LONDON: The British pound held above a 10-day low yesterday as investors cut their holdings with British and European negotiators scrambling to salvage post-Brexit trade talks.
British Prime Minister Boris Johnson said on Friday there was no point in continuing talks and it was time to prepare for a “no-deal” exit when transitional arrangements end on Dec 31 while the European Union said Britain needed to give ground.
EU chief negotiator Michel Barnier had been due in London for talks with his British counterpart David Frost. Instead, they will now speak by telephone today to discuss the structure of future talks.
With only 11 weeks to go before the end of the transition period, Berenberg economists estimate the probability of a hard Brexit at as much as 50% with both sides taking steps to soften the blow on their respective economies.
“We thus have to watch carefully the risk that neither side blinks and, in the end, the two sides finally part ways without a deal, ” they said in a note. — Reuters
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