• Raid on ECB profits – Brussels is considering a €50 billion raid on European Central Bank profits to plug a hole in the EU’s long-term budget after Brexit. The European Commission will discuss the plan at its weekly meeting on Wednesday, where it is due to consider a range of new revenue sources as it tries to maintain its financial firepower once the UK leaves. Brussels’ politically charged budget discussions often pit rich net contributors such as France and Germany against poorer beneficiaries such as Poland and Hungary, but the latest round of negotiations for the budget that runs from 2021 has been complicated by the Brexit black hole, policy challenges such as migration, and a French-led push to create Eurozone-only spending tools. (The Financial Times)
  • A year from Brexit – Since the June 2016 referendum, the UK economy has been becoming increasingly burdened by Brexit. Banks have triggered relocation plans earlier this year to guarantee their new EU headquarters are up and running by the time the UK exits, after EU regulators mentioned that they expect banks to establish full-scale, standalone operations inside the trading bloc staffed by significant numbers of both front and back office staff as well as senior employees as soon as possible. Additionally, retailers have been particularly exposed to the sterling’s slump, which has increased sourcing costs for a sector that is heavily dependent on imports. The subsequent rise in food prices has also hit consumer spending power. Finally, international broadcasters presently utilising UK licences to transmit channels into continental Europe are considering moving staff and operations into the EU. (Bloomberg)
  • Cambridge Analytica and Vote Leave – A Cambridge Analytica whistleblower has told a UK parliamentary committee that allegedly stolen information may have been used by Canadian data company AggregateIQ in order to support the Vote Leave campaign for Brexit. AggregateIQ, which denies links to Cambridge Analytica, deployed the software for the main campaign fronted by Boris Johnson and Michael Gove. Vote Leave spent almost half its campaign budget on AggregateIQ in the run-up to the referendum. (The Financial Times)