Month: October 2016

With just 12 days to go until the November 8 presidential election, the final countdown is now on, and Wikileaks continues its ongoing Podesta dump by unveiling another 1000+ emails in the latest Part 20 of its Podesta release, bringing the total emails released so far to exactly 34,197, with just under 40% of the total dump left to go.

RELEASE: The Podesta Emails Part 20 #PodestaEmails #PodestaEmails20 #HillaryClinton https://t.co/wzxeh70oUm http://pic.twitter.com/V1OuCQN7of

— WikiLeaks (@wikileaks) October 27, 2016

Among the last batch of released documents was the so-called “Rosetta Stone” of the Clinton Foundation: a confidential memo which laid out how Clinton’s consultancy Teneo was engaging in quid pro quo with corporate “donors”, a leak which has even made the front page of the WSJ.

As usual we will go parse through the disclosure and bring you some of the more notable ones.

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Just three weeks ago, after the infamous 2005 tape of Donald Trump’s lewd remarks about women publicly emerged, one of the more prominent republicans, Rep. Jason Chaffetz (R-Utah) abandoned his endorsement of Trump  “I’m out,” he told Fox 13 in Salt Lake City on Oct. 7. “I can no longer in good conscience endorse this person for president. “It is some of the most abhorrent and offensive comments that you can possibly imagine,” Chaffetz added.

It did not take him long to change his mind and last night Chafetz announced on Twitter that he will be voting for Donald Trump. 

“I will not defend or endorse @realDonaldTrump, but I am voting for him. HRC is that bad. HRC is bad for the USA,” he wrote on Twitter, referring to Hillary Clinton.

I will not defend or endorse @realDonaldTrump, but I am voting for him. HRC is that bad. HRC is bad for the USA.

— Jason Chaffetz (@jasoninthehouse) October 27, 2016

Chaffetz’s fellow Utahn, Sen. Mike Lee, called on Trump to withdraw from the presidential race after the recording was made public.

Chaffetz, chairman of the House Oversight Committee, has long been a foe of Clinton.

He said Wednesday that he expects years’ worth of further hearings on Clinton’s private email server use while secretary of State.

Chaffetz was the first of several GOP congressmen who yanked their endorsement from Trump after the recording’s publication.

Other prominent republicans who tacitly pulled their support include House Speaker Paul Ryan who vowed he would neither campaign for nor defend Trump ahead of Election Day. 

Eleven women have since accused Trump of kissing or groping them without permission before his entrance into politics.  Trump has fiercely denied the allegations, accusing the media of fixating on them to boost Democratic presidential nominee Hillary Clinton.

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Last night, David Rosenberg pointed out something troubling:  we have just witnessed five multi-billion dollar deals this past week alone — $207 billion globally (AT&T/Time Warner; TD Ameritrade/Scottrade) in what has been the most active announcement list since 1999. We can now add another massive deal to the list: this morning Qualcomm announced it would buy NXP Semiconductors NV for about $47 billion, including debt, as it seeks to expand the reach of its chips from phones to cars. The equity value of the deal is $37.88 billion.

According to the WSJ, the agreement represents the biggest semiconductor deal ever, eclipsing Avago Technologies Ltd.’s pact to buy rival Broadcom Corp. for $37 billion, and behind only Dell Inc.’s $60 billion acquisition of EMC Corp. among pure tech deals.

The combined company is expected to have annual revenue of more than $30 billion, the companies said.

Less than a year ago, NXP closed a nearly $12 billion deal to buy U.S.-based Freescale Semiconductor last December, creating the world’s top maker of automotive electronics and doubling the percentage of its auto-related revenue to 40 percent.

Qualcomm intends to fund the transaction with cash on hand and new debt.

The deal would make Qualcomm, which supplies chips to Android smartphone makers and Apple one of the biggest suppliers to the fast-growing market of chips used by the automotive industry. Qualcomm said it would offer $110 per share in cash, a premium of 11.5 percent to NXP Semiconductor’s Wednesday’s close. But the real rationale for the deal is that San Diego-based Qualcomm is facing slowing smartphone sales and stiff competition from Chinese and Taiwanese rivals.

