The fifth round of negotiations between London and Brussels predict a very “though Brexit”

More and more voices in London claim the UK needs to prepare for a “tough Brexit“, which may indicate that negotiations between the two sides will become drastic and the Britons will become forced to leave the EU without a trade agreement.

According to the Minister of Justice in London, Dominic Raab, Britain must “fight for the best agreement”, writes the BBC.

According to the Sunday Telegraph, the London government already has a plan to unblock billions of pounds to prepare for the possibility of Great Britain leaving the bloc without a commercial deal.

More and more voices in London say this scenario sound plausible, given that after six months of negotiations there has been no significant progress regarding the separation between London and Brussels.

The talks stumbled when the EU leaders have reached to the most important issues – the rights of European citizens in the UK, the bill related to London’s obligation to pay and the border between Ireland and Northern Ireland.

While claims that Theresa May is ready to proceed to the next stage of the negotiations, Brussels complains about the lack of establishing clear measures of London and claims they will not start discussing a commercial agreement providing before those three key issues become solved.

The largest employer in Berlin also claimed that German business firms on the British market should prepare for “a very tough Brexit.”

Brexit supporters say if the UK does not reach an agreement with Brussels, the only responsible is the EU.

A “tough Brexit” means that the UK will not be able to reach a trade agreement with the EU and will leave the single market, which, in the opinion of lobby groups in London, will hit the economy.

BDI says some German companies are preparing back-up plans if the UK leaves the EU without a deal.

According to Reuters, these companies include Airbus, Siemens and Deutsche Bank.

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The largest American bank is opening a new headquarters in Poland

The government of Poland is expecting JPMorgan Chase to open an operational center in Warsaw, completing the list of international banks attracted by the low costs from Poland amid the competition of relocating the positions from London in Europe’s most developed cities, Bloomberg writes.

The US bank, which will hire “a few thousand people” according to Polish Deputy Prime Minister Mateusz Morawiecki, will join the massive group of foreign banks that have relocated to Poland during the last two years.

“The world’s largest bank will have a headquarter here and will hire several thousand people in management, risk management and logistics, which is good because these are well-paid jobs”, Morawiecki said.

UBS Group has set up a global hub in Krakow, while Goldman Sachs, who plans to halve its staff in London to 3.000 employees, will expand to Warsaw to “several hundred” in the upcoming years, according to Handelsblatt .

Morawiecki said this year that Brexit could bring up to 30.000 positions in the Polish business sector.

Jennifer Zuccarelli, spokesman for JPMorgan in London, refused to comment.

In January, a spokesman said the bank is “continually reviewing options for improving its office strategy and it has nothing to do with Brexit.

Business outsourcing centers opened by foreign companies have brought 198.000 new jobs to Poland, most of them in the financial industry, according to the Association of Business Service Leaders in Poland.


The US government ends any collaboration with Kaspersky, after the Moscow-based company has been accused of collaborating with the Russian intelligence services

The US Department of Homeland Security has ordered other official departments and government agencies to uninstall the Kaspersky antivirus system, writes BBC.

The department suspects the Moscow-based company is having ties with the Russian intelligence services.

The news was announced before a deliberation in the Senate was organized earlier this week, during which the US senators have decided to ban the use of any product developed by Kaspersky.

Kaspersky Lab has repeatedly rejected the allegations.

Unfortunately for the Russian tech giant, the rumor has prompted a significant number of US retailers to withdraw Kaspersky Lab products from sale.

Kaspersky has more than 400 million customers around the world, but has failed to become an important US cyber security provider.

Interim Secretary of Internal Security Elaine Duke has given 90 days to the targeted institutions to uninstall and replace the software.

“The Department is concerned about the links between some Kaspersky representatives, the Russian intelligence (services) and other government agencies”, mentioned a US official in a press release.

There is “a risk that the Russian Government will act alone or in collaboration with Kaspersky, using the access offered by Kaspersky products and compromise federal information and intelligence systems that directly involve US national security”.


Algeria launches “helicopter money” as plan to plug the country’s budget deficit

Algeria budget

Algeria budget

Algerian Prime Minister Ahmed Ouyahia presented a comprehensive plan meant to reduce the country’s budget deficit.

The controversial plan also includes the approval for several loans from the central bank, as OPEC member countries are trying to offset declines in oil revenues without accessing the international debt markets, writes Bloomberg.

According to Ouyahia, non-traditional funding will pull Algeria out of the crisis within five years.

The five-year plan would balance the country’s budget by 2022, covering a deficit that has grown strongly against the background of the dramatic collapse in oil prices, which has also led reducing the country’s foreign currency reserves to half.

“If we resort to foreign loans, as the IMF suggests, we will need to borrow $20 billion a year to cover the deficit, and in four years we will be unable to pay the debts. That’s why the government has used the non- traditional financing”, added the Algerian prime minister.

Given that the internal debt of the country is around 20% of GDP, Algeria can borrow more, the IMF has stated.

Earlier this month, the Algerian government authorized the central bank to lend the Treasury in order to solve the deficit reduction.

Dubbed by the current import restrictions, “the central bank’s financing of the fiscal deficit will fuel rising inflation and lead to depreciation of the local currency,” said a recent report by Riccardo Fabiani, senior analyst at the Eurasia Group.

Taking into consideration the depreciation of the dinar, Ouyahia argues the local currency has depreciated by 25-30% in the last three years, although no traditional funding was made in that period.

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UK government is working on a plan B in case the Brexit talks will not go as planned

The British government is working on a B plan for the possibility of just in case the negotiations between the UK and the European Union on Brexit, will not unfold as planned, said Prime Minister Theresa May on Sunday.

During an interview with the BBC May said that she believes her Florence speech from last week gave impetus regarding the talks for Brexit, adding that she deeply hopes to reach to an agreement with the EU officials in order to finalize the divorce procedure by March 2019.

“The government is working on what should be implemented if there is no agreement. We also work to have a fair deal for the United Kingdom. Government departments are looking to see what changes are needed and what we need to implement”, added Theresa May.

The big investment banks that have their European headquarters in London initiated their plans of creating new trading hubs in other parts of the region in anticipation of Brexit despite Britain’s commitment to a two-year transition period after March 2019, according to sources familiar with the situation, quoted by Bloomberg.

They are not sure that agreement will be reached with the EU, and waiting for such an agreement would generate very high costs.