FT reporter, Sebastian Payne, tweets

Officials with knowledge of the talks say a landing zone on state aid has been identified but "fishing is the last sticking point. We both have to jump together." The mood in Whitehall as "cautiously optimistic" but insiders warn "it's going to go to the brink."

And back up the pound goes, with cable rising from 1.2840 levels to 1.2900 currently. An earlier report by Reuters mentioned that state aid was one of the key sticking points but it appears that there might be room for a compromise based on the latest update here.

Payne adds that officials in London are growing increasingly optimistic of chances of a deal, stating that they now see it as a 70/30 chance of reaching an agreement.

It's not over until the fat lady sings, so the next 24 hours is going to be paramount to see if we will be 'entering the tunnel' ahead of a crucial next two weeks.