The Bank of England’s financial policy committee warns of risks if the continuity of existing derivatives contracts is not ensured post-Brexit.
Photo: Bank of England/Flickr
Banking contracts worth trillions at risk post-Brexit, trans-Atlantic relationships under pressure, and big companies strike deals. Delano’s breakfast briefing.
Bank of England warns EU on contracts
The Bank of England’s financial policy committee has warned EU officials that £29tn worth of contracts could be declared void if protective legislation is not implemented. A technical working group co-chaired by Bank of England governor, Mark Carney, and the ECB president, Mario Draghi, is seen as a welcome development. But the Bank is cited in The Guardian as saying that: “The biggest remaining risks of disruption are where action is needed by both UK and EU authorities, such as ensuring the continuity of existing derivatives contracts. As yet the EU has not indicated a solution analogous to a temporary permissions regime.”
Tusk wary of Trump policies
European Council president Donald Tusk has warned that the EU must prepare for the worst if US president Donald Trump continues to pursue a doctrine in which there are “no friends, only enemies”. The Guardian reports that Tusk will discuss US-EU relations with EU government leaders at this week’s summit in Brussels, ahead of next week’s Nato summit. “Trans-Atlantic relations are under immense pressure due to the policies of President Trump,” Tusk wrote in a letter.
Fox-Disney deal cleared
Disney’s purchase of most of 21st Century Fox has been given the go-ahead on condition that Fox’s regional sports networks in the US are sold off. The $71.3bn deal has received the approval of the Justice Department's antitrust division. Disney hopes the purchase of Fox's entertainment assets will help it compete with the likes of Netflix, the BBC says.
Apple-Samsung dispute settled
A seven-year legal battle between tech giants Apple and Samsung over the design of smart phones was finally settled on Wednesday. Terms of the settlement, filed in the U.S. District Court for the Northern District of California, were not available, says Reuters. In 2011 Apple alleged that Samsung had “slavishly” copied the design of its iconic iPhone.
European Solidarity Corps gets budget
Pan-European youth volunteer project the European Solidarity Corps will have its own budget worth €375.6 million under a deal announced on Wednesday. The European Commission said “The Solidarity Corps is a key part of our efforts to empower young people and enable them to become engaged, caring members of our society, playing their part in building a resilient, cohesive Europe for the future.”
Germany not spared by media after exit
Media around the world reacted with shock and Schadenfreude after Germany was eliminated from the World Cup on Wednesday afternoon. The Guardian has a nice round-up of the headlines.
Today’s breakfast briefing was compiled by Duncan Roberts