Right now, as Britain nears the 11th hour of its trade talks with the EU, one would have hoped that the city’s future relationship with the EU could have been settled.
More than four years have passed since the Brexit referendum, and the Bank of England is still trying to define the relationship.
This is quite surprising when you consider that financial services are responsible for over 7 percent of national production, directly employ 1.1 million people and have trade surpluses of over £ 80 billion with the rest of the world. .
An uncertain future: More than four years have passed since the Brexit referendum, and the Bank of England is still trying to define the relationship
The once-favored discourse on mutual recognition and equivalency is not mentioned in a virtual speech by Bank of England Deputy Governor Sam Woods at Mansion House.
The Bank’s main regulator is calling on the government to adopt three principles when deciding the future shape of the UK financial services regime.
Most importantly, the UK adopts high regulatory standards, which will likely save Brussels from complaining that the Square Mile is somehow trying to gain business by allowing risky transactions.
Woods is also keen to keep the UK open as a place of business that welcomes all comers, whether from the EU or the rest of the world.
Finally, he wants the British “dynamism” to be preserved. This means continuing to go into the “hustle and bustle” of the Square Mile, which welcomes innovations such as fintech start-ups, and allows players to enter and exit markets freely.
There has been an opinion inside the Bank that if some companies drift to the mainland, there will be new activities to catch up.
These could range from trading in the Chinese currency, the renminbi, to issuing green bonds and nurturing tech start-ups like Monzo and asset management site Nutmeg.
Let’s hope so.
The British bookmaker giants face a huge task. At a time when they seek to rule the world through superior digital technology, they find themselves under pressure to clean up their act.
One need only move on to Premier League games during the lockdown to recognize the pressure on vulnerable and annoyed consumers.
Against this background, and in some fatal cases of gambling addiction, it is encouraging that GVC, owner of the Ladbrokes Coral brands, is keen to turn the page.
New CEO Shay Segev seeks to draw a line in the sand with the past. There has to be a name change, from GVC to Entain, which seeks to move beyond the company’s narrower gaming past to a new identity in the wider creative sector.
One would have thought that the name Ladbrokes, coupled with his role as the Queen’s favorite bookie, might have had more traction.
The other commitment made is that Entain will now only operate on regulated markets. This should be reassuring given its previous approach to free play.
Taking advantage of the global opportunity offered by being online means it can work anywhere. But there are big holes in the new approach.
Segev’s predecessor, Kenny Alexander, left GVC shortly after Turkey revealed it was investigating the company for “corporate breach”. This shows that it is possible to get into trouble in one of the most regulated gambling markets in the world.
Being regulated in Britain has so far never prevented GVC from flaunting the principles of good governance. It was revealed this week that he had put two Tory MPs on the payroll ahead of the government’s long-standing gambling review.
The biggest challenge for GVC is going to be staying within US regulations.
The opening up of sports gambling in America has offered a tremendous opportunity for UK companies and Segev, with its technological background, is well positioned to capitalize on its Bet MGM joint venture.
Keeping a clean pair of heels will be essential, as UK global banks HSBC and Standard Chartered know.
Rolls-Royce has managed to raise £ 2bn from its heavily discounted rights issue, but the 94% turnout is not a resounding vote of confidence.
The capital increase will unlock a £ 2 billion debt issue and another set of £ 1 billion loans. That should be enough funding to carry it through next year and the new hope of a booster vaccine for flight hours.
Share or comment on this article:
Some links in this article may be affiliate links. If you click on it, we may earn a small commission. This helps us fund This Is Money and keep it free. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.