Frk Eur Igc Etf Discussion Threads

[grupo] 28/5/2019 08:00

Euro, Equities at Risk as Italy and EU Clash Over Budgets - Again
May 28, 2019 8:30 am +02:00
Dimitri Zabelin

by Dimitri Zabelin , Junior Currency Analyst
TALKING POINTS – EURO FORECAST, ITALIAN BOND YIELDS, ITALY BUDGET

European markets tense up ahead of Rome-Brussels budget deficit dispute…again
Market participants eagerly wait to see who will lead the European central bank
EU-US trade relations remain tense against looming threat of Brexit, auto tariffs

See our free guide to learn how to use economic news in your trading strategy!
EUROPE: TRADE WARS, EUROPEAN COUNCIL, ECB, EUROPEAN COMMISSION APPOINTMENTS

The Euro and local equity markets may find themselves in the red after news broke that Italy may incur a penalty of up to $4 billion. The European Commission is considering implementing the Excessive Deficit Procedure (EDP) in response to the government’s blatant disregard of European budget laws. The revived dispute between Rome and Brussels may spoil risk appetite in the upcoming trading session.

If these fears materialize, the Euro along with regional equity markets will likely experience capital flight while anti-risk assets like the Swiss Franc, US Dollar and Japanese Yen may gain alongside German Bunds. We saw a similar reaction last year when Rome and Brussels clashed, but EU officials backed off, likely because of the concerns about how a firm stance against Italy could have empowered eurosceptic parties ahead of European Parliament elections.

This came on the same day as EU trade ministers met in Brussels to discuss trade ties with the US after diplomatic relations between the two soured politically and economically. Cross-Atlantic tensions are high with the looming threat of auto tariffs targeted at European car manufacturers remaining a risk. Adding to the friction is the disagreement between policymakers on how to come about agricultural reform.

Trump has continuously expressed his discontent with the EU’s restrictive policy on importing US agricultural products. Local farmers are a key constituency of Trump’s and their support is crucial in ensuring he has a fair shot at reelection. The US-China trade war has eroded their confidence in his ability to improve their economic conditions, and as such, he may be more willing to soften his position in order to add a notch to his belt ahead of the 2020 elections.

Adding to the risk docket will be tomorrow’s discussion between various EU leaders over who will lead key European institutions. These include the European Council, European Commission and the ECB. Market participants will be particularly keen to see who will head the latter because of the implications it has on the Eurozone.

The new appointment will come as regional growth is showing weakness as part of the broader trend of slower global growth. This also comes during a time when the outlook for Brexit has somehow become even more uncertain, leaving the door open to the UK crashing out of the EU when the deadline hits in October. The long-term impact of the recently-concluded European Parliamentary elections has also still yet to be revealed.

[grupo] 28/5/2019 07:58

New €100 and €200 banknotes in circulation from today
Updated / Tuesday, 28 May 2019 08:53
The new €100 and €200 banknotes have new, enhanced security features and are easy to check using the 'feel, look and tilt' method
The new €100 and €200 banknotes have new, enhanced security features and are easy to check using the 'feel, look and tilt' method

The European Central Bank has said that new €100 and €200 banknotes will start circulating around the euro zone today.

The new banknotes use new and innovative security features and are easy to check using the "feel, look and tilt" method.

At the top of the silvery stripe a satellite hologram shows small € symbols that move around the number when the banknote is tilted and become clearer under direct light.

The silvery stripe also shows a portrait of Europa, the architectural motif and a large € symbol.

The new banknotes also feature an enhanced emerald number. While the emerald number is present on all the other notes of the Europa series, this enhanced version also shows € symbols inside the number.

These enhanced security features all make them more resistant to counterfeiting.

The new €100 and €200 notes complete the Europa series that has been gradually replacing the first set of euro notes first issued in 2002.

The ECB said the new €100 and €200 notes are now the same height as the €50 banknote, which makes them easier to handle and process by machines.

They will also fit better in purses and wallets and last longer, as they will be subject to less wear and tear.

The €100 is the third most widely used euro banknote, after the €50 and the €20.

About 2.7 billion €100 notes were in circulation at the end of June 2018, accounting for 13% of all banknotes in use.

The ECB also noted that demand for €100 and €200 banknotes is increasing, at an annual rate of 7.6% for the €100 and 8.6% for the €200.