The company gets the bulk of its revenue from chip sales but most of its profit comes from wireless patents it licenses to the mobile industry.

In a notable twist, the transaction, which is expected to close by the end of 2017, is structured to use offshore cash flow in a tax-efficient manner to rapidly reduce leverage, Qualcomm said.

Qualcomm said it expects the deal to significantly add to adjusted earnings immediately upon its close and generate $500 million of cost savings annually within two years after the deal closes: translation – hundreds of well-paid workers are about to be laid off. Qualcomm had sat out the transformative consolidation sweeping the industry, which has seen mega-deals such as Avago buying Broadcom for $37 billion last year.

The company is currently ranked third in terms of revenue among global semiconductor companies in 2015, while Eindhoven-based NXP is ranked seventh, according to research firm IHS.

Goldman Sachs and Evercore were financial advisers to Qualcomm while Centerview Partners LLC advised its board. Qatalyst Partners, Barclays and Credit Suisse were financial advisers to NXP and Skadden, Arps, Slate, Meagher & Flom LLP and De Brauw Blackstone Westbroek were legal counsels.

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• Clinton Foundation’s Fundraisers Pressed Donors to Steer Business to Former President (WSJ)
• Democrats ask judge to sanction Republicans over Trump (Reuters)
• Inside the Trump Bunker, With 12 Days to Go (BBG)
• U.K. Growth Shows an Economy Resilient to Brexit (BBG)
• Qualcomm to buy NXP Semiconductors for about $47 billion including debt (Reuters)
• OPEC May Need Help to End the Global Oil Glut (BBG)
• Russia denies its warships will join Aleppo bombardment (Reuters)
• Deutsche Bank Posts Surprise Profit on Trading Jump, Cost Drop (BBG)
• Barclays Posts 35% Jump in Profit on Bond-Trading Revenue (BBG)
• At Iraqi village, victory is fraught with risks in Mosul offensive (Reuters)
• EU puts more Syrian military, senior officials under sanctions (Reuters)
• Belgium Agrees Deal to Back EU-Canada Trade Pact (BBG)
• Twitter to Cut Workforce as Revenue Growth Slows (WSJ)
• Tsipras Attacks Greek Court After Judges Cry Foul Over Sex Leak (BBG)
• Harvard Endowment Called ‘Lazy, Fat, Stupid’ in Internal Report (BBG)
• Goldman’s Multifactor Robots: A Post-Human Guide to Investing (BBG)

 

Overnight Media Digest

WSJ

– Federal investigators have launched a probe into whether U.S. companies linked to a Chinese billionaire illegally avoided punitive import tariffs on Chinese aluminum, according to people familiar with the investigation. http://on.wsj.com/2eLixgW

– The offering for ZTO Express, which delivers parcels for e-commerce giants like Alibaba Group Holding Ltd and JD.com, is the largest IPO in the U.S. this year. http://on.wsj.com/2eTqMWD

– Fifteen Democratic senators urged federal regulators to strengthen proposed rules governing Wall Street pay practices, saying the recent scandal at Wells Fargo & Co underscored the need to hold executives accountable for misconduct. http://on.wsj.com/2eTntPc

– Two chief fundraisers for the Clinton Foundation pressed corporate donors to steer business opportunities to former President Bill Clinton as well, according to a hacked memo published Wednesday by WikiLeaks. http://on.wsj.com/2ex9aTN

– The Pentagon on Wednesday said it has suspended its efforts to collect repayment of re-enlistment bonuses from service members and war veterans who received them erroneously, announcing a series of steps to quell a swiftly developing furor. http://on.wsj.com/2eSSP9X

– Greece’s ruling Syriza party suffered a major blow on Wednesday night when judges struck down its plan to revamp Greece’s media sector, after a weekslong power struggle that produced allegations of blackmail and “fascist” methods. http://on.wsj.com/2eSqqRu

– The Brazilian Supreme Court’s 11 justices voted 7-4 that early-age retirees who continue to work and to contribute to the pension system can’t ask for an increase in payouts, a possibility the government argued was against the Constitution. http://on.wsj.com/2eHP09S

 

FT

– A second strong earthquake in as many hours hit central Italy on Wednesday night, raising fears of injuries and damage in areas of the country just north of where nearly 300 people died in a similar shock in late August.

