Market comment - The return of magical thinking

Davy Research
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Yesterday (May 20th), the UK government accepted that customs checks will be required between Britain and Northern Ireland, a step forward in some respects. However, the view that these checks can take place without additional physical infrastructure creates another stumbling block in EU-UK negotiations. We expect the EU and UK will inevitably be forced to eventually agree an extension of the transition period, although probably not until the end of 2020.