered a widely anticipated interest rate cut and played down expectations of further easing. However, investors were not buying Fed Chair Jerome Powell's claim that the 25-basis-point rate reduction was a mere "mid-cycle adjustment to policy". Futures are now pricing in deeper cuts than before last week's Fed meeting. The terminal US rate is now seen at 1.22%, 93 basis points below the current effective rate. TD is forecasting five more cuts from the Fed, amounting to 125 basis points of easing, over next year. Expectations of further monetary policy easing sent the dollar skidding. It slipped to a seven-month trough of 105.78 against the Japanese yen while the dollar index against a basket of six major rivals inched lower to 97.91 after two straight days of losses. The Australian dollar, a liquid proxy for emerging market assets, slipped to a fresh seven-month trough at $0.6748 after losing 1.6% last week. The yen and the Swiss franc were boosted by safe-haven demand from the escalating trade tensions. Trump is also eyeing tariffs on the European Union but is yet to make any formal announcements. The euro held firm after two days of gains against the dollar at $1.1119. Sterling hovered near 2017 lows at $1.2159, pressured by concerns about Britain exiting the European Union without a deal in place. The pound has been whiplashed since late last month when Boris Johnson, a figurehead for the "leave" campaign in the 2016 Brexit referendum, became the country's prime minister. Safe-haven assets have been in vogue with yields on benchmark 10-year Treasury notes at 1.7890%, their lowest since Trump's election in November 2016, from 1.8550% on Friday. German 10-year government bond yields on Friday dropped to an all-time low of -0.502% and the country's entire government bond yield curve turning negative for the first time ever. Spot gold firmed to $1,451.61, within striking distance of a recent high of $1,452.60. Oil extended losses with US crude off 26 cents at 55.40 and Brent down 35 cents at $61.54.

Asian stocks skid to 6-1/2-month lows as US-China trade row shakes markets

HSBC on Monday announced its Group Chief Executive John Flint had stepped down after less than two years on the job, as the banking giant revealed decent first-half profits but warned it faced "challenging" geopolitics.

The surprise announcement came shortly before an earlier than expected results release in which the London-headquartered behemoth reported pre-tax profit was up 15.8 per cent at $12.4 billion for the first half of the year.

Flint, who has spent three decades at HSBC, was keen to lower costs with the Asia-focused bank facing the double uncertainties caused by both the US-China trade war and Britain's impending departure from the European Union.

HSBC gave no specific reason for Flint's sudden departure, but said it needed a change at the top as it warned investors of difficult times ahead.&nbsp;

"In the increasingly complex and challenging global environment in which the bank operates, the board believes a change is needed to meet the challenges that we face and to capture the very significant opportunities before us," Group Chairman Mark Tucker said.

Flint, 51, said: "I have agreed with the board that today's good interim results indicate that this is the right time for change, both for me and the bank."

HSBC said it would look both internally and externally for a new leader and that Noel Quinn, head of the commercial banking division, will be interim CEO in the meantime.

"Although not carrying out his day-to-day duties after today, he (Flint) remains available to assist HSBC with the transition," the bank said in a statement.&nbsp;

The move comes just weeks after its US chief Patrick Burke retired following a reorganisation of its North American business.

Flint's departure came despite the good results announced on Tuesday with pre-tax profit of $6.2 billion for the second quarter.&nbsp;

The bank also said it would soon begin a buyback of up to $1 billion, according to a statement on the Hong Kong Stock Exchange.

But there are headwinds on the horizon.&nbsp;

In Asia -- which is acutely vulnerable to the ongoing trade war between Washington and Beijing -- the bank said the outlook "is less certain". 
Brexit was also weighing on the bank's future.&nbsp;

"The outlook has changed. Interest rates in the US dollar bloc are now expected to fall rather than rise, and geopolitical issues could impact a significant number of our major markets," the bank said.&nbsp;

"In the near term, the nature and impact of the UK's departure from the European Union remain highly uncertain," it added.

"We are managing operating expenses and investment spending in line with the increased risks to revenue," the Asia-focused firm said.

HSBC on Monday announced its Group Chief Executive John Flint had stepped down after less than two years on the job, as the banking giant revealed decent first-half profits but warned it faced "challenging" geopolitics.

HSBC on Monday announced its Group Chief Executive John Flint had stepped down after less than two years on the job, as the banking giant revealed decent first-half profits but warned it faced "challenging" geopolitics. The surprise announcement came shortly before an earlier than expected results release in which the London-headquartered behemoth reported pre-tax profit was up 15.8 per cent at $12.4 billion for the first half of the year. Flint, who has spent three decades at HSBC, was keen to lower costs with the Asia-focused bank facing the double uncertainties caused by both the US-China trade war and Britain's impending departure from the European Union. HSBC gave no specific reason for Flint's sudden departure, but said it needed a change at the top as it warned investors of difficult times ahead. "In the increasingly complex and challenging global environment in which the bank operates, the board believes a change is needed to meet the challenges that we face and to capture the very significant opportunities before us," Group Chairman Mark Tucker said. Flint, 51, said: "I have agreed with the board that today's good interim results indicate that this is the right time for change, both for me and the bank." HSBC said it would look both internally and externally for a new leader and that Noel Quinn, head of the commercial banking division, will be interim CEO in the meantime. "Although not carrying out his day-to-day duties after today, he (Flint) remains available to assist HSBC with the transition," the bank said in a statement. The move comes just weeks after its US chief Patrick Burke retired following a reorganisation of its North American business. Flint's departure came despite the good results announced on Tuesday with pre-tax profit of $6.2 billion for the second quarter. The bank also said it would soon begin a buyback of up to $1 billion, according to a statement on the Hong Kong Stock Exchange. But there are headwinds on the horizon. In Asia -- which is acutely vulnerable to the ongoing trade war between Washington and Beijing -- the bank said the outlook "is less certain". Brexit was also weighing on the bank's future. "The outlook has changed. Interest rates in the US dollar bloc are now expected to fall rather than rise, and geopolitical issues could impact a significant number of our major markets," the bank said. "In the near term, the nature and impact of the UK's departure from the European Union remain highly uncertain," it added. "We are managing operating expenses and investment spending in line with the increased risks to revenue," the Asia-focused firm said.

HSBC CEO John Flint resigns as bank faces 'challenging' geopolitics

The "militarisation" of the&nbsp;South&nbsp;China&nbsp;Sea&nbsp;is threatening peace in the contested waterway, the&nbsp;<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/uk-urges-eu-to-reflect-political-reality-on-brexit-240580&amp;sa=U&amp;ved=2ahUKEwivx_-EvuvjAhWlguYKHeKICEkQFjAEegQIBRAC&amp;usg=AOvVaw1PAaakwrM63BR3VlOdjNlx">European Union</a>'s top diplomat said Monday in Hanoi, echoing warnings from the US as pressure mounts against Beijing's ambitions in the region.

China&nbsp;has been accused of deploying warships, arming outposts and ramming fishing vessels in the resource-rich&nbsp;sea, sparking ire from other claimants.

On Monday, the European Union's foreign policy chief Federica Mogherini said the bloc was concerned over "increasing tension" in the area.

"We believe that this tension, this&nbsp;militarisation, is definitely not conducive to a peaceful environment," she added.&nbsp;

Beijing says it has sovereignty over the majority of the&nbsp;sea-based on the so-called nine-dash line it uses to back its claims.

The long-running spat was centre stage at a meeting of Southeast Asian foreign ministers last week, where US Secretary of State Mike Pompeo urged countries to push back against Chinese "coercion" in the&nbsp;sea.

Hanoi has emerged as one of Beijing's most vocal critics in the waterway, a key global shipping route believed to hold vast oil and gas reserves.

Tensions between the communist neighbours have soared after a Chinese geological survey vessel entered waters around the Spratly Islands claimed by Hanoi in early July.

Vietnam has repeatedly called for the ship to leave, while Beijing has refused to confirm the vessel's presence.&nbsp;

It is not clear if the ship remains in Vietnam-claimed waters, and the foreign ministry did not respond to AFP's request for comment.

The US,&nbsp;EU&nbsp;and Australia have all called for freedom of navigation in the&nbsp;South&nbsp;China&nbsp;Sea, which is also contested by Taiwan, the Philippines, Malaysia and Brunei.

The "militarisation" of the South China Sea is threatening peace in the contested waterway, the European Union's top diplomat said Monday in Hanoi, echoing warnings from the US as pressure mounts against Beijing's ambitions in the region.

The "militarisation" of the South China Sea is threatening peace in the contested waterway, the European Union's top diplomat said Monday in Hanoi, echoing warnings from the US as pressure mounts against Beijing's ambitions in the region. China has been accused of deploying warships, arming outposts and ramming fishing vessels in the resource-rich sea, sparking ire from other claimants. On Monday, the European Union's foreign policy chief Federica Mogherini said the bloc was concerned over "increasing tension" in the area. "We believe that this tension, this militarisation, is definitely not conducive to a peaceful environment," she added. Beijing says it has sovereignty over the majority of the sea-based on the so-called nine-dash line it uses to back its claims. The long-running spat was centre stage at a meeting of Southeast Asian foreign ministers last week, where US Secretary of State Mike Pompeo urged countries to push back against Chinese "coercion" in the sea. Hanoi has emerged as one of Beijing's most vocal critics in the waterway, a key global shipping route believed to hold vast oil and gas reserves. Tensions between the communist neighbours have soared after a Chinese geological survey vessel entered waters around the Spratly Islands claimed by Hanoi in early July. Vietnam has repeatedly called for the ship to leave, while Beijing has refused to confirm the vessel's presence. It is not clear if the ship remains in Vietnam-claimed waters, and the foreign ministry did not respond to AFP's request for comment. The US, EU and Australia have all called for freedom of navigation in the South China Sea, which is also contested by Taiwan, the Philippines, Malaysia and Brunei.

European Union criticises 'militarisation' of South China Sea

<a href="https://www.wionews.com/world/brexit-is-a-massive-economic-opportunity-uk-prime-minister-johnson-238855">Prime Minister Boris Johnson</a> promised new funds for Britain's state-run national health service (NHS) on Sunday, seeking to fulfil one of the promises of his 2016 Brexit campaign.

Johnson pledged an extra £1.8 billion (2.0 billion euros, $2.2 billion) to immediately help frontline services, in a move that further fuelled speculation he is preparing for a snap election.

During the referendum on Britain's<a href="https://www.wionews.com/world/uk-plays-brexit-hardball-with-stubborn-european-union-pound-falls-to-a-two-year-low-239235"> European Union </a>membership, Johnson's "Vote Leave" campaign promised to divert £350 million a week sent to Brussels to the NHS after Brexit.

But the claim was misleading Britain's gross contribution to the EU budget is £350 million but it gets an £85 million a week rebate.

In an article in the Sunday Times, Johnson paid tribute to NHS staff but noted "the pressures, the delays, the cancellations and the obvious need to get more funding to the front line".

"Which is why I am so determined to deliver now on the promises of that 2016 referendum campaign: not just to honour the will of the people, but to increase the cash available for this amazing national institution," he wrote.

However, the main opposition Labour party questioned whether the money would ever be delivered and said that even if it was, it would not make up for a decade of spending cuts.

The Nuffield Trust health think tank said the NHS has a £6 billion maintenance backlog and the new funds were only a "fraction" of what was needed to fulfil Johnson's pledge to modernise 20 hospitals.

Critics also argue that spending plans will never be fulfilled if there is a "no-deal" Brexit.

Johnson has vowed to take Britain out of the European Union on October 31, after his predecessor Theresa May was forced to twice delay Brexit amid wrangling over the exit terms.

Parliament has rejected the divorce deal May struck with the EU but many MPs say they will stop Johnson's threat to leave without a deal, fearing the economic disruption.

EU leaders meanwhile say they will not renegotiate May's deal, creating an impasse that many at Westminster believe can only end in a snap election.

Johnson has fuelled this speculation by touring Britain and making a series of domestic policy pledges in his first days in Downing Street. The NHS pledge follows a promise on police funding. 
&nbsp;

Prime Minister Boris Johnson promised new funds for Britain's state-run national health service (NHS) on Sunday, seeking to fulfil one of the promises of his 2016 Brexit campaign.

