UPDATE: 11:40 - Britain aiming for ambitious free trade deal with EU - Commission

BRUSSELS (Reuters/Bywire News) - Britain will aim to seal an ambitious free trade deal with the European Union after it has left the bloc, including zero tariffs and without quotas, the European Commission said on Thursday.

The Commission said that the main change in the political declaration attached to the new divorce deal was the British government's opting for a free trade agreement (FTA).

"The political declaration provides for an ambitious FTA with zero tariffs and quotas between the EU and the UK. It states that robust commitments on a level playing field should ensure open and fair competition," the Commission said in a statement.

"The precise nature of commitments will be commensurate with the ambition of the future relationship and take into account the economic connectedness and geographic proximity of the UK."

PM Johnson hails 'great' new Brexit deal but DUP says 'no'

WESTMINISTER - (Bywire News) Prime Minister Boris Johnson said on Thursday that Britain and the European Union had agreed a "great" new Brexit deal but still faced resistance from the Northern Irish Democratic Unionist Party (DUP) as he sought support for the deal.

Britain and the European Union have been racing to renegotiate the Withdrawal Agreement in time for an Oct. 31 Brexit, but the deal still needs approval from parliament.

"We've got a great new deal that takes back control," Johnson said in a tweet.

"Now parliament should get Brexit done on Saturday so we can move on to other priorities like the cost of living, the NHS, violent crime and our environment."

However, the DUP, who have expressed concerns that the Brexit deal could cut Northern Ireland off from Britain in customs and regulatory terms, said there had been no change in their position following the confirmation of the deal.

Earlier the DUP had said it could not support the last-ditch Brexit proposal due to concerns about the issues of customs and consent, adding there was a lack of clarity on VAT (sales tax) arrangements.

EU's Juncker says Brexit deal agreed

BRUSSELS (Reuters/Bywire News) - Britain clinched a Brexit deal with the European Union on Thursday, European Commission President Jean-Claude Juncker said, just a few hours before the start of a summit of the bloc's leaders in Brussels.

Separately, British Prime Minister Boris Johnson said "we have a great new Brexit deal".

Juncker said in a letter that he would recommend that the leaders of the other 27 member states approve the deal, adding it was "high time" to complete the divorce process and move on as swiftly as possible to negotiations of the EU's future partnership with Britain.

However, the Northern Irish party Johnson needs to help ratify any agreement has refused to support the deal that was hammered out over weeks of negotiations.

Johnson is hoping to get approval for the agreement in a vote at an extraordinary session of the British parliament on Saturday, to pave the way for an orderly departure on Oct. 31.

Sterling surged more than 1% and British share prices rallied after the announcement that an agreement had been reached.

Northern Irish DUP says no to PM Johnson's Brexit deal

Northern Ireland's Democratic Unionist Party said on Thursday its position on Brexit had not changed and it could not support the deal being proposed by Boris Johnson and the European Union.

A spokesman told Reuters the party's earlier opposition still stood after Johnson and European Commission President Jean-Claude Juncker said a new deal had been agreed, which the British Prime Minister urged lawmakers in London to approve at the weekend.

Sterling jumps, stocks rally on Brexit deal agreement

Sterling surged more than 1% and British share prices rallied on Thursday after British Prime Minister Boris Johnson and European Union officials said a Brexit deal was done.

European Commission President Jean-Claude Juncker said Britain and the EU had agreed a new Brexit deal, and he recommended that the EU summit endorsed the agreement.

The pound jumped as high as $1.2988, a five-month high. Against the euro it rose sharply to 85.77 pence.

The euro was also buoyed by the news, gaining 0.5% versus the dollar to $1.1125.

British and European stocks rose across the board, with the UK mid-cap index up more than 1.1%. Germany's DAX rallied 0.5% while Ireland's gained 0.3%.

Euro zone government bond yields rose, while the 10-year British gilt yield was up 7 basis points, at 0.793%, its highest since July.

Prime Minister Boris Johnson said on Thursday that Britain and the European Union had agreed a "great" new Brexit deal and urged lawmakers to approve it at the weekend.

Johnson agrees 'great' new Brexit deal with EU

"We've got a great new deal that takes back control," Johnson said in a tweet.

"Now parliament should get Brexit done on Saturday so we can move on to other priorities like the cost of living, the NHS, violent crime and our environment."

(Edited by Michael O'Sullivan), (Reporting by Philip Blenkinsop), (Reporting by Kate Holton and Guy Faulconbridge; writing by Alistair Smout), (Reporting by London Markets Team; Writing by Tommy Wilkes; editing by Sujata Rao), (Reporting by Graham Fahy; editing by John Stonestreet), (Reporting by Kate Holton and Guy Faulconbridge in London and Graham Fahy in Dublin; writing by Alistair Smout), (Writing by John Chalmers; Editing by Giles Elgood)

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