Welcome to our Friends Standard weekly e-mail. 

We are now focussed on the big themes for the next legislative period - targeting the interaction of the driving forces of politics and economics as they force the required changes in over-arching financial regulation (including ESG and Fin Tech). Details of these services are here

My video invitation to the 157th Brussels for Breakfast on 5th December is here. Some seats are available at the live meeting at CISI, and I would be delighted to hear suggestions for topics that should be covered. E-mail me: Graham@grahambishop.com

Interested in Continuing Professional Development (CPD)? Please click here for our CPD services

General Policy

Main results - Economic and Financial Affairs Council : The Economic and Financial Affairs Council took stock of progress on the banking union. It also adopted a work plan on climate action and conclusions on energy taxation, money laundering, capital markets union, non-performing loans and the financial architecture for development. View Article

Christine Lagarde and Mario Centeno - EurActiv

Banking Union

EBA updates the estimates of the impact of the implementation of Basel III and provides an assessment of its effect on the EU economy : This publication includes an assessment of the impact of the revisions to the credit valuation adjustment and market risk frameworks, and the corresponding policy recommendations. It also provides a macroeconomic impact assessment of the full Basel III package.  View Article

European Parliament: The main factors for the subdued profitability of significant banks in the Banking Union : This paper surveys some recent studies on the causes of low profitability, and discusses several actions that the SSM may want to undertake to support banks in their quest for higher returns. View Article

City AM: Moody’s downgrades outlook for European banks amid slowdown : Credit ratings agency Moody’s has downgraded its outlook for European banks to negative, predicting that weak economic growth will cause loan quality and profitability to suffer over the coming year. View Article

Capital Markets Union

 

Claudia Buch - Bundesbank Twitter

 

BIS - Claudia Buch: Capital Markets Union - a central banking perspective on the way forward : Claudia Buch, Vice-President of the Deutsche Bundesbank, spoke about three aspects that are paramount for the CMU project: transparency in terms of data and relevant regulations, improved communication and financial literacy and evaluation of policies and identification of relevant frictions. View Article

ESMA values EU derivatives markets at €735tn : The Report, based on data submitted under the European Markets and Infrastructure Regulation, provides a comprehensive market-level view of the EU’s derivatives markets in 2018, which had a total size of €735tn gross notional amount outstanding, an increase of 11% on 2017. View Article

Financial Market Structure

Financial Times: EU regulator says MiFID II rules have failed on market data costs : European exchanges will face closer monitoring of the prices they charge customers for basic data, after regulators ruled that the MiFID II markets revamp had not delivered on its aim of cutting the costs of trading. View Article

Environmental, Social, Governance (ESG)

 

Ursula Von der Leyen - VoxEU

 

European Commission: The European Green Deal sets out how to make Europe the first climate-neutral continent by 2050 : The European Commission presented The European Green Deal – a roadmap for making the EU's economy sustainable by turning climate and environmental challenges into opportunities across all policy areas and making the transition just and inclusive for all. View Article

POLITICO: Europe defines what financiers can call ‘green’ : The ‘taxonomy’ law aims to attract much-needed capital to meet EU climate goals. With Europe’s green push comes new business opportunities — but Brussels wants to ensure they’re the right ones. View Article

EBA pushes for early action on sustainable finance : The EBA published its Action plan on sustainable finance outlining its approach and timeline for delivering mandates related to ESG factors. The Action Plan also aims to communicate key messages on the EBA’s policy direction and the expectations from financial institutions on areas where action is needed now to support the move towards more sustainable finance in the EU. View Article

Friends' Standard Services

157th Brussels for Breakfast – CPD Notes : Organised by the Centre for the Study of Financial Innovation (CSFI), hosted by CISI and with co-presenter Pablo Portugal (AFME). This blog complements the subsequent 48th Brussels 4 Brunch 30-minute CISI webinar that is also available to Friends of GrahamBishop. View Article

Economic Policies Impacting EU Finance

EurActiv: EU to strengthen trade sanctions as WTO paralysis starts : As the international system for settling trade disputes became crippled, Europe will in the coming days propose ways to bolster its sanction toolbox against countries that adopt illegal trade measures and block the renewal of the WTO’s appellate body. View Article

Main results - Eurogroup : In regular format, the Eurogroup assessed the 4th enhanced surveillance report on Greece and eurozone budgetary prospects for 2020. In inclusive format, the Eurogroup prepared a report on the deepening of the Economic and Monetary Union for the December Euro Summit. View Article

Brexit

 

Boris Johnson - FT

 

The Guardian: EU distances itself from Johnson’s timetable for post-Brexit trade deal : EU member states have signalled a refusal to be bounced into Boris Johnson’s fast-track timetable to strike a post-Brexit trade deal. View Article

CNN: Top British diplomat Alexandra Hall Hall quits with searing Brexit critique : A senior British diplomat in the US has quit with a blast at the UK government over Brexit, saying she could no longer "peddle half-truths" on behalf of political leaders she did not "trust." View Article

New Europe: Johnson calls for “ripping up” the EU rule book : British Prime Minister Boris Johnson is promising to “rip up the EU rule book and write a new one,” in the countdown towards the general election. View Article

