UK Prime Minister Theresa May has told her cabinet today that Brexit negotiation has to be reopened with the EU, to provide legal changes to the Irish backstop. Her spokesman said that “the prime minister said that in order to win the support of the House of Commons legal changes to the backstop will be required, that would mean reopening the Withdrawal Agreement”. And he added that “a vote of the Brady amendment makes it clear that the current nature of the backstop is the key reason that the House cannot support the deal.”
Also, May is expected to return to the Commons as soon as possible with a revised deal with the EU. If no deal could be reached by February 13, May will make a statement to the House that day, and table an amendable motion for debate the follow day.
As for today, a so called Malthouse Compromise emerged which has support from heavy weight Brexiteers, Remainers as well as Northern Ireland DUP. But EU was quick to dismiss it. EU’s deputy chief negotiator, Sabine Weyand, had said technology to avoid a hard border does not exist.
Into US session: Sterling recovers, but upside capped by Brexit confusions
Entering US session, New Zealand Dollar remains the strongest one for today. Sterling regains some ground yet it’s limited generally below yesterday’s high. Traders are looking at Brexit debate and amendment voting in the Commons, with increasing confusions. New alternatives emerge including the Brady Amendments as the Malthouse Compromise. But after all, one of the keys lies in whether there would be a united consensus within the UK. And another key is whether the EU would agree to re-open negotiations.
As for today, Swiss Franc is the weakest one followed by Yen. European stocks rise broadly on return of risk appetite while DOW futures also point to higher open. Eyes will also be on US-China trade negotiations but so far there is little news.
In Europe, currently:
Earlier in Asia: