Germany: no punishment for UK, but EU exit good for no one

United Kingdom and European Union negotiators have begun historic talks on Britain leaving the bloc - with both sides seeking to strike a positive tone.

Scottish Government minister for Brexit talks with the UK Government, Michael Russell, referring to a further admission from leading pro-Brexit Tory minister Michael Gove, said: "Everything he and Brexit enthusiasts said in #EURef turned out to be false".

The Brexit talks will take place across two separate stages with unpicking the issues surrounding the present situation and how to deal with the multitude of bureacratic issues that the separation will bring first on the agenda.

"There is more that unites us than divides us", Davis said.

It's been a year in the making and, with never a tiresome moment, Brexit negotiations commence today, leaving the pound on tender hooks as the markets look to get a sense of how European Union negotiators will position themselves, the tone of the respective sides expected to be their signals of intent over the next 20-odd months.

The EU's chief negotiator, Michel Barnier, said he hoped they could agree a format and timetable on Monday.

The U.K. electoral debacle has put May's own position in doubt, fueling a new battle within her Conservative Party over the kind of Brexit the government should seek.

May has yet to change tack formally and doing so would risk infuriating euroskeptics in her Tory party who might still prove strong enough to scupper a deal or to topple her as leader if they believe she's backsliding.

We will expect the Dollar to remain range bound ahead of today's FOMC member commentary, the Dollar Spot Index now up 0.03% at 97.191, with Kaplan unlikely to provide the Dollar with any support assuming sentiment towards inflation and monetary policy remains unchanged from last Friday, with there being few catalysts to waken the Euro following the parliamentary election result, the Euro down 0.05% at $1.11927 at the time of writing. Barnier has said talks on a trade deal can not even start until sufficient progress has been made on the other issues.

Hammond was kept out of the Conservatives' election campaign after a backlash over his plan to raise taxes on entrepreneurs.

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Two camps were scheduled the week of June 18, according to Glacier's website: a junior high camp and a horse riding camp. More than 50 people were injured when the deck gave way following a memorial service for a firefighter who died in April.

"In testing times like these we are reminded of the values and resolve we share with our closest allies in Europe", he said, referring to the latest reported terror attack overnight in London and the loss of lives in forest fires in Portugal.

In Luxembourg last week for a meeting of the 28 European Union finance ministers, Hammond underlined that he wanted both the European Union and Britain to take a "pragmatic" approach to the talks.

Both Davis and Barnier appeared to acknowledge they have a mountain to climb in the talks - by giving each other hiking-related gifts.

How the negotiations progress will be monitored closely by investors and business leaders.

With a lack of material stats out of the Eurozone or the U.S through the day, the markets will have little to consider that could shift sentiment, while FOMC voting members Kaplan and Evans are scheduled to speak, Kaplan having spoken last week of the need to see a pickup in inflation before supporting a 3 rate hike for the year, which could weigh on the Dollar should the sentiment be repeated and shared by Evans, the markets having been less convinced than the FED Chair on inflation and the prospects of a final rate hike for the year ahead of the FOMC Press Conference. The pound has fallen about 14 percent against the dollar since the June 23 referendum, pushing up inflation even as the economy shows signs of slowing. "The question is not whether we are leaving the customs union". Such conversations mark a shift from the pre-election talk of a "hard Brexit" and May's onetime warning she would walk away from the talks if disappointed.

"The more that Britain is unstable politically, the more hard it is to complete the talks on time", Grant said.

The UK has quietly backed down from its earlier insistence on negotiating the terms of its withdrawal from the European Union and a new trade deal simultaneously.

German Chancellor Angela Merkel said her priority was that the EU27 maintain their unity, while listening "very carefully" to the U.K.'s wishes and proposals. But the structure of divorce negotiations outlined Monday requires other key issues to be settled first.

"I would like us to get a good agreement that is in both sides' interests". Britain's departure is locked in by treaty for midnight Brussels time on March 29, 2019-whether there's a deal or not.

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