Reuters reports, citing EU sources on the matter
The sources say that both sides are split on the issue of state aid, in which the EU wants London to agree to broader rules that would be compatible with those present. Adding that "the problem is that the UK doesn't want to follow that path".
The report also says that even if the EU and UK agrees to a trade deal in time, the final consent from the EU side would depend on the internal market bill's withdrawal - which is unlikely to happen given how things are progressing in the UK parliament.
Back to the issue of state aid, the sources cited state that "it remains to be seen if the UK can sign up to that" and that "we haven't got there and we're not sure if we'll ever get there". Those are some rather pessimistic remarks to say the least.
The pound is taking a hit on the headlines here, with cable falling from 1.2930 to 1.2885.
