18th May 2017

BBA Brief – 18 May 2017

Conservative manifesto published today

The Conservative general election manifesto will be launched in Yorkshire today. It is expected to include proposals to reform social care and reduce immigration, with new charges for firms that hire foreign workers (BBC News).

Sky News (online) reports that the manifesto is also expected to remove commitments to the pensions triple lock and previous promises not to increase income tax, VAT or national insurance. The Prime Minister will also highlight the importance of Brexit negotiations, noting that “now more than ever, Britain needs a strong and stable leadership to make the most of the opportunities that Brexit brings”.

European Commission to propose stronger links between EU27 Capital markets

The European Commission is expected to propose a number of measures to enhance the EU 27 capital markets framework after Brexit, including the creation of a passporting regime for technology firms, a stronger role for ESMA and an EU Small Listed Companies Act (Reuters, online).

Speaking to the European Parliament, the European Commission’s lead Brexit negotiator, Michel Barnier, warned that UK-based firms should, “not count on long transition periods to cushion the impact of Britain leaving the European Union” and called for firms to start preparing for the impact of Brexit now (Reuters).

Latest from the BBA

Henrietta Royle, BBA Chief Operating Officer, blogs on the value of gender diversity in banking, 60 years on from the appointment of the UK’s first female bank branch manager.

BBA Managing Director, Wholesale and Financial Policy, Ronald Kent discusses the potential impact of  attempts to relocate Euro-denominated clearing activity risk with Global Risk Regulator (£, online).

We are pleased to announce that Colt Capital Markets, a provider of high-bandwidth, on-demand services designed to meet the requirements and speed of the financial markets, has joined the BBA as an associate member. Further information can be found here.

Wednesday 7th June – The BBA NED Club
Our next meeting, exclusively for bank non-executive directors, will host a panel on the role of non executives, followed by a presentation on Culture and Conduct Risk. To reserve your free place click here.

Thursday 15th June Global Trade Review’s UK Trade & Export Finance Conference
Supported by UK Export Finance, EEF, British Exporters Association, the International Chamber of Commerce UK, this event will focus on the key issues in supply chain finance. Click here to register, BBA members receive a 15% discount.

Tuesday 20th June  IFRS 9, Prudential Regulation and Disclosure Forum
This BBA event brings together industry experts on IFRS 9 to discuss outstanding issues,  focussing on IFRS 9 expected credit loss impairment and consider what IFRS 9 means for banks of different sizes. To register, click here.

Latest from our sponsor Jaywing

Wednesday 24th May – Webinar: Fast train through Basel, with final stop IRB. Credit risk modelling experts Jaywing will discuss the prevailing capital headwinds and the challenges facing new banks looking to optimise capital consumption and IRB evaluation priorities. Click here to register for the free webinar.

Stat of the day

4.9 billion: amount borrowed by first-time buyers in March, 9% higher than March 2016 (CML).

News in brief

Brits are increasingly anxious about their finances, driven by fears over inflation and potential interest rate rises, according to IHS Markit’s monthly household finance data (The Times, £, p38).

The Council of Mortgage Lenders says loans to homebuyers were 27% higher in March than February, although this was 12% lower than loans made on March last year (City AM, p10).

Politico (£, online) reports that the most recent set of EU talks to agree a securitisation package under the capital markets union initiative have failed to secure an agreement, with a seventh set of talks expected on 30 May.

European debt syndicates are not prepared for new measures designed to increase transparency over allocation and fee disclosure to be introduced under Mifid II in January next year (Financial Times, £, p28).

The Financial Times (£, p1) reports speculation that Prime Minister Theresa May could replace Philip Hammond as Chancellor if the Conservative Party wins the general election.

The Liberal Democrats’ manifesto includes a pledge to offer a second referendum on Brexit, a £100 billion package of infrastructure investment and commitment to build 300,000 new homes (BBC News, online).

The Times (£, p37) writes that the dollar fell to a six month low, following speculation that President Trump may be impeached following the outcome of an inquiry into his administration’s links with Russia.

Diary  

Office for National Statistics publishes UK monthly retail sales data.

Conservatives will publish their general election manifesto today in Yorkshire.

ITV will broadcast a live election debate with party leaders, although Theresa May and Jeremy Corbyn will not take part.

Greek MPs to vote on further austerity measures.

What the commentators say

Prime Minister Theresa May has said that prioritising a smooth and orderly Brexit is key to maintaining the UK’s economic success (The Daily Telegraph, £, p16). Commenting on the publication of the Conservative general election manifesto in The Sun (p8) she promises to address concerns of those struggling to manage the cost of living and maintain mortgage payments.

Writing in the Financial Times (£, online) Roger Blitz asks if the pound would vote Tory, noting that while some investors believe a winning significant majority would allow the Prime Minister to pursue a softer Brexit, gains in the value of sterling after election results are rarely sustained.

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