Brexit

EU-UK clearing drama heads for prosaic finale

2 Jun 2023

The bloc is stalling on allowing UK firms to clear euro derivatives after 2025. That has set off a round of financial-stability finger-pointing. Costs may rise but systemic fears are overdone. If there were real danger, London could just pledge to follow Brussels’ rules.

EU can afford to extend UK car sector’s pit stop

17 May 2023

Stellantis wants Britain to tweak its trade deal with Europe to avoid tariffs on electric vehicles. Delaying rules on where carmakers source material would help both EU and British manufacturers. Moreover, a reprieve would still leave the bloc streets ahead in the EV race.

Exploring the City of London’s existential dread

25 Apr 2023

The global financial centre is suffering a spasm of anxiety about its status, while the government is pushing post-Brexit reforms. In this Exchange podcast William Wright, founder of the New Financial think tank, discusses the roots of the malaise and what can be done to fix it.

Capital Calls: L&G/UK insurers

8 Mar 2023

Concise views on global finance: The $19 bln group led by Nigel Wilson is expanding rapidly overseas, which should help its depressed valuation.

UK’s Brexit fix has perks for all sides

2 Mar 2023

Prime Minister Rishi Sunak agreed a trade deal with the European Union this week. In this Viewsroom podcast, Breakingviews columnists explain what the accord will mean for future relations between Britain and the 27-nation bloc and how Northern Ireland may get an economic boost.

UK begins long and uncertain road back from Brexit

27 Feb 2023

Rishi Sunak agreed a deal over Northern Ireland trade with the European Union. If the UK leader can get it past his own party, it should improve relations and collaboration. Closer links will need bigger compromises than Sunak can stomach, but his deal is symbolically important.

The fog in the English Channel is clearing a bit

16 Jan 2023

Britain won’t rejoin the EU soon, despite voters’ regrets over Brexit. But if the two sides resolve a Northern Ireland dispute there could be progress on topics such as climate, foreign policy and financial services. Much may have to wait for a new UK government, says Hugo Dixon.

UK’s Big Bang barely mitigates City’s Brexit pain

9 Dec 2022

Finance minister Jeremy Hunt is fiddling with some peripheral regulations to try and boost the City’s competitiveness. It won’t reverse the flow of bankers to Europe. The exodus might even speed up if the EU finally gets moving on its own financial reforms.

EU makes partial retreat in clearing crusade

30 Nov 2022

Brussels may make banks clear some euro swaps on the continent, rather than stop them using venues like London altogether. The move avoids the disruption of a blanket ban, but would still push up costs. Clearing risks are best tackled through closer regulatory cooperation.

UK banks’ Big Bang thankfully looks like big flop

30 Nov 2022

Prime Minister Rishi Sunak wants to use Brexit freedoms to boost the City’s appeal. Yet supervisors plan to introduce tougher bank capital rules than in Europe, and so-called ringfencing will remain for big lenders. That’s good: strong regulation can be a competitive advantage.

UK and EU’s new goodwill could be significant

23 Nov 2022

British PM Rishi Sunak wants to improve trade relations with the EU. Progress will only be piecemeal and slow, even if the two sides agree on how to implement their 2019 deal on Ireland. In the meantime small deals are possible, and they could normalise the path to closer ties.

Bonus cap scrap would be dubious Brexit dividend

15 Sep 2022

UK finance minister Kwasi Kwarteng may dump rules curbing banker payouts to twice their salary. Yet it would only marginally boost the City’s competitiveness and may make more meaningful tax changes less likely. The benefits of tearing up EU regulations look increasingly elusive.

What an honest British prime minister would say

11 Jul 2022

Conservative politicians who helped precipitate Boris Johnson’s downfall are now vying to replace him. Several have spoken about the need for honesty, integrity and realism. If they mean what they say, they should start with these five points, says Hugo Dixon.

Boris Johnson’s woes obscure deep UK divisions

6 Jul 2022

The UK leader’s grip on office is slipping after senior cabinet members resigned. But his exit saga masks disputes over key issues like taxes, state intervention and relations with the EU, amid the UK’s singular economic mess. A new leader will find them even harder to reconcile.

Indian cricket, Brexit breakdown, BlackRock voting

16 Jun 2022

Disney took half the viewing rights to the country’s top sport league which fetched $6.2 bln. In this Viewsroom podcast, Breakingviews columnists debate who won. They also discuss Boris Johnson's plan to rip up his EU exit deal and BlackRock’s efforts to distribute voting rights.

UK insurers’ Brexit bonus carries hidden charges

22 Feb 2022

PM Boris Johnson wants to unleash an investment boom by slashing red tape for the sector. In theory, his plans could free up nearly $130 billion for green-energy projects. But regulators may impose other rules. And any added risk means insurers like L&G and Aviva raising prices.

Boris Johnson’s fate is an economic sideshow

26 Jan 2022

The partygoing prime minister’s antics have cast doubt over his political future. Past upheaval had far-reaching consequences, particularly for Brexit. But Britain’s direction is now mostly fixed. And a new leader would have to grapple with the same contradictions as Johnson.

Nobel rewards rigour in messy real-life tests

11 Oct 2021

The three winners of the economics prize aimed to spot cause and effect when actual events create experiments that lack lab-style controls. David Card’s work on wages and immigration, in particular, is newly relevant as workers seek higher pay and dislocations like Brexit unfold.

UK’s Northern Ireland antics imperil other goals

21 Jul 2021

Less than two years after agreeing a bespoke deal for the province, Boris Johnson wants to change it. A lack of trust with the European Union complicates a compromise. A new Brexit standoff will also threaten the prime minister’s other ambitions, such as a global climate deal.

Capital Calls: It sure feels good to be a banker

1 Jul 2021

Concise views on global finance: Global deals in the first half of the year broke all records.