Prime Minister Boris Johnson said on Friday that it was time to prepare a no-trade Brexit deal within 10 weeks. However, this could be unnecessary if the EU fundamentally changes course, although Brussels says talks will resume later.
A controversial "no-deal" final for the UK's five-year Brexit crisis will create chaos through a complicated supply chain. This rule will certainly apply across the UK, THE EU, and around it. In fact, it could be the same as the economic blow of the coronavirus pandemic.
At what was supposed to be a "Brexit summit" on Thursday, the EU gave its ultimatum. They said they were deeply concerned by the lack of progress and asked London to give up on key points. The party should see a break-up of ties with the bloc from January 1.
Johnson's Advice on Brexit
Johnson has concluded that we should get ready for January 1 with a more Australian-like arrangement. It is based on the simple principles of global free trade. That strategy makes sense given that Brexit doesn't immediately find a deal.
With a high heart and with full confidence, he will be prepared to embrace alternatives. He will thrive as an independent, controlling free-trade country. They can also set their own laws. That's the opinion Johnson expressed and shared.
Johnson's stated, based on the condition of EU's demand for London to make further concessions, it could bring Brexit into chaos. This is despite him still allowing the possibility that the EU could change course and offer a better deal to the UK.
Solutions in Case of Change
If there is indeed a fundamental change of approach, then Johnson will be looking for a solution for Australia. He also argued that they should do so with confidence. The "Australian deal" is now emerging as one of the new concerns in global markets.
The so-called "Australia Deal" is that the UK will trade under the terms of the World Trade Organization. This means it will act as a country without an EU trade agreement, such as Australia, trade tariffs will also be imposed under WTO rules.
Does this affect the currency in the market? The fact is yes. The pound reportedly fell one cent against the US dollar due to statements made by Johnson. But then sterling recovered and rose 0.1% on the day. Of course, this movement can still change.
Gold is Strengthen Right Now
Gold is in the same condition. This is not because of Brexit, but the obscurity of the stimulus that still occurs today. Gold settled in the green zone for the second day in a row since Thursday. They remain above the key level of $1,900 an ounce.
An example is a confusion over what the Trump administration wants for a new Covid-19 aid deal. The situation comes after U.S. Treasury Secretary Steven Mnuchin unwittingly sparked a financial market boom Tuesday because of doubts he had.
He casts doubt on a deal on coronavirus stimulus in the near future between him and Nancy Pelosi. Mnuchin gave a telephone interview to CNBC on Thursday, reiterating that he was open to doing a simple and "targeted" deal with Pelosi.
Advice for Stimulus
Mnuchin suggested moving about $300 billion of the money previously allocated to Americans in need. The NDP chairman has refused to do a half-and-a-half deal for this kind of stimulus. He is sticking to his proposed $2.2 trillion packages.
Trump, who faces Joe Biden in the election, reiterated his $1.8 trillion bid in. It was said in an interview on Fox Business. But the Senate Majority Leader and Trump's main ally, Mitch McConnell, later told reporters things were different.
According to them, Trump can only get votes for the $500 billion account, and that's also after the election. Although still uncertain, the price of gold continues to rise. Although modest, this increase is quite remarkable considering the dollar is also strengthening