BREAKING NEWS: EU and UK reach a Brexit deal (link). In my view this may be a tragedy for the whole of Europe - but the fight is not yet over.

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Articles 10 October 2019 - 16 October 2019

General Policy

Joint Statement on the Inaugural Meeting of the Joint EU-Japan financial regulatory forum : This year's meeting provided an important opportunity to exchange views on the recent regulatory and supervisory developments in the financial sector at international level and in their respective jurisdictions. View Article

FSB publishes annual report on implementation and effects of financial regulatory reforms : FSB published its 2019 annual report on the implementation and effects of the G20 financial regulatory reforms. The report sets out that implementation of the reforms called for by the G20 after the global financial crisis is progressing. This is contributing to an open and resilient financial system that supports the efficient provision of financing to the real economy. View Article

Banking Union

Alignment of EU rules on capital requirements to international standards (prudential requirements and market discipline) : The European Commission is launching a public consultation on the implementation of the finalised Basel III standards in the EU. These internationally agreed standards for banks aim to continue improving the solidity, stability and resilience of the banking sector.  View Article

EBA publishes work programme for 2020 : The European Banking Authority published its detailed annual work programme for 2020, describing the specific activities and tasks of the Authority for the coming year and highlighting the key strategic areas of work for 2020. View Article

EBA publishes Opinion on the deadline and process for completing the migration to SCA for e-commerce card-based payment transactions : The EBA published an Opinion on the deadline for the migration to strong customer authentication under the revised Payment Services Directive (PSD2) for e-commerce card-based payment transactions.  View Article

Financial Times: Fed finalises rules easing regulations for banks : The US Federal Reserve has finalised a new set of rules that will allow many banks to reduce their capital and liquid assets, prompting a dissent from one governor who warned that the changes “increased risk to financial stability”. View Article

Capital Markets Union

Capital markets union: Council adopts new clearing house rules : The Council adopted revised rules for clearing houses in the single market. View Article

Steven Maijoor, ESMA chair - source:observatorioblockchain.com

Steven Maijoor addresses EU-Asia Financial Dialogue at ASIFMA Annual Conference 2019, Tokyo : The address focused on building the CMU while fostering global financial markets. ESMA chair covered topics such as sustainable finance, cryptocurrencies and EU markets supervision. Maijoor also discussed equivalence, ESMA's new supervisory powers over EU entities and third country responsibilities. View Article

European Commission: High-Level Forum on capital markets union : Building on its goal to finalise the creation of capital markets union (CMU), the Commission has launched a call for expression of interest to join a High Level Forum (HLF) on the Capital Markets Union project. View Article

AFME: Capital Markets Union – Key Performance Indicators : This second edition of AFME’s annual report tracks the progress of the Capital Markets Union project through eight Key Performance Indicators (KPIs). View Article

The European Commission launches a public consultation on the review of the EU benchmark regulation : The objective of this consultation is to gather stakeholders’ feedback on the functioning of the EU benchmarks regime, two years after its entry into application. View Article

FSB reports on implementation of OTC derivative reforms : The Financial Stability Board published its annual progress report on the implementation of the agreed G20 reforms to over-the-counter derivatives markets. View Article

Insurance Europe: Insurers should be exempt from pillar one of OECD digital tax proposals : Insurance Europe has today published its views on the Organisation for Economic Co-operation and Development’s (OECD) proposals for the so-called “pillar one” of its programme of work to develop a consensus solution to the taxation challenges arising from the digitalisation of the economy. View Article

Environmental, Social, Governance (ESG)

IMF: Connecting the dots between sustainable finance and financial stability : The latest IMF Global Financial Stability Report discusses the link between sustainable finance and financial stability and suggests policies for the way forward. View Article

EuropeanIssuers welcomes the Savings and Sustainable Investment Union report : EuropeanIssuers welcomes most of the Recommendations stated in the CMU Expert Group report and offers to support the development of initiatives that work for companies, investors and the overall EU ecosystem. View Article

WSBI-ESBG Communication on Engagement to United Nations Global Compact : WSBI-ESBG has once more expressed its support to the UN Global Compact's corporate sustainability and value system, by issuing its Communication on Engagement covering the period between October 2017 and October 201??9.  View Article

Financial Times: Third of biggest banks fail to sign up to climate initiative : More than a third of the world’s top 75 banks by assets have still not declared their support for the TCFD, an initiative to get companies to calculate their exposure to climate risk and disclose this to investors. Although the TCFD is an initiative aimed at all businesses, support from banks is seen as crucial because of their role in financing activities that could contribute to global warming. View Article

FCA announces future work on climate change and green finance : The FCA has published a feedback statement setting out its proposals to improve climate change disclosures by issuers and information to consumers on green financial products and services. View Article