Prime Minister Boris Johnson promised new funds for Britain's state-run national health service (NHS) on Sunday, seeking to fulfil one of the promises of his 2016 Brexit campaign. Johnson pledged an extra £1.8 billion (2.0 billion euros, $2.2 billion) to immediately help frontline services, in a move that further fuelled speculation he is preparing for a snap election. During the referendum on Britain's European Union membership, Johnson's "Vote Leave" campaign promised to divert £350 million a week sent to Brussels to the NHS after Brexit. But the claim was misleading Britain's gross contribution to the EU budget is £350 million but it gets an £85 million a week rebate. In an article in the Sunday Times, Johnson paid tribute to NHS staff but noted "the pressures, the delays, the cancellations and the obvious need to get more funding to the front line". "Which is why I am so determined to deliver now on the promises of that 2016 referendum campaign: not just to honour the will of the people, but to increase the cash available for this amazing national institution," he wrote. However, the main opposition Labour party questioned whether the money would ever be delivered and said that even if it was, it would not make up for a decade of spending cuts. The Nuffield Trust health think tank said the NHS has a £6 billion maintenance backlog and the new funds were only a "fraction" of what was needed to fulfil Johnson's pledge to modernise 20 hospitals. Critics also argue that spending plans will never be fulfilled if there is a "no-deal" Brexit. Johnson has vowed to take Britain out of the European Union on October 31, after his predecessor Theresa May was forced to twice delay Brexit amid wrangling over the exit terms. Parliament has rejected the divorce deal May struck with the EU but many MPs say they will stop Johnson's threat to leave without a deal, fearing the economic disruption. EU leaders meanwhile say they will not renegotiate May's deal, creating an impasse that many at Westminster believe can only end in a snap election. Johnson has fuelled this speculation by touring Britain and making a series of domestic policy pledges in his first days in Downing Street. The NHS pledge follows a promise on police funding.

UK's Boris Johnson offers new health funds to meet Brexit promise

British Prime Minister Boris Johnson's government has urged EU leaders again to drop their opposition to renegotiating the terms of Brexit, claiming <a href="https://www.wionews.com/world/britains-johnson-suffers-first-electoral-setback-as-pm-240346">recent European elections </a>required a change of approach.

Johnson, who took office late last month, says he wants to leave the European Union with a deal but insists the current terms are unacceptable and if necessary Britain will exit on October 31 with no agreement at all.

In an article in the Mail on Sunday newspaper, Johnson's Brexit Secretary Steve Barclay said European Parliament elections in May had changed the political dynamic and urged EU leaders to amend the mandate of their chief negotiator, Michel Barnier.

"The political realities have changed since Mr Barnier's instructions were set," Barclay wrote.

"Since the last mandate was agreed, 61 percent of all the EU states' MEPs have changed. Such a fundamental shift illustrates the need for a change of approach.

"Mr Barnier needs to urge EU leaders to consider this if they too want an agreement, to enable him to negotiate in a way that finds common ground with the UK.&nbsp;

"Otherwise, no deal is coming down the tracks."

Former prime minister Theresa May quit after delaying Brexit twice while she tried unsuccessfully to get the divorce terms she struck with Brussels through the British parliament.

But the EU has refused to reopen the deal, the result of 17 months of tough negotiations.

Johnson has ramped up preparations for leaving without any agreement.

However, some British lawmakers have vowed to stop him, fearing the economic consequences of severing ties with Britain's closest trading partner overnight.

British Prime Minister Boris Johnson's government has urged EU leaders again to drop their opposition to renegotiating the terms of Brexit, claiming recent European elections required a change of approach.

British Prime Minister Boris Johnson's government has urged EU leaders again to drop their opposition to renegotiating the terms of Brexit, claiming recent European elections required a change of approach. Johnson, who took office late last month, says he wants to leave the European Union with a deal but insists the current terms are unacceptable and if necessary Britain will exit on October 31 with no agreement at all. In an article in the Mail on Sunday newspaper, Johnson's Brexit Secretary Steve Barclay said European Parliament elections in May had changed the political dynamic and urged EU leaders to amend the mandate of their chief negotiator, Michel Barnier. "The political realities have changed since Mr Barnier's instructions were set," Barclay wrote. "Since the last mandate was agreed, 61 percent of all the EU states' MEPs have changed. Such a fundamental shift illustrates the need for a change of approach. "Mr Barnier needs to urge EU leaders to consider this if they too want an agreement, to enable him to negotiate in a way that finds common ground with the UK. "Otherwise, no deal is coming down the tracks." Former prime minister Theresa May quit after delaying Brexit twice while she tried unsuccessfully to get the divorce terms she struck with Brussels through the British parliament. But the EU has refused to reopen the deal, the result of 17 months of tough negotiations. Johnson has ramped up preparations for leaving without any agreement. However, some British lawmakers have vowed to stop him, fearing the economic consequences of severing ties with Britain's closest trading partner overnight.

UK urges European Union to reflect 'political reality' on Brexit

Tariff wars, duties imposed by Donald Trump and US trading partners

Bank of Finland chief Olli Rehn has withdrawn from the race to be the <a href="https://www.wionews.com/world/european-union-race-for-international-monetary-fund-chief-down-to-three-as-spains-nadia-calvino-quits-240242">EU's pick for leading the IMF</a>, a French finance ministry official said Friday, leaving just two candidates in contention.

Rehn's departure from the vote of EU ministers called by French Finance Minister Bruno Le Maire leaves just former Dutch finance minister Jeroen Dijsselbloem and Bulgarian Kristalina Georgieva, the current number two at the World Bank, left in the race.

The second round of voting is now underway to choose between Dijsselbloem and Georgieva, the French ministry official said.

The choice of the candidate to lead the International Monetary Fund (IMF), who by convention is a European, had exposed deep divisions within the EU and forced Le Maire to call a vote.

Southern countries chafe at the prospect of seeing Dijsselbloem in the post because of his tough stance against nations like Greece when he headed the group of EU finance ministers.

Writing on his Twitter account, Rehn confirmed he was pulling out to find a unity candidate for the "exceptionally meaningful and motivating job."

"I withdraw my name from the ballot so that we can achieve a broad-based consensus for the European candidate and world-wide support," he wrote.

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EU is about to vote on Europe’s candidate for IMF managing director. It is an exceptionally meaningful and motivating job. However, at this stage I withdraw my name from the ballot, so that we can achieve a broad-based consensus for the European candidate, and world-wide support.
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Bank of Finland chief Olli Rehn has withdrawn from the race to be the EU's pick for leading the IMF, a French finance ministry official said Friday, leaving just two candidates in contention.

Bank of Finland chief Olli Rehn has withdrawn from the race to be the EU's pick for leading the IMF, a French finance ministry official said Friday, leaving just two candidates in contention. Rehn's departure from the vote of EU ministers called by French Finance Minister Bruno Le Maire leaves just former Dutch finance minister Jeroen Dijsselbloem and Bulgarian Kristalina Georgieva, the current number two at the World Bank, left in the race. The second round of voting is now underway to choose between Dijsselbloem and Georgieva, the French ministry official said. The choice of the candidate to lead the International Monetary Fund (IMF), who by convention is a European, had exposed deep divisions within the EU and forced Le Maire to call a vote. Southern countries chafe at the prospect of seeing Dijsselbloem in the post because of his tough stance against nations like Greece when he headed the group of EU finance ministers. Writing on his Twitter account, Rehn confirmed he was pulling out to find a unity candidate for the "exceptionally meaningful and motivating job." "I withdraw my name from the ballot so that we can achieve a broad-based consensus for the European candidate and world-wide support," he wrote. EU is about to vote on Europe’s candidate for IMF managing director. It is an exceptionally meaningful and motivating job. However, at this stage I withdraw my name from the ballot, so that we can achieve a broad-based consensus for the European candidate, and world-wide support. — Olli Rehn (@ollirehn) August 2, 2019 ×

European Union's International Monetary Fund race down to two as Finland's Rehn withdraws

<a href="https://www.wionews.com/opinions/heres-how-boris-johnson-can-unite-a-country-mired-in-a-brexit-identity-crisis-239628">Britain's Boris Johnson lost his first major test</a> as prime minister on Friday when his candidate lost to a pro-EU rival in a by-election that could narrow his parliamentary majority to one.

Thursday's vote in the Welsh sheep farming community of Brecon and Radnorshire offered a stark choice between a Brexit-backing candidate from Johnson's Conservative party and a Liberal Democrat who wants to preserve Britain's four-decade stay in the EU.

Johnson dropped by the region on Tuesday to help out Chris Davies -- a Conservative MP who was forced to step down after becoming embroiled in an expanses scandal.

Davies protested his innocense and contested the seat again but the Liberal Democrats' Jane Dodds received 13,826 votes to Davies' 12,401 after having two smaller pro-EU parties back her bid.

The result extends a recent revival for the Liberal Democrats at the major parties' expense.

Its firm stand against Britain's split from the European Union saw it come a surprise second behind populist eurosceptic Nigel Farage's Brexit Party in the European Parliament elections in May.

Farage's candidate ate into the Conservative's support by picking up 3,331 votes. The main opposition Labour Party -- once a dominant force in Wales -- came in a distant fourth with just 1,680.

"My very first act as MP when I arrive in Westminster will be to find Boris Johnson wherever he is hiding and tell him loud and clear -- stop playing with the futures of our communities and rule out no-deal Brexit," a visibly relieved Dodds said.

Test of strength

The election was viewed as a test of strength for the "Boris bounce" that has helped the Conservatives regain a slim lead in some national opinion polls.

Control of Brecon and Radnorshire has swung between the Liberal Democrats and the Conservatives since the 1990s. It voted 52 per cent to leave the European Union in the 2016 vote -- mirroring the UK-wide result.

But the controversies surrounding Davies turned this into an unusual contest whose outcome might not reflect either Johnson's or Brexit's true level of wider support.

The defeat still leaves Johnson in danger of being unable to control parliament in the crucial runup to Britain's scheduled departure from the EU on October 31.

MPs are already plotting ways to thwart his threat to take Britain out by the twice-delayed deadline without a divorce deal.

Johnson also needs to be able to pass legislation to make the potentially chaotic "no-deal" outcome as smooth as possible -- and to pass any compromise he might suddenly strike with Brussels.

The 650-seat chamber is fractured and includes MPs who at times switch sides or abstain at pivotal moments.

This leaves Johnson dependent on the whims of just a few legislators at one of the most crucial points in British history since World War II.

Fears of a no-deal divorce have already pushed the pound to its lowest levels since Britons first voted to leave in June 2016.

The Bank of England warned Thursday that a messy split would drop the pound even further and slow growth this year and next to 1.3 per cent from around 1.5 per cent.

Brexit PR blitz

The pound's slump reflects broader business jitters both in Britain and its main trading partners in Europe.

Johnson's government is trying to boost its negotiating hand with Brussels by showing that the country is ready for any outcome.

Finance minister Sajid Javid announced Wednesday an extra £2.1 billion&nbsp;to prepare for leaving without an agreement.

Politico reported that part of the money would be spent on a Europe-wide media blitz that included adverts in major continental newspapers aimed at convincing EU governments about the strength of Britain's no-deal resolve.

Some analysts questioned how much of the funding was new and whether it would actually be used in the 90 days remaining before Brexit.

"We have to be prepared because we will be leaving on October 31," Javid said on Thursday.

The main opposition Labour Party's finance spokesman John McDonnell branded the funding an "appalling waste of taxpayers' cash".

The Labour MP who heads parliament's spending watchdog also pledged to investigate how the money was being spent.

Britain's Boris Johnson lost his first major test as prime minister on Friday when his candidate lost to a pro-EU rival in a by-election that could narrow his parliamentary majority to one.

Britain's Boris Johnson lost his first major test as prime minister on Friday when his candidate lost to a pro-EU rival in a by-election that could narrow his parliamentary majority to one. Thursday's vote in the Welsh sheep farming community of Brecon and Radnorshire offered a stark choice between a Brexit-backing candidate from Johnson's Conservative party and a Liberal Democrat who wants to preserve Britain's four-decade stay in the EU. Johnson dropped by the region on Tuesday to help out Chris Davies -- a Conservative MP who was forced to step down after becoming embroiled in an expanses scandal. Davies protested his innocense and contested the seat again but the Liberal Democrats' Jane Dodds received 13,826 votes to Davies' 12,401 after having two smaller pro-EU parties back her bid. The result extends a recent revival for the Liberal Democrats at the major parties' expense. Its firm stand against Britain's split from the European Union saw it come a surprise second behind populist eurosceptic Nigel Farage's Brexit Party in the European Parliament elections in May. Farage's candidate ate into the Conservative's support by picking up 3,331 votes. The main opposition Labour Party -- once a dominant force in Wales -- came in a distant fourth with just 1,680. "My very first act as MP when I arrive in Westminster will be to find Boris Johnson wherever he is hiding and tell him loud and clear -- stop playing with the futures of our communities and rule out no-deal Brexit," a visibly relieved Dodds said. Test of strength The election was viewed as a test of strength for the "Boris bounce" that has helped the Conservatives regain a slim lead in some national opinion polls. Control of Brecon and Radnorshire has swung between the Liberal Democrats and the Conservatives since the 1990s. It voted 52 per cent to leave the European Union in the 2016 vote -- mirroring the UK-wide result. But the controversies surrounding Davies turned this into an unusual contest whose outcome might not reflect either Johnson's or Brexit's true level of wider support. The defeat still leaves Johnson in danger of being unable to control parliament in the crucial runup to Britain's scheduled departure from the EU on October 31. MPs are already plotting ways to thwart his threat to take Britain out by the twice-delayed deadline without a divorce deal. Johnson also needs to be able to pass legislation to make the potentially chaotic "no-deal" outcome as smooth as possible -- and to pass any compromise he might suddenly strike with Brussels. The 650-seat chamber is fractured and includes MPs who at times switch sides or abstain at pivotal moments. This leaves Johnson dependent on the whims of just a few legislators at one of the most crucial points in British history since World War II. Fears of a no-deal divorce have already pushed the pound to its lowest levels since Britons first voted to leave in June 2016. The Bank of England warned Thursday that a messy split would drop the pound even further and slow growth this year and next to 1.3 per cent from around 1.5 per cent. Brexit PR blitz The pound's slump reflects broader business jitters both in Britain and its main trading partners in Europe. Johnson's government is trying to boost its negotiating hand with Brussels by showing that the country is ready for any outcome. Finance minister Sajid Javid announced Wednesday an extra £2.1 billion to prepare for leaving without an agreement. Politico reported that part of the money would be spent on a Europe-wide media blitz that included adverts in major continental newspapers aimed at convincing EU governments about the strength of Britain's no-deal resolve. Some analysts questioned how much of the funding was new and whether it would actually be used in the 90 days remaining before Brexit. "We have to be prepared because we will be leaving on October 31," Javid said on Thursday. The main opposition Labour Party's finance spokesman John McDonnell branded the funding an "appalling waste of taxpayers' cash". The Labour MP who heads parliament's spending watchdog also pledged to investigate how the money was being spent.

