Running down the clock
Today’s news headlines:
‘Johnson and Von der Leyen hold secret fishing talks on post-Brexit trade deal’. In a classic sign of ‘tunnel negotiations’, the UK leader and President of the European Commission held secret talks to try and unlock a compromise on fisheries. This is widely noted as the last major sticking point in UK-EU free trade negotiations, which is likely to go right down to the December 31st deadline. EU rights to UK waters only account for around €650m but is an issue that plagued negotiations from the start. Both sides are likely to settle for a compromise, which sees the EU reduce access by 25%, but we await official confirmation. (Financial Times)
‘Trump demands changes to $900bn US stimulus bill’. The outgoing US President has rejected a jointly agreed $900bn stimulus bill, calling the economic relief package a ‘disgrace’. Trump criticised the bill for its new round of direct payments of up to $600 for American adults, instead calling for payments of $2,000, or $4,000 for a couple. The stimulus bill was delivered to the US President attached to wider legislation to fund the federal government and avoid a shutdown. If Trump does not sign the bill by the start of next week, the federal government will be shut down from December 29th. (Financial Times)
Today's events, rates, and data
- The Pound has jumped back above the $1.34 interbank level this morning, as market participants refuse to price in a no-deal Brexit outcome. Sterling was also boosted by the news that France had re-opened its border with the UK. This morning, US stock futures are lower, whilst US treasuries and gold tick higher.
Today's events
German Import Prices: 0.5% vs 0.3% previously
US Durable and Core Durable Goods Orders: 1.30pm
US Core PCE Price Index: 1.30pm
US Weekly Jobless Claims: 1.30pm
Interbank rates
GBP/USD: 1.3440
GBP/EUR: 1.1015
EUR/USD: 1.2200
USD/CAD: 1.2885
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