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After the Salzburg meeting ended terribly, attempts to kick-start the Brexit negotiations have started, notes the research team at Danske Bank.

Key Quotes

“German Chancellor Angela Merkel said the EU and the UK must lay out a ‘fundamental vision’ for the future relationship by November and that while trade should remain as frictionless as possible, it was difficult to avoid some control. Merkel also hinted that technological solutions may help resolve the Irish border issue.”

“Trump signed his first renegotiated trade deal with South Korea yesterday. While trade analysts say the changes and hence the economic impact is small, it adds to the impression that the Trump administration is trying to close the negotiations with other countries so that it can focus on China, with whom the US has the largest trade deficit.”

“The deal does not change our view that there is a risk the US-China trade conflict may escalate further and that it may get worse before it gets better. It is difficult to see a solution before we are well into 2019.”