The €100 and €200 banknotes of the first series, like all the other denominations, will remain legal tender.

They will continue to circulate alongside the new notes and will be gradually withdrawn from circulation.

The ECB said it was printing about €2.3 billion €100 denomination notes but not all of these would be introduced immediately, as some would be kept in the ECB's vault and sent to commercial banks when needed.

National central banks within the euro zone have jointly printed the currency's banknotes since 2002, with each institution accountable for a proportion of the total annual production in one or several denominations.

[grupo] 28/5/2019 07:33

European stocks higher as EU vote provides relief
Published 2 hours agoUpdated 8 min ago
Ryan Browne
@Ryan_Browne_




Key Points

The pan-European Stoxx 600 climbs, with most sectors and bourses in positive territory.
Investors in Europe continued to digest results from the EU Parliament elections.
Scandinavian Airlines reported heavy losses in its interim second-quarter report.

European shares traded higher Tuesday as investors continued to monitor political developments in the continent.
European Markets: FTSE, GDAXI, FCHI, IBEX
TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSE FTSE 100 FTSE 7290.92 13.19 0.18 26278456
DAX DAX DAX 12072.21 1.03 0.01 3152630
CAC CAC CAC 5334.53 -1.66 -0.03 2974156

The pan-European Stoxx 600 index rose 0.2% in morning trade, with most sectors and major bourses in positive territory.

Looking at individual stocks, Umicore rose toward the top of the European benchmark after announcing the acquisition of cobalt refinery in Finland. The company’s share price rose 2% in early trade.

In corporate news, Scandinavian Airlines reported heavy losses in its interim second-quarter report. The firm said its results were hit by a pilot strike and rising jet fuel prices. Shares fell nearly 4% shortly after the opening bell.
EU election results

Investors in Europe continued to digest results from the EU Parliament elections, which concluded Sunday. Results showed pro-EU parties still managed to hold onto a majority of seats, albeit with Euroskeptic and nationalist parties also gaining momentum.

Experts saw the vote as largely positive, as an uptick in support for Europhile parties like the Liberals and Parties means the European project may not be under threat. The rise in support for populists was less detrimental than previously feared, analysts said.

[la forge] 27/5/2019 15:32

European stocks higher in the wake of EU elections; Renault jumps 15% on Fiat merger talks
Published Mon, May 27 2019 12:55 AM EDTUpdated an hour ago
Chloe Taylor
Ryan Browne
@Ryan_Browne_




Key Points

Investors are largely focused on results of the EU parliamentary elections.
The euro rose against the dollar despite an uptick in support for nationalists.

European shares climbed on Monday, as an EU Parliament election showed Europhile parties still performing reasonably well despite a rise in support for nationalists.
European Markets: FTSE, GDAXI, FCHI, IBEX
TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSE FTSE 100 FTSE 7277.73 46.69 0.65 653148230
DAX DAX DAX 12061.06 50.02 0.42 32619477
CAC CAC CAC 5327.30 10.79 0.20 37970710

Germany’s DAX rose about 0.5% while France’s CAC climbed 0.3%. Italy’s FTSE MIB jumped 0.6% initially, but fell into negative territory during the afternoon session. Markets in the U.K. and U.S. were closed Monday, meaning trading volumes were low.

Investors in Europe will largely be focused on results of the EU parliamentary elections. Initial results suggested a strong showing for Liberal and Green parties, while euroskeptic groups in Britain and France holding the gains they saw in 2014.

Pro-EU parties are still expected to make up the majority of the Parliament, however, holding on to about two-thirds of the seats. But right-wing populist parties in both the U.K. and France made solid gains, with Nigel Farage’s Brexit Party comfortably beating Britain’s two main parties and Marine Le Pen’s National Rally narrowly beating President Emmanuel Macron’s centrist party.

The euro lost some ground against the dollar on Monday afternoon, trading just below $1.12 and trimming its earlier gains.

Sectors were mostly in positive territory, with autos up nearly 2%, getting a boost from the news that Fiat Chrysler and Renault are in early merger talks.

Renault surged to the top of the European benchmark after Fiat confirmed it had filed a proposal for a merger with its French rival. In a press release, Fiat said the joint organization would produce estimated sales of 8.7 million vehicles a year and would be considered the world’s third largest car manufacturer.

Shares of Fiat Chrysler rose 11%, while Renault surged almost 15% higher.

