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Sterling Soars After Britain, EU Agree On Brexit Divorce Bill: Telegraph

The Telegraph is reporting that British and EU negotiators have reached a deal over the so-called ‘Brexit bill’, opening the door to a potential breakthrough in the talks this December.  According to the report, that the final figure, which is deliberately being left open to interpretation, "will be between €45bn and €55bn, depending on how each side calculates the output from an agreed methodology."

Telegraph quotes sources on both sides who have confirmed that "an agreement-in-principle has now been reached" over the EU’s demand for a €60bn financial settlement ahead of a crucial lunch meeting next Monday between Theresa May and Jean-Claude Juncker, the European Commission president.  As a result of the breakthrough on money, only two major obstacles are left open to overcome in order to make progress when the European Council meets on December 14-15. These are defining the role of the European Court of Justice in governing the agreement on the rights of 3.2m EU expats in the UK after Brexit, and the continued row between London and Dublin over avoiding a return of a hard border in Northern Ireland.

And while Cable has surged on the news...

.... what is far more interesting is that it took FX algos nearly 10 minutes after the Telegraph report was published and distributed, before they reacted.

: Britain and the EU agree Brexit divorce bill https://t.co/hx3XSPPNST pic.twitter.com/oRa9tlbr9o

— The Telegraph (@Telegraph)

It appears that all FX "trades" now desperately need a Bloomberg headline to scan, such as this one...

  • UK, EU SAID TO REACH AGREEMENT ON BREXIT DIVORCE BILL:TELEGRAPH

... in order to make the decision to buy.

If anything, today's Brexit "breakthrough" more than anything demonstrates again just how devoid of human traders the market has become, and how reliant on central news platforms such as Bloomberg, the algos have become.

From The Telegraph.

British and EU negotiators have reached a deal over the so-called ‘Brexit bill’, opening the door to a potential breakthrough in the talks this December, the Telegraph has learned. Sources on both sides confirmed that an agreement-in-principle has now been reached over the EU’s demand for a €60bn financial settlement ahead of a crucial lunch meeting next Monday between Theresa May and Jean-Claude Juncker, the European Commission president.

 

Two sources confirmed that the terms were agreed at a meeting in Brussels late last week after intense back-channel discussions led by Oliver Robbins, the UK’s chief Brexit negotiator. The Telegraph understands that the final figure, which is deliberately being left open to interpretation, will be between €45bn and €55bn, depending on how each side calculates the output from an agreed methodology.

Prior to this news, it had been thought that the UK was prepared to offer about 40 billion Euros, although its bargaining position was perceived to be relatively weak given the internal divisions within May’s government and growing pressure to reach a deal from UK-based businesses. As The Telegraph notes, there are still two further sticking points which will need to be resolved before the European Council will sanction the next phase of negotiations, e.g. resolving trade issues.

Although it remains true that ‘nothing is agreed until everything is agreed’, sources said the breakthrough on money effectively now leaves only two major obstacles to overcome in order to make progress when the European Council meets on December 14-15. These are defining the role of the European Court of Justice in governing the agreement on the rights of 3.2m EU expats in the UK after Brexit, and the continued row between London and Dublin over avoiding a return of a hard border in Northern Ireland.