– In an attack on the record of predecessor Ratan Tata, Cyrus Mistry claimed his dismissal as ‘illegal’ and said that five of Tata Group’s major businesses faced asset writedowns worth $18 billion.

– Russia cancelled a planned refueling stop for its warships in the Spanish port of Ceuta amid fears in NATO that the battle group could be used using it to escalate the bombardment of Aleppo.

– The Bank of England’s Prudential Regulation Authority asked large British lenders to detail their exposure to the biggest Italian Banks including Banca Monte dei Paschi and Deutsche Bank, amid concerns over Europe’s financial sector

 

NYT

– Microsoft Corp, based in Redmond, Washington, on Wednesday, unveiled a desktop personal computer that turns into a digital drafting table. Surface Studio, as the new device is called, is the company’s first desktop PC, and a reminder of Microsoft’s growing presence in the hardware side of the industry that it once left entirely to its partners. http://nyti.ms/2dMDp4P

– The makers of the Auvi-Q, an EpiPen alternative taken off the market last year, announced on Wednesday that they would bring it back in 2017. The move is certain to be welcomed by many patients and lawmakers, who have denounced the rising price of EpiPens and the lack of strong competition. http://nyti.ms/2dME86b

– This week Bank of America Corp, MasterCard Inc and several financial start-ups announced new tools – known as chatbots – that will allow customers to ask questions about their financial accounts, initiate transactions and get financial advice via text messages or services like Facebook Messenger and Amazon’s Echo tower. http://nyti.ms/2dMCOQR

 

Britain

The Times

GlaxoSmithKline Plc has collected a 1 billion pound windfall from the collapse in sterling, making it one of the biggest winners since the EU referendum. bit.ly/2fhamM1

Lloyds Banking Group Plc has set aside a further 1 billion pounds to cover payment protection insurance mis-selling as it hopes to draw a line under the scandal. bit.ly/2fhaMlz

The Guardian

Dong Energy, the biggest windfarm operator in the UK, is considering selling its oil and gas business, four decades after it was set up to manage Denmark’s North Sea oilfields. bit.ly/2fh6M4y

City regulator Financial Conduct Authority has said it is keeping a close watch on algorithmic traders of the type that may have been connected with the flash crash in the pound earlier this month. bit.ly/2fh92IS

The Telegraph

Metro Bank Plc has shrugged off the Brexit vote to win more customers and boost lending, taking it to the cusp of reporting its first profit. bit.ly/2fhcfbz

British Airways has agreed to a new deal to close the 2.8 billion pound pension gap by 2027. The company signed a deal with the trustees of its pension scheme which will allow for dividend payments to IAG. bit.ly/2fh9Dur

Sky News

RBS Bank of Scotland Group Plc has held fresh discussions with a group of institutional investors aimed at settling one of several outstanding cases against the bank that in total could cost it well over 4 billion pounds. bit.ly/2fhcBPx

Ofcom has fined Vodafone Group Plc 4.6 million pounds over a series of failures in its UK business, including its handling of customer complaints.