French automaker Peugeot Citroen’s shares fell more than 3% on the back of the news, making it the worst performer in the European autos sector.

Elsewhere, trade tensions continued to be a focal point for investors. The billionaire founder of Chinese telecoms giant Huawei, Ren Zhengfei, told Bloomberg on Sunday that despite Beijing’s heated trade war with the U.S., he would oppose any Chinese retaliation against major rival Apple.

Meanwhile, U.S. President Donald Trump on Monday put pressure on Japan to have the balance of trade between the two countries “straightened out rapidly.” Trump has threatened to hit the country’s automakers with high tariffs.

U.S. markets are closed on Monday for Memorial Day.

[florenceorbis] 27/5/2019 08:59

at present the CAC and DAX seem not too unhappy with the EU vote results

both ticking up


CAC 40
5,337.75 +0.40%
SBF 120
4,212.49 +0.39%
EuroStoxx 50
3,364.88 +0.43%
DAX Index
12,077.32 +0.55%
Ftse Mib
20,572.7 +0.97%

[florenceorbis] 27/5/2019 08:52

France's far-right RN tops European election vote

Marine Le Pen's party wins 23.3% of the vote in France, narrowly pushing President Emmanuel Macron's LREM into second place

France's far-right Rassemblement National (RN) has come out on top in France’s European Elections, narrowly ahead of President Emmanuel Macron's La Republique En Marche (LREM).

Marine Le Pen’s party finished with 23.3% of the vote at the end of a campaign that was heavily packaged as a protest vote against the president. The centrist LREM came second with 22.4%, and there was a surge for Europe Écologie Les Verts, with 13.4%. Of the more traditional parties, centre-right Les Républicains won 8.4% and Parti Socialiste 6.6%.

With results still coming in, you can see how your commune voted in the European elections by clicking here.

Analysts pointed out the French far-right had not improved on results in the 2014 European election, where it had also claimed the most French MEPs and polled higher, with 24.85% of the vote. Five years' ago, then-President Francois Hollande saw his party pick up just 14%.

Jordan Bardella, 23, who was the head of the RN's list of candidates now becomes the youngest-ever MEP. He called the results a “lesson in humility’ for Mr Macron, and “a rejection of him and his policies”, while Ms Le Pen called for the National Assembly to be dissolved.

The Eurosceptic RN's election manifesto had made no mention of a possible referendum on France's future in Europe - a so-called Frexit. Instead, it called for reform from within.

Across Europe, traditional centrist parties took a beating, as voters favoured alternative candidates from the greens and far-right. Estimated results based on exit polls leave the centre-right European People’s Party as the largest in the parliament, but down from 221 seats to 179.

The Socialists and Democrats group seem certain to win 150 seats, down from 191 five years ago, leaving the two main groups looking likely to need help from Alliance of Liberals and Democrats (ALDE) with about 107 seats, and the Greens to form a stable majority.

Environmental parties will have greater influence, with about 70 seats in the next European Parliament, compared to 50 currently. German voters, in particular, threw their weight behind green candidates.

French Prime Minister Édouard Philippe called the results “disappointing” but said they would not affect the government’s reform drive.

Turnout across the EU27 member states was about 50.95% – the highest since 1994. In France, the turnout was 52%.

[florenceorbis] 27/5/2019 08:06

Euro holds steady after EU vote shows pro-Europe parties cling to majority
Updated / Monday, 27 May 2019 08:03
Pro-European Union parties have held on to two-thirds of seats in the EU parliament elections
Pro-European Union parties have held on to two-thirds of seats in the EU parliament elections

The euro barely budged in early trade today after pro-European Union parties held on to two-thirds of seats in the EU parliament elections, limiting gains in nationalist opponents.

The euro was little changed at $1.1210 in early trade and off a two-year low of $1.11055 touched last week, as the markets studied the outcome of the vote.

While centre-right and centre-left blocs are losing their shared majority, surges in the Greens and liberals meant parties committed to strengthening the union held on to two-thirds of seats, official projections showed.

The results dented the hopes of anti-immigration, anti-Brussels National Rally led by Marine Le Pen, Italy's Matteo Salvini and others who have been opposing attempts to forge closer EU integration.

Trading was expected to be subdued today due to market holidays in London and New York.

The dollar was little changed against other currencies.

Sterling was steady at $1.2725, having regained some ground after Prime Minister Theresa May set out a departure date, bouncing back from a four and a half month low of $1.2605 set on Thursday.