Donald Tusk - The Guardian

The Guardian: Brexit is one of the most spectacular mistakes in EU history, says Tusk : Brexit has been “one of the most spectacular mistakes” in the history of the EU and followed a campaign marked by “an unprecedented readiness to lie”, Donald Tusk has said. View Article

POLITICO: Berlin says a ‘standard’ EU-UK trade deal can be done in 2020 : Germany is optimistic that the EU and UK can negotiate a limited free-trade agreement by the end of 2020, as long as both sides stick to a standard template, a senior government official said. View Article

Michel Barnier - Huffingtonpost

The Independent: Brexit will not get done by 2021, EU chief negotiator admits in leaked recording that blows hole in Boris Johnson promise : Brexit trade negotiations cannot be finished in the timeframe claimed by Boris Johnson, the EU's chief negotiator has privately admitted – blowing a hole in the prime minister's big election promise to "get Brexit done". View Article

Bloomberg: EU’s new trade chief warns of persistent Brexit economic risks : The European Union’s trade chief signaled that post-Brexit Britain and the EU would struggle to reach a free-trade agreement before the end of 2020, highlighting the persistent risk of UK commercial ties with the bloc being severed in a disruptive way. View Article

The Guardian: Tories still favourites but hung parliament a real possibility, polling suggests : YouGov’s second and much-hyped constituency-by-constituency poll puts the Conservatives unchanged on 43% and Labour on 34%, up two points on its previous effort a fortnight before. View Article

YouGov: Three quarters of No Deal supporters intend to vote Conservative : Support for the Brexit Party among Leavers has plummeted since the European Parliament elections in May, leaving Boris Johnson and the Conservatives favourite in the general election among those who want to see No Deal. View Article

Bloomberg: UK firms put probability of 2020 Brexit deal below 50% : U.K. businesses see a 46% probability that the country will leave the European Union with a deal next year, according to a Bank of England survey.  View Article

Graham Bishop #FBPE retweeted
	Jon Stone @joncstone
Brexit talks won't be done by 2021, EU's Michel Barnier admits in leaked recording that blows hole in Boris Johnson promise independent.co.uk/news/uk/politi…
Graham Bishop #FBPE retweeted
	YouGov @YouGov
Replying to @YouGov The final YouGov MRP model has 48 seats changing hands from 2017: Con gain 32 Lib Dem gain 5 SNP gain 7 Lab gain 2 (Plus 1x Con gain from Speaker, 1x Speaker gain from Lab) yougov.co.uk/topics/politic… #GE2019 pic.twitter.com/e4CRqaR19Z
Graham Bishop #FBPE retweeted
	POLITICO Europe @POLITICOEurope
Germany is optimistic that the EU and UK can negotiate a limited free-trade agreement by the end of 2020 politi.co/2sfrz04
Graham Bishop #FBPE retweeted
	Eline Schaart @elineschaart
"This is Europe’s man on the moon moment." politico.eu/article/the-co…
Graham Bishop #FBPE retweeted
	Ursula von der Leyen @vonderleyen
The #EUGreenDeal is more than just a vision. It is a roadmap for action. It has 50 actions for 2050 – for a climate and nature friendly Europe. Our goal is to reconcile our economy with our planet, and make it work for our people. This is Europe's 'man on the moon' moment.
Graham Bishop #FBPE retweeted
	Jennifer Rankin @JenniferMerode
The flags are out, but nobody’s coming. Boris Johnson (no surprise) will not attend the EU leader summit this Thursday and Friday. ?@eucopresident? Charles Michel will represent UK instead. pic.twitter.com/W5cS86FYpR
Graham Bishop #FBPE retweeted
	Fintan O'Toole @fotoole
I was in Brussels when Johnson peddled his original Euro lies – nobody’s laughing now irishtimes.com/opinion/i-was-… via @IrishTimesOpEd
Graham Bishop #FBPE retweeted
	New Europe @New_Europe
Johnson calls for “ripping up” the EU rule book dlvr.it/RL0gQP pic.twitter.com/rm0d8bVhm6
Graham Bishop #FBPE retweeted
	Bloomberg Brexit @Brexit
BREAKING: U.K. economy fails to grow ahead of Brexit-dominated election bloom.bg/2PsYpTf pic.twitter.com/VtF6c8QXpa
Graham Bishop #FBPE retweeted
	Pablo Portugal @PabloPortugal4
My thanks to ?@CISI? & ?@CSFI1? for inviting me to discuss the latest on #CMU, banking union and #sustainablefinance with ?@GrahamBishopcom? and a lively audience. A very enjoyable exchange. pic.twitter.com/BroBDojvMg
	Graham Bishop #FBPE @GrahamBishopcom
Replying to @PabloPortugal4 @CISI @CSFI1 Thanks Pablo... I enjoyed the debate greatly as there was so much to discuss on so many topics! Thank you for joining us and looking forward to the 158th B4B on 14th January.
	Graham Bishop #FBPE @GrahamBishopcom
My notes on today's #BrusselsForBreakfast debate @CSFI1 are out! @PabloPortugal4 @AFME_EU & I discussed #Brexit #CMU #greenfinance @vonderleyen 's #EuropeanCommission team, Germany's Scholz plan to boost #bankingunion & much more ow.ly/Zkd350xsCwy