EurActiv: Sustainable finance drive can help address EU’s political challenges : Sustainability and inclusivity have correctly been placed as guiding principles for Europe’s finance policy. The next few months – with decisions on the EIB and the start of a new EC – will be decisive in order to put those principles into action, write Tom Jess and Sandrine Dixon-Declève. View Article

Project Syndicate: Financing the Green Transition : Changing the energy-financing models of banks, or developing sustainability-linked loans and green bonds, will simply not be enough to facilitate the transition to a more sustainable economy. A new approach that is effective and scalable must take investors’ expectations fully into account. View Article

Project Syndicate: Quantitative Greening : In the years since the signing of the Paris climate agreement, many of the world's central banks and leading financial regulatory authorities have started to create new tools to assess and manage climate-related financial risks. Behind these efforts is a shared realization: there can be no climate stability without financial stability. View Article

ESMA Chair Steven Maijoor speech on the quality of corporate governance : Maijoor focused on the role of corporate governance to attract retail investors to the financial markets, the EU's Capital Markets Union and the role of ESMA.  View Article

IFAC: International standards - 2019 Global Status Report : IFAC released a new report detailing how and where international accountancy standards—which focus on audit and assurance, ethics, education, and private and public sector accounting—are being adopted and implemented globally.  View Article

FRC reviews of disclosures relating to reporting requirements : Companies have responded positively to newly introduced reporting requirements by the FRC for Revenue Recognition and Financial Instruments but there is still considerable scope for them to improve the quality of their annual report disclosures.  View Article

WBCSD: Reporting matters 2019 - regulators and standard setters urged to simplify and align the corporate reporting landscape : WBCSD calls on regulators and standard setters to simplify and align the corporate reporting landscape in the seventh edition of Reporting matters – WBCSD’s annual review of member companies’ sustainability and integrated reports in partnership with Radley Yeldar (RY). View Article

ECA: European Environmental Economic Accounts - usefulness for policymakers can be improved : The European Environmental Economic Accounts (EEEA) are an important source of data to monitor and evaluate environmental policies, such as the 7th Environment Action Programme and progress towards achieving the United Nations’ Sustainable Development Goals. ECA audited whether the EC set up, managed and used the EEEA well. View Article

ROBECO: Greenwashing leads ICGN corporate governance debate : The danger of greenwashing is rising up the sustainable investing agenda, corporate governance experts believe. View Article

source:FT

Fin Tech Regulation

BBC: Payments giants abandon Facebook's Libra cryptocurrency : Mastercard, Visa, eBay and payments firm Stripe have pulled out of Facebook’s embattled cryptocurrency project, Libra. It represents a huge blow to the social network’s plans to launch what it envisions as a global currency. View Article

The Guardian: Libra - will Facebook's new currency be stopped in its tracks? : Plans for Facebook’s proposed “stablecoin”, Libra, appear to be unravelling with the withdrawal of PayPal, Visa, Mastercard, Stripe, eBay and Mercado Pago as potential sponsors. This is hardly surprising, given growing awareness of Libra’s potential adverse consequences.  View Article

BIS' Beau: The role of cryptoassets in the payment system : With the emergence of so called crypto-assets like the bitcoin and so called stablecoins, new settlement assets develop which may compete against and possibly, according to their promoters, replace commercial and central bank money as settlement assets at the center of the payment systems. View Article

Friends' Basic Services

45th Brussels for Brunch Webinar October 2019 : This is the link to the recorded webinar at CISI. View Article

Former ECB chiefs Jean-Claude Trichet and Mario Draghi - source:FT

Economic Policies Impacting EU Finance

Jean-Claude Trichet: Mario Draghi’s critics are misguided : Mario Draghi's predecessor at the helm of the ECB writes in the FT that he disagrees with the attack by six former central bankers on the loose monetary policy pursued by the bank. He says to see success, continuity, unprecedented challenges and a question about the limitations of monetary policy.  View Article

Financial Times: Draghi ignored in-house ECB advice on QE restart : The European Central Bank decided to restart its bond-buying programme last month over the objections of its own officials, a further sign of how the move has reopened divisions within the institution. View Article

Bloomberg: ECB governing council is turning page after spat, Villeroy says : European Central Bank policy makers are focusing on the future after a contentious decision that was taken legitimately, according to Bank of France Governor Francois Villeroy de Galhau.  View Article

Project Syndicate: Germany versus the ECB : With the German economy close to recession, ECB President Mario Draghi has rightly urged eurozone governments to provide more fiscal stimulus, writes Hans-Helmut Kotz. And acknowledging the interaction between fiscal and monetary policy would leave critics much less room for ECB-bashing. View Article

Financial Times: Low interest rates fuel financial risk-taking, IMF warns : Persistently low interest rates are encouraging investors to take dangerous risks in a quest to maintain their financial returns, the IMF said on Wednesday, raising concerns that even the current lacklustre performance of the global economy may not be sustainable. View Article

BBC: IMF warns world growth slowest since financial crisis : The global economy is growing at its slowest pace since the financial crisis, the International Monetary Fund (IMF) has said. View Article

