According to ANZ analysts, UK Prime Minister Johnson has been doing the rounds of the European parliamentary heads as he looks to resolve the Irish backstop issue which is the main sticking point for a Brexit agreement.

“European leaders have indicated they are willing to listen and negotiate an agreement. The EU has indicated the UK has 30 days to present its suggestions, although German Chancellor Merkel later indicated negotiations can continue until 31 October. She also cautioned that any agreement can’t differ materially from the one already on the table. Johnson has suggested a trusted trader framework, electronic pre-clearing for customs and checking rules of origin as ways to get around the backstop and avoid a hard border in Ireland. Any proposals will have to be endorsed by Dublin and guarantee no hard border. A no-deal Brexit could severely disrupt the dairy industry of Northern Ireland as 25% of its milk is processed in the Republic.”