British Prime Minister Boris Johnson suffers first leadership blow in by-election

European Union governments will try on Friday to choose a candidate to lead the <a href="https://www.wionews.com/world/eu-members-yet-to-reach-consensus-on-imf-chief-to-replace-christine-lagarde-239949">International Monetary Fund</a> from a list of three names after two candidates pulled out of the race, but divisions could delay a solution.

The candidates now include Jeroen Dijsselbloem, the Dutch former head of eurozone finance ministers; Olli Rehn, the Finnish central bank governor; and Bulgaria's Kristalina Georgieva, the World Bank chief executive.

Nadia Calvino, the Spanish economy minister, quit the race on Friday after a first round of voting among representatives of the EU's 28 nations. Mario Centeno, the Portuguese chairman of eurozone finance ministers, withdrew on Thursday.

Britain opposed the plan to select a candidate now, saying it was "premature" and did not allow London enough time to propose one of its own, according to a confidential note seen by Reuters.

Candidates for the head of the Washington-based IMF can be fielded until September&nbsp;6. French Finance Minister Bruno Le Maire is leading the process to select a European candidate.

The top job at the world lender has historically been filled by a European, but candidates from elsewhere may gain traction if Europe split.

The<a href="https://www.wionews.com/world/christine-lagarde-resigns-as-international-monetary-fund-chief-starting-race-for-her-successor-236536"> former IMF chief, France's Christine Lagarde</a>, resigned in July after EU leaders chose her to replace Mario Draghi as European Central Bank president.

Divisions

Northern European countries prefer Dijsselbloem or Rehn; southern and eastern states are seen pushing for Georgieva, one European official said.

Since an informal compromise was impossible, France decided to push for a vote. A candidate who obtains 55% of the votes of the 28 EU states, representing at least 65% of its population, will win.

The IMF chief should have a proven understanding of how the fund works, a commitment to multilateral organisations and be an effective communicator, the IMF board said. All three European candidates qualify.

Dijsselbloem has steered the eurozone out of the debt crisis, orchestrating with the IMF the bailout of Greece, Cyprus and Spanish banks. But he is opposed by high-debt EU countries for the austerity measures attached to the rescues.

Georgieva, 65, has had a long career at the World Bank, the IMF's twin organisation, but her candidacy would force a change in IMF rules that require the managing director to be less than 65 years old.

Rehn has held top economic jobs at the European Commission and now at the Finnish central bank.

New rounds of voting could be necessary to choose the European candidate.

"It is a mathematical possibility that no-one will make it today," one official involved in the process said. "But I think at the end of the day after a lot of arm-twistings they will come up with one."

Centeno said on Thursday he was pulling out of the race "in this stage of the process", adding he would be available if needed for a compromise solution.

Britain did not field a candidate because it could not come up with a name on time, London said in a note sent to France. A new British government led by Boris Johnson was formed only last week.

European Union governments will try on Friday to choose a candidate to lead the International Monetary Fund from a list of three names after two candidates pulled out of the race, but divisions could delay a solution.

European Union governments will try on Friday to choose a candidate to lead the International Monetary Fund from a list of three names after two candidates pulled out of the race, but divisions could delay a solution. The candidates now include Jeroen Dijsselbloem, the Dutch former head of eurozone finance ministers; Olli Rehn, the Finnish central bank governor; and Bulgaria's Kristalina Georgieva, the World Bank chief executive. Nadia Calvino, the Spanish economy minister, quit the race on Friday after a first round of voting among representatives of the EU's 28 nations. Mario Centeno, the Portuguese chairman of eurozone finance ministers, withdrew on Thursday. Britain opposed the plan to select a candidate now, saying it was "premature" and did not allow London enough time to propose one of its own, according to a confidential note seen by Reuters. Candidates for the head of the Washington-based IMF can be fielded until September 6. French Finance Minister Bruno Le Maire is leading the process to select a European candidate. The top job at the world lender has historically been filled by a European, but candidates from elsewhere may gain traction if Europe split. The former IMF chief, France's Christine Lagarde, resigned in July after EU leaders chose her to replace Mario Draghi as European Central Bank president. Divisions Northern European countries prefer Dijsselbloem or Rehn; southern and eastern states are seen pushing for Georgieva, one European official said. Since an informal compromise was impossible, France decided to push for a vote. A candidate who obtains 55% of the votes of the 28 EU states, representing at least 65% of its population, will win. The IMF chief should have a proven understanding of how the fund works, a commitment to multilateral organisations and be an effective communicator, the IMF board said. All three European candidates qualify. Dijsselbloem has steered the eurozone out of the debt crisis, orchestrating with the IMF the bailout of Greece, Cyprus and Spanish banks. But he is opposed by high-debt EU countries for the austerity measures attached to the rescues. Georgieva, 65, has had a long career at the World Bank, the IMF's twin organisation, but her candidacy would force a change in IMF rules that require the managing director to be less than 65 years old. Rehn has held top economic jobs at the European Commission and now at the Finnish central bank. New rounds of voting could be necessary to choose the European candidate. "It is a mathematical possibility that no-one will make it today," one official involved in the process said. "But I think at the end of the day after a lot of arm-twistings they will come up with one." Centeno said on Thursday he was pulling out of the race "in this stage of the process", adding he would be available if needed for a compromise solution. Britain did not field a candidate because it could not come up with a name on time, London said in a note sent to France. A new British government led by Boris Johnson was formed only last week.

European Union race for International Monetary Fund chief down to three as Spain's Nadia Calvino quits

The Bank of England cut its growth forecasts on Thursday in the face of increased Brexit worries and a slowing global economy but gave no indication it was considering lowering interest rates like other central banks.

A day after the <a href="https://www.wionews.com/business-economy/nasdaq-ends-at-record-high-dollar-falls-as-us-fed-signals-possible-rate-cut-234814">US Federal Reserve</a> reduced rates for the first time since the global financial crisis, the BoE said it still expected to raise borrowing costs gradually though this now hinged on a global pick-up as well as a "smooth" Brexit.&nbsp;

The BoE's Monetary Policy Committee (MPC) voted 9-0 to keep rates unchanged at 0.75 per cent, as expected in a Reuters poll of economists and said rates could move either way, whatever form Brexit takes.

With new Prime Minister Boris Johnson committed to taking Britain out of the <a href="https://www.wionews.com/world/uk-plays-brexit-hardball-with-stubborn-european-union-pound-falls-to-a-two-year-low-239235">European Union</a> on Oct. 31 regardless of whether he can secure a transition deal markets see increased risks of a disorderly, no-deal Brexit.

The BoE said this had led to "a marked depreciation of the sterling exchange rate" which is near a three-year low against a basket of other major currencies and that as of mid-July, business uncertainty about Brexit had become "more entrenched".

"Underlying growth appears to have slowed since 2018 to a rate below potential, reflecting both the impact of intensifying Brexit-related uncertainties on business investment and weaker global growth on net trade," the BoE said.

There was a little immediate market reaction to the statement.

"All eyes will be on the MPC's September meeting. If a disorderly exit from the EU is on the cards, the Bank must not shy away from lowering interest rates in advance to support businesses and households through the turbulence," the Institute of Directors' chief economist, Tej Parikh, said.

The BoE's forecasts assume Britain avoids a Brexit shock, but still foresee a growth of 1.3 per cent for 2019 and 2020, down from 1.5 per cent and 1.6 per cent respectively in its last forecasts in May.

This leaves British economic growth roughly in line with that of the eurozone, which Britain used to regularly outperform before June 2016's referendum decision to leave the EU.

The forecasts also showed a relatively high 30 per cent chance of negative year-on-year growth in the first three months of next year. A recession is typically defined in Europe as two consecutive quarters of negative quarter-on-quarter growth.

Rate cut bets

The weaker growth outlook comes despite the implicit stimulus from the expectations in markets of a rate cut that the BoE mechanically factors into the forecasts.

Before Thursday's announcement, markets were pricing in an almost 90 per cent chance that the BoE will cut rates by 25 basis points before Governor Mark Carney steps down at the end of January.

In large part, this reflects the possibility of a significant loosening of BoE policy if there is a no-deal Brexit, to which economists polled by Reuters on average gave a 30 per cent probability.

The European Central Bank is expected to cut rates in September.

Carney will say more about the BoE's thinking in a news conference at 1130 GMT.

The updated BoE forecasts show the central bank expects inflation currently on target at 2 per cent to exceed its target in two and three years, and by a greater margin than it predicted in May.

The BoE said growth and inflation would both probably be slower in the case of a smooth Brexit than its forecasts show, due to a likely snap-back in sterling and market interest rate expectations.

Taking this into account, inflation in three years would not necessarily exceed the BoE's target, but the BoE still foresaw the domestic economy overheating, requiring higher interest rates.

The Bank of England cut its growth forecasts on Thursday in the face of increased Brexit worries and a slowing global economy but gave no indication it was considering lowering interest rates like other central banks.

The Bank of England cut its growth forecasts on Thursday in the face of increased Brexit worries and a slowing global economy but gave no indication it was considering lowering interest rates like other central banks. A day after the US Federal Reserve reduced rates for the first time since the global financial crisis, the BoE said it still expected to raise borrowing costs gradually though this now hinged on a global pick-up as well as a "smooth" Brexit. The BoE's Monetary Policy Committee (MPC) voted 9-0 to keep rates unchanged at 0.75 per cent, as expected in a Reuters poll of economists and said rates could move either way, whatever form Brexit takes. With new Prime Minister Boris Johnson committed to taking Britain out of the European Union on Oct. 31 regardless of whether he can secure a transition deal markets see increased risks of a disorderly, no-deal Brexit. The BoE said this had led to "a marked depreciation of the sterling exchange rate" which is near a three-year low against a basket of other major currencies and that as of mid-July, business uncertainty about Brexit had become "more entrenched". "Underlying growth appears to have slowed since 2018 to a rate below potential, reflecting both the impact of intensifying Brexit-related uncertainties on business investment and weaker global growth on net trade," the BoE said. There was a little immediate market reaction to the statement. "All eyes will be on the MPC's September meeting. If a disorderly exit from the EU is on the cards, the Bank must not shy away from lowering interest rates in advance to support businesses and households through the turbulence," the Institute of Directors' chief economist, Tej Parikh, said. The BoE's forecasts assume Britain avoids a Brexit shock, but still foresee a growth of 1.3 per cent for 2019 and 2020, down from 1.5 per cent and 1.6 per cent respectively in its last forecasts in May. This leaves British economic growth roughly in line with that of the eurozone, which Britain used to regularly outperform before June 2016's referendum decision to leave the EU. The forecasts also showed a relatively high 30 per cent chance of negative year-on-year growth in the first three months of next year. A recession is typically defined in Europe as two consecutive quarters of negative quarter-on-quarter growth. Rate cut bets The weaker growth outlook comes despite the implicit stimulus from the expectations in markets of a rate cut that the BoE mechanically factors into the forecasts. Before Thursday's announcement, markets were pricing in an almost 90 per cent chance that the BoE will cut rates by 25 basis points before Governor Mark Carney steps down at the end of January. In large part, this reflects the possibility of a significant loosening of BoE policy if there is a no-deal Brexit, to which economists polled by Reuters on average gave a 30 per cent probability. The European Central Bank is expected to cut rates in September. Carney will say more about the BoE's thinking in a news conference at 1130 GMT. The updated BoE forecasts show the central bank expects inflation currently on target at 2 per cent to exceed its target in two and three years, and by a greater margin than it predicted in May. The BoE said growth and inflation would both probably be slower in the case of a smooth Brexit than its forecasts show, due to a likely snap-back in sterling and market interest rate expectations. Taking this into account, inflation in three years would not necessarily exceed the BoE's target, but the BoE still foresaw the domestic economy overheating, requiring higher interest rates.

