EU failure to blame for Brexit, Barnier admits in staggering climb down

 The former European Commissioner said "there are of course lessons to be learned from Brexit" ...

 

Michael Curzon   Daily Express

2 December 2021

© PA Michel Barnier

The former European Commissioner said "there are of course lessons to be learned from Brexit" and insisted that it would be wrong to dismiss Britain's decision to leave the EU simply as an act of "populism". Instead, he acknowledged that Britons felt "abandoned" by the EU and were concerned, as citizens of other European nations are concerned, by EU-related issues, including uncontrolled immigration.

Talking to French journalist Jean-Sébastien Ferjou for Atlantico, Mr Barnier said that by voting for Brexit, Britons expressed a "popular feeling".

He said: "It is a feeling of abandonment, of not being protected enough by Europe, of no longer having a future, no more proper public services, no more factories for young people, or of being subjected to uncontrolled immigration.

"These British concerns exist elsewhere in Europe and they exist in France."

He added that "we must understand them, listen to them and respond to them".

© Getty Barnier

Mr Barnier is running to be elected the next President of France.

He said that his understanding of what led to Brexit will help him to lead France and to prevent a future 'Frexit'.

Mr Barnier never goes so far as to suggest Britain was right to leave the EU, the subtitle of his new book on Brexit reading "The Grand Illusion".

While Mr Barnier identifies as a European, he insisted that he is first and foremost a French "patriot".

He added that a range of issues - including immigration policy, national security and economic recoveries - should be dealt with on a national, rather than a European level.

He said: "There are, of course, issues that we must deal with ourselves because no one will come and deal with them for us."

But others should be dealt with cooperatively in order to prevent France from being "dominated and subcontracted to the Americans and the Chinese".

Despite his close ties to the EU, Mr Barnier has argued in his presidential election campaign that certain powers should be handed back from Brussels to Paris.

© Express Michel Barnier: a profile

In September, he told The Guardian: "[A] recalibration between the national and the European levels is what I want to do in France."

Talking to Mr Ferjou, he also noted that current President Emmanuel Macron has not led France in the "right way".

He was particularly critical of the manner in which Mr Macron has pursued his international relations, appearing as though he was "giving lessons" to other world leaders.

Instead, and in order to prevent anti-EU sentiment from growing in France, Mr Barnier said "we need to regain the link of trust with the other countries".

He said: "This will be my strategy, as it was to build unity among the 27 for Brexit [as the EU's chief Brexit negotiator]."

Additional reporting Maria Ortega.

https://www.msn.com/en-gb/news/world/eu-failure-to-blame-for-brexit-barnier-admits-in-staggering-climb-down/ar-AARmdvX

UK economy 'will grow faster than the EU over next two years'

 UK economy will grow faster than the EU in 2021 and 2022, says leading economic organisation the OECD as it issues a stark global warning on threat posed by the Omicron Covid variant

• UK set to enjoy fastest economic growth of world's seven most advanced nations
• OECD has forecast UK economy will also grow faster than EU's in 2021 and 2022
• But organisation has also issued a global warning on threat posed by Omicron 

By JACK MAIDMENT, DEPUTY POLITICAL EDITOR FOR MAILONLINE

PUBLISHED: 15:15 GMT, 1 December 2021 | UPDATED: 15:23 GMT, 1 December 2021

The numbers mean the UK is expected to enjoy the fastest economic growth of any of the world's seven most advanced economies

The UK economy is set to grow at a faster rate than the EU's over the next two years, a major international organisation has forecast. 

The Organisation for Economic Co-operation and Development (OECD) has predicted the UK economy will grow by 6.9 per cent in 2021 and then 4.7 per cent in 2022. 

That is higher than the 5.2 per cent in 2021 and 4.3 per cent in 2022 which has been forecast for the Eurozone. 

The numbers also mean the UK is expected to enjoy the fastest growth of any of the world's seven most advanced economies. 

