The talks between Britain and Europe failed this week and the brexit is expected to cool down and the pound has dived by more than 70 points

category:Finance
 The talks between Britain and Europe failed this week and the brexit is expected to cool down and the pound has dived by more than 70 points


Even if the EU and the UK reach a new trade agreement in time, the EUs final agreement will depend on the withdrawal of the internal market act, EU sources said.

EU sources said the UK and the EU failed to bridge their differences on state aid in crucial trade talks this week.

Today, a new round of brexit trade negotiations between the UK and the EU entered the fourth day. Earlier, Frances Deputy Minister for European affairs, Beaune, said that the brexit agreement may be reached by the end of November, and the brexit agreement is still possible. Britain needs a brexit agreement more than the European Union.

Analysts said earlier that British Prime Minister Johnsons internal market act to amend the brexit agreement was controversial and would be blocked in parliament, which could lead to chaos in trade negotiations between the UK and the EU at a critical time.

If Johnson fails, he will lose bargaining chips in the final stage of trade negotiations with the EU. The prime ministers team expects the house of Lords to revise or delete the most controversial parts related to Northern Irelands trade, which ministers say violate international law.

In addition, according to a report released by Ernst & Young on Thursday, about 7500 jobs and more than 1.2 trillion pounds of assets will be transferred from the UK to other EU countries before the end of the transition period of brexit at the end of this year, and more jobs and funds are expected to leave in the coming months. About 400 jobs in the financial sector have been moved out of the UK in the past month alone. The UK economy is also not optimistic. According to the office for national statistics, GDP in the second quarter is the largest quarterly contraction since the quarterly record was made in 1955. It is also the second consecutive quarter of decline in the UK economy after a revised 2.5% decline in the previous quarter. In addition, the poor economic data also raised expectations of negative interest rates, although the Bank of England chief economist William Haldane said the banks September meeting minutes did not show the possibility of negative interest rates in the short term. The judgment of negative interest rate will depend on the economic prospects at that time, especially whether further monetary stimulus is needed. The economy is recovering further and the speed is accelerating, showing much stronger resilience than anyone expected. Source: huitong.com editor in charge: Wang Wenhua_ NF5982

In addition, according to a report released by Ernst & Young on Thursday, about 7500 jobs and more than 1.2 trillion pounds of assets will be transferred from the UK to other EU countries before the end of the transition period of brexit at the end of this year, and more jobs and funds are expected to leave in the coming months. About 400 jobs in the financial sector have been moved out of the UK in the past month alone.

The UK economy is also not optimistic. According to the office for national statistics, GDP in the second quarter is the largest quarterly contraction since the quarterly record was made in 1955. It is also the second consecutive quarter of decline in the UK economy after a revised 2.5% decline in the previous quarter.

In addition, the poor economic data also raised expectations of negative interest rates, although the Bank of England chief economist William Haldane said the banks September meeting minutes did not show the possibility of negative interest rates in the short term.

The judgment of negative interest rate will depend on the economic prospects at that time, especially whether further monetary stimulus is needed. The economy is recovering further and the speed is accelerating, showing much stronger resilience than anyone expected.