Bank of England cuts growth forecasts as Brexit and global worries mount

<a href="https://www.wionews.com/world/my-focus-is-restoring-power-sharing-in-northern-ireland-uk-pm-boris-johnson-239728">British Prime Minister Boris Johnson</a> could see his working majority in parliament reduced to just one when voters in a rural Welsh parliamentary seat go to the polls on Thursday in his first electoral test as leader.&nbsp;

The pro-European Union Liberal Democrats are the bookmakers` favourites to win the vote in Brecon and Radnorshire, triggered when Conservative lawmaker Chris Davies was ousted by a petition of constituents after being convicted of falsifying expenses.

Brecon is a region where sheep outnumber people many times over and where the prospect of steep EU tariffs being slapped on its Welsh lamb exports in a no-deal Brexit have prompted widespread concern among farmers.

Johnson`s government already relies on the support of a small Northern Irish party for its wafer-thin majority, with just a handful of rebels in his own Conservatives needed to lose key votes - as his predecessor Theresa May repeatedly found.

May stepped down after her Brexit deal with the EU was rejected three times by parliament.&nbsp;

Johnson has said he plans to renegotiate that deal but that Britain will leave the bloc on October 31 with or without an agreement, potentially setting himself up for a fight with parliament, which has pledged to try to block a no-deal exit.

The Liberal Democrats held the seat of Brecon from 1997 until 2015 when it was won by Davies. In the 2017 snap election he held the seat with a majority of just over 8,000 votes and is running again for the Conservatives on Thursday.

Wales, and the Brecon area, voted to leave the EU at the 2016 Brexit referendum but the pro-Brexit vote is likely to be split between the Conservatives and the Brexit Party, which won the United Kingdom`s European Parliament election in May by riding a wave of anger over the failure to deliver Brexit.&nbsp;

In contrast, in a bid to boost the Liberal Democrats` chances by concentrating the support of `Remain` voters, other pro-EU parties including the Greens and Plaid Cymru are not standing in the election. 
Liberal Democrat candidate Jane Dodds has also sought to focus her campaign on local issues.

"I believe we deserve better from our politicians and the Westminster government. I`ll be a strong voice for everyone who feels let down by those in power," Dodds, who is also the Liberal Democrats` leader in Wales, said on her website.&nbsp;

The Conservatives, who have seen their national poll ratings jump since Johnson took over in what has been dubbed a Boris bounce, will be hoping for a last-minute boost from their new leader, who visited the area on Tuesday.

But the National Farmers` Union (NFU) in Wales has warned Johnson of the potential consequences for lamb producers of leaving the EU without a deal.

"The prime minister must prioritise the protection of this core market through securing continued, unfettered access," its president John Davies said. "The EU is our nearest and largest export market and any interruption to this trade will have catastrophic impacts for Welsh farming."&nbsp;

The result is expected in the early hours of Friday morning.

British Prime Minister Boris Johnson could see his working majority in parliament reduced to just one when voters in a rural Welsh parliamentary seat go to the polls on Thursday in his first electoral test as leader.

British Prime Minister Boris Johnson could see his working majority in parliament reduced to just one when voters in a rural Welsh parliamentary seat go to the polls on Thursday in his first electoral test as leader. The pro-European Union Liberal Democrats are the bookmakers` favourites to win the vote in Brecon and Radnorshire, triggered when Conservative lawmaker Chris Davies was ousted by a petition of constituents after being convicted of falsifying expenses. Brecon is a region where sheep outnumber people many times over and where the prospect of steep EU tariffs being slapped on its Welsh lamb exports in a no-deal Brexit have prompted widespread concern among farmers. Johnson`s government already relies on the support of a small Northern Irish party for its wafer-thin majority, with just a handful of rebels in his own Conservatives needed to lose key votes - as his predecessor Theresa May repeatedly found. May stepped down after her Brexit deal with the EU was rejected three times by parliament. Johnson has said he plans to renegotiate that deal but that Britain will leave the bloc on October 31 with or without an agreement, potentially setting himself up for a fight with parliament, which has pledged to try to block a no-deal exit. The Liberal Democrats held the seat of Brecon from 1997 until 2015 when it was won by Davies. In the 2017 snap election he held the seat with a majority of just over 8,000 votes and is running again for the Conservatives on Thursday. Wales, and the Brecon area, voted to leave the EU at the 2016 Brexit referendum but the pro-Brexit vote is likely to be split between the Conservatives and the Brexit Party, which won the United Kingdom`s European Parliament election in May by riding a wave of anger over the failure to deliver Brexit. In contrast, in a bid to boost the Liberal Democrats` chances by concentrating the support of `Remain` voters, other pro-EU parties including the Greens and Plaid Cymru are not standing in the election. Liberal Democrat candidate Jane Dodds has also sought to focus her campaign on local issues. "I believe we deserve better from our politicians and the Westminster government. I`ll be a strong voice for everyone who feels let down by those in power," Dodds, who is also the Liberal Democrats` leader in Wales, said on her website. The Conservatives, who have seen their national poll ratings jump since Johnson took over in what has been dubbed a Boris bounce, will be hoping for a last-minute boost from their new leader, who visited the area on Tuesday. But the National Farmers` Union (NFU) in Wales has warned Johnson of the potential consequences for lamb producers of leaving the EU without a deal. "The prime minister must prioritise the protection of this core market through securing continued, unfettered access," its president John Davies said. "The EU is our nearest and largest export market and any interruption to this trade will have catastrophic impacts for Welsh farming." The result is expected in the early hours of Friday morning.

UK PM Boris Johnson faces first electoral test in vote for Welsh parliamentary seat

EU members have yet to reach a consensus on a candidate to <a href="https://www.wionews.com/world/christine-lagarde-resigns-as-international-monetary-fund-chief-starting-race-for-her-successor-236536">replace Christine Lagarde</a> as head of the International Monetary Fund, missing a July deadline they set themselves to fill the job, the French finance ministry said Thursday.

"At this stage, although some candidates' names gather more support than others, there is not yet a full consensus around one name," the ministry, which is spearheading efforts to find a replacement for France's Lagarde, told reporters in a message.

The post of IMF managing director goes to a European by convention while an American heads the World Bank.&nbsp;

The post became vacant after <a href="https://www.wionews.com/world/lagarde-temporarily-steps-down-as-imf-chief-american-economist-david-lipton-named-interim-leader-232570">Lagarde</a> was tapped by EU leaders to head the European Central Bank.

Several names, including Spain's Finance Minister Nadia Calvino and former Dutch finance minister Jeroen Dijsselbloem and Bank of England governor Mark Carney, have been floated as possible successors.&nbsp;

The name of current ECB chief Mario Draghi had also been bandied about but he said last week he was "not available" for the position.&nbsp;

At 71, he is also too old to hold the post, according to IMF rules, which state that the managing director must be under 65 when appointed.

French Finance Minister Bruno Le Maire, who is leading the talks on finding a candidate, has spoken to "all his colleagues" over the last few days, "in particular with Olaf Scholz", his German counterpart, his office said.

He has organised a conference call with his EU counterparts on Thursday "to update them on the latest developments following his extensive consultations, and to agree on the process to reach a consensus around one name," it added.

Nominally open contest

The IMF says any of the fund's 189 members can nominate a candidate between July 29 and September 6, after which the board will announce its shortlist of up to three names.&nbsp;

But with the US and Europe having the biggest voting blocs in the IMF, it would be difficult for an outside candidate to upset the tradition whereby they divvy up the IMF and World Bank jobs between them.

The convention has nonetheless come under strain in recent years, with developing economies demanding a greater say at the Washington-based institutions.

But when the World Bank job opened up this year there was no competition to the US choice of David Malpass, a former treasury official.

The IMF said last week it planned to select its new leader by October 4, meaning the new boss would be in place for the lender's annual meeting in mid-October.&nbsp;

Last month, the finance ministers of Germany, France, Britain and Italy met on the sidelines of a G7 meeting in Chantilly outside Paris to discuss the issue of Lagarde's replacement.

Sources said the ministers agreed that Le Maire, whose country currently heads the G7, head the discussions among EU members on coming up with a single European candidate.

Five of its 11 leaders have been French nationals and they have been the longest-serving in the institution's 75-year history.

At the Chantilly meeting, US Treasury Secretary Steven Mnuchin emphasised that naming a European to head the IMF was a convention, "not an official policy".&nbsp;

Former French finance minister Lagarde took over in 2011 from compatriot Dominique Strauss-Kahn, who resigned under a cloud after being arrested on charges of sexually assaulting a New York hotel maid.&nbsp;

The criminal charges were later dropped and Strauss-Kahn settled a civil case out of court.

EU members have yet to reach a consensus on a candidate to replace Christine Lagarde as head of the International Monetary Fund, missing a July deadline they set themselves to fill the job, the French finance ministry said Thursday.

EU members have yet to reach a consensus on a candidate to replace Christine Lagarde as head of the International Monetary Fund, missing a July deadline they set themselves to fill the job, the French finance ministry said Thursday. "At this stage, although some candidates' names gather more support than others, there is not yet a full consensus around one name," the ministry, which is spearheading efforts to find a replacement for France's Lagarde, told reporters in a message. The post of IMF managing director goes to a European by convention while an American heads the World Bank. The post became vacant after Lagarde was tapped by EU leaders to head the European Central Bank. Several names, including Spain's Finance Minister Nadia Calvino and former Dutch finance minister Jeroen Dijsselbloem and Bank of England governor Mark Carney, have been floated as possible successors. The name of current ECB chief Mario Draghi had also been bandied about but he said last week he was "not available" for the position. At 71, he is also too old to hold the post, according to IMF rules, which state that the managing director must be under 65 when appointed. French Finance Minister Bruno Le Maire, who is leading the talks on finding a candidate, has spoken to "all his colleagues" over the last few days, "in particular with Olaf Scholz", his German counterpart, his office said. He has organised a conference call with his EU counterparts on Thursday "to update them on the latest developments following his extensive consultations, and to agree on the process to reach a consensus around one name," it added. Nominally open contest The IMF says any of the fund's 189 members can nominate a candidate between July 29 and September 6, after which the board will announce its shortlist of up to three names. But with the US and Europe having the biggest voting blocs in the IMF, it would be difficult for an outside candidate to upset the tradition whereby they divvy up the IMF and World Bank jobs between them. The convention has nonetheless come under strain in recent years, with developing economies demanding a greater say at the Washington-based institutions. But when the World Bank job opened up this year there was no competition to the US choice of David Malpass, a former treasury official. The IMF said last week it planned to select its new leader by October 4, meaning the new boss would be in place for the lender's annual meeting in mid-October. Last month, the finance ministers of Germany, France, Britain and Italy met on the sidelines of a G7 meeting in Chantilly outside Paris to discuss the issue of Lagarde's replacement. Sources said the ministers agreed that Le Maire, whose country currently heads the G7, head the discussions among EU members on coming up with a single European candidate. Five of its 11 leaders have been French nationals and they have been the longest-serving in the institution's 75-year history. At the Chantilly meeting, US Treasury Secretary Steven Mnuchin emphasised that naming a European to head the IMF was a convention, "not an official policy". Former French finance minister Lagarde took over in 2011 from compatriot Dominique Strauss-Kahn, who resigned under a cloud after being arrested on charges of sexually assaulting a New York hotel maid. The criminal charges were later dropped and Strauss-Kahn settled a civil case out of court.

EU members yet to reach consensus on IMF chief to replace Christine Lagarde

The new government led by <a href="https://www.wionews.com/opinions/heres-how-boris-johnson-can-unite-a-country-mired-in-a-brexit-identity-crisis-239628">Prime Minister Boris Johnson</a>, which took power last week, has pledged to leave the trading bloc without an agreement in three months unless the EU agrees to renegotiate the deal agreed by his predecessor Theresa May.

Ministers have warned that one of the most hotly contested elements of the divorce agreement the Irish border backstop will have to be struck out if there is to be a deal, something the EU has repeatedly said it won`t agree to.&nbsp;

In his first major policy announcement, new finance minister Sajid Javid doubled spending on preparations for a no-deal exit this year. The extra money will fund a nationwide advertising campaign, help Britons living abroad, ensure the supply of medicine and improve infrastructure around ports.

"With 92 days until the UK leaves the European Union it’s vital that we intensify our planning to ensure we are ready,” Javid said. "We want to get a good deal that abolishes the anti-democratic backstop. But if we can`t get a good deal, we`ll have to leave without one."

Wrenching the United Kingdom out of the EU without a deal means there would be no formal transition arrangement to cover everything from post-Brexit pet passports to customs arrangements on the Northern Irish border.

