Brussels has rejected the UK’s proposals on how to govern the City of London’s access to the European market after Brexit, saying Theresa May’s latest financial services plan would rob the EU of its “decision-making autonomy”.

Michel Barnier, the EU’s chief Brexit negotiator, told 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the principle that access rights to the bloc’s financial services market are a gift from Brussels that can be freely withdrawn.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.

Asia-Pacific equities were mixed on Monday as trade concerns remained in focus after G20 finance ministers and central bank governors warned that increasing trade tensions risk undermining the global economy. Those comments followed on from Donald Trump’s claim that he was ready to impose tariffs on all Chinese imports to the US. The Topix index was down 0.4 per cent in Japan while the Hang Seng index was flat in Hong Kong and Australia’s S&P/ASX 200 fell 0.9 per cent. 

In currencies, the dollar index, a measure of the greenback against a basket of peers neared a two-week low following Donald Trump’s comments against a strong dollar. Meanwhile, the yield on Japanese government bonds rose 5 basis points to 0.078 per cent on speculation over possible changes to the Bank of Japan’s policy.

Futures tip the FTSE 100 to open 0.5 per cent lower while the S&P 500 is set to fall 0.1 per cent.

Corporate earnings and updates for Monday include Julius Baer, Ryanair and Petra Diamonds.

  • 09.30: Hong Kong consumer price index
  • 15.00: eurozone consumer confidence

Get alerts on Europe when a new story is published

Copyright The Financial Times Limited 2019. All rights reserved.
Reuse this content (opens in new window)

Comments have not been enabled for this article.

Follow the topics in this article