Last week was a tough one for U.K. Prime Minister Theresa May, who had to contend with a sore throat and a prank in the middle of her speech at a conference. But, optics aside, she said in reference to Brexit that “we will find a deal that works for Britain and Europe.” The BBC reported that she also said European Union (EU) citizens living in Britain are “welcome here … we want you to stay.”
Beyond Theresa May’s speech-making, the EU stated as of Tuesday that, via draft law, foreign clearing houses will undergo “more intense supervision” by the EU if they intend to continue servicing transactions for EU customers. In addition, if clearing houses are “systemically important” to the EU, then euro-denominated transactions must indeed be brought to the Continent.
Reuters reported news that the move “could end the city of London’s global dominance in clearing euro-denominated financial contracts after Brexit.”
Separately, The Guardian stated that cross-border transactions — where foreign companies buy British firms — have slipped, even in the wake of the pound’s decline. A study by EY shows that deals, as measured in value thus far this year at $50 billion, are two-thirds lower than the average, which is seen annually through the past seven years. EY said the slippage indicates at least some “fall in confidence” about the U.K.’s economic outlook.
In terms of a timeframe for the ongoing Brexit talks, Donald Tusk, the EU Council president, said discussions on trade may get pushed back to December, according to USNews.com. That’s significantly later than the U.K. had wanted, where those talks were slated to take place this month.
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