Investors dump shares and dash for safe havens as tensions between Washington and Pyongyang escalate, on the 10th anniversary of the financial crisis

Here’s the answer to this morning’s question about how Brexit is making it harder to regulate the City of London

Banks, insurance companies and other financial firms in the EEA – the EU along with Iceland, Liechtenstein and Norway – are able to do business in the UK with separate regulatory approval. The system is known as passporting and allows firms to trade freely across borders.  It applies the other way round, so that UK firms can operate in other EEA countries.

The financial markets could suffer sharp losses if the US and North Korea don’t calm the situation.

So says Stuart Culverhouse, global head of macro & fixed income research at investment bank Exotix Capital:

“The North Korean threat has been present in one form or another for some time, and despite periods of nervousness, markets generally have not tended to focus on it too much.

“Now, with the tension between the US and DPRK reaching a level that appears somewhat unprecedented in the last decade, if not longer, the question is whether this time is different.

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