The fragile truce didn’t last long. Just three days after the hard won deal to move Brexit talks along, the U.K. government has irked the Irish government and the Cabinet is once again publicly at odds.
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Brexit Secretary David Davis was among those sending signals over the weekend that the U.K. wasn’t really committed to what it signed up to last week after rushed four-way talks between London, Dublin, Brussels and Belfast. A bid to placate the pro-Brexit faction of Theresa May’s Conservative Party had the side effect of angering the Irish government, and with it, probably the EU.
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The agreement set out that as a fallback position, the U.K. would keep its rules aligned with those of the EU in order to prevent a hard border on the island of Ireland. The wording alarmed the pro-Brexit faction, which saw the chances of a clean break receding, and delighted those who want to stay close to the EU and its rules.
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A Bloomberg survey of economists showed expectations for higher inflation next year, with predictions for the next Federal Reserve rate rise after the near-certain hike this week moving up to March. The pickup in global growth and the Republican tax plan were seen as the main drivers for the improved outlook for the U.S. economy. Speaking of the legislative agenda, President Donald Trump will give a speech on Wednesday on the fiscal overhaul as House and Senate negotiators iron out differences in the versions of the bill passed in their respective chambers.
Just days after the deal that saw the U.K. make progress on negotiations to leave the European Union, members of Prime Minister Theresa May’s cabinet have been saying that the British government wasn’t really committed to what it had signed up to. Brexit Secretary David Davis said the deal was “was more a statement of intent than it was a legally enforceable thing,” spurring the Irish Foreign Minister to hit back on Twitter yesterday. U.K. gilts rose and the pound fell as optimism over the deal faded.
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The oil ministers of the U.A.E and Kuwait both said over the weekend that OPEC and its allies could agree at a scheduled meeting in June to draft a strategy for ending global production cuts before 2019. Citing progress in rebalancing the crude market and pressure from Russia, Kuwait’s oil minister said commodity-producing nations may end the deal next year. A barrel of West Texas Intermediate for January delivery was trading at $57.11, down 25 cents, with data from Baker Hughes on Friday showing the U.S. rig count hit a three-month high.
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