European Union to propose limited market access for UK-based banks

European Union to propose limited market access for UK-based banks

The British Trade Secretary, who on Thursday accused the European Union of acting like a gang in Brexit talks, said he would use a trip to Washington next week to secure a British carve-out from the US President's levy of 25pc tariffs on steel and 10pc on aluminium.

Britain has so far failed to bring forward "specific and realistic" alternative proposals to keep the Irish border open without activating the EU's "backstop" option, he said.

Shanghai, China based Ashton Whiteley analysts say that although France maintains that it is not taking a hard line on Brexit negotiations, it does not see a strong possibility of a free trade deal being struck which grants the United Kingdom the level of access it seeks for financial services.

"As my good friend John Bruton wrote in a recent article, "The most valuable test that Mrs May wishes to apply to a Brexit agreement is that it should be one that would endure and not require constant renegotiation".

"We must recognise the democratic decision taken by Britain to leave the European Union in 2016, just as we must recognise the democratic decision made on the island of Ireland in 1998 with all its consequences", said the former Polish prime minister.

"The risk of destabilising the fragile peace process must be avoided at all costs".

The EU issued draft guidelines for the negotiations on the future relationship earlier in the week - to be agreed by the 27 heads of state and government.

Asked if that exit deal had been studied by Treasury officials, Mr Hammond said: "Not yet - we haven't even embarked on the negotiation yet".

He added: "For the moment, it is not unlikely that the negotiations will end up with a bad result, a bad result for the European Union but worse for the UK". To ensure a level playing field, to ensure the integrity of the single market, and to ensure financial stability, this is why we cannot offer the same in services as we can in goods.

Donald Tusk also commented: "Yesterday the UK Chancellor made a speech in the City of London arguing for a bespoke deal or an ambitious FTA covering financial services - so I will refer to this issue of such great interest to London".

Strong U.S. job growth data on Friday was balanced by slower increases in wages, resulting in money market traders sticking to bets that the Federal Reserve would raise interest rates three times this year.