FirstFT: Brussels demands stake in London derivatives clearing

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The EU will require that derivatives traders use clearing house accounts in the block for some of their transactions as part of plans to capture the €115 trillion market share processed through the City of London.

Banks dealing with a large number of contracts that regulators consider “systemic” will be required to conduct a minimum volume of transactions using active accounts with clearing houses in the EU, officials briefed on the proposals said.

The plans are part of a package aimed at stimulating European capital markets and reducing reliance on the UK’s financial services sector after Brexit. The European Commission plans to lay out the measures next month when it publishes proposals.

“The EU has a very active policy of repatriating businesses back to the eurozone. They want to have control over where it happens,” Karel Lannu, Executive Director of the European think tank CEPS.

Most interest rate swaps in the world are processed in London at clearing houses that have not changed since Brexit. Politicians in the EU are angry that euro-denominated derivatives are handled on the market outside the direct oversight of their regulators.

What is your reaction to the plans? Let me know at firstft@ft.com. Thank you for reading FirstFT Europe/Africa. — jennifer

1. British business and unions set fire to EU rules Prime Minister Rishi Sunak is under pressure from an alliance of business, legal, labor and environmental groups. abandon plans to automatically strip EU-based laws from the UK Code by the end of next year. Brexiteers argue that the process will provide a “productivity boost” to the UK economy.

Thanks to everyone who took part in yesterday’s poll. Fifty-nine percent of the respondents agreed that EU plan to cap gas prices to avoid a repeat of the surge in electricity costs, it was a “no cap joke”.

2. Most Fed Officials Support Slower ‘Soon’ Rate Raising A ‘significant majority’ of U.S. Federal Reserve officials backed slowdown in interest rate growth soon, while some have warned of more-than-expected monetary tightening next year, according to a report from their last meeting. In the US and European stock markets, some of the world’s largest asset managers remain unconvinced that the recent recovery will last.

3. Disney awarded Iger a $10 million consulting contract to advise the CEO. Bob Iger got a $10 million deal to give advice to his successor, Bob Chapek, even though the two leaders barely spoke. This week, Iger returned to Disney as chief executive after his chosen heir, Capek, was ousted in an internal uprising.

4. Stripes of Ukraine were left without electricity Russia fired dozens of missiles yesterday, leaving vast expanses of the country and more than half of neighboring Moldova without electricity, in yet another attempt by Moscow to disable civilian infrastructure.

5. Yandex seeks Vladimir Putin’s approval for restructuring The company is often called “Russian Google”. seeking the president’s blessing to sell their operations in the country, highlight its major international projects, and appoint a longtime Putin confidant to manage his relationship with the Kremlin.

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The next day

British postal workers strike labor strike will be the first of several in the run-up to Christmas. The communications workers’ union said last week that Royal Mail pulled out of negotiations after it presented staff with a “take it or leave it” offer.

Central banks The Swedish Riksbank announces its latest interest rate decision. Analysts predict that soaring inflation will force politicians to become more hawkish; ING sees a 75 basis point gain with a final 50 basis point gain in February. Elsewhere, the European Central Bank publishes a report on its latest monetary policy meeting. South Africa also holds its monthly rate-setting meeting, while in Turkey policymakers are expected to continue the streak of rate cuts.

Corporate income Ingka Group, which owns the majority of Ikea stores worldwide, reports full-year data, including earnings for the home goods retailer. Other reporting companies include Dr Martens, Jet2 and Rémy Cointreau, while Kingfisher presents its third quarter trading report.

world Cup Brazil starts the game against Serbia. Neymar, 30, could have it last chance to win the sixth FIFA World Cup in Brazil. He has already published on Instagram a photo of the country’s coat of arms with a sixth star. Switzerland will also play Cameroon and Uruguay will play South Korea head to head.

Neymar

At 30, Neymar is a very different football player than the poor guy from the port town of Santos, who appeared ten years ago © FT montage; AFP/Getty

Thanksgiving Day The US stock and bond markets are closed for a national holiday, which is usually accompanied by travel chaos and traffic congestion. This year more than 54 million people AAA estimates that they travel 50 miles or more to visit loved ones. (CNN)

What else do we read

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How to Gamble £600 Million of Public Money If your job is to maximize the amount of money that goes to good causes, risking hundreds of millions of pounds in the hope that you can earn a little more in 10 years seems risky. This is what the UK Gambling Commission did when they rejected the application of the national lottery operator Camelot for a new license, writes Cat Rutter Pooley. But it might not have been a bad bet after all..

Controversy over the future of the Catholic Church The question of who will replace Pope Francis, who turns 86 next month, is becoming increasingly acute. The pontiff is not a favorite of progressive Catholics, for whom his approach to issues such as homosexuality is too cautious. However, he is considered more of a reformist. Tony Barber asks: What is the future of the Church?

Irish millionaire homeowners believe there is a chasm of inequality Who want to be a millionaire? In Ireland, where net household wealth is at an all-time high, one in eight households already has it – at least on paper. Housing accounts for most of this increase for the top 10 percent. It means It’s getting harder for the next generation to own a home. Jude Webber researches.

How to disagree with your boss Last week, Elon Musk reportedly fired about a dozen engineers after they spoke out against him. This is an extreme example of what can happen when you disagree with your boss. You will almost certainly disagree with your manager at some point in your career. This week’s Working It newsletter discusses how should you let them know.

Travel

Guyana is considered the next popular destination for travelers in search of adventure. But deep in the jungle, straight up the river from a rumbling waterfall on a sinking boat, Jamie Lafferty got more than he bargained for.

View from the top of Kamarang waterfall

View from the top of Kamarang Falls © Jamie Lafferty

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