But the prospect of a "no deal" Brexit was fast becoming the central battle of the race among contenders to succeed May.

Four of eight leadership hopefuls said that Britain must leave the EU on October 31 even if this means a no-deal Brexit.

[maywillow] 15/5/2019 11:47

15/05/2019 | 11:31

Zurich (awp) - The Swiss stock market plunged into the red on Wednesday in the middle of the morning, like its counterparts in Frankfurt and Paris.

An apparent slight relaxation has however appeared in the trade negotiations between Beijing and Washington. US President Donald Trump downplayed the trade dispute with China, calling it a "little quarrel" and still considering a trade deal to end it. He also hinted that he would meet his Chinese counterpart Xi Jinping at the upcoming G20 summit in late June in Japan.

In the macroeconomic chapter, industrial production and retail sales fell sharply in April in China.

Germany returned to growth in the first quarter, up 0.4% of GDP from the previous three months.

In France, the rise in consumer prices accelerated in April to 1.3% year on year, after 1.1% the previous month, according to the final figures revised slightly upward by INSEE.

In Switzerland, the Federal Customs Administration (AFD) revised Switzerland's external trade figures for March slightly higher. As a result, after the revised figures, there is a positive balance of 2.49 billion Swiss francs.

At 10:30, the Swiss Market Index (SMI) fell by 0.17% to 9388.16 points, the Swiss Leader Index (SLI) by 0.26% to 1457.27 points and the broader market index Swiss Performance Index ( SPI) of 0.20% to 11,364.34 points. Of the top 30 SIX stocks, ten were in the green and twenty were down.

Just behind Logitech (+ 2%), LafargeHolcim (+ 2%) remained on the podium. The Franco-Swiss cement company has expanded its quarterly sales and improved its operating profitability above all expectations. Swiss Life (+ 0.5%) completed the top three.

Zurich Insurance grew by 0.4%. The Royal Bank of Canada (RBC) took over the coverage of the stock on Tuesday, with a target price of 370 Swiss francs.

The group was followed by Swiss Re (+ 0.4%). Vontobel took over the cover of Swiss Re with the recommendation "buy" and a target price of 117 Swiss francs.

Nestlé saved the bet (+ 0.6%) while Roche plunged 0.3%.

Novartis (-0.2%) will be able to market its Kymriah cell therapy in Japan at a price of 33.5 million yen (about 308,000 Swiss francs). Its Alcon emanation remained a red lantern (-2.5%). She will present her first results tonight as an autonomous entity.

Lonza (-0.3%) fell into the red. With its American partner Chiasma, they have extended a collaboration agreement dating from 2012 on the development of Mycapssa, a synthetic analogue of somatostatin for the treatment of acromegaly.

Banking was even worse, like UBS (-0.5%), Credit Suisse and Julius Bär (-0.9% each). Luxury values ​​were also stuck at the bottom of the table (Swatch -1.0% and Richemont -1.1%).

In the wider market, the Ticinese designer of orthopedic and neurosurgical devices Medacta climbed 2.6% following hedging by Credit Suisse and Morgan Stanley.

Investis (+ 2%) saw its recommendation raised to "buy" by Vontobel. With its economic model, the real estate company operates a niche niche in the Lake Geneva region, according to the commentary.

The shareholders of the Valartis banking group (+ 1%) validated the new share buyback program.

buc / ck / jh

[maywillow] 02/3/2019 16:58

Mar 2, 2019, 11:06am
Spain Shows Sense In Dealing With British Expatriates
Stephen Pope
Stephen Pope
Contributor
Markets
I focus on developments on economic and market aspects within Europe.

FILE: The flip flop sandals of a holidaymaker decorated with the British union flag, sit on the sandy beach in Benidorm, Spain. Photographer: Matthew Lloyd/Bloomberg©; 2016 Bloomberg Finance LP

There has long been a symbiotic relationship between the Spanish economy and British Expatriates (Expats) and the U.K. in general.

The website fullfact.org, reports that 1.3 million people form the U.K. live in other European Union (EU) countries. Of these Spain hosts the largest group of U.K. citizens at an estimated 310,000. France is in second place with 165,000 and in Ireland with 118,000 comes third.

