The Day at a Glance | December 11 2020

The Top

· No advancements in Brexit negotiations; the UK and the EU prepare for a Brexit with no trade agreement.

· Economic indicators: Data regarding inflation for producers will be made public in the US (0.8% e., annual Nov.).

Economic environment

Prime Minister of the UK Boris Johnson and President of the European Commission, Ursula von der Leyen, warn about the likelihood of a Brexit with no trade agreement on December 31st. Both made statements after a meeting in Brussels, which did no resolve differences. Van der Leyen told European Heads of State that there is a higher probability of seeing no agreement after giving them a summary of the negotiations at the start of the Leader`s Summit this weekend; while Johnson assured that a Brexit without an agreement is a “very, very likely” scenario. Johnson and Van der Leyen have given their teams until Sunday to continue with negotiations, which are still stuck due to disagreements regarding fishing rights and subsidizing businesses. Officials on both negotiation teams have said that if conversations continue without new political leadership, there will be no chance of seeing negotiations progress. Von der Leyen is waiting for Sunday to give an update and inform European leaders whether or not conditions have been met in order to reach an agreement. The United Kingdom will be part of the EU until December 31st, and starting January, it will leave the single market and the customs union. Trade between both blocks exceeds one trillion dollars annually, a trade relationship that could see the implementation of tariffs and restrictions starting in 2021 if no agreement is reached.