Daily Memo: Brexit Plan B

Another negotiating failure bodes poorly for a deal.

Brexit plan B. Wednesday’s meeting between British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen failed to bridge the gap in Brexit trade negotiations. In fact, the outlook is so gloomy that Brussels finally published its plans in the event no deal is reached by the end-of-year deadline. The plans would keep fishermen fishing, planes flying and truck drivers trucking between the U.K. and the continent for six months – if London accepts the sorts of level-playing field rules that have been blocking a trade agreement to date. The EU also urged member states not to fall into the trap of working out their own bilateral contingency arrangements with the U.K. and thus undermining the bloc’s negotiating position. Both sides announced that Sunday is the new deadline for a deal – not that deadlines have carried much weight in the past.  Another Chinese SOE defaults. China’s wave of corporate bond defaults keeps getting bigger. Chinese state-backed chipmaker Tsinghua Group announced Wednesday that it would fail to make payment on the principal of a $450 million eurobond, as well as a 260 million-yuan ($40 million) interest payment on an onshore bond. The former technically puts it in […]

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