Friday, November 10, 2017

Theresa May is ready to surrender to the EU over the Brexit divorce bill

Theresa May is ready to surrender to the EU over the Brexit divorce bill

Theresa MayTheresa May REUTERS/Francois Lenoir
  • Theresa May is willing to significantly increase Britain's' exit contributions to the EU in order to secure a deal.
  • May has already signalled she is willing to pay €20 billion when Britain leaves.
  • The government is now prepared to pay billions more in order to secure a transition deal.
  • The foreign secretary Boris Johnson previously said the EU can "go whistle" for its money.


LONDON — Theresa May is prepared to significantly increase the amount Britain is prepared to pay as part of Brexit negotiations as a price for securing a transition deal with the EU.
Ministers and officials have told the Financial Times that May has resigned herself to settling a bill well in excess of the €20 billion she has already pledged.
The government believes that Eurosceptic Conservative MPs, who had previously pushed for Britain to pay nothing at all to leave, are now willing to accept a large payout, as long as Britain achieves a clean Brexit from the EU.
"The money isn’t the problem," one senior minister told the paper. "The real problem is deciding what our end-state relationship with the EU will be." Another government figure added: "The domestic political obstacles to a deal may not be as high as they once seemed."
One Eurosceptic backbencher told the paper that the tens of billions extra requested by the EU was "money down the back of the sofa," in order to get the sort of Brexit they want.
Any acceptance of a large Brexit bill would mark a significant surrender by hardline Brexiteers in the Conservative party. The foreign secretary Boris Johnson said in July that the EU could "go whistle" if they expected Britain to pay up.
"The sums they [the EU] propose seem to be extortionate and I think go whistle is an entirely appropriate expression," Johnson told MPs.
However, Britain's refusal to discuss its divorce bill has thrown the talks into "deadlock" with the EU last month refusing to progress negotiations onto the next phase on Britain's future relationship with the EU.
With business groups calling on the government to secure a transition deal, at least in principle, by the start of next year, Downing Street is under growing pressure to change its approach before the current past of talks conclude in December.

China just announced a key step in opening its markets to foreign investors

China just announced a key step in opening its markets to foreign investors

U.S. 100 dollar banknotes and Chinese 100 yuan banknotes are seen in this picture illustration in Beijing, China, January 21, 2016. REUTERS/Jason Lee/Illustration/File Photo Thomson Reuters
  • China has announced plans to relax foreign ownership restrictions on Chinese banks.
  • There has been little reaction in Chinese stocks to the announcement.


China has announced plans to relax foreign ownership restrictions on Chinese banks, effective immediately.
Authorities will also move to lift the ceiling on foreign ownership limits for securities funds and joint ventures to 51% over the next three years.
Currently, global banks are allowed to have only a 49% interest in such ventures, thus removing their ability to control Chinese-based entities.
The announcements were made in Beijing by Vice Finance Minister Zhu Guangyao, who said authorities were drafting detailed rules that would be released shortly.
According to reports from Reuters, Zhu said the time was right for China to announce major steps for the opening of its financial sector.
A short time ago, the CSI300 Financials Index was up 0.83%, adding to the gains seen earlier in the session.
CSI300 financialsCSI300 Financials Index 1-Minute Chart. Thomson Reuters
The broader CSI300 index tracks movements of the top 300 companies by market capitalization listed in Shanghai and Shenzhen. It's added over 18% this year.
The benchmark Shanghai Composite index is broadly unchanged after the announcement, trading up 0.15%.
Friday's announcement follows statements by Chinese authorities on Thursday that restrictions in the country's banking and financial sector would soon be eased, as Chinese President Xi Jinping met with US President Trump as part of Trump's Asia visit.
Guo Shuqing, the chairman of the China Banking Regulatory Commission, flagged potential changes to foreign ownership laws at last month's National People's Congress in Beijing, noting that the market share of foreign banks had been falling, which wasn't good for competition.
It marks another step in the gradual integration of China's economy into global markets. In June, MSCI said it planned to add 222 China A Large Cap stocks to its Emerging Markets Indexstarting next year, which is likely to drive capital inflows from international institutional investors.
Read the original article on Business Insider Australia. Copyright 2017. Follow Business Insider Australia on Twitter.

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