so what does the ecj do?res that eu institutions like the commission and the eu member states are complying with european law. it allows member states to challenge eu legislation if they think it somehow breaks the rules. and it interprets eu law at the request of national courts. in other words, it interprets and enforces that much everything the eu does, including the rules of the single market. and that makes it absolutely critical to the brexit process. especially after the tory party conference last year, when the new prime minister said this. we're not leaving only to return to the jurisdiction of the european court of justice. that is not going to happen. at that point, vague promises during the referendum campaign to take back control of our laws suddenly became a very specific promise to end the jurisdiction of the ecj in the uk. it became the government red line. now, the trouble with that is that all the end regulations that make the eu take are overseen by the european court. so if the uk decides

the ecj is out.ht in saying there will be no direct jurisdiction right in saying there will be no directjurisdiction of the ecj, in the sense they will not automatically follow the rulings any longer. but as clive coleman pointed out, it could have a big direct influence. when we get into some of these examples, the government says it wanted it —— bespoke deal. the president it sets out between other countries and the eu, the disputes panel is they have two police future trading arrangements, these are purely examples. nonetheless, it is a case that moldova, the decision of the eu court, the ecj, in interpreting eu law, is binding on any disputes panel between moldova and the eu. there are other examples where there is a more flexible arrangement. what the government makes clear is that it doesn't have one particular model in mind but wa nts to one particular model in mind but wants to get some discussions under way. it will not be flexible when it comes to eu citizens‘ rights. maybe more flexible wh

so what does the ecj do?ropean law. it allows member states to challenge eu legislation if they think it's somehow breaks the rules. and it interprets eu law at the request of national courts. in other words, it interprets and enforces pretty much everything the eu does, including the rules of the single market. and that makes it absolutely critical to the brexit process, especially after the tory party conference last year when the new prime minister said this. we're not leaving, only to return to the jurisdiction of the european court ofjustice. that is not going to happen. at that point vague promises during the referendum campaign to take back control of our laws suddenly became a very specific promise to end the jurisdiction of the ecj in the uk. it became a government red line. now the trouble with that is that all the rules and regulations that make the eu tick overseen by the european court. so if the uk decides that after brexit it wants to stay in the european air safety agency or the european arres

and the snp urged the government to rub out its red line on the ecj completely.revealing too that most pro—brexit tory mps seem pretty comfortable with the direction the government is going on this and it's a fact that once britain leave the eu, judgements by the european court of justice will no longer be binding on uk courts. one of the big questions for the negotiations, though, is the extent britain chooses to follow eu law and judgements in return for close corporation on trade, security and more. so what happens next? the chief negotiators from britain and the eu will resume their talks in brussels next week and there have already been disagreements between the two sides on the role the ecj should have in the future. today's paperfrom should have in the future. today's paper from the uk should have in the future. today's paperfrom the uk may smooth should have in the future. today's paper from the uk may smooth things over a bit. it shows they are except when there are trade—offs to be made and the fact they are now saying if they want accept the direct eff

so, why does the ecj matter? it was the ecj which decided anyone who wanted to access benefits in the uk had to prove they lived in the country. however, the ecj overruled british tax rules, forcing hmrc to refund 5ome taxes back to a number of businesses. this is every judgment from the 19505 to about 2010 in multiple languages. to supporters of this place, it‘s amazing. tran5nationalju5tice in action. to critic5, these are examples of foreign judges interfering in other countries. so, where do we think this place will feature in brexit negotiations? well, the eu wants a big future role for the ecj, particularly when it comes to the rights of eu citizens living in the uk. the british government isn‘t quite so sure. anyway, ca5e — definitely not — clo5ed. adam fleming, bbc news, at the european court ofjustice in luxembourg. joining me now from our westminster studio is the conservative mp peter bone, who backed the leave vote in the eu referendum. good evening. the ecj i5 good evening. the ecj is always going to

so why does the ecj matter?esses. this is every judgement from the 19505 back to a number of businesses. this is everyjudgement from the 19505 to about 2010 in multiple languages. to supporters of this place, it is amazing. transnational justice in action. to critics, these are exa m ples of action. to critics, these are examples of foreign judges interfering in other countries. so where do we think this place will feature in the brexit negotiations? the eu wants a big future role for the ecj, particularly when it comes to the rights of eu citizens living in the uk. the british government is not quite so sure. anyway, case definitely not closed. very impressive. good pose. with brexit negotiations set to begin again on monday, let‘s find out more on where the government stands on this crucial point from justice minister dominic raab. hejoins us from our westminster studio. good morning, and thank you for coming on the programme. can i start by giving you a quote from a labour mp, chuka umunna, who says that noth

