Today’s news headlines:
‘Ireland warns of crunch moment in Brexit negotiations’. Ireland’s foreign minister, Simon Coveney, has warned Boris Johnson that the outstanding issues in Brexit trade talks must be resolved this week, with UK officials hinting the same. One UK official was quoted as saying ‘We’ve got ten more days, max’, whilst EU officials have eyed the recent upheaval in Downing Street, including the departure of Dominic Cummings, as a precursor for a compromise from the UK side. Former Prime Minister, Gordon Brown, said he believed that Boris Johnson has already made up his mind to compromise and strike a trade deal with the EU. (Financial Times)
‘Asia Pacific nations sign biggest regional trade deal’. Nations in the Asia-Pacific region, including Japan, China and South Korea have signed the world’s largest regional free-trade agreement. The Regional Comprehensive Economic Partnership (RCEP) has been nearly a decade in the making, and accounts for almost a third of the world’s population and GDP. Negotiators finally pushed the deal over the finish line yesterday, after India surprised participants last year by abandoning the agreement. Vietnamese Prime Minister, Nguyen Xuan Phuc, said that the agreement sent a strong message affirming the region’s commitment to the multilateral trade system. (Bloomberg)
Today's events, rates, and data
- Overnight, the signing of the RCEP deal helped propel Asian stocks towards a record high, as markets adopt a risk-on tone into today’s European trading session. The US Dollar and US Treasuries retreated this morning, whilst the Pound and Euro drew strength from signs that the UK and EU could get Brexit negotiations over the line in the next week.
China Industrial Production: 6.9% vs 6.9% previously
China Retail Sales: 4.3% vs 3.3% previously
ECB Financial Stability Review: 9.00am
ECB President Lagarde Speaks: 1.00pm
US Empire State Manufacturing Index: 1.30pm
MPC Member Haskel Speaks: 5.30pm
FOMC Member Clarida Speaks: 7.00pm
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