The Independent

The boss of Tesco Plc has warned customers to brace themselves for prices rises as Britain negotiates its way out of the EU. ind.pn/2fhbCyH

The CBI is urging the Chancellor to ratchet up government infrastructure spending by 6 billion pounds in next month’s Autumn Statement to help the UK through the economic turbulence created by June’s Brexit vote. ind.pn/2fhdOpX

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• Clinton Foundation’s Fundraisers Pressed Donors to Steer Business to Former President (WSJ)
• Democrats ask judge to sanction Republicans over Trump (Reuters)
• Inside the Trump Bunker, With 12 Days to Go (BBG)
• U.K. Growth Shows an Economy Resilient to Brexit (BBG)
• Qualcomm to buy NXP Semiconductors for about $47 billion including debt (Reuters)
• OPEC May Need Help to End the Global Oil Glut (BBG)
• Russia denies its warships will join Aleppo bombardment (Reuters)
• Deutsche Bank Posts Surprise Profit on Trading Jump, Cost Drop (BBG)
• Barclays Posts 35% Jump in Profit on Bond-Trading Revenue (BBG)
• At Iraqi village, victory is fraught with risks in Mosul offensive (Reuters)
• EU puts more Syrian military, senior officials under sanctions (Reuters)
• Belgium Agrees Deal to Back EU-Canada Trade Pact (BBG)
• Twitter to Cut Workforce as Revenue Growth Slows (WSJ)
• Tsipras Attacks Greek Court After Judges Cry Foul Over Sex Leak (BBG)
• Harvard Endowment Called ‘Lazy, Fat, Stupid’ in Internal Report (BBG)
• Goldman’s Multifactor Robots: A Post-Human Guide to Investing (BBG)

 

Overnight Media Digest

WSJ

– Federal investigators have launched a probe into whether U.S. companies linked to a Chinese billionaire illegally avoided punitive import tariffs on Chinese aluminum, according to people familiar with the investigation. http://on.wsj.com/2eLixgW

– The offering for ZTO Express, which delivers parcels for e-commerce giants like Alibaba Group Holding Ltd and JD.com, is the largest IPO in the U.S. this year. http://on.wsj.com/2eTqMWD

– Fifteen Democratic senators urged federal regulators to strengthen proposed rules governing Wall Street pay practices, saying the recent scandal at Wells Fargo & Co underscored the need to hold executives accountable for misconduct. http://on.wsj.com/2eTntPc

– Two chief fundraisers for the Clinton Foundation pressed corporate donors to steer business opportunities to former President Bill Clinton as well, according to a hacked memo published Wednesday by WikiLeaks. http://on.wsj.com/2ex9aTN

– The Pentagon on Wednesday said it has suspended its efforts to collect repayment of re-enlistment bonuses from service members and war veterans who received them erroneously, announcing a series of steps to quell a swiftly developing furor. http://on.wsj.com/2eSSP9X

– Greece’s ruling Syriza party suffered a major blow on Wednesday night when judges struck down its plan to revamp Greece’s media sector, after a weekslong power struggle that produced allegations of blackmail and “fascist” methods. http://on.wsj.com/2eSqqRu

– The Brazilian Supreme Court’s 11 justices voted 7-4 that early-age retirees who continue to work and to contribute to the pension system can’t ask for an increase in payouts, a possibility the government argued was against the Constitution. http://on.wsj.com/2eHP09S

 

FT

– A second strong earthquake in as many hours hit central Italy on Wednesday night, raising fears of injuries and damage in areas of the country just north of where nearly 300 people died in a similar shock in late August.

– In an attack on the record of predecessor Ratan Tata, Cyrus Mistry claimed his dismissal as ‘illegal’ and said that five of Tata Group’s major businesses faced asset writedowns worth $18 billion.

– Russia cancelled a planned refueling stop for its warships in the Spanish port of Ceuta amid fears in NATO that the battle group could be used using it to escalate the bombardment of Aleppo.

