Still no deal as Brexit closes in

DEADLOCK: UK, EU AGREE TO PUSH OUT DEADLINE Both sides playing their cards close to their chests, say experts.

Sterling rallied yesterday after Britain and the European Union (EU) agreed to extend talks on a post-Brexit trade deal past a self-imposed deadline, while Asian markets were mixed, as surging coronavirus infections tempered vaccine optimism.

British Prime Minister Boris Johnson and EU chief Ursula von der Leyen said after a crisis call that they would “go the extra mile” to find common ground in long-running talks.

“Our negotiating teams have been working day and night over recent days,” said Von der Leyen, reading a joint statement agreed with Johnson as their Sunday deadline passed, with sticking points on issues including fishing rights and fair trade regulations.

“We have accordingly mandated our negotiators to continue the talks and to see whether an agreement can even at this late stage be reached.”

The news gave the pound a boost against the dollar and euro, though Johnson warned a deal was far from sure with less than three weeks until Britain leaves the single market on 31 December.

“I’m afraid we’re still very far apart on some key things, but where there’s life there’s hope.”

Both the EU and Britain were “said to be showing flexibility”, said Axi strategist Stephen Innes.

“The view remains that Johnson will bet he can find a sufficient compromise to appease the Brexiteers, rather than risk the political fallout from a no-deal exit, whilst simultaneously facing the ongoing Covid crisis and likely lockdown scenarios” heading into the first quarter of 2021, Innes added.

And Online Forex Trading and Forex Broker’s Craig Erlam said: “It does seem like some progress is being made and with neither side willing to be the ones to call off the talks, a minute to midnight compromise looks likely. This is a negotiation after all and there’s nothing to be gained by showing your hand...”

Investors are keeping tabs on Capitol Hill, where lawmakers are still battling to hammer out a fresh stimulus for the beleaguered US economy, with hope they can reach a deal before the end of the year.

However, with both sides digging their heels in, analysts said there were worries about their chances of success. –

Both said to be showing flexibility

Picture: AFP ONGOING. A man passes the Albert Borschette conference centre in Brussels yesterday. Talks between the European Union and Britain on post-Brexit trade should continue ‘as long as an agreement is possible’, German Foreign Minister Heiko Maas said yesterday, after both sides extended the negotiations once again.