michel barnier and david davis spoke in brussels. separation from the european union and our relationships are inextricably linked. supervise, to enforce our laws must not and will not the undermined by brexit. >> this is not about skipping ahead, or trying to reopen previous discussions. it is about pragmatically driving the process. >> after this week, it is clear that the u.k. does not feel legally advised to honor these obligations after departure. >> let's continue to work together constructively, and talk to people about the process. mark: joining us now is the reporter who covers brexit for bloomberg news. was any progress made in round three? reporter: not really. there was some sort of technical works done on some of the complicated stuff, but when it comes to the politics, these sides are as far away as they have ever been. the biggest issue is this bill. the financial settlement that the eu wants the u.k. to pay. the thing is, it is becoming isn'tthat the u.k. thinking that it owes anything. bridging the divide is a most i

michelle barnier wants more details. let us get to today's events right away. looking at this north korean missile test flying over the island of hokkaido, really unprecedented that we have seen a north korean missile flying over the japanese mainland. let us look at what is going on at the moment at this chart, 8092. it is telling us there is not much to be worried about. no one worries, according to this. this is a signal index, below average risks for the korean currency at the end of july. that bit still persists. just going to tell you who does worried. investors, generally speaking. goldrecent move higher in -- announced that $1300 level. a near-term advantage, 1340 per ounce is on the cards. this has been further supported by early trade data showing a further strengthening after that korean missile shot over japan. that is what we have at the moment. looking at more upside for gold as investors fret and pile into gold and the yen as well. haidi: yeah, quite for to assist time for gold. -- quite for two iteris timing itous timing for gold. remember, it s

michelle barnier, david davis, we will let those talks continue. we hope for progress can be made and it will be sufficient when we meet in not over -- october, but at the date, the progress has not been sufficient. in ireland, there has been some progress. we are satisfied we will keep the travel area, british citizens will move freely between the two islands, work him a live, access health and education as we do now. commitment byng the british government to fund peace building measures in northern ireland, but an area i feel very strongly about is there shouldn't be a trade border and we don't yet have progress on that. >> say the u.k. doesn't get traded doesn't -- wants with the eu. how concerned are you they say we put in a hard order between the republic of ireland and northern ireland? >> where we are confused and puzzled is very much the premise of your question. what trade agreement does the u.k. want with the eu? at the moment, they have the best trade deal imaginable, which is a customs union and access to single european markets and the

led by michelle barnier, david davis on the british side, we hope for progress can be made and it will be sufficient when we meet in october to allow the talks to continue to the next phase. but the talks to date, the progress has not been sufficient. in ireland, there has been some progress. we are satisfied we will keep the travel area, british citizens will move freely between the two islands, work , live, access health and education as we do now. and i am reassured with the ongoing commitments to the british government to fund peace building measures in northern ireland, but an area i feel very strongly about is there shouldn't be a trade border and we don't yet have progress on that. >> on that note, let's say the u.k. does not get the trade deal it wants with the eu. how concerned are you they say we put in a hard order between -- hard border between the republic of ireland and northern ireland? >> where we are confused and puzzled at very much the premise of your question. the tradee suggesting for the last 14 months now, they want have all of the advantages of beig in the eu,

michelle barnier, david davis, we will allow those talks to continue. we hope the more progress can be made, and that the progress of the sufficient when we meet in october, to allow the tops to -- allow the talks to continue to the next phase, but to date, the progress has not been sufficient. in ireland, there has been some progress. we are satisfied we will keep the travel area, british and irish citizens will move freely between the two islands. work, live, access to health, education, as we do now. i have also reassured with the ongoing commitment by the u.k. government to fund peace building measures in northern ireland, but an area i feel very strongly about is there shouldn't be a trade border on the island of ireland. and we don't have sufficient progress on that. >> say the u.k. doesn't get that -- doesn't get the kind of trade deal it wants with the eu -- with the eu. how concerned are you they say we put in a hard order between the republic of ireland and northern ireland? >> i suppose where we are confused and puzzled is very much at the pr

. >> quite candid, but as -- both david davis and michel barnier were very polite in the remarks before this third round, but you can tell they are frustrated on both sides. the eu is calling for more transparency on the part of the u.k. and the u.k. is demanding more flexibility on the part of the eu. i don't think they are going to resolve this week, we will have to see if there is a little progress able to be made in these talks. manus: the u.k. government has bided papers, that was in a to advance the brexit talks, laying out the u.k. line, showing clarity of vision. but the eu is essentially saying britain hasn't done enough in terms of spelling out its stance and when. this goes back to david davis's ambiguity, deliberate ambiguity which is what barnier is asking the u.k. to end. right, the u.k. has issued a bunch of position papers on a raft of stuff, including the european court of justice, which is in -- an important point down the road. rnier is saying is we need to focus on the withdrawal issues, the financial arrangement for when the u.k. leaves. this is one of the issues th

michel barnier said the u.k. is refusing to a knowledge the financial obligations until the contract has been made. as i said before, time is pressing, if we want to get what we want, which is a global agreement. at the current state of we are quite far from being able to say that sufficient progress has taken place. india grew at its slowest since 2014 in the second quarter as companies and retailers paired inventories ahead of the nationwide sales tax. through june..7% slower than in the previous period. putsifth straight quarter pressure on the rba to keep rates lower longer. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. strong economic data from china as well as the u.s. pushing stocks and commodities higher. the dollar slid after secretary mnuchin said a weaker currency is somewhat better for trade. joining us now is su keenan. what do you think? day ford have a strong commodities and metals as well as ener

ain: yeah, obviously michele barnier has a mission. the autumn is critical with the fourth and fifth rounds approaching this autumn and it's really important we make a sort of progress on that and really that needs to be -- we'd like to then see the next phase focus on that transition arrangement rather than the final deal, the e.u. had said quite clearly they want to focus on the final deal before agreeing transition and in my mind is the biggest sticking point where hopefully we'll see progress on both sides as we head through the autumn. francine: i have time for 20 seconds each. what will move the pound from now on, brexit negotiation blow by blow or time line middle october and then december? >> i think it will be blow by blow. and i think it's euro sterling is one you need to look at from now and it will go higher from here. >> it's a cyclical economy and the cycle is turning down and will unfortunately drive sterling lower. francine: thanks for joining us. our guest phen and from capital. manuel macron tries to reclaim his polit