Please see below for today’s update on key Brexit news items:

  • EU Brexit negotiators have set out a tough line on financial services, ruling out an ambitious trade deal for the lucrative sector and arguing that Europe would benefit from a smaller City of London, according to confidential discussion among the other 27 EU member states. (The Financial Times)
  • The final destination of the European Medicines Agency (EMA) after Brexit was on Wednesday thrown back into question after Italy launched a legal bid to stop the lucrative EU regulator heading to Amsterdam. On Monday it was revealed that the new Amsterdam facility was still a building site and would not be ready until November 2019, prompting Italy to ask the EU’s top court to annul the decision. (The Telegraph)
  • MPs will be shown the secret Brexit impact assessment predicting major economic harm from Brexit as a “matter of urgency”, after the Government caved in over the controversy. The document – concluding all three mooted exit options would leave Britain poorer – will be shown to the select committee scrutinizing withdrawal and all other MPs will be able to view it in “a confidential reading room”. John Bercow, the Commons Speaker, declined to set a strict deadline for release, while ordering ministers that the study must be “made available as a matter of urgency”. (The Independent)
  • Banks across the EU are to be tested to make sure they can withstand potential doomsday Brexit consequences, including a severe recession that would leave the bloc’s economy 8.3 per cent smaller than it otherwise would have been. In what it billed as its toughest tests to date – even though there is no pass or fail – the European Banking Authority on Wednesday unveiled the scenarios against which 48 of the largest banks across the 28-member bloc will be tested, with results to be published by early November. (The Financial Times)