Update 2: Following a brief delay, May has begun speaking and the market is not taking it well.
Speaking at No 10 Downing Street, May said "neither side should demand the unacceptable of the other” and demands “serious engagement"
"Throughout this process I have treated the EU with nothing but respect. The U.K. expects the same" and "at this late stage in the process it’s not acceptable to simply reject."
"We now need to hear from the EU what the real issues are and what the alternatives are. Until we do, we cannot make progress. Until then, we must and will continue the work of preparing ourselves for no deal."
As Bloomberg notes, May has said hers is the only credible option on the table for a future relationship with the EU after the U.K. leaves next year. Both sides are seeking to agree a deal at the EU Council meeting in October
*MAY: EU OFFERED OPTION WOULD MAKE MOCKERY OF REFERENDUM
*MAY SAYS EU, UK LONG WAY APART ON TWO BIG ISSUES
*MAY: NO DEAL IS BETTER THAN BAD DEAL
*MAY SAYS UK, EU AT AN IMPASSE
*MAY: CANNOT ACCEPT ANYTHING THREATEN INTEGRITY OF UNION
*MAY: THE UK EXPECTS RESPECT FROM THE EU
*MAY: NOT ACCEPTABLE TO SIMPLY REJECT OTHER SIDE'S PROPOSAL
*MAY: NOW NEED TO HEAR FROM EU WHAT REAL ISSUES ARE
*MAY: MUST CONTINUE TO PREPARE OURSELVES FOR NO DEAL
*MAY: EVEN IN NO DEAL, EU CITIZENS RIGHTS ARE PROTECTED
*MAY: WILL NOT OVERTURN RESULTS OF REFERENDUM
And cable is getting crushed...
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Update 1: Theresa May's statement is being delayed due to power issue at the prime minister's house.
Statement being delayed by technical, not political issues - can't quite believe it but apparently the power isn't working properly in Number 10— Laura Kuenssberg (@bbclaurak) September 21, 2018
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One day after EU Council president Donald Tusk poured cold over on hopes of Brexit negotiation progress, saying that "Theresa May's Brexit plan will not work", the UK prime minister is set to go "all in" and state that she "will not change tack" on Brexit despite her Chequers plan being rejected by EU leaders, according to the BBC.
May will shortly make a statement in Downing Street on the state of Brexit negotiations following a summit of EU leaders in Salzburg, as Brexit Secretary Dominic Raab said there was no "credible alternative" on the table from the EU at the talks.
He also expressed doubt over how serious EU leaders were about the negotiations. He told the BBC's Politics Live: "It did not feel like the reciprocation of the statesmanlike approach that she (Mrs May) has taken".
May says her plan for the UK and EU to share a "common rulebook" for goods, but not services, is the only credible way to avoid a hard border between Northern Ireland and the Republic of Ireland. The "Chequers" plan, as it is also known, remains opposed by many within her own party who argue it would compromise the UK's sovereignty. And it got a cool reception at this week's EU summit in Salzburg.
As we reported yesterday, European Council President Donald Tusk said there were some "positive elements" in Mrs May's proposals, but he said EU leaders had agreed that the proposals needed to be redrawn: "The suggested framework for economic co-operation will not work, not least because it is undermining the single market."
He followed it up by posting a photograph on Instagram of he and Mrs May looking at cakes with the caption: "A piece of cake, perhaps? Sorry, no cherries."
The EU has argued that the UK cannot "cherry-pick" elements from its rulebook.
The pound, which has been whiplashed constantly by every new Brexit headline, dropped on the BBC report, sliding to session lows, and down over 100 pips.