Boris Johnson and Rishi Sunak are likely to welcome the strong numbers as Britain continues its recovery from the Covid crisis. 

But the OECD has also issued a stark global warning on the threat posed to the worldwide economy by the new Omicron coronavirus variant. 

The OECD's predictions suggest the UK economy is on course to outpace its G7 rivals both this year and next year. 

The 2021 forecast marks an upgrade from the 6.7 per cent predicted in September, and, while the 2022 outlook is downgraded from the 5.2 per cent previously pencilled in, it would still see the UK lead the G7 pack.

However, the OECD has warned that Britain could suffer a setback if supply and worker shortages do not ease.

The OECD's chief economist, Laurence Boone, today warned the emergence of the Omicron variant could jeopardise the global economic recovery. 

Presenting the OECD's latest report, she said: 'We are concerned that the new variant of the virus, the Omicron strain, is further adding to the already high levels of uncertainty and risks, and that could be a threat to the recovery.'

The OECD lowered its global growth outlook in 2021 to 5.6 per cent from 5.7 per cent and kept it unchanged at 4.5 per cent for 2022 - although the report was compiled before the variant emerged.

The Paris-based group cited key risks to both the UK and global economy from surging inflation, supply chain bottlenecks and interest rate increases.

On the UK, it said: 'A prolonged period of acute supply and labour shortages could slow down the recovery by forcing firms into a more permanent reduction in their operating capacity.'

It added that household and business spending could be hampered by bigger-than-expected price increases for goods and energy, while inflation worries could lead to an early rise in rates.

'A worsening trade relationship with the European Union could also weigh on the economic outlook in the medium term,' it added.

But it said there could be a boost to the UK outlook if workers fill vacancies at a faster pace following the end of the furlough support scheme, helping ease some of the labour shortages.

The OECD said it is 'cautiously optimistic' over the global picture, though it said 'striking imbalances' have emerged.

Ms Boone said: 'Governments acted swiftly and effectively during the height of the crisis to support people and businesses. But the job is not finished.

'The lack of global co-ordination on vaccine deployment is putting all of us at risk.'

She added: 'The harshest scenario is that pockets of low vaccination end up as breeding grounds for deadlier strains of the virus, which go on to damage lives and livelihoods.'

Source

China's 'economic warfare' against Australia

 Aukus deal: US accuses China of 'economic warfare' against Australia

US President Joe Biden's top Pacific envoy on Tuesday accused China of trying to "drive Australia to its knees" through a barrage of sanctions that amounted to "economic warfare".

France 24   Issued on: 01/12/2021 - 05:18

Kurt Campbell at the China Development Forum in Beijing, China, on March 23, 2019. Campbell, US President Joe Biden's top Pacific envoy, accused China on Tuesday of using strong-arm tactics to "drive Australia to its knees". © Thomas Peter, Reuters (file photo)

In remarks to the Sydney-based Lowy Institute, veteran diplomat Kurt Campbell lampooned Beijing for strong-arm tactics.

Painting China as increasingly bellicose and determined to impose its will overseas, Campbell said Beijing had engaged in "really dramatic economic warfare -- directed against Australia".

Over the last two years, China has introduced a raft of punitive sanctions on Australian goods in a fierce political dispute that has frozen ministerial contacts and plunged relations into the most serious crisis since Tiananmen.

"China's preference would have been to break Australia. To drive Australia to its knees," said Campbell, who currently serves as the White House Indo-Pacific coordinator.

China has been angered at Australia's willingness to legislate against overseas influence operations, to bar Huawei from 5G contracts and to call for an independent investigation into the origins of the coronavirus pandemic.

Australian barley, coal, copper ores, cotton, hay, logs, rock lobsters, sugar, wine, beef, citrus fruit, grains, table grapes, dairy products and infant formula have all been subject to Chinese sanctions.

The US envoy said that under President Xi Jinping, China has become "more risk acceptant, more assertive, more determined to basically take steps that other countries would view as coercive".