Except for Greece, one could make a good case for Spain enduring more pain than any Eurozone nation during the sovereign debt crisis and economic meltdown. Such was the worry over a Spanish default that in July 2012 the spread of 10-year Spanish debt over Germany reached 6.10%. The subsequent action taken by the European Central Bank (ECB) and the improvement in the Spanish economy took this down to 1.03% at the close of business on March 1st.

No wonder there has been a sense of concern as to what U.K. expats might do if the Brexit process ended in an outcome of no-deal? This was doubly worrying as so much of the Spanish economy had been focused on residential property construction.

When the economy slowed, building programmes ground to a halt abandoned as incomplete by bankrupt developers. Thousands of houses and apartments stood empty. If the British left in droves, property markets would be even more depressed as over 50% of expatriate homes are owned by British citizens.

The majority of British in Spain have chosen to integrate and live among their Spanish neighbours. Only a minority have chosen to live with one another in so-called “Expat Ghettos” that are sprinkled around the Spanish Mediterranean coast.
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Therefore, it is welcome news to hear that even though a general election campaign is in full flow, Spain's cabinet acted to approve a series of measures for U.K. citizens that reside in Spain to continue living there just as they do now even if a satisfactory Brexit deal cannot be achieved.

The Spanish Foreign Minister Josep Borrell said the main purpose was that no-one would be left unprotected. That is a good step although such a measure would appear to be temporary; the plan approved by the cabinet does include a clause for Britons living in Spain to apply for a "Foreigner Identity Card" before December 31, 2020 so as to prove their legal residency status.

This should prove to be a straightforward process as the Spanish newspaper “El Pais” (“The Country”) reports that the process would be "nearly automatic" for those U.K. nationals who already have permanent residency.

Of course, nothing in life is given away as it must be pointed out that the plan is dependent on the U.K. reciprocating with similar measures for Spaniards residents.

One may call me a cynic; however, one must bear in mind the contributions British expatriates make to the Spanish economy. The British consul in Alicante has stated the figures for the Alicante province alone to amount to €1.32 billion ($1.50 billion) a year. Over 25% of all British expats live in that area).

Another factor is that Spain knows the value of good relations with the U.K. for its wider economy. Spain currently enjoys a €11 billion ($12.4 billion) surplus in the trade balance with the U.K., which is approximately 1.1% of GDP, according to El Pais.

The U.K. is also Spain’s primary direct investment destination, with Spanish companies investing €48 billion ($54.2 billion) or 14% of the annual total. Money also flows the other way as 10% of the U.K.’s total foreign investment is directed toward Spain.

Not only is Spain keen to maintain a good relationship with the British that live in Spain. There are many tourist Euros at stake. British tourists flock to Spain each year for their holidays as good weather and beautiful beaches are virtually guaranteed. The British make 25% of all tourist visits to Spain with vacation spending contributing €14 billion ($15.8 billion) to the Spanish economy.

This may be a sign of a late move by Europe to seek a deal for Brexit that the House of Commons could approve. Spain has had to overcome its frustration by not being able to build a claim on Gibraltar. It has done so because the Prime Minister, Pedro Sánchez, would love to boost his election chances with a good future relationship with the U.K. cash cow.

Maybe, other nations will look to their own economic interests, i.e. sales of German cars, French cheese and wine or Italian fashion. The EU may feel its integrity is crucial but having a good relationship with the U.K. for migration, trade and tourism will prove essential for future economic prosperity. After all, it’s all about the money.

Stephen Pope has over 30 years of experience in the international capital markets and is Managing Partner at Spotlight Ideas.
Stephen Pope
Stephen Pope
Contributor

[arf dysg] 18/10/2018 14:59

Buy a house in Spain.

[sarkasm] 30/8/2018 10:40

List launched for Britons shut out of citizenship bid

Campaigners for British people in the EU are inviting Britons excluded from taking part in a formal petition to the EU about European citizenship to sign an alternative one.

As Connexion reported in July a new European Citizens’ Initiative (ECI) to make EU citizenship a right acquired for life cannot officially be signed by British people living in France.

This is because ECI signatures must go through a validation process by an EU state, and British and French rules on this clash.

To highlight this absurdity, which means some of those most affected by loss of EU citizenship after Brexit are excluded, Brexpats – Hear Our Voice (BHOV), part of the British in Europe coalition, have started a page at this link to join a list of those who wanted to take part, but cannot.

BHOV hope that if they gather a large list of names this will send a strong political message alongside the ECI itself.