– The Bank of England’s Prudential Regulation Authority asked large British lenders to detail their exposure to the biggest Italian Banks including Banca Monte dei Paschi and Deutsche Bank, amid concerns over Europe’s financial sector

 

NYT

– Microsoft Corp, based in Redmond, Washington, on Wednesday, unveiled a desktop personal computer that turns into a digital drafting table. Surface Studio, as the new device is called, is the company’s first desktop PC, and a reminder of Microsoft’s growing presence in the hardware side of the industry that it once left entirely to its partners. http://nyti.ms/2dMDp4P

– The makers of the Auvi-Q, an EpiPen alternative taken off the market last year, announced on Wednesday that they would bring it back in 2017. The move is certain to be welcomed by many patients and lawmakers, who have denounced the rising price of EpiPens and the lack of strong competition. http://nyti.ms/2dME86b

– This week Bank of America Corp, MasterCard Inc and several financial start-ups announced new tools – known as chatbots – that will allow customers to ask questions about their financial accounts, initiate transactions and get financial advice via text messages or services like Facebook Messenger and Amazon’s Echo tower. http://nyti.ms/2dMCOQR

 

Britain

The Times

GlaxoSmithKline Plc has collected a 1 billion pound windfall from the collapse in sterling, making it one of the biggest winners since the EU referendum. bit.ly/2fhamM1

Lloyds Banking Group Plc has set aside a further 1 billion pounds to cover payment protection insurance mis-selling as it hopes to draw a line under the scandal. bit.ly/2fhaMlz

The Guardian

Dong Energy, the biggest windfarm operator in the UK, is considering selling its oil and gas business, four decades after it was set up to manage Denmark’s North Sea oilfields. bit.ly/2fh6M4y

City regulator Financial Conduct Authority has said it is keeping a close watch on algorithmic traders of the type that may have been connected with the flash crash in the pound earlier this month. bit.ly/2fh92IS

The Telegraph

Metro Bank Plc has shrugged off the Brexit vote to win more customers and boost lending, taking it to the cusp of reporting its first profit. bit.ly/2fhcfbz

British Airways has agreed to a new deal to close the 2.8 billion pound pension gap by 2027. The company signed a deal with the trustees of its pension scheme which will allow for dividend payments to IAG. bit.ly/2fh9Dur

Sky News

RBS Bank of Scotland Group Plc has held fresh discussions with a group of institutional investors aimed at settling one of several outstanding cases against the bank that in total could cost it well over 4 billion pounds. bit.ly/2fhcBPx

Ofcom has fined Vodafone Group Plc 4.6 million pounds over a series of failures in its UK business, including its handling of customer complaints.

The Independent

The boss of Tesco Plc has warned customers to brace themselves for prices rises as Britain negotiates its way out of the EU. ind.pn/2fhbCyH

The CBI is urging the Chancellor to ratchet up government infrastructure spending by 6 billion pounds in next month’s Autumn Statement to help the UK through the economic turbulence created by June’s Brexit vote. ind.pn/2fhdOpX

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Satyajit Das has written an excellent article in Bloomberg which clearly details the risks facing the global financial and monetary system and how central bankers are out of monetary ammunition and weapons.

NOT A BAD PLACE FOR IT. PHOTOGRAPHER: ERWIN WODICKA/ULLSTEIN BILD/GETTY IMAGES VIA BLOOMBERG

Excerpt:

“No one likes to admit defeat. But global policymakers, who continue to insist that there’s more they can do to revive growth and inflation, are starting to sound like Monty Python’s Black Knight (click link to see video), the limbless and mortally wounded warrior who threatens to bleed on his victorious opponent. The truth is that governments and central banks have very few weapons left — and have probably lost any chance they once had of averting a prolonged stagnation.

Secular Stagnation

Clearly, the real economy hasn’t responded as hoped to zero and now negative interest rates. A whole host of factors continue to depress personal spending — high debt, stagnant incomes, unemployment and under-employment, and economic uncertainty. Even the rich, who have benefited immensely from the runup in asset prices, can’t really spend much more than they already are.”

Satyajit Das is an Australian former banker and corporate treasurer, turned consultant, author and academic. His latest book is “A Banquet of Consequences” and he is also the author of “Extreme Money” and “Traders, Guns & Money.”