The Biden administration has embraced a policy of "strategic competition" with China -- acknowledging rivalry between the two powers but maintaining ties so conflicts do not spiral out of hand.

Nuclear-powered submarines 

Biden recently shocked many in the region by agreeing to share sensitive nuclear-powered submarine technology with Canberra, allowing Australia to dramatically increase its military deterrence.

Campbell indicated the move -- part of a broader three-way AUKUS agreement that includes the United Kingdom -- would bind the three allies for generations.

"When we look back on the Biden administration - I believe it will be among the most significant things that we accomplish. And I think in 20 years it will be taken as a given that our sailors sail together, our submarines port in Australia."

Canberra and London's economic ties with a rapidly growing China had put the alliance in doubt, Campbell admitted.

"Seven or eight years ago, if you asked the countries that were most likely to realign strategically and kind of rethink its options... near the top of that list would probably be both Great Britain and Australia," he said.

Campbell also revealed that other Pacific allies would likely take part in cyber or other non-submarine aspects of the AUKUS agreement.

"Many close allies have come to us, in the immediate aftermath and said, can we participate? Can we engage?

"It is to the credit of Australia and Great Britain, that they insisted, yes, this is not a closed architecture."

Source

China trying to become a 'new colonial power' with Barbados power grab

 China is on its way to becoming 'a new colonial power' by investing money into countries such as Barbados

Alessandro Schiavone   1 December2021    Daily Express

© LBC Damian Green

Tory MP Damian Green warned that China is on its way to becoming 'a new colonial power' by investing money into countries such as Barbados. The island, which is in the Lesser Antilles and former British colony which has been independent since 1966, officially became a republic after the removal of Queen Elizabeth as its head of state on Monday. Although Barbados remains a member of the Commonwealth, the decision to become a republic has been largely influenced by China, with the influential Eastern Asian country expected to have the most potent military in the world by 2050.

Tory MP told Iain Dale on LBC that China could use its financial influence to turn into a powerful, new colonial power.

He said: "There is a lot of affection, particularly for the Queen around the Commonwealth, not just in this country.

"And for all the royal turbulence, that we've seen over the past 18 months or so, I detect no surge of republican sentiment in this country.

"But I worry even more and I think you're right to bring up the Chinese money.

"Because there is in a sense a much more serious global play going on here which is the Chinese attempting, using money influence and pulling countries into debts to effectively become a new colonial power around the world.

"And I think if that's allowed to take hold, that will be a real threat to democracies of many of the Commonwealth countries."

But Barbados is not the sole member of the Commonwealth that China are looking to develop military and diplomatic links with.

Several Commonwealth countries receive regular Chinese military training. These include Guyana, Cameroon and Rwanda.

Mr Green spoke of the Commonwealth's importance: "You have to be a democracy to qualify for the Commonwealth and there are countries that go in and out of the Commonwealth on the basis of what kind of Government they have.

"It's good for the countries themselves to remain democracies. We should cling onto the Commonwealth and try and make it as useful as possible for as many Member States as possible.

"We often have an odd view of the Commonwealth in this country because it does get bound up. But actually, as a modern collection, a contemporary collection of democracy, that's a hugely important body to have in and around the globe."

Barbados' decision to become a republic has been met with criticism among some Barbadians themselves. They are concerned that the new independence from the Crown is a double-edged sword as China look to expand its influence in the Caribbean in future.

© EXPRESS China news

China has reportedly pumped more than £400million into the country's economy to gentrify the island.

New homes, hotels and infrastructures were all built.

Some of the most historic colonial empires include Portugal, Belgium, the Netherlands, Spain and France.

Source

EU banks demand access to City markets in blow for Brussels

 The eurozone’s most powerful banking groups have demanded long-term access to London’s multi-trillion dollar derivatives trading market in a fresh blow for Brussels’ plans to seize business from the City. 