The official ECI is now ready to be signed by those eligible, such as French people in France or British and other EU citizens in the UK, at this link.

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[la forge] 28/8/2018 09:57

Barrister seeks to rally Europeans against Brexit
Julien Fouchet thinks opposing the 'illegal' Brexit is a duty for Europeans

A French barrister has launched a new social media campaign which aims to bring together Europeans opposed to Brexit on grounds that the referendum was not run properly.

Julien Fouchet from Bordeaux has launched a campaign, at present only on Twitter, called EU27Voices4UKRemain (Twitter handle: EU27k) which aims to create a sense of solidarity among those in the other 27 states who wish the UK to remain. It will be launched on other social media later on.

Mr Fouchet, who is also the barrister for the ‘Shindler̵7; case which seeks a ruling that the referendum broke EU rules, told Connexion supporters for the new campaign so far include former Monty Python member Eric Idle as well as British politicians.

He said: “I want to mobilise people in all of the 27 states so that people understand why the UK is leaving the EU – they don’t know, in Germany, Spain, Portugal… that this Brexit is illegal.

“The Leave campaign exceeded the spending ceilings. The referendum vote did not mention that the UK would leave Euratom. Electors in British overseas territories and Britons who have lived abroad for more than 15 years could not vote. Nor could prisoners – despite the fact that the European Court of Human Rights had told the UK that loss of voting should not be automatic for all prisoners, only for the most serious offences. There was foreign influence on social media. It’s all illegal and people don’t know.”

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He added he will also be sending out a press release to media across Europe and is creating a ‘big data’ database with a maximum of contacts.

“I want to get everyone on board and mobilise people to protest. I aim to create a support committee in each of the 27 states. But time is short. I’m not a communications expert but I’m going to do my best to surround myself with people who can help.

“We have to try to avoid this catastrophe, so that Europe isn’t dislocated like this, above all in the context of this illegality. I consider it a duty as a European citizen.”

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[sarkasm] 24/8/2018 12:15

Confusion over 'no-deal' Brexit and bank accounts

The recently-issued advice from the UK about a no-deal Brexit has referred to British expatriates’ UK bank accounts saying Britons in the EU “may lose the ability to access existing lending and deposit services.” We sought to clarify the meaning of this with the UK’s Treasury but it was unable to give further information on what it means in concrete terms.

The statement from the UK government came as part of a first batch of contingency planning papers for a potential ‘no deal Brexit’ that were released yesterday, in a paper called Banking, insurance and other financial services if there is no Brexit deal.

The wording referring to bank accounts is mixed in with references to potential problems with pay-outs from UK-based insurance policies and certain kinds of private pension annuity. This aspect is not new - Connexion initially covered it in November last year after the chairwoman of the UK Parliament’s Treasury Select Committee, Nicky Morgan, wrote to the Chancellor of the Exchequer about “the possibility that UK providers may not be legally able to pay out pensions or insurance contracts to citizens in the EU – including UK expats... a stark example of the consequences of a cliff-edge Brexit”.

At the time the Association of British Insurers told us: “If nothing is fixed, this would potentially affect a very large number of private pensions. For a pension provider to make payments on a pension they need to be regulated in the country where they are making the payments. They are currently regulated under EU rules and, if alternative regulation is not in place, firms risk either breaking the law or not fulfilling a contract to a customer, which is of great concern.”

The problem arises due to the UK’s loss of so-called financial passporting rights if it leaves the EU and no agreement is made replacing them. If there is a withdrawal agreement between the UK and EU this will allow a transition period to the end of 2020 to potentially resolve such matters; this would not apply of there is 'no deal'.

As we reported last month there have since been moves on the UK side to reassure citizens of other EU states living in the UK that they will be able to receive their private pensions from outside the UK after Brexit, however there has so far been no guarantee from the EU or EU states that the same applies to British expatriates receiving payments from the UK (we are seeking clarification from the French Finance Ministry with regard to French residents with UK private pensions and insurance policies).

Experts previously told Connexion that a potential solution after Brexit, if French residents are affected, would be to have private pensions or insurance pay-outs from UK providers paid into a UK bank account for transferral to a French one. It is an EU-wide right to be able to open a basic bank account in an EU state outside the one in which you live and this currently applies to residents of France who want to open a UK account.

