The Daily Update - US shutdown / Brexit wake up

The US government shutdown dragged into a third day after lawmakers failed to agree on a spending bill by midnight on Friday. There does seem to be some hope that the government may reopen before the morning commute later today via a short term deal to minimise disruption. A government shutdown means that all non-essential spending is stopped i.e. National Parks. However, spending on departments that are deemed essential continues, that means social security, Medicare, prisons, taxation (of course !!) and air traffic control continue as normal. The Democrats had refused to back any temporary deal until worries about immigration reform were met, this left an irate Trump to tweet ‘Great to see how hard Republicans are fighting for our Military and Safety at the Border. The Dems just want illegal immigrants to pour into our nation unchecked’.

The last government shutdown lasted more than 2 weeks in October 2013. At the time more than 800,000 government employees were furloughed or placed on temporary leave.

Also over the weekend, ‘Something perhaps between this full access and a trade agreement’ is how French President Emmanuel Macron sees a possible Brexit deal with the UK after stating that full access to the European Union’s single market would be impossible without accepting the principles of freedom of movement and EU jurisdiction. ‘As soon as you decide not to join these preconditions, it’s not full access’ he said, insisting that the UK cannot ‘cherry-pick’ rules.

Macron also believes that full access for the UK finance industrial services was not possible saying ‘It depends on the proposals made by the UK, but for sure, full access for financial services to the single market is not feasible, given the functioning of the single market - so by definition it’s not a full access’. However, he does believe that both the EU and the UK can negotiate a bespoke deal that would fall somewhere between a single market and a trade agreement.

Of course the UK Prime Minister does not see any future deal as cherry picking, believing instead that the UK can negotiate a ‘comprehensive free trade agreement and a security partnership’, adding ‘Because we don't start from the position of, say, Canada or Norway - there are significant and long-grown economic links between us’.

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