UK and Irish leaders meet in Dublin as they try to reset relations after Brexit tensions

DUBLIN (AP) — British Prime Minister Keir Starmer met with his Irish counterpart, Saturday in what was billed as an attempt to reset relations between the two countries after years of tensions following the U.K.'s departure from the European Union.

Starmer's visit to meet Irish premier Simon Harris is the first by a British leader to Ireland in five years. It is a further sign that the two wish to deepen relations on economic and security matters. Harris was the first international leader Starmer hosted following his Labour Party's landslide election victory on July 4.

“Today is really significant because we have made clear our ambition to reset the relationship and today we take that forward," Starmer said after the afternoon meeting with Harris at Farmleigh House in Dublin, the Irish Government’s formal reception house for state visits. “We are clear that by March we want to have a summit to show the yield from this and then annual summits after that.”

Relations between the two countries have been strained ever since the U.K. voted in June 2016 to leave the European Union, especially in light of how it affected the political structures of Northern Ireland, which is part of the U.K.

When the U.K. left the bloc, the British government and the EU agreed to keep the Irish border free of customs posts and other checks because an open border is a key pillar of the peace process that ended 30 years of violence in Northern Ireland. Later, Starmer's Conservative predecessor Rishi Sunak renegotiated the initial agreement, and that has won the support of both sides of the Northern Irish political divide.

Starmer said now was a chance to further solidify the relations, both with Ireland as well as the EU. He has said that the U.K. will not seek to rejoin the EU under his leadership, nor the bloc's frictionless single market and customs union. However, he has made it clear that he wants to renegotiate elements of the post-Brexit trade deal with the EU in order to bolster growth.

“We are also resetting our relationship with the EU and I have made it very clear that I want a closer relationship with the EU," he said. “That is of course on security, on defense, but also on trade, reducing the friction and any business here in Ireland will tell you that reducing the friction helps and so we want to reset that relationship."

He has been touring EU capitals since he got elected in the hope of generating the goodwill to move forward on that front, as well as "stand together" on international issues such as the war in Ukraine.

The two leaders participated in a business roundtable in Dublin to explore how a “reset” in relations can benefit trade. The economic relationship is worth around 120 billion euros ($130 billion), supporting thousands of jobs on both sides of the Irish Sea.

The two leaders headed off after the early meeting to a soccer match between Ireland and England in Dublin, which provided them with a clear photo opportunity. They swapped jerseys with Starmer holding up an Irish shirt with his surname on it and Harris holding up an England jersey with his name on it.

“We will have intense and friendly competition, and then we will renew and reset again later in the evening,” said Harris, who is also new in the job having been elected premier in April.

Starmer, a keen soccer player, laughed when asked if he would wear it to the match later.

“It will make an appearance in my nine-a-side," he said. "This will be proudly worn in north London before too long.”

Pylas contributed from London.

The Prime Minister of Ireland Simon Harris, left and his British counterpart Keir Starmer hold up their respective national soccer teams shirts, with their names on their opposite teams shirt, at Farmleigh House in Dublin, Ireland, Saturday, Sept. 7, 2024. (AP Photo/Peter Morrison Pool)

The Prime Minister of Ireland Simon Harris, left listens to his British counterpart Keir Starmer as they meet for talks at Farmleigh House in Dublin, Ireland, Saturday, Sept. 7, 2024. (AP Photo/Peter Morrison Pool)

The Prime Minister of Ireland Simon Harris, left listens to his British counterpart Keir Starmer as they meet for talks at Farmleigh House in Dublin, Ireland, Saturday, Sept. 7, 2024. (AP Photo/Peter Morrison Pool)

The Prime Minister of Ireland Simon Harris, left watch as his British counterpart Keir Starmer signs the visitors book as they meet for talks at Farmleigh House in Dublin, Ireland, Saturday, Sept. 7, 2024. (AP Photo/Peter Morrison Pool)

The Prime Minister of Ireland Simon Harris, left, gestures as he greets his British counterpart Keir Starmer as they meet for talks at Farmleigh House in Dublin, Ireland, Saturday, Sept. 7, 2024. (AP Photo/Peter Morrison Pool)

The Prime Minister of Ireland Simon Harris, right speaks with his British counterpart Keir Starmer as they meet for talks at Farmleigh House in Dublin, Ireland, Saturday, Sept. 7, 2024. (AP Photo/Peter Morrison Pool)

The Prime Minister of Ireland Simon Harris, left, and his British counterpart Keir Starmer hold up their respective national soccer teams shirts, with their names on their opposite teams shirt, at Farmleigh House in Dublin, Ireland, Saturday, Sept. 7, 2024. Ireland and England play a nations league soccer match in Dublin later. (AP Photo/Peter Morrison Pool)