Important article can be read on Bloomberg here

 

Gold and Silver Bullion – News and Commentary

Gold prices score highest settlement in 3 weeks (MarketWatch)

Gold prices mostly steady in Asia as investors eye U.S. vote, Fed (Investing)

Gold edges down on firmer dollar (Reuters)

Trump’s Family Fortune Originated in a Canadian Gold-Rush Restaurant and Bar (Bloomberg)

Turn your voice into solid gold with this 3D-printed ring (CNET)

Mobius Says Gold Will Gain in 2017 as Fed Goes Slow on Hikes (Bloomberg)

3 Reasons Why Having Gold Exposure Is Now Essential (Fool.ca)

Indian, Chinese love affairs with gold turn financial (Gata)

The Next Financial Collapse: An Update (DailyReckoning)

I Dislike Gold, BUT Couldn’t Get Any Cash (SRSRoccoReport)

Gold Prices (LBMA AM)

27 Oct: USD 1,269.30, GBP 1,038.29 & EUR 1,162.93 per ounce
26 Oct: USD 1,273.90, GBP 1,043.45 & EUR 1,166.13 per ounce
25 Oct: USD 1,269.30, GBP 1,037.53 & EUR 1,165.85 per ounce
24 Oct: USD 1,267.00, GBP 1,034.89 & EUR 1,163.61 per ounce
21 Oct: USD 1,263.95, GBP 1,033.79 & EUR 1,160.69 per ounce
20 Oct: USD 1,269.20, GBP 1,034.65 & EUR 1,156.75 per ounce
19 Oct: USD 1,269.75, GBP 1,031.29 & EUR 1,154.97 per ounce

Silver Prices (LBMA)

27 Oct: USD 17.66, GBP 14.41 & EUR 16.16 per ounce
26 Oct: USD 17.66, GBP 14.46 & EUR 16.17 per ounce
25 Oct: USD 17.73, GBP 14.49 & EUR 16.30 per ounce
24 Oct: USD 17.64, GBP 14.41 & EUR 16.19 per ounce
21 Oct: USD 17.51, GBP 14.34 & EUR 16.08 per ounce
20 Oct: USD 17.60, GBP 14.35 & EUR 16.03 per ounce
19 Oct: USD 17.69, GBP 14.38 & EUR 16.11 per ounce

Recent Market Updates

– Gold Is The “Kardashian of Commodities” – Herbert & Keiser Interview Skoyles
– Value of Gold – Unlike Paper Currency Gold Maintained Value Throughout Ages
– Fed Risks Lehman Crisis As US Recession Storm Gathers
– Silver Eagle Demand ‘Returned with a Vengeance’
– Cashless Society – War On Cash to Benefit Gold?
– “Higher Gold Prices” On Global Trade Slowdown – HSBC
– Euro “Will Collapse” As Is “House of Cards” Warns Architect of Euro
– Property Bubble In Ireland Developing Again
– “Gold Is A Great Hedge Against Politicians” – Goldman
– Sell Gold Now – Time To Liquidate Gold ETF, Pooled and Digital Gold
– Gold In GBP Up 43% YTD – “Massive Twin Deficits” To Impact UK Assets
– Ron Paul Says “Gold Going Up” Whether Trump Or Clinton Elected
– Gold Trading COT Report “Means Lower – Then Much Higher – Prices Coming”

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In today’s firehose of Q3 earnings, where at least 62 S&P500 companies are set to report making it the busiest day of the earnings season, one company stood out not only because it normally reports after the close, but because it has been steadily in the news over the past few months: Twitter. The social network surprised investors by reporting a beat not only on revenue but also on EPS, while monthly active users rose by 4 million, to 317, of which the increase in US MAUs was 1 million rising to 67 million, but also by annoucing a major RIF and the start of a restructuring process.

