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EU pushes for more Brexit talks

Yahoo Finance's Oscar William's Grut joins the On the Move panel with the latest Brexit news.

Video Transcript

OSCAR WILLIAMS-GRUT: Well, we are essentially in a slightly similar position to Friday where there is a lot of chest beating going on on either side-- both the EU and the UK signaling to each other publicly that the other must back down but suggesting behind the scenes that there could actually be some progress. We heard, of course, on Friday that Boris Johnson called off negotiations, said they're effectively over because the EU were being stubborn. They wouldn't move from their position.

However, there was some weakening of that position over the weekend. Michael Gove, who is the minister in charge of Brexit-- he said on Sunday during a television interview that the door was still ajar on talks with the EU. But they are clearly preparing for a no-deal Brexit. The government today started an advertising campaign that has been dubbed "time is running out," essentially warning Britain's businesses that they really must take it seriously and get ready for the additional paperwork and preparedness that will be necessary if we leave with no trading deal-- and indeed if we leave with one because there will still be a large degree of change.

But both sides appear to still be aiming, or hoping I should say, to get a deal in the little time we have left. Bloomberg this morning reporting that the UK will potentially back down and water down its internal market bill, which was so controversial earlier this year. This is the piece of legislation the UK are trying to push forward that would have broke part of the withdraw agreement and broke international law. That's now winding its way through the House of Lords here in the UK and is widely expected to be gutted by the lords. They essentially will take out the parts of the bill that will break international law. That will essentially give Boris Johnson some cover to back down and say, oh, he was thwarted by the lords, but he would have done it if he had the power.

Now the Pound rose this morning after Bloomberg reported this because it suggested that the government might be backing down in order to meet the EU halfway. We've seen Sterling come off a bit from its intraday highs, but there are still positive signs. Michel Barnier, who leads the EU negotiations, tweeted just in the last few hours, "The EU remains available to intensify talks in London this week on all subjects and based on legal texts. We now wait for the UK's reaction." So we could see movement in the next few days, but I think at the moment neither side wants to be seen to give ground, but something has to give.