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EU, UK agree to step up Brexit talks to close ‘significant gaps’ By Reuters

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© Reuters. Britain’s Prime Minister Boris Johnson visits the Conway Heathrow Asphalt & Recycling Plant construction site in London

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By Sarah Young and Gabriela Baczynska

LONDON/BRUSSELS (Reuters) – British Prime Minister Boris Johnson and the head of the EU’s executive, Ursula von der Leyen, agreed in a phone call on Saturday to step up Brexit talks to close “significant gaps” barring a new trade partnership.

The two sides have said this week’s round of negotiations aimed at getting a new, post-Brexit trade agreement from 2021 made some progress but not yielded a breakthrough.

The EU says a deal must be sealed by the end of the month – or in the first days of November at the very latest – to leave enough time for ratification in the bloc by the end of the year.

Johnson and von der Leyen discussed the next steps in their call on Saturday.

“They agreed on the importance of finding an agreement, if at all possible, as a strong basis for a strategic EU-UK relationship in future,” they said in a joint statement.

“Progress had been made in recent weeks but … significant gaps remained, notably but not only in the areas of fisheries, the level playing field, and governance,” it added.

The two leaders instructed their Brexit negotiators, Michel Barnier and David Frost, “to work intensively in order to try to bridge those gaps”.

Johnson said earlier on Saturday the UK continued to push for a Canada-style deal with the EU, but was also ready to sever current close-knit trade ties and default to general World Trade Organization rules, which include quotas and tariffs.

“I think there’s a good deal to be done,” he said. “There’s a big opportunity for both sides to do well.”

More trade talks are due in London next week and in Brussels the following week before the 27 national EU leaders meet on Oct. 15-16 to assess progress.

An estimated trillion euros worth of annual trade would be at stake if they fail to get an agreement.

The EU says it will not implement any new deal if London undermines their earlier Brexit divorce treaty with its draft Internal Market Bill.

With time running out, controversy over the new domestic UK law backed by Johnson has cast fresh doubt on whether a deal was possible. German Chancellor Angela Merkel, however, said on Friday she was still “optimistic”.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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U.S. offers Brazil telecoms financing to buy 5G equipment from Huawei rivals By Reuters

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© Reuters. U.S. Ambassador Todd Chapman walks between flags during a meeting at Sao Paulo’s Industries Federation in Sao Paulo

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By Lisandra Paraguassu and Andrea Shalal

BRASILIA/WASHINGTON (Reuters) – The U.S. government stepped up an offensive on Tuesday to keep China’s Huawei Technologies out of Brazil’s 5G market, with Washington offering to finance purchases by Brazilian telecom companies of equipment from its competitors.

During a visit to Brasilia, officials of the U.S. International Development Finance Corporation (DFC), the U.S. EXIM bank and the National Security Council told reporters that funding was available to buy equipment from other companies.

The U.S. delegation was headed by National Security adviser Robert O’Brien, who met with Bolsonaro before they attended the signing of an EXIM bank financing agreement that identifies areas of business cooperation that includes 5G telecoms.

In Washington, top U.S. officials urged Brazil to carefully monitor Chinese investments in Brazil and moves by Beijing to expand its influence in Latin America’s largest economy through sale of 5G technology by Huawei.

U.S. Trade Representative Robert Lighthizer said trade agreements reached with Brazil on Monday would pave the way for further negotiations on steel, ethanol and sugar, and promote greater U.S. investment as Washington moves to provide a counter-weight to China’s expansion in the region.

“I would say clearly there is a China element … in everything that all of us do,” Lighthizer told an event hosted by the U.S. Chamber of Commerce. “China has made a very significant move in Brazil. They’re Brazil’s biggest trading partner, so it’s something that we’re concerned about.”

Lighthizer’s remarks were part of a full-court press. White House economic adviser Larry Kudlow said Washington had urged Brazilian President Jair Bolsonaro and other Brazilian officials to keep a close watch on China’s investments and advanced technologies, as Washington had done.

“We have encouraged Brazil .. to try to work together to make sure that we watch China carefully with respect to all manner of technology and telephoning and 5G,” he told the event.

“We have taken actions here in the States; we continue to move, and it is my great hope that Brazil will move with us,” he added. “We hope that Brazil will also keep a careful, critical eye on Chinese investment.”

Washington believes Huawei would hand over data to the Chinese government for spying, a claim Huawei denies.

Brazil plans to auction 5G frequencies next year to telecom companies operating in Brazil, many of which already buy from Huawei and would like to continue doing for their 5G networks because the Chinese equipment is cheaper.

“The U.S. concern is how they use the data, how they use the technology for state benefit, not for the individuals who use that the technology,” Joshua Hodges, senior director for Western Hemisphere affairs on the NSC, said in Brasilia.

DFC Managing Director Sabrina Teichman said 20% of its $135 billion portfolio was available for commercial deals with companies that wanted to partner with the United States as part of the Trump administration’s China and Transformational Exports program, which is aimed at neutralizing Chinese competition.

“We have equity financing and we also have debt financing and those plans are available to Brazilian companies” that are looking to acquire new technology,” she told the reporters.

“We are looking forward to supporting the Brazilian telecom sector,” she added.





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Fed’s Evans says recovery could stall without more fiscal stimulus By Reuters

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(Reuters) – Chicago Federal Reserve Bank President Charles Evans said on Tuesday he is “reasonably confident” the U.S. economic recovery will maintain momentum into next year, but without more fiscal stimulus the recovery could stall and more job losses could become permanent.

“I am worried about the lack of fiscal support,” Evans said at a virtual event hosted by the Detroit Economic Club, adding that the prospect of no new relief “really makes me nervous” particularly because it could mean state and local governments would need to cut more jobs.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Fed’s Quarles says pandemic stresses highlighted fragility in nonbanks By Reuters

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© Reuters. Quarles, vice chairman of the Federal Reserve Board of Governors, testifies before a Senate Banking, Housing and Urban Affairs Committee hearing in Washington

By Pete Schroeder

WASHINGTON (Reuters) – U.S. Federal Reserve Vice Chair Randal Quarles said Tuesday that the market stresses created by the coronavirus pandemic showed the nonbank financial system is “significantly more fragile” than its traditional counterpart.

Quarles said that while decisive action from central banks and regulators helped ease market turmoil, recent events have shown global regulators have “work to do” to shore up nonbanks, including improving resiliency in money market funds.

Speaking in his capacity as head of the Financial Stability Board, Quarles did not lay out precise policy prescriptions, but rather said the global regulatory group is hard at work examining the issue and expects to lay out recommendations soon.

“Addressing vulnerabilities in the financial system going forward…will require a holistic perspective given the various linkages within nonbank financial intermediation and between nonbanks and banks,” he said, according to prepared remarks. “We have gained some clarity regarding areas of the market that needed significant bolstering and have to look closely at whether and how resilience in these segments can be improved.”

The rapid onset of economic lockdowns and market stress revealed some flaws across the market, he added, particularly as companies worldwide scrambled for cash, specifically U.S. dollars.

For example, margin calls appeared to be larger than expected for some firms, leading to stretched liquidity. And the stress raised new questions about the functioning and resilience of core government debt markets, particularly when it comes to the ability of private parties to intermediate in those markets.

Quarles noted that markets returned to normal thanks to massive intervention by central banks across the globe, addressing the immediate issue but raising longer-term questions.

“While swift and decisive policy action succeeded in calming markets, this does not mean that our work is complete. While central bank action succeeded in restoring market functioning, this support does not address the underlying vulnerabilities,” he said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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