A memo has been released in the UK, indicating the UK could be forced to accept a Canada-style deal post Brexit if a tariff-free trade can’t be reached. A Canada-style deal would see new tariffs on the import and exports of foods. The report comes as Brexit negotiator; David Davis announces he believes the EU must compromise too in order to reach a deal. Although many of the countries in the EU are ready for the talks to move onto trade, as it is an important issue for their economies as well, all 27 countries need to agree for the talks to progress. The ‘divorce bill’, citizen’s rights and Northern Ireland is still a sticking point in the talks.
Across the pond, the Dollar tumbled over night as it was released Special counsel Robert Mueller issued a subpoena to US President, Donald Trump’s campaign back in mid-October. The subpoena requests Russia-related documents from the top officials from Trump’s campaign. However, the request does not require them to testify before the grand jury. This is the first time Trump’s campaign has been issued a subpoena.
ECB President, Mario Draghi, spoke at the Frankfurt European Banking Congress earlier this morning. In his speech titled ‘Europe into a New Era- How to Seize the Opportunities’ he spoke about the Eurozone’s struggle with low inflation, citing how wages failing to rise was one of the key issues keeping down the prices. He continued to say ‘as the labour market tightens and uncertainty falls, the relationship between slack and wage growth should begin reasserting itself. But we have to remain patient.’ Draghi reassured the markets the economic growth in the Eurozone was ‘clearing improving’ causing the Euro to strengthen against its major counterparties.