Many investors say a no-deal Brexit would send shock waves through the world economy, tip Britain into a recession, roil financial markets and weaken London`s position as the pre-eminent international financial centre.&nbsp;

The finance ministry said among other initiatives, 434 million pounds will be spent to ensure vital supplies of medicines and medical products can be brought into the country, including hiring additional freight capacity, warehousing and stockpiling.

To get people and businesses ready for a no-deal <a href="https://www.wionews.com/world/british-pm-boris-johnsons-top-team-meet-to-plot-brexit-gambit-238368">Brexit</a>, 138 million pounds will be spent on one of the biggest peacetime advertising campaigns.&nbsp;

The finance ministry also said a further 1 billion pounds will be available for government departments and the devolved administrations in Scotland, Wales and Northern Ireland to improve their readiness.

This means the government has in total allocated 6.3 billion pounds to prepare for a no-deal exit, including 4.2 billion pounds of funding for this financial year.&nbsp;

Javid’s predecessor Philip Hammond, who opposed leaving the EU without a divorce deal, was accused by Brexit supporters of failing to spend enough money to get Britain ready for a no-deal Brexit, undermining its negotiating position with Brussels.

The new government led by Prime Minister Boris Johnson, which took power last week, has pledged to leave the trading bloc without an agreement in three months unless the EU agrees to renegotiate the deal agreed by his predecessor Theresa May.

The new government led by Prime Minister Boris Johnson, which took power last week, has pledged to leave the trading bloc without an agreement in three months unless the EU agrees to renegotiate the deal agreed by his predecessor Theresa May. Ministers have warned that one of the most hotly contested elements of the divorce agreement the Irish border backstop will have to be struck out if there is to be a deal, something the EU has repeatedly said it won`t agree to. In his first major policy announcement, new finance minister Sajid Javid doubled spending on preparations for a no-deal exit this year. The extra money will fund a nationwide advertising campaign, help Britons living abroad, ensure the supply of medicine and improve infrastructure around ports. "With 92 days until the UK leaves the European Union it’s vital that we intensify our planning to ensure we are ready,” Javid said. "We want to get a good deal that abolishes the anti-democratic backstop. But if we can`t get a good deal, we`ll have to leave without one." Wrenching the United Kingdom out of the EU without a deal means there would be no formal transition arrangement to cover everything from post-Brexit pet passports to customs arrangements on the Northern Irish border. Many investors say a no-deal Brexit would send shock waves through the world economy, tip Britain into a recession, roil financial markets and weaken London`s position as the pre-eminent international financial centre. The finance ministry said among other initiatives, 434 million pounds will be spent to ensure vital supplies of medicines and medical products can be brought into the country, including hiring additional freight capacity, warehousing and stockpiling. To get people and businesses ready for a no-deal Brexit, 138 million pounds will be spent on one of the biggest peacetime advertising campaigns. The finance ministry also said a further 1 billion pounds will be available for government departments and the devolved administrations in Scotland, Wales and Northern Ireland to improve their readiness. This means the government has in total allocated 6.3 billion pounds to prepare for a no-deal exit, including 4.2 billion pounds of funding for this financial year. Javid’s predecessor Philip Hammond, who opposed leaving the EU without a divorce deal, was accused by Brexit supporters of failing to spend enough money to get Britain ready for a no-deal Brexit, undermining its negotiating position with Brussels.

Britain to spend an extra $2.6 billion on no-deal Brexit planning

The captain of an Iranian <a href="https://www.wionews.com/world/gibraltar-court-extends-detention-of-iran-tanker-for-30-days-britain-237138">tanker seized in Gibraltar</a>, provoking a diplomatic crisis between Tehran and London, has accused Royal Marines of unnecessary "brute force" when detaining the ship, the BBC reported Tuesday.

The supertanker was seized on July 4 by Gibraltar police and British special forces from the United Kingdom off the overseas British territory.

The ship was suspected of carrying oil to war-torn Syria in violation of EU sanctions.

In an interview with the BBC released Tuesday, the Indian captain, who asked to remain anonymous, said Royal Marines boarded the Grace 1 ship and made his unarmed crew kneel on deck at gunpoint.

In a statement, Britain's defence ministry said it "was a standard boarding that was carried out in full compliance with international rules and norms".

In the interview, the captain said that in the early hours of July 4, he was radioed a police request to board his ship and lowered his ladder.

But he said before anyone could board, a military helicopter landed on the ship and Royal Marines came on.

"They didn't care whether I was master...we had 28 unarmed crew. I was in a state of shock, everybody was in a state of shock," he was quoted as saying.

"How do you come on a ship like this with armed forces and such brute force. For what reason?," he asked. The marines could have simply boarded and told him he was under arrest, he added according to the BBC.

In a statement, police in Gibraltar said the military intervened to support them, "applying the minimum use of force maxim".

The Gibraltar government, meanwhile, said it had evidence contradicting the account of the captain, who has already been questioned.

It said it would make a fuller statement at a later stage "setting out why the evidence now points even more clearly to the destination having been Baniyas," a Syrian refinery.

Iran has strongly condemned the seizure of the tanker.

In what London called a "tit-for-tat" move, Iran's Revolutionary Guards impounded a British-flagged tanker in the Strait of Hormuz two weeks later.

The detention of the 330-metre (1,000-feet) Grace 1 comes at a sensitive time in Iran-EU relations. Iran has announced it will no longer respect some limits set on its nuclear programme as per a 2015 deal, in retaliation for US sanctions.

The captain of an Iranian tanker seized in Gibraltar, provoking a diplomatic crisis between Tehran and London, has accused Royal Marines of unnecessary "brute force" when detaining the ship, the BBC reported Tuesday.

The captain of an Iranian tanker seized in Gibraltar, provoking a diplomatic crisis between Tehran and London, has accused Royal Marines of unnecessary "brute force" when detaining the ship, the BBC reported Tuesday. The supertanker was seized on July 4 by Gibraltar police and British special forces from the United Kingdom off the overseas British territory. The ship was suspected of carrying oil to war-torn Syria in violation of EU sanctions. In an interview with the BBC released Tuesday, the Indian captain, who asked to remain anonymous, said Royal Marines boarded the Grace 1 ship and made his unarmed crew kneel on deck at gunpoint. In a statement, Britain's defence ministry said it "was a standard boarding that was carried out in full compliance with international rules and norms". In the interview, the captain said that in the early hours of July 4, he was radioed a police request to board his ship and lowered his ladder. But he said before anyone could board, a military helicopter landed on the ship and Royal Marines came on. "They didn't care whether I was master...we had 28 unarmed crew. I was in a state of shock, everybody was in a state of shock," he was quoted as saying. "How do you come on a ship like this with armed forces and such brute force. For what reason?," he asked. The marines could have simply boarded and told him he was under arrest, he added according to the BBC. In a statement, police in Gibraltar said the military intervened to support them, "applying the minimum use of force maxim". The Gibraltar government, meanwhile, said it had evidence contradicting the account of the captain, who has already been questioned. It said it would make a fuller statement at a later stage "setting out why the evidence now points even more clearly to the destination having been Baniyas," a Syrian refinery. Iran has strongly condemned the seizure of the tanker. In what London called a "tit-for-tat" move, Iran's Revolutionary Guards impounded a British-flagged tanker in the Strait of Hormuz two weeks later. The detention of the 330-metre (1,000-feet) Grace 1 comes at a sensitive time in Iran-EU relations. Iran has announced it will no longer respect some limits set on its nuclear programme as per a 2015 deal, in retaliation for US sanctions.

Captain of Iranian tanker seized in Gibraltar accuses Royal Marines of 'brute force'

Here's how President Abdel Fatah al-Sisi's Egypt hands out justice

Poland has introduced a new law in the country to keep a check on the rising brain drain.

The law aims at scrapping income tax for nearly 2 million young workers and&nbsp;will come into effect this week.

Poles under the age of 26 earning less than 85,528 Polish zloty ($22,547) a year will be exempt from the country's 18 per cent&nbsp;income tax starting August 1.&nbsp;

The country has been experiencing increasing brain drain since the past 15 years after it joined the European Union.

Prime Minister Mateusz Morawiecki claims that the&nbsp;law will bring new opportunities for the young citizens of the country.

&nbsp;

Poland has introduced a new law in the country to keep a check on the rising brain drain. The law aims at scrapping income tax for nearly 2 million young workers and will come into effect this week.

Poland has introduced a new law in the country to keep a check on the rising brain drain. The law aims at scrapping income tax for nearly 2 million young workers and will come into effect this week. Poles under the age of 26 earning less than 85,528 Polish zloty ($22,547) a year will be exempt from the country's 18 per cent income tax starting August 1. The country has been experiencing increasing brain drain since the past 15 years after it joined the European Union. Prime Minister Mateusz Morawiecki claims that the law will bring new opportunities for the young citizens of the country.

Poland scraps income tax for young workers

Britain will never impose physical checks on its border with Ireland, Prime Minister Boris Johnson promised his Irish counterpart on Tuesday, while repeating that current plans for the frontier after Brexit were unacceptable.

The land border between British Northern Ireland and EU member Ireland will become part of the bloc's external frontier once Britain leaves the European Union, and how it is managed is hugely controversial.

In his first phone call with Irish Prime Minister Leo Varadkar since taking office last week, Johnson said he emphasised that "the UK under no circumstances will have checks at the border in Northern Ireland".

But speaking to the media afterwards, he warned that unless Brussels dropped its commitment to the current "backstop" plan to keep open the frontier, Britain would leave the EU without a deal on October 31.

"If they really can't do it then clearly we have to get ready for a no-deal exit," Johnson said on a trip to Wales, adding: "It's up to the EU, this is their call."

Removing checks on the border was considered a key factor in bringing peace to Northern Ireland, after years of violence over British control.

But after Brexit, it is expected to be policed as an external frontier unless new arrangements are found.

The backstop is included in a divorce deal the EU agreed with Johnson's predecessor, Theresa May, which parliament has rejected three times.

In their phone call, Varadkar repeated the EU position that the backstop was "necessary" and that the deal could not be renegotiated, his office said.

He "explained that the EU was united in its view that the withdrawal agreement could not be reopened", it said.

The backstop would keep Britain aligned with EU trade rules to keep the frontier open and free-flowing, but Johnson believes there is an alternative.

"We have all the sorts of technological solutions that are necessary to do it," he said in Wales but added that this should be dealt with after Britain leaves the EU.

Varadkar conceded that alternative arrangements could replace the backstop in the future but "thus far satisfactory options have yet to be identified and demonstrated", his office said.

He invited Johnson to Dublin and the two men agreed to stay in touch, both offices said.

They also discussed the need to restore the devolved government in Northern Ireland, which has been suspended since January 2017 in a dispute between the two main parties that share power.

Britain will never impose physical checks on its border with Ireland, Prime Minister Boris Johnson promised his Irish counterpart on Tuesday, while repeating that current plans for the frontier after Brexit were unacceptable.

Britain will never impose physical checks on its border with Ireland, Prime Minister Boris Johnson promised his Irish counterpart on Tuesday, while repeating that current plans for the frontier after Brexit were unacceptable. The land border between British Northern Ireland and EU member Ireland will become part of the bloc's external frontier once Britain leaves the European Union, and how it is managed is hugely controversial. In his first phone call with Irish Prime Minister Leo Varadkar since taking office last week, Johnson said he emphasised that "the UK under no circumstances will have checks at the border in Northern Ireland". But speaking to the media afterwards, he warned that unless Brussels dropped its commitment to the current "backstop" plan to keep open the frontier, Britain would leave the EU without a deal on October 31. "If they really can't do it then clearly we have to get ready for a no-deal exit," Johnson said on a trip to Wales, adding: "It's up to the EU, this is their call." Removing checks on the border was considered a key factor in bringing peace to Northern Ireland, after years of violence over British control. But after Brexit, it is expected to be policed as an external frontier unless new arrangements are found. The backstop is included in a divorce deal the EU agreed with Johnson's predecessor, Theresa May, which parliament has rejected three times. In their phone call, Varadkar repeated the EU position that the backstop was "necessary" and that the deal could not be renegotiated, his office said. He "explained that the EU was united in its view that the withdrawal agreement could not be reopened", it said. The backstop would keep Britain aligned with EU trade rules to keep the frontier open and free-flowing, but Johnson believes there is an alternative. "We have all the sorts of technological solutions that are necessary to do it," he said in Wales but added that this should be dealt with after Britain leaves the EU. Varadkar conceded that alternative arrangements could replace the backstop in the future but "thus far satisfactory options have yet to be identified and demonstrated", his office said. He invited Johnson to Dublin and the two men agreed to stay in touch, both offices said. They also discussed the need to restore the devolved government in Northern Ireland, which has been suspended since January 2017 in a dispute between the two main parties that share power.

UK's Boris Johnson promises Irish PM Leo Varadkar no physical border checks

Prime Minister Boris Johnson promised on Tuesday to lead Britain out of the European Union on October 31 "no matter what" as <a href="https://www.wionews.com/business-economy/stormy-sterling-sinks-again-stocks-wilt-before-fed-239448">sterling tumbled</a> and Ireland warned that the bloc would not be renegotiating the thrice defeated divorce deal.

