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12 January 2023

Standard Weekly Newsletter




 

Welcome to our weekly e-mail                                                                    Follow us on Follow us on Twitter Follow us on LinkedIn

 

For 2023, we are offering a new service that gives you all the articles in my weekly e-mail - with live links to the underlying articles - for just €5 per month. It will include the Grid that you were receiving last year. We will send this new service to you  - on a complementary basis during January - and then cease the current "grid" service.

 

Highlights of my week: The rush of New Year articles has subsided so a light week! Eurogroup’s Donohoe made the powerful point that the EU is well placed to provide `sustainability’ leadership and the euro as the currency of `sustainability’. ECB data showed bank capital ratios slip a notch – but from high levels and EU bank shares continue to soar (up by a quarter in three months). The EFR issued a ringing call to fix “securitisation” rules to enable EU capital markets to play a full and proper role. The FDX implosion continues to reverberate as the FT reports that rule makers are now wondering if MICA (Markets in Crypto Assets) rules are up to the now-apparent task while the CFA published a wide-ranging study on how investment managers should cope with all aspects of crypto assets. The Commission’s leading economists issued a CEPR paper to hit back at the gathering commentaries on the new fiscal framework proposals. The first chinks of light in the Brexit impasse have begun to appear as the EU agreed to use the UK’s database on good flowing to Northern Ireland and PM Sunak has agreed to meet President Macron. Perhaps the growing evidence of the Brexit business hit ( with this week’s comments on the City and science/technology) is sinking in. Later this afternoon, I will publish my new video with Federal Trust on the UK Government’s “Edinburgh reforms” that attempt to benefit the City from Brexit.

 Graham Bishop



 

Articles from 6 - 12 January 2022

Policy impacting Finance

Introductory remarks of Eurogroup President Paschal Donohoe at Istituto Luigi Sturzo event in Rome : ...the EU is now well placed to become the global leader in renewable energy, and for the euro to become the global currency most associated with and most benefitting from the transition to a lower-carbon future. View Article
EURACTIV: EU Commission celebrates 30 years of the Single Market : The EU established its Single Market on 1 January 1993 by removing barriers to the movement of goods, services, labour, and capital following the signature of the Single Act in 1987 and the Maastricht Treaty in 1992. View Article
The Economist: What America’s protectionist turn means for the world : Officials from Berlin to Tokyo are planning their response View Article

Banking Union

ECB publishes supervisory banking statistics for the third quarter of 2022 : Aggregate Common Equity Tier 1 ratio down to 14.74% in third quarter of 2022 (compared with 14.97% in previous quarter and 15.47% in same quarter of 2021) View Article
Ready for the challenge – Dominique Laboureix takes up mandate as SRB Chair : I believe that the Banking Union, the resolution framework and our work in the SRB are key elements to build growth and prosperity for European citizens.  View Article
Results of the EPC poll on the most effective steps to make payments more sustainable : The two leading answers: “using a mobile device (e.g. mobile phone, smart watch) and for example a digital wallet” (21%) and “opting for a digital receipt (or no receipt) over a paper one” (20%). View Article

Capital Markets Union

The EFR calls for action by policymakers on Securitisation : Europe is facing vast financing needs in the coming years to deliver the sustainable finance, digital and energy transitions. While it is clear that Governments will not be able to fund these needs alone, it will be difficult for the financial sector to meet - without proper securitisation - the financing requirements. View Article
Reuter's Jones: EU financial services chief favours banning sales inducements on investment products : A European Union ban on inducements for recommending sales of financial products could cut costs for retail customers by more than a third, the bloc's financial services chief Mairead McGuinness has said. View Article
InsuranceEurope: An outright EU-wide ban on inducements would undermine the goals of the EC’s Retail Investment Strategy : Instead of a ban, a combination of measures promoting transparency, value for money principles in product design and financial education would deliver more tangible benefits to consumers View Article
GFIA: Dos and don’ts on open insurance published : While the insurance industry sees possible opportunities from the concept, there are also risks that need to be carefully considered. View Article