However due to the UK leaving the EU’s SEPA banking zone, which makes transfers between EU states similar in cost and speed to domestic ones, transfers between the UK and France would be likely to take longer and cost more after Brexit. This is referred to in the UK’s banking paper but was predictable (we mention it in our helpguide to Brexit and Britons in France). The UK’s paper also notes that using credit cards between the UK and EU is likely to cost more, such as if using a British card to make purchases in France.

More unexpectedly, the paper raises concerns over bank accounts themselves linked to the lost passporting rights. Sources told Connexion it would be highly unlikely that expatriates would be forced to close their UK bank accounts but it is possible that making use of them, including for new deposits, could, in ways that are unclear, become more difficult. The UK’s paper implies that the problems could be eased by action on the side of the EU.

Lacking further practical clarification from the UK government, here is what its passage actually says:

“.. in the absence of action from the EU, EEA-based customers of UK firms currently passporting into the EEA, including UK citizens living in the EEA, may lose the ability to access existing lending and deposit services, insurance contracts (such as a life insurance contracts and annuities) due to UK firms losing their rights to passport into the EEA, affecting the ability of their EEA customers to continue accessing their services. This could impact these firms’ ability to continue to service their existing products.”

We will be following this up in our September edition, on sale at the end of next week.

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[waldron] 23/8/2018 15:37

Credit card fees warning in case of no deal Brexit
23 Aug 2018

Brexit minister Dominic Raab has outlined a “practical and proportionate” plan for the possibility that the UK leaves the EU with no deal, amid warnings that Brits visiting the EU could face extra credit card charges.
Calum Fuller
Calum Fuller
Editor
As editor of Credit Strategy, I’m responsible for both the print magazine and the website. I have been a journalist since more...
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Guidance issued by the Department for Exiting the European Union includes instructions for businesses facing extra paperwork at borders.



The framework, split across 25 technical notices covering areas sectors including finance, medicine and farming, warns that:

The cost of card payments between the UK and EU will "likely increase" and won’t be covered by a ban on surcharges;
Business trading with the EU should start planning for new customs checks, and might have to pay for new software or logistical help;
Britons living elsewhere in Europe could lose access to UK banking and pension services without EU action;

In his speech, Raab insisted the government “neither wants nor expects” the UK to crash out of the EU with no deal, but added it was prudent to plan for the possibility.



“We have a duty, as a responsible government, to plan for every eventuality,” he said. “I am still confident that getting a good deal is, by far, the most likely outcome. The vast majority, roughly 80 percent, of the Withdrawal Agreement has now been agreed, and we are making further progress on those outstanding separation issues.”



He also moved to dismiss what he described as “some of the wilder claims” about the impact of a no deal Brexit.



“Let me reassure you all that, contrary to one of the wilder claims, you will still be able to enjoy a BLT after Brexit. And there are no plans to deploy the army to maintain food supplies.”



“I think it’s also worth saying that most of the worst-case scenarios, being bandied around, imply that the EU would resist all and any mutual cooperation with the UK. In reality, I find it difficult to imagine that our EU partners would not want to cooperate with us even in that scenario in key areas like this, given the obvious mutual benefits involved.”

Financial services



On financial services, the 23-page long technical note insisted rule-taking – in the sense of an open ended commitment to adopt rules without having influenced their formation – “will simply not work for this sector”.



Central to the UK’s plans for financial services in a no deal scenario is that “parties retain autonomous judgement about access to their market and over legislation” and bilateral agreement, which would include “commitments and processes ensuring transparency, stability and promoting cooperation”.



Under this system, each side’s legislative process and rulemaking would be autonomous, with individuals and businesses are answerable to their respective political and judicial frameworks.



The criteria for determining if a foreign jurisdiction has equivalent standards and supervision for a given sector would be autonomous, while the decision to grant or withdraw equivalence would be an autonomous judgement.



There would be no recourse to the EU/UK Dispute Resolution Mechanism for autonomous matters – only for commitments included in the bilateral, treaty-based agreement.



On bilateral arrangements, the technical note said any framework should be commensurate to the UK’s relationship and degree of market integration; address key gaps in scope; set out institutional co-operation; and use consultation and mediation to explore solutions and agree timescales appropriate for the scale of changes before they take effect.



For European Economic Area firms doing business in the UK and for supervisors, the UK has “no desire to water down existing co-operation”.



“There is no need to default to a world with less predictability about how the two sides will share information, and cooperate day-to-day and in crisis,” the note said.