The British pound fell on Tuesday as investors bet Johnson's Brexit brinkmanship could trigger a messy divorce that would sow chaos through the world economy and financial markets.

Sterling crashed through trading barriers, falling to an intraday low of $1.2120 in shallower overnight Asian trade, the lowest since March 2017. The pound has lost 3.6 cents since Johnson was named Britain's new prime minister a week ago.

"The prime minister made clear that the UK will be leaving the EU on October 31, no matter what," Johnson's Downing Street office said in a statement about a phone call with Irish Prime Minister Leo Varadkar.

Johnson demanded again that one of the most hotly contested elements of the Brexit divorce agreement - the Irish border backstop - would have to be struck out if there was to be a deal.

"The prime minister made clear that the government will approach any negotiations which take place with determination and energy and in a spirit of friendship, and that his clear preference is to leave the EU with a deal, but it must be one that abolishes the backstop," Downing Street said.

The backstop is a provision in the deal that would require Britain to obey some EU rules if no other way can be found to keep the land border open between British-ruled Northern Ireland and EU member Ireland. Johnson rejects it as "undemocratic".

Ireland said the backstop was necessary because of the positions Britain had taken in earlier talks, and that the EU would not renegotiate the Withdrawal Agreement struck by former Prime Minister Theresa May.

"The Taoiseach explained that the EU was united in its view that the Withdrawal Agreement could not be reopened," the Irish government said.

"Alternative arrangements could replace the backstop in the future... but thus far satisfactory options have yet to be identified and demonstrated," the Irish government said.

Ever since the 2016 EU referendum, the pound has gyrated to the rhetoric of the Brexit divorce: after the result was announced, it had the biggest one-day fall since the era of free-floating exchange rates was introduced in the early 1970s.

Since the 2016 vote, sterling has now lost 28 cents. It was trading at $1.2177 at 1230 GMT. It also fell sharply against the euro and the Japanese yen.

"We see little chance of Brexit fears calming in the near-term, and if anything will likely escalate further as we head closer to the October 31st deadline," said Mohammed Kazmi, a portfolio manager at UBP which has $136 billion of assets under management.

Brexit Crisis

Sterling briefly shot as low as $1.1450 on October 7, 2016, during a so-called 'flash crash' in Asian trading that lasted only for a few minutes. But otherwise, the fall under Johnson has brought it close to the 32-year lows struck in late 2016 and early 2017.

On entering Downing Street on Wednesday, Johnson set up a showdown with the EU by vowing to negotiate a new deal and threatening that, if the bloc refused, he would take Britain out on October 31 without a deal to limit economic dislocation.

Irish government bond yield spreads over Germany hit their widest levels in over a month on Tuesday, as worries grow over the potential impact of a no-deal Brexit on Ireland.

Many investors say a no-deal Brexit would send shock waves through the world economy, tip Britain's economy into a recession, roil financial markets and weaken London's position as the pre-eminent international financial centre.

Supporters of Brexit say that while there would be some short-term difficulties, the disruption of a no-deal Brexit has been overplayed and that in the long-term, the United Kingdom would thrive if it left the European Union.

Johnson was expected to tell Welsh farmers on Tuesday they will get a better deal after Brexit, part of a countrywide tour to win support for his "do or die" pledge to leave the European Union by October 31.

Prime Minister Boris Johnson promised on Tuesday to lead Britain out of the European Union on October 31 "no matter what" as sterling tumbled and Ireland warned that the bloc would not be renegotiating the thrice defeated divorce deal.

Prime Minister Boris Johnson promised on Tuesday to lead Britain out of the European Union on October 31 "no matter what" as sterling tumbled and Ireland warned that the bloc would not be renegotiating the thrice defeated divorce deal. The British pound fell on Tuesday as investors bet Johnson's Brexit brinkmanship could trigger a messy divorce that would sow chaos through the world economy and financial markets. Sterling crashed through trading barriers, falling to an intraday low of $1.2120 in shallower overnight Asian trade, the lowest since March 2017. The pound has lost 3.6 cents since Johnson was named Britain's new prime minister a week ago. "The prime minister made clear that the UK will be leaving the EU on October 31, no matter what," Johnson's Downing Street office said in a statement about a phone call with Irish Prime Minister Leo Varadkar. Johnson demanded again that one of the most hotly contested elements of the Brexit divorce agreement - the Irish border backstop - would have to be struck out if there was to be a deal. "The prime minister made clear that the government will approach any negotiations which take place with determination and energy and in a spirit of friendship, and that his clear preference is to leave the EU with a deal, but it must be one that abolishes the backstop," Downing Street said. The backstop is a provision in the deal that would require Britain to obey some EU rules if no other way can be found to keep the land border open between British-ruled Northern Ireland and EU member Ireland. Johnson rejects it as "undemocratic". Ireland said the backstop was necessary because of the positions Britain had taken in earlier talks, and that the EU would not renegotiate the Withdrawal Agreement struck by former Prime Minister Theresa May. "The Taoiseach explained that the EU was united in its view that the Withdrawal Agreement could not be reopened," the Irish government said. "Alternative arrangements could replace the backstop in the future... but thus far satisfactory options have yet to be identified and demonstrated," the Irish government said. Ever since the 2016 EU referendum, the pound has gyrated to the rhetoric of the Brexit divorce: after the result was announced, it had the biggest one-day fall since the era of free-floating exchange rates was introduced in the early 1970s. Since the 2016 vote, sterling has now lost 28 cents. It was trading at $1.2177 at 1230 GMT. It also fell sharply against the euro and the Japanese yen. "We see little chance of Brexit fears calming in the near-term, and if anything will likely escalate further as we head closer to the October 31st deadline," said Mohammed Kazmi, a portfolio manager at UBP which has $136 billion of assets under management. Brexit Crisis Sterling briefly shot as low as $1.1450 on October 7, 2016, during a so-called 'flash crash' in Asian trading that lasted only for a few minutes. But otherwise, the fall under Johnson has brought it close to the 32-year lows struck in late 2016 and early 2017. On entering Downing Street on Wednesday, Johnson set up a showdown with the EU by vowing to negotiate a new deal and threatening that, if the bloc refused, he would take Britain out on October 31 without a deal to limit economic dislocation. Irish government bond yield spreads over Germany hit their widest levels in over a month on Tuesday, as worries grow over the potential impact of a no-deal Brexit on Ireland. Many investors say a no-deal Brexit would send shock waves through the world economy, tip Britain's economy into a recession, roil financial markets and weaken London's position as the pre-eminent international financial centre. Supporters of Brexit say that while there would be some short-term difficulties, the disruption of a no-deal Brexit has been overplayed and that in the long-term, the United Kingdom would thrive if it left the European Union. Johnson was expected to tell Welsh farmers on Tuesday they will get a better deal after Brexit, part of a countrywide tour to win support for his "do or die" pledge to leave the European Union by October 31.

Brexit 'no matter what', Prime Minister Johnson promises as sterling falls

<a href="https://www.wionews.com/world/brexit-is-a-massive-economic-opportunity-uk-prime-minister-johnson-238855">Prime Minister Boris Johnson </a>will tell Welsh farmers on Tuesday they will get a<a href="https://www.wionews.com/world/uk-pm-boris-johnson-heads-to-scotland-as-local-leader-attacks-no-deal-brexit-239153"> better deal after Brexit</a>, part of a countrywide tour to win support for his "do or die" pledge to leave the European Union by October 31.

Just days after taking office as prime minister, Johnson kicked off the domestic tour, underlining his desire to win Britain over rather than courting EU leaders to try to persuade them to change their minds on a <a href="https://www.wionews.com/world/ditch-backstop-or-face-no-deal-brexit-uk-prime-minister-boris-johnson-tells-european-union-238918">divorce deal </a>he says is dead.

His reluctance to engage with EU leaders until they signal a willingness to renegotiate the agreement Britain`s parliament rejected three times has increased the possibility of a no-deal Brexit, sending the pound to its lowest level since early 2017.

He hopes that the threat of Britain leaving without a deal, which would send shocks waves through the world economy, will persuade the EU`s biggest powers - Germany and France - to agree to revise the Withdrawal Agreement.

"I will always back Britain`s great farmers and as we leave the EU we need to make sure that Brexit works for them," Johnson said before arriving in Wales.

"Once we leave the EU on 31st October, we will have a historic opportunity to introduce new schemes to support farming – and we will make sure that farmers get a better deal. Brexit presents enormous opportunities for our country and it`s time we looked to the future with pride and optimism."

Many farmers fear a no-deal Brexit could threaten their livelihoods by suddenly removing subsidies, blocking their access to European markets and leaving them vulnerable to competition from lower-cost producers like the United States that do not match European animal welfare standards.

Johnson said leaving the EU would allow the government to scrap the Common Agricultural Policy -- a system of farm subsidies unpopular in Britain which contributes more than it receives -- and sign new trade deals to expand the market.

Johnson`s visit to Wales is part of a country-wide charm offensive, with the new prime minister trying to sell Brexit, something he has said his predecessor, Theresa May, and her government failed to do while in office. 
&nbsp; 
A figurehead for the successful "Leave" campaign in the 2016 referendum, Johnson has repeated daily that Britain will leave on the latest deadline of Oct. 31, with or without a deal, and will thrive afterwards.&nbsp;

But by playing hardball with the EU by telling its leaders that he will only talk when they drop their insistence on not renegotiating the deal, he has increased the likelihood of a no-deal exit, which he says he does not want.

On Monday, the pound tumbled to its lowest against the dollar since early 2017 on the strengthened rhetoric.&nbsp;

Prime Minister Boris Johnson will tell Welsh farmers on Tuesday they will get a better deal after Brexit, part of a countrywide tour to win support for his "do or die" pledge to leave the European Union by October 31.

Prime Minister Boris Johnson will tell Welsh farmers on Tuesday they will get a better deal after Brexit, part of a countrywide tour to win support for his "do or die" pledge to leave the European Union by October 31. Just days after taking office as prime minister, Johnson kicked off the domestic tour, underlining his desire to win Britain over rather than courting EU leaders to try to persuade them to change their minds on a divorce deal he says is dead. His reluctance to engage with EU leaders until they signal a willingness to renegotiate the agreement Britain`s parliament rejected three times has increased the possibility of a no-deal Brexit, sending the pound to its lowest level since early 2017. He hopes that the threat of Britain leaving without a deal, which would send shocks waves through the world economy, will persuade the EU`s biggest powers - Germany and France - to agree to revise the Withdrawal Agreement. "I will always back Britain`s great farmers and as we leave the EU we need to make sure that Brexit works for them," Johnson said before arriving in Wales. "Once we leave the EU on 31st October, we will have a historic opportunity to introduce new schemes to support farming – and we will make sure that farmers get a better deal. Brexit presents enormous opportunities for our country and it`s time we looked to the future with pride and optimism." Many farmers fear a no-deal Brexit could threaten their livelihoods by suddenly removing subsidies, blocking their access to European markets and leaving them vulnerable to competition from lower-cost producers like the United States that do not match European animal welfare standards. Johnson said leaving the EU would allow the government to scrap the Common Agricultural Policy -- a system of farm subsidies unpopular in Britain which contributes more than it receives -- and sign new trade deals to expand the market. Johnson`s visit to Wales is part of a country-wide charm offensive, with the new prime minister trying to sell Brexit, something he has said his predecessor, Theresa May, and her government failed to do while in office. A figurehead for the successful "Leave" campaign in the 2016 referendum, Johnson has repeated daily that Britain will leave on the latest deadline of Oct. 31, with or without a deal, and will thrive afterwards. But by playing hardball with the EU by telling its leaders that he will only talk when they drop their insistence on not renegotiating the deal, he has increased the likelihood of a no-deal exit, which he says he does not want. On Monday, the pound tumbled to its lowest against the dollar since early 2017 on the strengthened rhetoric.

Brexit means a 'better deal' for farmers, PM Johnson tells Wales

Sterling hit a two-year low on Monday as Prime Minister Boris Johnson's government said it now assumed there would be a <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/no-deal-brexit-had-become-a-serious-possibility-cbi-chief-carolyn-fairbairn-239206&amp;sa=U&amp;ved=2ahUKEwi9xcXFitrjAhVO7mEKHQlcAkYQFjABegQIDxAC&amp;usg=AOvVaw07JQut3Vw9Gy2-8QTnDxFn">no-deal Brexit</a> because a "stubborn" European Union was refusing to renegotiate their divorce.

Many investors say a no-deal Brexit would send shock waves through the world economy, tip Britain's economy into a recession, roil financial markets and weaken London's position as the pre-eminent international financial centre.

The pound, which was trading at $1.50 on the day of the 2016 referendum, dropped 0.4% to $1.2325, the lowest level since March 2017.

