Today’s news headlines:
‘Boris Johnson to head to Brussels for crisis Brexit talks with EU’. The UK’s Prime Minister is scheduled to hold last ditch face-to-face talks with European Commission President, Ursula von der Leyen, today in Brussels as hopes for a post-Brexit trade agreement fade. The two leaders spoke on Monday evening after frantic negotiations between officials failed to break the deadlock. Both leaders are now faced with having to make last minute compromises to avoid talks breaking down, which would mean the UK leaves the EU on WTO rules come the end of the year, causing widespread disruption. (Bloomberg)
‘Hungary, Poland pressured to lift EU veto threat within hours’. Politicians from Hungary and Poland will need to rescind their veto over the EU’s jointly financed stimulus plan by today or risk losing billions in aid, according to EU officials. A senior diplomat in Brussels has said that the bloc will press on with the stimulus package without the two nations unless they make concessions. German Chancellor, Angela Merkel, who holds the rotating EU presidency, has so far failed to broker a compromise before Thursday’s summit. If unanimous support is not achieved, the EU would be forced into a partial shutdown on January 1st. (Bloomberg)
Today's events, rates, and data
After Brexit turmoil over the past few days, the Pound has been clinging to hopes that Boris Johnson can salvage a Brexit trade deal in talks today. Sterling recouped over half of its 2.3% fall against the Greenback during yesterday’s afternoon session, whilst one-week implied volatility hit an eight-month high this morning, as traders hedge against a no-deal outcome.
UK BRC Retail Sales Monitor: 7.7% vs 5.2% previously
Eurozone Revised GDP: 10.00am
ZEW Economic Sentiment: 10.00am
German ZEW Economic Sentiment: 10.00am
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