the ecj kept coming up as a stumbling block.oom for a cover my's perhaps it does accelerate things. said, very clear that he does not expect trade talks to kick off in october which is what the government wants. these discussions, these nuances have a material impact in terms of what we have for you here. if the recruitment and employment federation are taken at one of the best known indices , it is showing it has fallen to the lowest point this year. respondents are saying things are getting worse. so --confident in doing their confidence is diminishing. if you're saying to us seven years or several years to get back to some sort of normality, is that a foreboding chart for you? >> is a very good charge. i'm not shocked that things have held at reasonably well. it was only three months ago we started to talk about getting out. we are far yet from getting out itself. there is no immediate impact consumers -- impact. consumers buy carpets and companies supply them. that, it seems, a lot of that will be put on hold until things be

the natural thing is the ecj, but theresa may said we will not be subject to the supervision of the ecjs is what sir paul jenkins customs union proposal work? this is what sir pauljenkins is saying. to make the customs union bit work for the interim, you have to have ecj supervision. if not that, there will have to be some kind of fudge where the eu court and the uk courts cooperate. it is by no means clear that the eu side will agree to that. so this will all come into focus in the coming days. sian, are you sensing frustration from the public that this is unravelling? absolutely. i cover education for the sunday times, and universities are absolutely panicking because they have so many eu students and eu staff. they are so reliant on eu research funding, and they don't know what will happen in two years' time. trying to make plans for the future is very difficult. we are going to stay with the observer. this is a story that the telegraph is also covering. it is another twitter spat. stephen hawking, the eminent scientist and cosmologist, gave an opinion article to the guardian on frid

ecj, free movement for workers, the customs union. the u.k.o get out, but replicate, probably under a different name. because you lose your sovereignty. beingne: if the pound is replicated? >> if you look at the position of investors, it is very obvious. the risk, that is what i see, it would probably give three to five months to the uk. we probably feel that the positions of the u.k. and the u .s. are a little the close. over the next three months, investment will probably wait and the economy will be under pressure, but then i think inflation will become important and the pound can actually rebound. i think the next three months will be under pressure. francine: they start talks on the 29th, but most of the negotiations are back in october? >> the week of the negotiations august.n the eu really wants to get the government sorted before the eu leaders will say that enough progress has been made. october is important because that is the next time the eu leaders all meat and together 27,l decide, actually, eu they decide if enough progress has

is open to a biting -- abiding that bypassed ecj rulings and even referring decisions to it.n: this red line was of huge importance to the brexiteers. said in october, to great applause from the conservative party, that brexit meant leaving the jurisdiction tothe ecj and they're open abiding by past decisions of the ecj and as one of the ministers said this morning, they would keep an eye on it. >> securities and exchange commissions have signaled to financial firms it is working on a fix to allow u.s. brokerages to sell the market analysis to european money managers. the practices under threat from two regulations that come into effect january the third. >> under new rules in europe, oker-dealers, big wall str register as asset managers. they do not want that. it could be costly, open them to legal risks. what they have been doing is pushing that sec to come up with some way were the rules could be tweed and continuto operate as they still do while complying with european rules. we learned the sec seems to be picking up the pace to come up with something. but the clock is ti

is open to a biting bypassed ecj rulings and even referring decisions to it. >> is it a red line thatn scrapped or diluted a little bit? >> yeah, it is a redline that has become wiggly, perhaps. a bit more it was of huge importance to the brexiteers. theresa may had said in october that brexit meant leaving the jurisdiction of the ecj and what they are saying now is it means leaving direct jurisdictions. they are abiding by past decisions of the ecj and as one of the ministers said this morning, they would keep an eye on it. >> securities and exchange commission's -- commission have -- has signaled to financial firms it is working on a fix to allow u.s. brokerages to sell their market analysis to european money managers. the practices under threat from two regulations that come into effect january the third. >> under new rules in europe, broker-dealers, big wall street banks wouldn't be able to bundle their free research with other services they offer. if they did, they would come across new rules in the u.s., additional rules they have to register with asset managers. they really don