Johnson bets that the threat of a no-deal Brexit will persuade the EU's biggest powers - Germany and France - to agree to revise the divorce deal that Theresa May agreed to last November but failed three times to push through the British parliament.

The 27 other EU members, though, say publicly and privately that the divorce settlement - including the Irish border backstop - is not up for barter. Many EU diplomats say an election is highly likely.

"There must be some change from the EU and if the EU is not willing to move at all we must be ready to give the country some finality," <a href="https://www.wionews.com/world/iran-should-respect-international-laws-britains-foreign-minister-239218">Foreign Secretary Dominic Raab</a> said, adding that London was "turbo-charging" no-deal preparations.

Raab said the United Kingdom wanted a deal but repeatedly cast the bloc as "stubborn". Asked if he was threatening the EU - whose $15.9 trillion economy is nearly six times that of the United Kingdom's - Raab said: "I am not doing any threatening."

Hedge funds increased their net short sterling positions to the highest level in nearly a year. And in a sign investors are scrambling for protection against currency swings around the time of the October 31 exit, three-month implied volatility surged to a four-month high.

Johnson has told EU leaders he will sit down for Brexit talks when they indicate they are ready to shift on the divorce deal, otherwise Britain will prepare for leaving without a deal, his spokeswoman said on Monday.

Our&nbsp;Union

Differences over Brexit have strained the bonds that tie the United Kingdom. While the country voted 52-48 to leave in 2016, Scotland and Northern Ireland voted to stay in the EU while Wales and England vote to leave.

The question of the unification of Ireland and British-ruled Northern Ireland will inevitably arise if Britain leaves the European Union without a divorce deal on October 31, Irish Prime Minister Leo Varadkar said.

Varadkar also suggested that a so-called hard Brexit could undermine Scotland's place in the United Kingdom.

Johnson makes his first visit to Scotland as prime minister on Monday, as his Conservative Party's leader there said she would refuse to support a no-deal Brexit.

"Our Union is the most successful political and economic union in history. We are a global brand and together we are safer, stronger and more prosperous," Johnson said in a statement ahead of the visit.

"So as we prepare for our bright future after Brexit, it's vital we renew the ties that bind our United Kingdom."

Johnson's promise to deliver Brexit, with or without a deal, has put him at odds with some in his party who oppose a "no-deal" exit - including its Scottish leader Ruth Davidson.

Gordon Brown, a Scot and a former prime minister, said this month that Johnson could be the United Kingdom's last prime minister as he could be on a collision course with Scottish nationalists.

Last week, Scotland's nationalist leader Nicola Sturgeon wrote to Johnson telling him his Brexit plans would hurt the Scottish economy and that she would continue preparations for a second independence referendum.

Sterling hit a two-year low on Monday as Prime Minister Boris Johnson's government said it now assumed there would be a no-deal Brexit because a "stubborn" European Union was refusing to renegotiate their divorce.

Sterling hit a two-year low on Monday as Prime Minister Boris Johnson's government said it now assumed there would be a no-deal Brexit because a "stubborn" European Union was refusing to renegotiate their divorce. Many investors say a no-deal Brexit would send shock waves through the world economy, tip Britain's economy into a recession, roil financial markets and weaken London's position as the pre-eminent international financial centre. The pound, which was trading at $1.50 on the day of the 2016 referendum, dropped 0.4% to $1.2325, the lowest level since March 2017. Johnson bets that the threat of a no-deal Brexit will persuade the EU's biggest powers - Germany and France - to agree to revise the divorce deal that Theresa May agreed to last November but failed three times to push through the British parliament. The 27 other EU members, though, say publicly and privately that the divorce settlement - including the Irish border backstop - is not up for barter. Many EU diplomats say an election is highly likely. "There must be some change from the EU and if the EU is not willing to move at all we must be ready to give the country some finality," Foreign Secretary Dominic Raab said, adding that London was "turbo-charging" no-deal preparations. Raab said the United Kingdom wanted a deal but repeatedly cast the bloc as "stubborn". Asked if he was threatening the EU - whose $15.9 trillion economy is nearly six times that of the United Kingdom's - Raab said: "I am not doing any threatening." Hedge funds increased their net short sterling positions to the highest level in nearly a year. And in a sign investors are scrambling for protection against currency swings around the time of the October 31 exit, three-month implied volatility surged to a four-month high. Johnson has told EU leaders he will sit down for Brexit talks when they indicate they are ready to shift on the divorce deal, otherwise Britain will prepare for leaving without a deal, his spokeswoman said on Monday. Our Union Differences over Brexit have strained the bonds that tie the United Kingdom. While the country voted 52-48 to leave in 2016, Scotland and Northern Ireland voted to stay in the EU while Wales and England vote to leave. The question of the unification of Ireland and British-ruled Northern Ireland will inevitably arise if Britain leaves the European Union without a divorce deal on October 31, Irish Prime Minister Leo Varadkar said. Varadkar also suggested that a so-called hard Brexit could undermine Scotland's place in the United Kingdom. Johnson makes his first visit to Scotland as prime minister on Monday, as his Conservative Party's leader there said she would refuse to support a no-deal Brexit. "Our Union is the most successful political and economic union in history. We are a global brand and together we are safer, stronger and more prosperous," Johnson said in a statement ahead of the visit. "So as we prepare for our bright future after Brexit, it's vital we renew the ties that bind our United Kingdom." Johnson's promise to deliver Brexit, with or without a deal, has put him at odds with some in his party who oppose a "no-deal" exit - including its Scottish leader Ruth Davidson. Gordon Brown, a Scot and a former prime minister, said this month that Johnson could be the United Kingdom's last prime minister as he could be on a collision course with Scottish nationalists. Last week, Scotland's nationalist leader Nicola Sturgeon wrote to Johnson telling him his Brexit plans would hurt the Scottish economy and that she would continue preparations for a second independence referendum.

UK plays hardball with 'stubborn' European Union, pound tumbles to a 28-month low on Brexit woes

Brewing <a href="https://www.wionews.com/business-economy/asia-stocks-higher-ahead-of-fed-pound-pressured-by-fresh-brexit-pain-239341">no-deal Brexit</a> worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis.

Europe's markets suffered a stormy start as the pound followed its worst day of the year with another 0.5% swoon against all the major currencies.

A blizzard of fiery talk on Monday that included the new UK Prime Minister Boris Johnson called his predecessor's Brexit plans dead and its new foreign minister labelling the European Union "stubborn" kept the slide intact.

<a href="https://www.wionews.com/world/uk-plays-brexit-hardball-with-stubborn-european-union-pound-falls-to-a-two-year-low-239235">Sterling fell</a> as far as $1.2120, which was its lowest against the dollar since March 2017, and to 91.85 pence per euro, the weakest since September 2017.

Options markets were pointing to more pain too. Three-month implied volatility, a contract that expires just before the October&nbsp;31 Brexit deadline, jumped to over 11 vols, the highest since before March 29, the original date for Britain to leave the European Union.

"The pound is in a very precarious state, it is as simple as that," said TD Securities' European head of currency strategy Ned Rumpeltin.

"We are now in a different regime," he said, referring to Johnson's explicit agenda of taking Britain out of the EU, whether or not transitional trading agreements are in place.

It was not just sterling reeling either.

Irish government bond yield spreads over Germany hit their widest levels in over a month at 24 basis points, on worries about the damage a no-deal Brexit would do to Ireland's economy.

Other eurozone government bond yields were holding near recent lows ahead of the Federal Reserve meeting which is expected to deliver a 25 basis point rate cut on Wednesday and potentially signal more on the way.

Germany's 10-year government bond yield was hovering near the minus 0.40% mark.

European shares slipped as grim forecasts from German chemicals and drugs giant Bayer and airline Lufthansa soured sentiment, although the weakness of the pound kept London's blue-chip FTSE index just about out of the red.

With concerns about global growth still bubbling among investors, a GfK survey also showed German consumer morale worsening for the third month in a row heading into August as trade disputes bit in Europe's biggest exporter.

"Most markets are down this morning," said Simona Gambarini, a markets economist at Capital Economics. "The S&amp;P closed lower yesterday. We have a few data releases regarding the eurozone that could push equity prices down but I think everyone is waiting for the Fed meeting."

Aussie Gold

Asia had been a bit more positive overnight.

Japan's Nikkei rose 0.4%, showing a limited reaction to the Bank of Japan's widely anticipated decision to stand pat on monetary policy. Shanghai rose 0.3% and Hong Kong's Hang Seng edged up 0.2%.

Australian stocks stole the glory again though with another record high, as buoyant mining shares added to tech-driven gains the previous day.

The BOJ added that it would ease policy again "without hesitation" if the economy loses momentum for achieving the central bank's 2% inflation target.

Also drawing some attention were US-China trade negotiations which begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for "goodwill" gestures.

Among commodities, crude oil prices extended the previous day's gains, with the Fed's expected easing fuelling optimism that it would boost the economy and fuel demand in the world's biggest oil consumer.

US crude futures were up 0.65% at $57.24 per barrel and Brent crude added 0.6% to $64.09. Gold was down 0.1% at $1,425 per ounce.

Brewing no-deal Brexit worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis.

Brewing no-deal Brexit worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis. Europe's markets suffered a stormy start as the pound followed its worst day of the year with another 0.5% swoon against all the major currencies. A blizzard of fiery talk on Monday that included the new UK Prime Minister Boris Johnson called his predecessor's Brexit plans dead and its new foreign minister labelling the European Union "stubborn" kept the slide intact. Sterling fell as far as $1.2120, which was its lowest against the dollar since March 2017, and to 91.85 pence per euro, the weakest since September 2017. Options markets were pointing to more pain too. Three-month implied volatility, a contract that expires just before the October 31 Brexit deadline, jumped to over 11 vols, the highest since before March 29, the original date for Britain to leave the European Union. "The pound is in a very precarious state, it is as simple as that," said TD Securities' European head of currency strategy Ned Rumpeltin. "We are now in a different regime," he said, referring to Johnson's explicit agenda of taking Britain out of the EU, whether or not transitional trading agreements are in place. It was not just sterling reeling either. Irish government bond yield spreads over Germany hit their widest levels in over a month at 24 basis points, on worries about the damage a no-deal Brexit would do to Ireland's economy. Other eurozone government bond yields were holding near recent lows ahead of the Federal Reserve meeting which is expected to deliver a 25 basis point rate cut on Wednesday and potentially signal more on the way. Germany's 10-year government bond yield was hovering near the minus 0.40% mark. European shares slipped as grim forecasts from German chemicals and drugs giant Bayer and airline Lufthansa soured sentiment, although the weakness of the pound kept London's blue-chip FTSE index just about out of the red. With concerns about global growth still bubbling among investors, a GfK survey also showed German consumer morale worsening for the third month in a row heading into August as trade disputes bit in Europe's biggest exporter. "Most markets are down this morning," said Simona Gambarini, a markets economist at Capital Economics. "The S&P closed lower yesterday. We have a few data releases regarding the eurozone that could push equity prices down but I think everyone is waiting for the Fed meeting." Aussie Gold Asia had been a bit more positive overnight. Japan's Nikkei rose 0.4%, showing a limited reaction to the Bank of Japan's widely anticipated decision to stand pat on monetary policy. Shanghai rose 0.3% and Hong Kong's Hang Seng edged up 0.2%. Australian stocks stole the glory again though with another record high, as buoyant mining shares added to tech-driven gains the previous day. The BOJ added that it would ease policy again "without hesitation" if the economy loses momentum for achieving the central bank's 2% inflation target. Also drawing some attention were US-China trade negotiations which begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for "goodwill" gestures. Among commodities, crude oil prices extended the previous day's gains, with the Fed's expected easing fuelling optimism that it would boost the economy and fuel demand in the world's biggest oil consumer. US crude futures were up 0.65% at $57.24 per barrel and Brent crude added 0.6% to $64.09. Gold was down 0.1% at $1,425 per ounce.

Stormy sterling sinks again, stocks wilt before Fed

Mariana Krasteva, a 55-year old engineer, is one of more than four million Bulgarians, whose personal data was stolen in the country's biggest-ever cyber breach, leaving her fearful of what fraudsters might do with the information.

Prosecutors have charged the owner of a cybersecurity company and two of his employees with cyber-terrorism over the hacking of the country's tax agency and the theft of the personal and financial records of nearly every working adult.

The three men have denied wrongdoing.

The breach was made public on July 15, after an email with a link to the leaked data was sent to local media, calling the country's cybersecurity "a joke".

The leak has deeply unsettled many in the Balkan country of 7 million, one of the poorest and most corrupt European Union member states.

"What if someone claimed ownership of my apartment? I have to live in constant fear of what may happen," Krasteva said.

Officials have apologised to Bulgarians over the breach but have also admitted the government has to invest more in software and pay more to protect public data.

"Bulgaria spends too little on cybersecurity - we spend about 5 million levs ($2.85 million) per year, which is nothing," deputy Prime Minister Tomislav Donchev said.

