UK PM Starmer will exclude the City of London from his push for “closer alignment” with the EU, following lobbying by financial services firms against any return to Brussels rule, FT reports

UK PM Starmer will exclude the City of London from his push for “closer alignment” with the EU, following lobbying by financial services firms against any return to Brussels rule, FT reports.

This development suggests a significant pivot in UK-EU relations, particularly concerning the financial services sector, which is vital for London's economy. Excluding the City from alignment talks may lead to increased regulatory divergence, impacting investor sentiment and creating uncertainty in financial markets. Watch for potential reactions in GBP and financial equities as this unfolds.