Few divorces are ever easy and it looks like the UK/Euro fallout is going to be no exception.
Michael Barnier, Europe’s chief Brexit negotiator, said that there has been “no decisive progress” on the key issues following a series of talks with the UK.
His opposite number UK Brexit Secretary David Davis has hit back, saying the EU needs to be “more imaginative and flexible” in its approach.
Shilen Shah, Bond Strategist at Investec Wealth & Investment: “The risk of no transitionary agreement seems to have increased today given the strong word’s from Barnier, the EU chief Brexit negotiator. His not unexpected comments has led to a modest weakening in Sterling, however it also increases the chance of the UK exiting the EU in a disorderly fashion. The key hazard for markets is that today’s disagreement is an indicator of where future negotiations are heading, with the danger that the risk-premium on UK assets will widen if the talks implode with no agreement.”
