trade talks Mon Oct 7, 2013 2:04am EDT * EU seeks financial regulation in biggest trade deal * Washington opposed, wants to keep control * EU and U.S. account for 60 pct of global banking By Robin Emmott and John O’Donnell BRUSSELS, Oct 6 (Reuters) – Aqua or water? These words mean the same thing, and yet illustrate a divide that European and U.S. negotiators must bridge in free-trade talks to integrate half the global economy. From fragrances to finance, creating common rules is vital for reaching a deal between the European Union and United States that officials say can boost economic output by more than $100 billion a year on each side of the Atlantic. For example, EU law requires water be labelled “aqua” in Latin as an ingredient of perfume. When the same bottle is sold in the United States, regulations demand a living language be used: water must be labelled as “water”. Such relatively minor obstacles, which add to the cost of transatlantic business, will probably be ironed out at negotiations on the Transatlantic Trade and Investment Partnership, the second round of which begins on Monday. But nowhere is the challenge more difficult or pressing than in finance as both sides struggle to restore stability to their economies and markets. The EU wants financial regulation to be a central part of an agreement whereas Washington is resisting, worried this will bog down the already complex talks on the world’s biggest trade agreement. “We are taking a pragmatic approach,” EU trade chief Karel De Gucht said last month, backing the inclusion of finance.
Europe stocks fall; luxury-goods firms hit
The Stoxx Europe 600 index /quotes/zigman/2380150 XX:SXXP -0.38% fell 0.2% to close at 309.18, after earlier dropping nearly 1% and touching levels last seen in early September. The index closed out last week with an 0.7% loss. Click to Play Watch Alcoa, Boeing and BlackBerry Tomi Kilgore takes a look at which stocks traders will be watching during market action, including Alcoa, Boeing, and BlackBerry. Photo: Getty Images. Among decliners, LVMH Moet Hennessy Louis Vuitton SA /quotes/zigman/165816 FR:MC -0.07% /quotes/zigman/165816 FR:MC -0.07% fell 1.1%. In a report published Sunday , Reuters said analysts are growing increasingly concerned about the luxury groups brands and are worried these wont be able to provide alternative growth now that cash cow Louis Vuitton has fallen on tough times. A warning from Treasury Secretary Jacob Lew that Congress is playing with fire if it doesnt increase the debt ceiling in time increased investors anxiety about the U.S. budget stalemate and looming deadline to raise the countrys debt ceiling. Government shutdown: Track the latest news out of Washington /conga/story/2013/10/governmentshutdownstream.html 282136 The news that U.S. politicians have again put self-interest ahead of the greater good of the country by failing to make any progress in sorting out the budget or tackling the debt ceiling will have surprised few, said Alastair McCaig, market analyst at IG. The U.S.