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Goldman Sachs note that "technical talks.........>

UK
- Bonds & Currency News | Market News" >
UK: Goldman Sachs note that "technical talks between EU and UK negotiators have
stalled in recent weeks, but European Commission President Ursula von der Leyen
and UK Prime Minister Boris Johnson injected fresh political momentum into
Brexit discussions following a 'High Level' videoconference on Monday afternoon.
The next stage of negotiations will not be plain sailing, but we maintain our
base case that the EU and the UK will strike a 'thin' free trade agreement by
the end of the transition period on 31 December. De jure, the UK government will
be able to claim that a zero-tariff/zero-quota deal was done in the promised
timeframe - despite the disruption from Covid-19. De facto, we expect that deal
to involve a lengthy implementation phase, during which some current EU-UK
arrangements are preserved (in data, aviation and security, for example) until
further negotiations have run their course. In the language of 2016, we would
characterise the path ahead as a soft landing to a "hard Brexit" destination. In
the language of 2020, a foundational agreement reached this year would "deliver
a relationship" that can advance the interests of both sides over the longer
run."
- Bonds & Currency News | Market News" >
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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