Sterling is rallying amid reports that the UK has bowed to EU demands on the Brexit divorce bill, in an attempt to start discussing trade
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Sterling is on a roll this morning, amid signs that Britain and the European Union are on the brink of a Brexit breakthrough.
Non-stop behind-the-scenes negotiations have led to a broad agreement by the UK to a gross financial settlement of £89bn on leaving the bloc, although the British expect the final net bill to be half as much.
A senior EU official told the Guardian that the UK appeared ready to honour its share of the EU’s unpaid bills, loans, pension and other liabilities accrued over 44 years of membership. “We have heard the UK wants to come along with the money,” the official said. “We have understood it covers the liabilities and what we consider the real commitments. But we have to see the fine print.”