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Kwarteng: PM and Taoiseach Brexit meeting 'significant move'

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The pound jumped by the most in seven months.

Irish PM Varadkar just updated markets in Liverpool following a meeting with British PM Boris Johnson where the political leaders discussed the sticky subject of Northern Ireland's backstop and how to avoid a hard border. If there is no deadline extension and no agreed divorce, they will use such a summit to make final preparations for a rocky, no-deal split.

"This will be a private meeting to allow both leaders and their teams to have detailed discussions", Johnson's office said in a brief statement.

Boris Johnson and Leo Varadkar maintain talked about they are able to "come one day of a pathway" to a imaginable Brexit deal.

He affirms: "A deal, which leads to a well-managed departure, is likely to have a rebound effect on global stock markets could rebound, whilst the pound and euro would strengthen against the dollar".

His warning comes ahead of high-level talks between himself and Steve Barclay, the Brexit Secretary, who is due to visit Brussels again on Thursday.

"I had a very good meeting with the prime minister. very positive and very promising", Varadkar said on Thursday.

"We're coming to a situation where I think a deal is possible".

He said that, while obstacles remain, he hopes the progress on Thursday will be enough for formal negotiations to re-start in Brussels.

But with the crucial European Union summit in Brussels starting in a week, the chance of the PM securing a new Withdrawal Agreement is looking increasingly unlikely.

British Prime Minister Boris Johnson's office says he won't resign but will cut his trip to the United Nations in NY short and return to the U.K. earlier than expected.

The meeting was followed by the release of a joint statement.

They have also voiced strong concern about proposals in the plan for the new arrangements to require the consent of the Stormont Assembly, effectively handing a veto to the DUP.

Officials would "engage intensively" on these issues, the two leaders noted. Following the discussions, Varadkar will consult with the EU's Brexit negotiating taskforce.

Britain's Brexit minister, Steve Barclay, was due to have lunch with European Union chief Brexit negotiator, Michel Barnier, on Thursday.

Johnson has proposed limited customs inspections away from the frontier, but Varadkar insists any such checks will threaten peace in the region, which suffered decades of terrorism.

Pressure on Boris Johnson then in the run up next week's summit of European Union leaders.

Despite his public statements and those of his aides and ministers, Johnson's administration last week made a honest undertaking to a court that it would abide by legislation passed by parliament mandating the prime minister to seek a Brexit extension if a deal was not reached.

Of their statement, the two leaders talked about their discussions had focused on the "challenges" of future customs preparations and "consent" in Mr Johnson's Brexit blueprint.

The taoiseach has made it clear that he believes that the PM's proposals on a Stormont lock and Northern Ireland's membership of a United Kingdom customs union in the future pose problems in terms of avoiding a hard border on the island after Brexit.

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