Brexit

HSBC has started to record a separate line in its financial reporting for "costs associated with the UK’s exit from the EU". The bank booked just $4m of costs this quarter for Brexit, but said costs could rise to $200m-$300m.

Mizuho Securities said on Monday that it plans to establish a new subsidiary in Frankfurt to carry on EU securities business following the UK's departure from the bloc.

Banks face a coverage dilemma, as Brexit means the UK’s pre-eminence as a global coverage hub is in question, writes David Rothnie.

Nearly a week after a similar announcement from Nomura, Sumitomo Mitsui Financial Group (SMFG) has confirmed that it is preparing to set up a new German subsidiary in response to the UK’s decision to leave the European Union.

The UK's shock election result, in which prime minister Theresa May failed to secure a majority, has led to a slight fall in equity volatility, as the FTSE 100 rose on a weaker pound and European stocks rallied.

The rise of Barclays and HSBC in UK investment banking, against a backdrop of falling fees and political uncertainty, puts further pressure on an already crowded market and the squeeze will only get worse, argues David Rothnie.

Theresa May, the UK prime minister, on Tuesday announced her intention to seek an early general election for June 8, but the move that will allow her to solidify her Brexit mandate has had no major impact on market volatility.

French finance minister Michel Sapin has warned British officials that London will lose its euro denominated derivatives business after leaving the European Union, saying that the bloc must be “masters” on rules that apply to its currency.

The Eastern and Southern African Trade and Development Bank (PTA Bank) raised $500m of five year funding at a yield of 5.5% on Tuesday after attracting more than $2.2bn of orders.

The UK government published its plan for Brexit negotiations on Thursday, setting out its aim for the ‘freest possible trade’ in financial services — but with few details on how this might be achieved.

Werner Hoyer, president of the European Investment Bank, expressed on Tuesday his hopes that the bank could keep a strong relationship with the UK after it withdraws from the EU.

Ever since Theresa May became UK prime minister in July, markets and commentators have thirsted to know what her strategy would be for the negotiations to leave the European Union. Now we know — and so far, the markets like it.