Weekend headlines: Brexit plan proposal rejected by EU & G20 risks to growth heightened due to trade and geopolitical tensions

The weekend news starts with Brussels rejecting the UK’s proposals on how to govern the City of London’s access to the European market after Brexit – as reported in the last few hours by Jim Brunsden, Editor at FT in Brussels.

“Theresa May’s latest financial services plan would rob the EU of its “decision-making autonomy”, Michel Barnier, the EU’s chief Brexit negotiator said.  

“European affairs ministers on Friday that the British prime minister’s vision for the City’s future relationship with the EU would violate the principle that access rights to the bloc’s financial services market are a gift from Brussels that can be freely withdrawn.

His remarks were a rebuff to the UK government “” which published its white paper this month on Britain’s future relations with the EU “” and highlight the many conflicts between the two sides despite a more conciliatory tone over the Northern Ireland border issue at the same meeting,”

 – Jim Brunsden at the FT wrote earlier today.  

Trae war risk will remain a theme for time to come

Elsewhere, the finance ministers and central bankers from the G20 met over the weekend and while there were not any takeaways that might affect opening prices this week, TEU’s Pierre Moscovici said there are still differences of position on trade and tensions remain, even after the G20 finance ministers and central banker talks over the weekend:

The final communique headlines say that “short- and medium-term risks to growth have increased, including heightened trade and geopolitical tensions”. Also, “Exchange rate commitments made in the March statement to avoid competitive devaluations and refrain from targeting exchange rates for competitive advantage”.