Simon Foy

 29 November 2021   The Telegraph

Provided by The Telegraph City of London

In a joint letter, finance trade bodies said that the bloc faces a “cliff edge” unless it extends exemptions that allow trades by European Union institutions to take place in the UK and other major markets.

The letter has been signed by organisations including the International Swaps and Derivatives Association, the European Association of Co-operative Banks, the European Banking Federation, the Futures Industry Association, the Global Financial Markets Association and the Nordic Securities Association.

It said: “If the temporary [arrangements] are allowed to expire without being replaced by equivalence decisions in all key jurisdictions, this will result in increased costs and operational burdens for EU firms while also resulting in trapped assets.”

The European Commission has refused to grant Britain so-called equivalence status for derivatives trading, which would allow companies indefinite access to the City’s deep markets, despite the UK’s post-Brexit rules being broadly in line with its own.

Instead, in what is widely seen as a political move, Brussels has only granted temporary permission for European Union businesses to trade derivatives in London. This is due to expire at the end of June 2022.

The trade bodies called for Brussels to grant derivatives trading permission to the City for at least a further three years. The current reliefs relate to so-called intragroup transactions, which are trades between parties where at least one party is not based in the bloc, including affiliates of EU-based companies.

EU banks are heavily reliant on London’s €660 trillion (£563 trillion) market to settle transactions between institutions, and the process is critical to the smooth operation of financial markets.

Derivatives are financial instruments which underpin banking products used by millions of European consumers, such as fixed rate mortgages. Critics have said that withdrawing access to the UK would likely result in higher costs for the public and could even threaten financial stability.

Before Brexit, it was feared that the EU would swiftly cut off companies’ ability to trade in London in a bid to stifle the City and force business to move abroad. Hundreds of thousands of jobs were said to be at risk of the UK voted Leave.

However, the exodus has been far lower than expected with fewer than 10,000 workers thought to have relocated according to data from EY.

Brussels was forced to separately admit it would extend London’s lucrative euro clearing rights earlier this month in a post-Brexit boost for the City.

The Commission granted permission for banks on the Continent to continue accessing Britain’s clearing market beyond an initial deadline of June 2022, amid fears that cutting them off would damage financial stability.

Mairead McGuinness, the bloc’s financial services commissioner, said the Commission believes EU firms are “over-reliant” on the UK for certain clearing activities, and it will develop the EU’s own capacity to avoid financial stability risks in the medium term.

But she added: “However, in order to address possible short-term financial stability risk, linked to an abrupt interruption in access to clearing services, the Commission will soon propose an extension of equivalence for UK-based [clearing houses].”

The decision represented a significant victory for Britain’s financial services industry after France and other rival countries attempted to seize control of the market from London’s clearing houses, which act as middlemen in derivatives trades between banks.

Earlier this year the EU ordered major banks to explain why they were not shifting euro derivative trading activity out of Britain.

Bank of England governor Andrew Bailey has warned Brussels against plotting a protectionist power grab aimed at stealing business from the City, arguing that the EU would undermine efforts to shore up stability in the wake of the financial crisis if it succeeded in seizing part of the clearing market from the Square Mile.

Source

EU banks demand access to City markets in blow for Brussels

 The eurozone’s most powerful banking groups have demanded long-term access to London’s multi-trillion dollar derivatives trading market in a fresh blow for Brussels’ plans to seize business from the City.

 

Simon Foy

 

10 hrs ago   29 November 2021

© Provided by The Telegraph City of London

In a joint letter, finance trade bodies said that the bloc faces a “cliff edge” unless it extends exemptions that allow trades by European Union institutions to take place in the UK and other major markets.

The letter has been signed by organisations including the International Swaps and Derivatives Association, the European Association of Co-operative Banks, the European Banking Federation, the Futures Industry Association, the Global Financial Markets Association and the Nordic Securities Association.

It said: “If the temporary [arrangements] are allowed to expire without being replaced by equivalence decisions in all key jurisdictions, this will result in increased costs and operational burdens for EU firms while also resulting in trapped assets.”

