(Sept 20): European and UK leaders exchanged warnings that time is running out to seal an agreement on Brexit and offered no indication they can break the deadlock less than two months before the deal is due to be completed.

At a summit in Salzburg, Austria, European Commission President Jean-Claude Juncker said a Brexit deal was "far away." Irish Prime Minister Leo Varadkar said there had been no progress in talks since March. The UK’s Theresa May said there will be no extension to Britain’s membership to give negotiators more time.

In the runup to the summit, officials had emphasised how much of the divorce agreement has already been drafted while EU diplomats had expected their bosses to try to avoid destabilising May, who is vulnerable at home. But the leaders struck a harsher tone when they met face to face and the pound fell as they filed into dinner.

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