The results in a nutshell:

• Q3 EPS $0.13; Exp. $0.09
• Q3 Rev $616MM, Exp. $605.8MM, an increase of 8% Y/Y
• Q3 MAU 317M vs 313M In Q2; mobile MAUs represented 83% of total
• Q3 GAAP net loss of $103 million and non-GAAP net income of $92 million
• Q3 adjusted EBITDA of $181 million, up 28% year-over-year, representing an adjusted EBITDA margin of 29%.
• 9% workforce reduction

In light of the dead sales process, shareholders will be particularly interest by Twitter’s just announced restructuring and Reduction in Force plan which was as follows:

Restructuring and Reduction in Force

 

This morning we announced a restructuring and reduction in force affecting approximately 9% of Twitter’s positions globally. The restructuring, which focuses primarily on reorganizing our sales, partnerships and marketing efforts, is intended to create greater efficiency as we move toward our goal of driving toward GAAP profitability in 2017.

 

The restructuring allows us to continue to fully fund our highest priorities, while eliminating investment in non-core areas and driving greater efficiency. Over time, we will look to invest in additional areas, as justified by expected returns and business results. We remain committed to our previously stated long-term goal of 40-45% adjusted EBITDA margins net of traffic acquisition costs (TAC).

 

We estimate that we will incur approximately $10 million to $20 million of cash expenditures as a result of the workforce restructuring, substantially all of which are severance costs, and $5 million to $10 million of non-cash expenditures, consisting primarily of stock-based compensation expense. We expect to recognize most of the pre-tax workforce restructuring charges in Q4. 

As a result of the volatile earnings expected, Twitter refused to provide guidance for Q4 and for the full year.

Some of the key charts below:

 

And the full slideshow:

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One week after Canada demonstratively walked out of European trade talks, with Canada’s Chrystia Freeland saying that “the European Union is not capable right now to have an international agreement, even with a country that has European values like Canada”, moments ago a planned trade deal between the European Union and Canada overcame a key hurdle Thursday when Belgium said it would approve the accord, marking the end of a contentious process that threatened to derail the EU’s trade agenda.

Paul Magnette, minister-president of the French-speaking region of
Wallonia in Brussels on Wednesday

The so-called Comprehensive Economic and Trade Agreement, or CETA, had been on the verge (and perhaps beyond) the very of collapse in recent weeks after opposition by Wallonia, Belgium’s French-speaking region, kept the country’s leadership from supporting the deal. “Belgian agreement on CETA,” Belgian Prime Minister Charles Michel wrote on his Twitter account. “All parliaments are now able to approve by tomorrow at midnight. Important step for EU and Canada.”

Belgian agreement on #CETA . All parliaments are now able to approve by tomorrow at midnight. Important step for EU and Canada

— Charles Michel (@CharlesMichel) October 27, 2016

The tentative deal took place just hours after Canadian PM Trudeau cancelled a trip to sign the so-called Ceta pact at a ceremony in Brussels. In question now is when the regional Belgian parliaments that have objected to the trade deal will vote to allow the country’s government to support it.  The accord needs the full backing of all 28 member states. But while the Belgian federal government supports the trade pact, it still needed the green light from its five regional authorities before it could give its official approval.

As the FT adds, Belgian leaders had come close to a deal on Wednesday but their talks broke up without definitive agreement shortly before midnight, leading to the cancellation of an EU-Canada summit that had been scheduled for months. So, following weeks of intense talks with the leadership of Wallonia and its other regions, Belgium finally got the green light to back CETA on Thursday.

A spokesman for the Belgian prime minister said the Belgian government had reached a deal with its regions to back CETA and that the text of the deal was sent to the EU so it could be approved by the rest of the bloc.

The news will be well-received by the EU, whose officials have been agonizing about what implications the inability to sign CETA would have on the bloc’s trade agenda. Europe has in recent months been stuck in trade limbo, with the TTIP deal with the US looking increasingly unlikely following significant internal protests in France, while the ongoing post-Brexit fiasco will take years to be resolved.

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