IAIS 2023-2024 Roadmap outlines two-year workplan addressing key risks and trends in the insurance sector : 2023 will be a critical year for the global Insurance Capital Standard (ICS), including a public consultation on the ICS as a prescribed capital requirement (PCR) and an ICS economic impact assessment. View Article

ICMA Quarterly Report - Richards: Assessment of Market Practice & Regulatory Policy : Hoping for stability ahead; Monetary policy, financial stability and capital market resilience; Global trends and the implications for global asset management; Primary markets; Secondary markets; Repo and collateral markets; Sustainable finance; FinTech and digitalisation View Article

Environmental, Social, Governance (ESG)

ECB's Schnabel at the International Symposium on Central Bank Independence, Sveriges Riksbank : The green transition will fundamentally transform our societies. Protecting our planet requires unprecedented large-scale investments in technical innovations and renewable energies to bring our economies on a path towards net zero greenhouse gas emissions. View Article

Fin Tech Regulation

FT: EU frets over crypto rules after FTX blow-up : Rulemakers question whether upcoming regulations will be enough to protect the bloc from future corporate implosions View Article
CFA Institute: Cryptoassets: Beyond the Hype : Valuation, Fiduciary Duty, and the Challenge of Custody: An Investment Management Perspective on the Development of Digital Finance  View Article
UK Finance: Five associations form industry alliance to guide the UK’s digital currency future : Five associations form industry alliance to guide the UK’s digital currency future..the City of London Corporation, Digital Pound Foundation, The Payments Association, TheCityUK and UK Finance. The aim of the alliance is to develop better policies, practice and regulation around digital currencies. View Article
Bruegel's Martens: Pro- and anti-competitive provisions in the proposed European Union Data Act : This paper explores several pro- and anti-competitive provisions included the proposed EU Data Act.  View Article

Economic Policies Impacting EU Finance

CEPR: The emerging criticisms of the Commission proposals on reforming the European fiscal framework: A response : The European Commission has proposed an important and ambitious overhaul of EU fiscal rules, which has attracted comments and critiques by economists and policy-makers pertaining to the institutional, technical, and economic aspects of the Commission proposals View Article

Brexit and the City

Sadiq Khan: Time to end ‘vow of silence’ on Brexit business hit – and his plan to fix it : Mayor of London Sadiq Khan has laid into what he describes as the “selective amnesia” of government ministers who ignore the impacts of Brexit on the British business community. View Article

Brexit

FT: Sunak and Macron to attend first UK-France summit for five years : Two leaders will use meeting to foster co-operation on security and migration after period of frosty relations View Article
Joint Statement by Vice-President Šefcovic and UK Foreign Secretary Cleverly following their meeting in London : They agreed that while a range of critical issues need to be resolved to find a way forward, an agreement was reached today on the way forward regarding the specific question of the EU's access to UK IT systems. View Article
Bloomberg: EU Agrees to Use UK Trade Database as Brexit Talks Progress : The European Union has agreed to use the UK’s live database tracking goods moving from Great Britain to Northern Ireland, the first sign of progress in a long-running dispute on post-Brexit trading rules. View Article
EIAG: The Future of Retained EU Law : Known as “retained EU law” (REUL), there has been a debate as to what should be done about it.  As the UK is no longer part of the EU it could in theory repeal, replace or reform this body of law as it so chooses but in practice there are significant constraints. View Article
UKand EU's Gethins: The interconnected foreign policy priorities of an independent Scotland : Opinion polls indicate this choice between different unions and distinctive global outlooks is one of the primary catalysts for independence. View Article
CER's Meyer and Springford: Can UK science and technology recover from Brexit? : When Boris Johnson agreed the Brexit divorce package with the EU, he promised it would unleash innovation, turning Britain into an agile “science superpower”. But rather than boost UK science and technology, Brexit has – so far – damaged it. View Article

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