The European Commission has refused to grant Britain so-called equivalence status for derivatives trading, which would allow companies indefinite access to the City’s deep markets, despite the UK’s post-Brexit rules being broadly in line with its own.

Instead, in what is widely seen as a political move, Brussels has only granted temporary permission for European Union businesses to trade derivatives in London. This is due to expire at the end of June 2022.

The trade bodies called for Brussels to grant derivatives trading permission to the City for at least a further three years. The current reliefs relate to so-called intragroup transactions, which are trades between parties where at least one party is not based in the bloc, including affiliates of EU-based companies.

EU banks are heavily reliant on London’s €660 trillion (£563 trillion) market to settle transactions between institutions, and the process is critical to the smooth operation of financial markets.

Derivatives are financial instruments which underpin banking products used by millions of European consumers, such as fixed rate mortgages. Critics have said that withdrawing access to the UK would likely result in higher costs for the public and could even threaten financial stability.

Before Brexit, it was feared that the EU would swiftly cut off companies’ ability to trade in London in a bid to stifle the City and force business to move abroad. Hundreds of thousands of jobs were said to be at risk of the UK voted Leave.

However, the exodus has been far lower than expected with fewer than 10,000 workers thought to have relocated according to data from EY.

Brussels was forced to separately admit it would extend London’s lucrative euro clearing rights earlier this month in a post-Brexit boost for the City.

The Commission granted permission for banks on the Continent to continue accessing Britain’s clearing market beyond an initial deadline of June 2022, amid fears that cutting them off would damage financial stability.

Mairead McGuinness, the bloc’s financial services commissioner, said the Commission believes EU firms are “over-reliant” on the UK for certain clearing activities, and it will develop the EU’s own capacity to avoid financial stability risks in the medium term.

But she added: “However, in order to address possible short-term financial stability risk, linked to an abrupt interruption in access to clearing services, the Commission will soon propose an extension of equivalence for UK-based [clearing houses].”

The decision represented a significant victory for Britain’s financial services industry after France and other rival countries attempted to seize control of the market from London’s clearing houses, which act as middlemen in derivatives trades between banks.

Earlier this year the EU ordered major banks to explain why they were not shifting euro derivative trading activity out of Britain.

Bank of England governor Andrew Bailey has warned Brussels against plotting a protectionist power grab aimed at stealing business from the City, arguing that the EU would undermine efforts to shore up stability in the wake of the financial crisis if it succeeded in seizing part of the clearing market from the Square Mile.

Source

City of London to see EU rules scrapped

City of London handed major Brexit prize as hated EU rules thrown on scrap heap

In an 80-page document the Treasury announced that it plans to scrap EU laws retained after Brexit but no longer deemed appropriate.

 Lea Vitezic   Daily Express

23 November 2021

© Getty City of London

 Instead, the finance sector will see new rules drawn up by the Financial Conduct Authority and the Prudential Regulation Authority. By scrapping the existing EU rules the regulators will be able to come up with requirements more suited to the UK market.

The plans also say that while ensuring financial stability would still be the prime goal for UK's two financial watchdogs, they will also now have the task of boosting growth.

The Treasury presented the framework for financial regulation as a key Brexit win, allowing the UK to be more flexible in meeting ever-changing market conditions.

Giving regulators more power and preserving their independence is a critical fix that will support a more dynamic supervisory structure than under EU rules, according to the Government and its backers in the City, POLITICO reports.

But despite the move, many in the industry are calling for even more concessions.

They want a a new mandate that regulators take international competitiveness and economic growth as primary considerations, on par with policing integrity and capital requirements in the sector.

That would effectively give even broader leeway to the City, as its lawyers could argue any new rule could compromise the country's international competitiveness and growth potential.

Huw Evans, the director-general of the Association of British Insurers said: It's "disappointing" the consultation ranked competitiveness only as "a secondary objective".