, what she is saying now is that it is direct jurisdiction of ecj.e of the ministers said, they would keep half and i on eu case law. law. eye on eu case >> the practice is under threat from two regulations that come into effect january 3. >> under new rules in europe, broker-dealers, big wall street banks would not be able to bundle their free research with other services. if they did, they would come across new rules in the u.s., other rules that they need to register as asset managers. it could be costly. it could open them up to legal risk. they had been pushing the sec to come up with rules so that they can between or get some type of get out of jail fofree card. what we have learned is that the sec seems to be picking up the pace to come up with something, but the clock is really ticking. >> paris or frankfurt? that is the question buzzing around at bank of america. executives are said to be divided over where their european trading hub should be after brexit. >> inside bank of america, there are all these to liberations going on about, where s

is necessary, at the same time, you have the government paper ruling out the idea that the ecj will jurisdiction over the u.k. it seems there is something for everyone. vonnie: yes, one of the complaints labor leader jeremy corbyn has. he is happy to see it but saying that theresa may's so-called red line is completely untenable and accusing her of repeating the rhetoric that is empty. the upshot is that while theresa may is adamant britain is taking control, there is wiggle room if you look at the fine print. , the exactly, wiggle room third round of talks kick off next week. 40 minutes away from the end of the wednesday session. stocks are down. this is bloomberg. ♪ ♪ track your pack. set a curfew, or two. make dinner-time device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome. ♪ live from london and new york, this is the european close. stocks managing up the wednesday session down -- just three industry groups are rising today. 16 ot

ecj is a bit blurry to the -- was a climbed down from they that was it a climbed down from a -- may> are saving -- saying there is a possibility of the norway model which is a member of the single market, not in the european union, a call for the after court, which tends to follow the ruling -- mark: they say you are under the guise of the ecj. >> any deal would be impossible without an arbitration mechanism that was except the will to both sides. mark: monday, around three, approaching mayweather versus mcgregor. what can we expect and what could the eu response to our position papers and all of this? >> the eu said the u.k. is answering the wrong question. the eu wants to deal with the terms of the exit. and only when the terms of the exit are sorted doesn't want to go to trade. nearly all of the position papers have been about the future relationships and the town of the british papers have been -- we do not want very much to change. that is what the eu calls cherry picking. we had comments from an eu officials briefing journalists who said that the problem is not a lack of time b

that core does tend to follow for theng of the ecj, rulings are not binding.with that in july, philip hammond raised the possibility of the model that the u.k. might seek to adopt. jonathan: thinking about things going forward, compromising, getting something back, what are they looking to get back. it was a stumbling block, britain's opposition to the ecj was a massive stumbling block to any kind of good brexit deal. whether you talk about the interim arrangement for a future trade deal, so in terms of compromise, there should be more scope for review. jonathan: bloomberg's emma ross-thomas come our london bureau chief. still with us, geoffrey yu of ubs wealth management and david owen of jefferies. the strategy, they were not last long. o: i think what is happening is the obvious. in the real world, it is a very deep relationship with the eu, everything is going to have to adopt a lot of the ecj rulings. so the statement to me was the obvious. remember, a lot of this is just asked fo aspirations of the part of the u.k. government. is squeezingarnier again, s

and there is much more information on the ecj along with information on every element of brexit onlinenews. the syrian conflict and there are many numbers of ways i could illustrate the complexity of this war, this map is one of them. each colour represents territory held by different groups or countries. and many of the different groups and countries involved in this conflict wa nt to countries involved in this conflict want to defeat the islamic state group. but they don't agree on how and we have seen an illustration today, these are pictures from ankara, that is the president of turkey with the us defence secretary in ankara. they are working together to fight islamic state but there is one issue they do not agree on, the us arms, kurdish ypg militia, turkey considers them to be a terrorist group but at the moment they are having to agree to disagree. as i have been discussing many times, it is losing territory in iraq and in syria. the most high profile example is mosul. i have a report from lyse doucet. she is with syrian government troops. this is the man leading the syrian army

is open to abiding by past ecj rulings and even referring decisions to it. in hong kong, the stock exchange canceled trading in the city and it issued a highest level storm warning for the first time in five years. a severe typhoon lashed tycoon -- hong kong with wind and rains and airlines canceled 450 flight. global news 24 hours a day, powered by more than 2700 journalist and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. vonnie: coming up, wins of the regulation this week but a pop gold mine for large u.s. banks. we will have the details. this is bloomberg. ♪ ♪ vonnie: this is bloomberg markets, i am vonnie quinn. president trump metlife promises about deregulation on the campaign trail and that is been welcome this for banks. it has nots says gone started for wall street. it says that financial market deregulation under consideration as sixaise profits 20% of the largest u.s. banks and additional $27 billion of gross profit. among the banks that could benefit the most are jpmorgan and morgan stanley. joining us is a senior w