The tax agency has told citizens there was no immediate risk from fraudsters and has produced a search tool, where people can check whether their records were compromised, but it does not say exactly what was leaked.

The tax agency said the leaked data was fragmented and not sufficient for eventual fraud. It has told banks to be extra vigilant and urged people not to change their ID cards.

Krasteva, however, feels she needs to have new documents to avoid eventual abuse or fraud. "This means spending a lot of time and money," she says.

Mariana Krasteva, a 55-year old engineer, is one of more than four million Bulgarians, whose personal data was stolen in the country's biggest-ever cyber breach, leaving her fearful of what fraudsters might do with the information.

Mariana Krasteva, a 55-year old engineer, is one of more than four million Bulgarians, whose personal data was stolen in the country's biggest-ever cyber breach, leaving her fearful of what fraudsters might do with the information. Prosecutors have charged the owner of a cybersecurity company and two of his employees with cyber-terrorism over the hacking of the country's tax agency and the theft of the personal and financial records of nearly every working adult. The three men have denied wrongdoing. The breach was made public on July 15, after an email with a link to the leaked data was sent to local media, calling the country's cybersecurity "a joke". The leak has deeply unsettled many in the Balkan country of 7 million, one of the poorest and most corrupt European Union member states. "What if someone claimed ownership of my apartment? I have to live in constant fear of what may happen," Krasteva said. Officials have apologised to Bulgarians over the breach but have also admitted the government has to invest more in software and pay more to protect public data. "Bulgaria spends too little on cybersecurity - we spend about 5 million levs ($2.85 million) per year, which is nothing," deputy Prime Minister Tomislav Donchev said. The tax agency has told citizens there was no immediate risk from fraudsters and has produced a search tool, where people can check whether their records were compromised, but it does not say exactly what was leaked. The tax agency said the leaked data was fragmented and not sufficient for eventual fraud. It has told banks to be extra vigilant and urged people not to change their ID cards. Krasteva, however, feels she needs to have new documents to avoid eventual abuse or fraud. "This means spending a lot of time and money," she says.

'I live in constant fear': Bulgaria data breach victim

Former British prime minister <a href="https://www.wionews.com/world/with-iraq-war-report-due-to-be-published-former-british-pm-tony-blair-comes-under-spotlight-1830">Tony Blair's</a> right-hand man said Tuesday he was quitting the Labour Party for good and urged <a href="https://www.wionews.com/world/new-united-kingdom-prime-minister-must-put-brexit-plan-to-second-referendum-labours-corbyn-234413">Jeremy Corbyn</a> to make way for a more effective leader to fight Boris Johnson.&nbsp;

In an open letter to Corbyn, Alastair Campbell said the party "no longer truly represents my values, or the hopes I have for Britain" and urged the veteran leftist Corbyn to consider standing down.

"With some sadness but absolute certainty, I have concluded that I no longer wish to stay in the party," he wrote in the letter published in The New European magazine.

Anti-Brexit crusader Campbell had begun appealing against his expulsion as a Labour member for voting for the Liberal Democrats in May's European elections.

But Campbell said <a href="https://www.wionews.com/world/boris-johnson-wins-conservative-party-leadership-race-set-to-become-uk-pm-237941">Johnson</a> becoming Conservative prime minister and adopting a "crash and burn strategy deliberately aimed at creating the circumstances for a general election" had altered his outlook.

"I see no sign that you and your office have grasped the seriousness of what is happening, let alone devised or begun to execute a strategy to respond and defeat it," Campbell wrote.

"Has the time not come for you to ask yourself, honestly, whether you have the capacity, the plan, and the reach into the British public, to rise to the new challenge, and to win in the country.&nbsp;

"If you have doubt, then there is no doubt you should make way for someone who can provide the leadership, the strategy, and the energy required."

The ruling Conservatives have been boosted by a so-called "Boris bounce" since Johnson became Britain's new leader last Wednesday, according to weekend polls.

One showed a 10-point gain, putting the Tories on 30 per cent, five points ahead of Labour.

Campbell, who served as Blair's chief press secretary and was heavily criticised for his involvement in drawing up Britain's Iraq War policy, emerged back into the political arena after the 2016 Brexit vote.

He has become a leading figure in the campaign to hold another referendum on European Union membership and has been a persistent critic of Corbyn's leadership, particularly over <a href="https://www.wionews.com/world/brexit-means-a-better-deal-for-farmers-pm-johnson-tells-wales-239337">Brexit</a>.

Former British prime minister Tony Blair's right-hand man said Tuesday he was quitting the Labour Party for good and urged Jeremy Corbyn to make way for a more effective leader to fight Boris Johnson.

Former British prime minister Tony Blair's right-hand man said Tuesday he was quitting the Labour Party for good and urged Jeremy Corbyn to make way for a more effective leader to fight Boris Johnson. In an open letter to Corbyn, Alastair Campbell said the party "no longer truly represents my values, or the hopes I have for Britain" and urged the veteran leftist Corbyn to consider standing down. "With some sadness but absolute certainty, I have concluded that I no longer wish to stay in the party," he wrote in the letter published in The New European magazine. Anti-Brexit crusader Campbell had begun appealing against his expulsion as a Labour member for voting for the Liberal Democrats in May's European elections. But Campbell said Johnson becoming Conservative prime minister and adopting a "crash and burn strategy deliberately aimed at creating the circumstances for a general election" had altered his outlook. "I see no sign that you and your office have grasped the seriousness of what is happening, let alone devised or begun to execute a strategy to respond and defeat it," Campbell wrote. "Has the time not come for you to ask yourself, honestly, whether you have the capacity, the plan, and the reach into the British public, to rise to the new challenge, and to win in the country. "If you have doubt, then there is no doubt you should make way for someone who can provide the leadership, the strategy, and the energy required." The ruling Conservatives have been boosted by a so-called "Boris bounce" since Johnson became Britain's new leader last Wednesday, according to weekend polls. One showed a 10-point gain, putting the Tories on 30 per cent, five points ahead of Labour. Campbell, who served as Blair's chief press secretary and was heavily criticised for his involvement in drawing up Britain's Iraq War policy, emerged back into the political arena after the 2016 Brexit vote. He has become a leading figure in the campaign to hold another referendum on European Union membership and has been a persistent critic of Corbyn's leadership, particularly over Brexit.

Former Prime Minister Tony Blair's right-hand Alastair Campbell quits Labour party amid 'Boris bounce'

Ryanair Holdings Plc on Monday warned fares would fall by 6 per cent&nbsp;in its key summer season this year, in part due to overcapacity in Germany and Brexit fears in the United Kingdom, but kept its profit target for the year.

Shares of Europe's largest low-cost carrier have almost halved in value in two years as the company grappled with overcapacity in Europe, Britain's plans to leave the European Union and, most recently, delays in delivery of the Boeing 737 MAX.

Ryanair earlier this month halved its growth targets for next year due to delays in deliveries of the 737 MAX. On Monday, it said it expected the first deliveries in January at the earliest.

The airline reported a profit after tax of 243 million euros for the three months to June 30, down from 309 million a year earlier. A poll of analysts published by Ryanair ahead of the results had forecast a profit of 232 million euros.

It retained its profit forecast for the year to March 31, 2020 of between 750 million euros and 950 million euros, compared to a forecast of 832 million euros in the analyst poll.

Ryanair said its fares in the three months to the end of June declined 6% from a year earlier and said it expected a similar fall for the remainder of the summer. Average fares for the year to end-March 2020 will be towards the lower end of its guidance range of -2% to +1%, it added.

Ryanair's shares closed on Friday at 10.02 euros, almost half their peak of 19.39 euros hit two years ago.

Ryanair is one of Boeing's biggest customers and was due to have 58 737 MAX jets in time for its 2020 summer season. But it now expects to receive just 30 by then in that period.

Ryanair's chief financial officer, Niall Sorohan, said the timing of plans by its pilots in the United Kingdom and Ireland to ballot for possible industrial action in August was "unusual", given concerns around the MAX and Brexit, but said the airline was open to talks.

Ryanair Holdings Plc on Monday warned fares would fall by 6 per cent in its key summer season this year, in part due to overcapacity in Germany and Brexit fears in the United Kingdom, but kept its profit target for the year.

Ryanair Holdings Plc on Monday warned fares would fall by 6 per cent in its key summer season this year, in part due to overcapacity in Germany and Brexit fears in the United Kingdom, but kept its profit target for the year. Shares of Europe's largest low-cost carrier have almost halved in value in two years as the company grappled with overcapacity in Europe, Britain's plans to leave the European Union and, most recently, delays in delivery of the Boeing 737 MAX. Ryanair earlier this month halved its growth targets for next year due to delays in deliveries of the 737 MAX. On Monday, it said it expected the first deliveries in January at the earliest. The airline reported a profit after tax of 243 million euros for the three months to June 30, down from 309 million a year earlier. A poll of analysts published by Ryanair ahead of the results had forecast a profit of 232 million euros. It retained its profit forecast for the year to March 31, 2020 of between 750 million euros and 950 million euros, compared to a forecast of 832 million euros in the analyst poll. Ryanair said its fares in the three months to the end of June declined 6% from a year earlier and said it expected a similar fall for the remainder of the summer. Average fares for the year to end-March 2020 will be towards the lower end of its guidance range of -2% to +1%, it added. Ryanair's shares closed on Friday at 10.02 euros, almost half their peak of 19.39 euros hit two years ago. Ryanair is one of Boeing's biggest customers and was due to have 58 737 MAX jets in time for its 2020 summer season. But it now expects to receive just 30 by then in that period. Ryanair's chief financial officer, Niall Sorohan, said the timing of plans by its pilots in the United Kingdom and Ireland to ballot for possible industrial action in August was "unusual", given concerns around the MAX and Brexit, but said the airline was open to talks.

Ryanair expects average fares to fall 6% in key summer season

<a href="https://www.wionews.com/world/uk-plays-brexit-hardball-with-stubborn-european-union-pound-falls-to-a-two-year-low-239235">UK plays a hardball with 'stubborn' European Union, pound tumbles to a 28-month low on Brexit woes</a>

Sterling hit a two-year low on Monday as Prime Minister Boris Johnson's government said it now assumed there would be a no-deal Brexit because a "stubborn" European Union was refusing to renegotiate their divorce.

<a href="https://www.wionews.com/world/china-makes-foray-inside-vietnamese-water-239247">China makes foray inside Vietnamese water</a>

China’s latest move in the South China Sea has further riled up tense atmosphere prevailing in the region.&nbsp;

<a href="https://www.wionews.com/world/dont-put-your-life-in-danger-iran-publishes-exchange-with-british-warship-during-tanker-seizure-239211">Don't put your life in danger: Iran publishes exchange with British warship during tanker seizure</a>

Iranian forces warned a British warship's crew against putting their "life in danger" during the seizure of a tanker this month, in a new recording of the incident released Monday.

<a href="https://www.wionews.com/india-news/priyanka-gandhi-perfect-choice-for-congress-president-cwc-to-take-final-call-amarinder-singh-239223">Priyanka Gandhi perfect choice for Congress president, CWC to take final call: Amarinder Singh</a>

Punjab chief minister Amarinder Singh on Monday said Congress leaders will extend all the support if Priyanka Gandhi is chosen to take over as the party president.&nbsp;

<a href="https://www.wionews.com/world/chinas-first-cyber-dissident-given-12-year-jail-term-court-239214">Huang Qi, China's first 'cyber-dissident', given 12-year jail term</a>

China's first "cyber-dissident", whose website reported on sensitive topics including human rights, was sentenced to 12 years in prison Monday for leaking state secrets, a court said.

&nbsp;

UK plays a hardball with 'stubborn' European Union, pound tumbles to a 28-month low on Brexit woes Sterling hit a two-year low on Monday as Prime Minister Boris Johnson's government said it now assumed there would be a no-deal Brexit because a "stubborn" European Union was refusing to renegotiate their divorce.

UK plays a hardball with 'stubborn' European Union, pound tumbles to a 28-month low on Brexit woes Sterling hit a two-year low on Monday as Prime Minister Boris Johnson's government said it now assumed there would be a no-deal Brexit because a "stubborn" European Union was refusing to renegotiate their divorce. China makes foray inside Vietnamese water China’s latest move in the South China Sea has further riled up tense atmosphere prevailing in the region. Don't put your life in danger: Iran publishes exchange with British warship during tanker seizure Iranian forces warned a British warship's crew against putting their "life in danger" during the seizure of a tanker this month, in a new recording of the incident released Monday. Priyanka Gandhi perfect choice for Congress president, CWC to take final call: Amarinder Singh Punjab chief minister Amarinder Singh on Monday said Congress leaders will extend all the support if Priyanka Gandhi is chosen to take over as the party president. Huang Qi, China's first 'cyber-dissident', given 12-year jail term China's first "cyber-dissident", whose website reported on sensitive topics including human rights, was sentenced to 12 years in prison Monday for leaking state secrets, a court said.

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