"This does not go far enough, as regulators will always put primary objectives above secondary ones."

He added: "Unless regulators have economic growth as a primary

objective, we are not convinced anything major will change.

Miles Celic, the chief of TheCityUK, said the proposals "mirror much of what the industry has been calling for".

However, he also believes the Government should take the overhaul "even further".

A Treasury official countered that the government was right to keep competitiveness as a secondary objective on grounds of financial stability.

He said: "It allows regulators to focus on their usual responsibilities. We can't have [competitiveness objectives] inhibit prudential regulations."

The consultation, which runs until February, adds details to the previous policies outlined by ministers and top officials.

An added bonus of the new rules: The intricate task of stripping legislation of the unnecessary provisions copied in haste in 2019 from the EU statute book will be outsourced to supervisors, freeing up much-needed parliamentary time.

The original move was necessary at the time to avoid a legislative black hole as the UK made Brexit official, meaning the so-called EU acquis stopped applying.

With the final version of the framework rules expected in the early part of 2022, the Bank of England and Financial Conduct Authority will be able to start wading through the reams of "onshored" legislation at some point next year.

But the Government has not directly weighed in on some key questions, such as whether to form a new parliamentary oversight committee or expand the resources of the existing Treasury Committee, which would mirror the EU parliament's ECON panel.

The Government has only said it expects the Parliament's recently formed Industry and Regulators Committee to play an "increasingly important" role.

Source

Zerohege: Interesting economic articles - 20 - 21 Nov 2021

 

US Inflation: Which Categories Have Been Hit Hardest?

Prices have been going up in a number of segments of the economy in recent months, and the public is taking notice...

SUN NOV 21, AT 11:00 AM

30,745103

---

We Are In Mass 'Jonestown' Delusion Territory

As inflation has proved more sustainable, U.S. tech stocks have a near term date with an elevator shaft.

SUN NOV 21, AT 9:30 AM

48,153101

Jim Grant: "The Fed Reminds Me Of A Speculator On The Wrong Side Of The Market"

...gold "will come into its own raging speculation when this great speculative episode, correctly called the Everything Bubble, bursts..."

SUN NOV 21, AT 4:30 AM

48,310120

---

"No Turning Point Yet" - Soaring Food Inflation To Continue Into 2022: Commodity Expert

This is bad news for consumers. 

SUN NOV 21, AT 4:00 AM

25,920172

---

Full Employment? Ask Young Workers

The $64 question for the US labor market is how close are we to full employment in a post-pandemic world? One way we can assess this topic is by looking at the current employment status of younger Americans.

SUN NOV 21, AT 3:30 AM

34,337190

Bill Ackman Says We're In A "Classic Bubble" That's "Fueled By The Fed"

"Every indicator is flashing red,"

SUN NOV 21, AT 3:00 AM

35,74183

---

"Gold Can Do Things That Bitcoin Cannot, I'm Still A Fan," Says Ethereum Co-Founder

"Seeking freedom" was a founding principle of Ethereum...

SUN NOV 21, AT 2:30 AM

---

"Something Will Rebalance": Goldman Boss Solomon Warns That Market Greed Is Outpacing Fear

Solomon also talked about Goldman moving into China and why rates could catalyze the next market drawdown. 

SUN NOV 21, AT 1:00 AM

40,75137

---

The Fed's Moral Hazard Monster Is About To Lay Waste To "Wealth"

If you set out to destroy markets and the financial system, your most important weapon is moral hazard, the disconnection of risk and consequence...

SUN NOV 21, AT 12:30 AM

42,63383

Returning To Sound Money

With the threat of dollar hyperinflation now becoming a reality it is time to consider what will be required to stabilise the currency, and by extension the other fiat currencies...

SAT NOV 20, AT 9:10 PM

37,547151

---

The Cocaine Capitals Of Europe

...someone is not paying the Belgian police off enough...

SAT NOV 20, AT 8:35 PM

69,340129