Sterling edges up but traders cautious on Brexit talks

British workers in manufacturing implant

According to the report, the decision to allow banks to continue to operate in Britain as normal has been taken to preserve jobs in the financial centre and to protect the taxes European banks pay in Britain.

The decision, due to be made public at 1pm today, would mean European banks offering wholesale services would not face new hurdles to operating in London, which vies with NY for the title of the world's financial capital.

According to the BBC, EU lenders operating in Britain will not have to create subsidiaries based in the United Kingdom to carry on with their business even if London and Brussels fail to reach a trade agreement.

That is on top of 110 foreign insurance branches, with 80 from the EEA.

A statue is silhouetted against the Bank of England in the City of London, Britain, December 12, 2017.

Deutsche Bank has 9,000 staff in London.

The BoE's proposal indicated a softer British position than that of the European Union which on Wednesday stiffened its rules for non-EU investment banks which operate inside the bloc.

Europe-based banks operate in Britain through a network of branches, which offer an easy way to move money around a lender's worldwide business, although they can also leave British customers exposed.

But her comments come after EU chief negotiator Michel Barnier indicated he was working towards reaching a political agreement on the future UK/EU relationship by October 2018, in time for it to be published alongside a new treaty covering withdrawal and transition arrangements.

Chancellor Philip Hammond said: "I am confident that we will agree a deep and special partnership for the future with the EU27 and that we will soon finalise the terms of an implementation period that will ā€ˇprovide continuity as we move to that new partnership".

London vies with NY as the world's financial capital.

Mr Barnier said "time is going to be of the essence" if both sides were to agree on the transition and the shape of the future relationship between Britain and the European Union before Brexit takes full effect.

The BoE's conditions on whether branches should become subsidiaries will be seen as a riposte the euro clearing plans in Brussels, which also emphasizes the need for strong supervisory cooperation to avoid forced relocation.

Europe has set a target date for when Brexit will really hit.

More importantly, however, allowing EU banks to keep their branches open will boost UK exports, as the services sold by the UK branch of a European bank to a third party count as UK exports.

The BoE will also get powers to "recognize" and supervise clearing houses from the European Union after Brexit.

Related news:

Hot News

isis-killer-beheading-video-story-top Turkey's leader calls for backing of United Nations motion on Jerusalem
Dec 21, 2017 - 00:59
The countries have cited the U.S. decision to veto a draft resolution on the status of Jerusalem . Egypt had put forward the draft which was backed by all 14 other Security Council members.

isis-killer-beheading-video-story-top Flu shot is safe for people with egg allergies, government panel says
Dec 20, 2017 - 01:36
Parents and guardians are required to give consent before their child receives the flu nasal spray vaccine in school. There were seven flu-related pediatric deaths during the previous two flu seasons combined, ODH reported.

isis-killer-beheading-video-story-top Disney's Nutcracker and the Four Realms teaser is not what you expect
Dec 20, 2017 - 01:35
Let us know in the comment section below! What did you think about the first trailer for The Nutcracker and the Four Realms? Next year, Disney is putting a fresh spin on both the ballet and the original tale in The Nutcracker and the Four Realms .

Apple AirPods sold out for the entire holiday season
Dec 20, 2017 - 01:32
But if your family is prone to last-minute shopping then you could miss on getting a pair of AirPods this Christmas . It would be weird for Apple to start selling a new charging case mere months before refreshing the full product.

isis-killer-beheading-video-story-top Parts of Texas May Have a White Christmas This Year
Dec 20, 2017 - 01:32
A First Action Alert Day has been issued for this Wednesday starting at 10 p.m. and lasting until Thursday night until 10 p.m. The storm, if it arrives as forecast, will come after Owatonna got its own taste of bitter December weather a year ago .

isis-killer-beheading-video-story-top Google to stop Tango, carry on with ARCore
Dec 19, 2017 - 11:44
Mere weeks after announcing Project Tango was out of beta, Google revealed its software-only augmented reality program, ARCore . These pieces of hardware were necessary because Tango was based on having powerful sensors inside the device.

isis-killer-beheading-video-story-top Rahul Gandhi extends family grip on India's Congress party
Dec 19, 2017 - 11:41
However, surveys Thursday showed the BJP would sweep Gujarat as well as elections in the northern state of Himachal Pradesh. Gurpreet Mahajan, a political studies professor at Delhi's Jawaharlal Nehru University, said Gandhi faces a tough task.

Thomas Fire now third-most destructive in state history
Dec 19, 2017 - 11:40
They returned home from Colorado on Sunday and found little of what was left of their house. "It's where we live". This week, while a fire northwest of Los Angeles still raged after destroying more than 700 homes, the U.S.

isis-killer-beheading-video-story-top Contestant's family forced to flee Iraq after receiving death threats
Dec 19, 2017 - 11:40
The paper said Miss Israel made the comments to an Israeli TV station. "This is Miss Iraq and she's awesome ", Gandelsman added . The family of Miss Iraq have been forced to flee the country after the beauty queen posted selfies with Miss Israel.

isis-killer-beheading-video-story-top WWE Announces First Ever Women's Royal Rumble Match For Next Month's PPV
Dec 19, 2017 - 11:37
As it's been in the past with the men's Rumble match, this could also provide some great cameos from past superstars. The terms of his contract with WWE from his most recent run: "I only agreed to come back for one match originally".

isis-killer-beheading-video-story-top Anna Kournikova And Enrique Iglesias Welcome Twins In Secret
Dec 19, 2017 - 11:12
Iglesias and Kournikova are obviously very private, which might explain why it's so hard to find photographs of them together.

isis-killer-beheading-video-story-top Mutual trust at Man City is 'a dream', says Guardiola
Dec 18, 2017 - 03:49
Ilkay Gundogan opened the scoring for the Manchester club and Raheem Sterling netted a brace following Kevin de Bruyne 's strike, before Christian Eriksen pulled back a late consolation.

isis-killer-beheading-video-story-top WWE Clash of Champions 2017 Results: Winners, Grades, Reaction and Highlights
Dec 18, 2017 - 03:46
Could she use it to become the next champion? The Usos vs The New Day vs Shelton Benjamin & Chad Gable vs Rusev & Aiden English . Looking at the situation objectively, Owens and Zayn aren't turning babyface and Orton and Nakamura aren't turning heel.

isis-killer-beheading-video-story-top Foles shines as Eagles wrap up playoff bye
Dec 18, 2017 - 03:42
Giants quarterback Eli Manning made use of quick throws to the perimeter to neutralize the Eagles' fearsome pass rush Sunday. Meanwhile, Giants quarterback Eli Manning finished 35 of 54 for 427 yards with three touchdowns and one interception.

isis-killer-beheading-video-story-top Ravens beat Browns to keep playoff hopes alive
Dec 18, 2017 - 03:38
Kizer was also intercepted on Cleveland's third drive by Eric Weddle , who snared an overthrow for his sixth pick of the season. Defensive tackle Brandon Williams recovered at the 1 and slid the ball across the goal line for the touchdown and a 24-10 lead.