but there may be problems, not least with escaping the ecj's influence.robably means aligning our regulations to theirs. but the more we do that, the more the ec] will matter. for example, in the field of aviation, outside the eu, if there is an arbitration panel, and these arbitrations wouldn't be at the european court ofjustice, but since all the rules and all the regulations are adopted at eu level, they continue to be interpreted by the european court ofjustice and this arbitration would really be instructed to take all that case law into account. second, the eu may want a bigger role for the ec] in its relationship with britain. for me, there are two potential sticking point. the first is to do with the ratification, because, remember, this is about the trade deal and the trade deal has to be approved notjust by the european council, but by the national parliaments of the member states, and therefore i wonder whether all parliaments will agree to setting up a bespoke new adjudication mechanism. and the big problem is, there are still some areas like

will exit the jurisdiction of the ecj, but there will not be a compromise. other compromises, both about the sequencing and the substance. in terms of sequencing, the u.k. needs to realize that cannot be any discussion about the period ofal yield a time before the settlement has been agreed and before a broad partnership has been designed. and on substance, in terms of the divorce bill, there has to legacy ambiguity about issues and what will be discussed as the future. nothing in the negotiation this the i expect, will address question of the future partnership. realistic is a expectation for a timeline here? will brexit negotiations trade deals be done march 19? will be have the divorce settlement by then and maybe a three-year transition. have you see it playing outperiod? ? the best we can hope for is that there is an agreement by march 19. in my opinion, it has to be longer than three years. look at the services sector that has not been addressed at all. even on the borders and the customs partnership, it will be difficult enough for the agreement to be

argued that a transition agreement would mean the ecj would have jurisdiction over the u.k.that at least there's going to be some party. does this mean the talks are going to be called off next week? that may still be the case. we're still not at the brexit bill state. manus: matt, jump in here. matt: when does this really have an effect on your investment strategy? traders can move every day on some new brexit story, but as an investor, when do you start to lock in trades because you can get a sense of direction from these negotiations? william: i think there's a couple things to think about. it is easier to take a step back and standby the principal that the e.u., given its massive negotiating clout relative to the u.k., is going to have to be pretty inept to allow the u.k. to leave the e.u. with better or even the same terms of trade as it enjoys on the inside. it has to be worse than where we are right now. -- that should mean a lower trend growth rate for the u.k. sterling should be a little bit lower. some assets should find the going to little bit tougher. manus: ther

theresa may has insisted he ecj's jurisdiction will come to an end following brexit.hether his party would vote against the brexit bill when it comes before the commons. government is clearly back—tracking on earlier red lines and saying there has to be some form of dispute resolution through some form of judicial process and that obviously is the case and we have said that all along. you think the prime minister is fudging?” all along. you think the prime minister is fudging? i think she is finding that the absolutism of the lancaster house doesn't quite work. has it got to a point where the fudge is so substantial labour might vote against the brexit provisions when they come to the house? we get the brexit bill to the house when we go back in september. ourfirst concern is parliamentary scrutiny. we will be ensuring that parliament has a right to vote on every single section of the bill. we don't want the return of henry viii and decisions by the executive over an elected parliament might you vote against? we will make that decision before the vote. our primary con

if you need to refer a question to the ecj you need to refer a question to the ec] in luxembourg where go to the european court of justice, resume the blue this would have meant he would have this had to start paying vat for bridge and it would cost your sport? we have been paying vat, so hopefully going forward there will be no vat charged on bridge activities, making it cheaper for everyone to take part, and hopefully we can make wider involvement in fridge through this reduction in costs. thank you for joining us. —— in bridge. still to come, the first legal sale of rhino horn is due to be held in south africa today, but is at the right way to stop poaching? there is a warning from the uk social workers about a worrying number of foster homes, which are currently, i don't know why we are still on pictures of rhino horn, but hopefully we can get back to this. current figures show there is a shortage of around 7,500 — and the british association of social workers says this does not account for the complexity of matching children with an appropriate carer who suits their needs. some st

across different boundaries and that then takes you into the territory of things being enforced by the ecjhysical tracks at the border to electronic checks so things can be preapproved. 99% of goods that come to the uk from outside the eu are already preapproved in seconds so a lot of this is possible but it requires both sides to negotiate this. the uk cannot do this unilaterally. at the moment we don't know what the eu side of the table once from the border, what do they want to enforce ? border, what do they want to enforce? how do you see it working, swati? i think it will be cumbersome. when we look at the norway example, we know that norway still faces about 8% of its import value going into paperwork to be able to comply with rules and regulations to enter the uk market so regulations to enter the uk market so it won't be very different from that. if anything norway is in the single market so it probably has better access than what we can expect to have. those who want the uk out of the customs union say the downside is that we cannot have trade deals with the rest of the world whil