The Prime Minister of Ireland Simon Harris, left, gestures as he greets his British counterpart Keir Starmer as they meet for talks at Farmleigh House in Dublin, Ireland, Saturday, Sept. 7, 2024. (AP Photo/Peter Morrison Pool)

The Prime Minister of Ireland Simon Harris, right, listens to his British counterpart Keir Starmer as they meet for talks at Farmleigh House in Dublin, Ireland, Saturday, Sept. 7, 2024. (AP Photo/Peter Morrison Pool)

The Prime Minister of Ireland Simon Harris, left, and his British counterpart Keir Starmer hold up their respective national soccer teams shirts, with their names on their opposite teams shirt, at Farmleigh House in Dublin, Ireland, Saturday, Sept. 7, 2024. Ireland and England play a nations league soccer match in Dublin later. (AP Photo/Peter Morrison Pool)

NEW YORK (AP) — U.S. stock indexes are drifting near their records Monday as Wall Street gears up for the most anticipated meeting of the Federal Reserve in years.

The S&P 500 was 0.2% lower in midday trading after flitting between gains and losses earlier in the morning. It's sitting just 0.9% below its all-time high set in July.

The Dow Jones Industrial Average was up 83 points, or 0.2%, as of 11:30 a.m. Eastern time, after climbing above its record closing high earlier in the day. The Nasdaq composite was down 0.7%.

Oracle rose 5.4% to help lead the market, continuing a strong run that began last week with a better-than-expected profit report. Alcoa also jumped 9% after saying it would sell its ownership stake in a Saudi Arabian joint venture to Saudi Arabian Mining Co. for $950 million in stock and $150 million in cash. But drops for some influential Big Tech stocks dragged on indexes, including declines of 2.8% for Apple and 1.9% for Nvidia.

Treasury yields eased in the bond market ahead of what’s expected to be the week’s main event. On Wednesday, the widespread expectation is for the Federal Reserve to cut its main interest rate for the first time in more than four years to deliver some relief to the economy.

The only question is by how much the Fed will cut. Traders are shifting more bets toward a larger-than-usual move of half a percentage point, according to data from CME Group. They’re anticipating a 61% chance the Fed will go beyond the more traditional cut of a quarter of a percentage point. That’s up from 50% on Friday and just 30% a week ago.

The difference between a half-point cut and a quarter may sound academic, but it can have far-ranging effects. While lowering rates relieves pressure on the economy, it can also give inflation more fuel.

The Federal Reserve has been keeping its main interest rate at a two-decade high in hopes of slowing the economy enough to stifle high inflation. With inflation having eased substantially from its peak two summers ago, the Fed has said it can turn more focus to bolstering the slowing job market and economy. Some critics say it may be moving too late, increasing the risk of a possible recession.

A Fed cut of half a percentage point would likely be the best case for the stock market in the very short term, according to Michael Wilson and other strategists at Morgan Stanley. But that's only if the Fed can convince investors it's not getting forced into a bigger-than-usual cut because of worries about a recession, among other factors.

Still, the more important thing for where stocks are heading over the next three to six months will be how well the job market holds up, according to Wilson. If employment weakens, stocks could fall regardless of whether the Fed cuts by half or a quarter of a percentage point on Wednesday.

In the bond market, the yield on the 10-year Treasury edged down to 3.63% from 3.66% late Friday. The two-year yield, which moves more closely with expectations for the Fed, eased to 3.55% from 3.59%.

That was despite a report in the morning showing manufacturing in New York state returned to growth in September. That surprised economists, who were expecting another month of contraction for an area of the economy that’s been hit hard by high interest rates.

On Wall Street, Carl Icahn's Icahn Enterprises rose 7.1% after it said a U.S. judge dismissed a proposed class-action lawsuit against the company, one based on allegations by a research firm that looks for financial irregularities and tries to profit when the stock prices fall.

Fertilizer producer Mosaic fell 4.8% after it said electrical equipment failures at mines and Hurricane Francine will reduce its production of potash and phosphate in the current quarter.

In stock markets abroad, indexes were mixed amid mostly modest movements across Europe and Asia. Hong Kong’s Hang Seng added 0.3% after data released over the weekend showed China’s economy slowed further in August.

Markets in Japan, mainland China and South Korea were closed for holidays.

AP Writers Matt Ott and Zimo Zhong contributed.

FILE - The American flag hangs from the front of the New York Stock Exchange on Sept. 10, 2024, in New York. (AP Photo/Peter Morgan, File)

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