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UK's Johnson To Meet EU's Von der Leyen Saturday, With "Tunnel" Potential

EUROPE

UK risk appetite supported by news from PM Johnson's spokesperson that "the PM will be speaking to President von der Leyen tomorrow afternoon to take stock of negotiations and discuss next steps".

  • This is seen as risk-positive as Johnson's direct involvement suggests a more aggressive attempt to unlock the impasse at a crucial time in the FTA negotiations.
  • The Times' Bruno Waterfield adds a little more on the call tomorrow: "Johnson call expected to be a plea for the EU to move into the final lap of trade talks, known as the "tunnel". Senior source: "This is a good sign. I hope there will be forthcoming signals on the two main outstanding issues, fish and state aid."
  • Reuters reinforces the positive headlines, citing sources saying the UK and EU would continue trade talks until the EU Summit on Oct 15-16 (this week's talks had been the last scheduled).
  • GBPUSD on session highs, Gilts on session lows.

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