Author: Lara Olaniyi

Overlapping British and EU share trading rules would damage markets “to no good end” and can be avoided, Britain’s top markets watchdog said on Monday.
Britain is due to leave the EU on Oct. 31, but has yet to agree a divorce settlement with the bloc.
Brussels has said that if there is a ‘no-deal’ Brexit, investment firms in the bloc must trade euro-denominated shares in the EU; many are currently heavily traded in London.
Financial Conduct Authority CEO Andrew Bailey said some of this overlap must be avoided.
“It is, therefore, easy to conclude that for those shares, market liquidity would be damaged to no good end,” Bailey said in a speech at Bloomberg.
He reiterated comments from the Bank of England that extensive preparations for a no-deal Brexit would not mean that all disruption in markets can be avoided.
Brussels has said that EU customers could continue using clearing houses for derivatives in London until March next year, if there is a no-deal Brexit.
This date has reflected Britain’s original plan to leave the EU last March. Bailey said Brussels would need to grant an extension soon if there is a no-deal Brexit.
There is no reason to “sacrifice open financial markets and many reasons to preserve them,’’ Bailey said.

The Duchess of Sussex is to carry out her first official public engagement since the birth of her son – launching a high street clothing range in aid of charity.

Meghan’s maternity leave will come to an end when she proudly shows off the collection created by Jigsaw, John Lewis and Partners, Marks and Spencer and her designer friend Misha Nonoo.

Since the birth of her son Archie on May 6, she has been caring for her child – although she has been seen privately attending a polo match where husband Harry was playing and watching the women’s tennis finals at Wimbledon and Flushing Meadows, New York.

The timeless series of outfits – known as a capsule collection – that can be worn in the workplace have been created in aid of Smart Works, a charity which provides training and interview clothes to unemployed women in need, and has Meghan as its royal patron.

The essential work wear includes a shirt, trousers, blazer, dress and bag – and for every item bought during the sale of the collection, expected to last at least two weeks, one will be donated to Smart Works.

Meghan announced the project during her guest editorship of British Vogue, and writing in the fashion bible she said: “The reason I was drawn to Smart Works is that it re-frames the idea of charity as community, which, for me, is incredibly important: it’s a network of women supporting and empowering other women in their professional pursuits.”

Meghan privately visited Smart Works several times before being named as its royal patron in January and has a long-standing commitment to supporting women’s empowerment.

The duchess’ friend Nonoo is credited with introducing Harry to his future wife via a blind date and she had a VIP seat at the royal wedding.

Smart Works has helped more than 11,000 women and aims to dress 3,500 this year across their two London offices, and additional bases in Edinburgh, Manchester, Reading, Birmingham and Newcastle.

It has a team of 300 trained volunteers and helps long-term unemployed and vulnerable women regain the skills, confidence and tools to succeed at job interviews, return to employment and transform their lives.

World stocks climbed to their highest in six weeks on Thursday as the European Central Bank (ECB) prepared to offer new stimulus measures and the United States and China made mutual concessions in their trade dispute, improving demand for riskier bets.

U.S. President Donald Trump delayed an increase in tariffs on Chinese goods by two weeks, after China exempted some U.S. drugs and other goods from tariffs.

The two moves buoyed stock markets from Asia to Europe and put pressure on safe assets like the Japanese yen.

MSCI’s world equity index, which tracks shares in 47 countries, rose 0.1 per cent to its highest since Aug. 1.

It was on course for its seventh straight day of gains, its best winning streak in since early June.

Europe’s Euro STOXX 600 climbed to its highest in nearly seven weeks, then gave up the gains.

Paris and London markets also relinquished early gains, though Frankfurt held onto a 0.2 per cent advance. Wall Street futures gauges were up 0.1 per cent.

Some analysts said investors were getting too eager for good news on the U.S.-China trade war. The prospects of a quick resolution were still remote, they warned.

“I don’t think we’re heading for a deal soon,” said Neil Wilson, chief market analyst at Markets.com. “The market is just buying on any kind of positive news – it seems hungry for anything. It’s setting itself up for a bit of disappointment.”

The ECB’s move, due at 1145 GMT, also carries a risk of overly optimistic market expectations, investors said.

Major central banks worldwide are loosening monetary policy, inflation expectations are sliding and the powerhouse German economy is at risk of recession.

Consequently, ECB President Mario Draghi has all but promised more support.

But the central bank’s exact moves are far from certain, and any decision that underwhelms markets could push up borrowing costs.

Among the likely measures are a cut in the ECB’s record-low minus 0.4 per cent deposit rate, a multi-tier deposit rate, and new guidance on rates that would tie any move to certain inflation conditions.

A new round of bond buying, the bank’s most potent weapon, is also an option – but policymakers from Germany to France are sceptical about that move.

“We could see some disappointment here. The challenge is more about forward guidance and reassurance for the future,” said Christophe Barraud, chief economist at Market Securities in Paris.

“It would be surprising if the ECB launches a big stimulus right now ahead of uncertainties such as hard Brexit and the trade war.”

After the ECB decision, the U.S. Federal Reserve is expected to cut rates next Wednesday and the Bank of Japan and Swiss National Bank next Thursday also may ease.

Euro zone government bonds were steady in early trade, after rising from record lows reached a week ago on doubts that the ECB would resume asset purchases.

“Whether the ECB cuts rates by 10 or 20 bps is neither here or there,” said Chris Scicluna, head of economic research at Daiwa Capital Markets. “

The big question is whether they restart QE, and if they don’t, we will see a further sell-off in bonds, especially longer-dated ones.”

The optimism over trade and the looming ECB decision were felt in currency markets, too.

The euro fell to a one-week low of 1.0983 dollar overnight on expectations of ECB easing before steadying in morning trade. It has shed 3.5 per cent since June.

With risk-hungry investors emboldened, the Chinese yuan gained 0.4 per cent against the dollar, touching a three-week high of 7.0855.

Stephen Gallo, European head of FX strategy at BMO Capital Markets, said he was surprised by the rebound, particularly in the yuan pushing beyond 7.10 to the dollar.

“The bigger picture is one of a very tense geopolitical environment that is unlikely to be rectified quickly,” he said.

The Japanese yen, a safe haven for nervous investors, fell to a six-week low against the dollar, and was last down 0.1 per cent at 107.88.

Brent crude futures fell as a meeting of the OPEC+ alliance yielded no discussion about increasing supply cuts.

They focused instead on bringing Nigerian and Iraqi output down to their agreed quotas.

Brent crude futures fell 69 cents, or 1.1 per cent, to 60.12 dollars a barrel by 1055 GMT, heading for a third session of losses.