Main results - Economic and Financial Affairs Council : The Council discussed issues related to anti-money laundering and the Wise Persons' Group's report on the European financial architecture. It adopted a Council recommendation on the appointment of a member of the ECB executive board. View Article

Taxation: 2 countries removed from list of non-cooperative jurisdictions, 5 meet commitments : The Council agreed to remove the United Arab Emirates (UAE) and the Marshall Islands from the EU's list of non-cooperative jurisdictions for tax purposes. It also found Albania, Costa Rica, Mauritius, Serbia and Switzerland to be compliant with all commitments on tax cooperation. View Article

EurActiv: WTO clears US to target $7.5 billion of EU exports with tariffs : The World Trade Organisation formally authorised the US to impose tariffs on up to $7.5 billion worth of EU exports after an arbitrator’s decision over subsidies to planemaker Airbus. View Article

Chatham House: Can the world economy find a new leader? : This paper examines the governance problems in the monetary system and global trade and regulation. It then explores whether issues have arisen because the US has given up its dominant role, and if so how these might be rectified. View Article

Fondation Robert Schuman: Put that budget away! Out of my sight! : Whilst the departure of the UK will reduce budgetary resources and new priorities demand new balances, debate over the European budget will demand courage. Two recommendations for EU leaders in this: abandoning the multiannual straitjacket and setting the principle of budgetary regularity. View Article

Vox EU: Rethinking fiscal policy choices in the euro area : This column argues that many EU countries have the fiscal space to stimulate their economies, which could help in preventing a recession. View Article

Basic Enconomic Indicators

Annual inflation down to 0.8% in the euro area : The euro area annual inflation rate was 0.8% in September 2019, down from 1.0% in August. European Union annual inflation was 1.2% in September 2019, down from 1.4% in August.  View Article

Euro area international trade in goods surplus €14.7 bn : The first estimate for euro area (EA19) exports of goods to the rest of the world in August 2019 was €177.4 billion, a decrease of 2.2% compared with August 2018 (€181.4 bn).  View Article

EU27 Politics

POLITICO: Start of new European Commission likely delayed to December 1 : European Parliament President David Sassoli and leading MEPs agreed that the assembly's confirmation vote on the new Commission, originally scheduled for next week, will be cancelled, as the names of three commissioner-designates are still missing. View Article

POLITICO: Von der Leyen Commission faces delay after French nominee’s rejection : The November 1st start date has been cast in doubt after the European Parliament was dealt a blow to French PM Emmanuel Macron with the rejection of French nominee Sylvie Goulard and Romania's government collapse. View Article

Main results - Eurogroup : The Eurogroup agreed on all the critical elements of governance and financing of the budgetary instrument for convergence and competitiveness (BICC) for the eurozone. It defined governance, financing as well as allocation and modulation of the BICC in a term sheet. View Article

Graham Bishop #FBPE retweeted
	Louise Guillot @l_guillot
It seems that #Brexit is taking too long for some people. According to new survey, more than 50% of British people are in favor of honoring the result of the 2016 referendum and leaving the EU, irrespective of whether they voted Leave or Remain. politico.eu/article/poll-m…
Graham Bishop #FBPE retweeted
	POLITICO Europe @POLITICOEurope
The meeting between EU ambassadors and the bloc's chief Brexit negotiator has been pushed back — again politi.co/2oD35g1
Graham Bishop #FBPE retweeted
	FT UK Politics @ftukpolitics
No-deal Brexit could cut UK-EU trade flows by half on.ft.com/2BbdvWL
Graham Bishop #FBPE retweeted
	Olli Rehn @ollirehn
In defence of ?@ecb? monetary policy by facts and analysis. An important op-ed article by former ECB President Jean-Claude Trichet. ?@FT? #pricestability #monetarypolicy ?@SuomenPankki? ft.com/content/cf6b93…
Graham Bishop #FBPE retweeted
	Jennifer Rankin @JenniferMerode
Michel Barnier said the EU should give one last chance to the British as he met EU diplomats this evening. He said no significant progress had been made over the weekend, but thinks worth continuing talks until Wednesday - one day before European council. 1.
Graham Bishop #FBPE retweeted
	Financial Times @FT
Global regulators put pressure on Libra with enhanced scrutiny on.ft.com/2oDrimb
Graham Bishop #FBPE retweeted
	Tim Figures @TimFigures
The main impact of which would be felt by Britain’s manufacturers. Tariffs and border delays/paperwork hit hardest if you’re trading in goods. twitter.com/UKandEU/status…
Graham Bishop #FBPE retweeted
	Donald Tusk @eucopresident
The UK has still not come forward with a workable, realistic proposal. But I have received promising signals from Taoiseach @LeoVaradkar that a deal is possible. Even the slightest chance must be used. A no deal #Brexit will never be the choice of the EU.