Three years and three prime ministers.
Three years and three prime ministers since the vote, fraught negotiations and political turmoil have sapped confidence in the industry, putting financial firms on the verge of moving thousands of jobs -- and possibly 1 trillion pounds of assets -- out of London.
There are signs of resilience: London has extended its lead in foreign-exchange interest-rate derivatives trading since the referendum, and the city remains the only European financial hub in consultancy Z/Yen’s ranking of the world’s top 10. Still, Catherine McGuinness, chair of the policy and resources committee at the City of London Corp., which oversees the financial district, said there was little doubt that the Brexit process was hurting financial services, which account for 11% of tax receipts in the U.K.
"The U.K. does need to be very careful how it treats its services sector, because it could lose more than it needs to if it’s not, ” McGuinness said in an interview."Of course we will lose some EU-facing business.” She said she’s"very concerned about the shorter term, especially if we have a no-deal exit.”The earliest fears about London hemorrhaging tens or hundreds of thousands of jobs haven’t become reality.
LCH, the world’s biggest derivatives clearinghouse, shifted its euro repo clearing business to Paris earlier this year. The arm of London Stock Exchange Group Plc has also been under pressure from Frankfurt-based Eurex Clearing, which wants a bigger share of the euro interest rate swap business. It has made some inroads in a growing market, but more than 90% of the market remains in London.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Split by Brexit, Labour kicks off conference showdown | The Malaysian InsightParty desperately searching for plan to stem potential drubbing in looming election.
Read more »
The party will decide our Brexit position, says UK Labour's CorbynJeremy Corbyn told the BBC he would stage a special conference or meeting to determine his party's stance. FMTNews
Read more »
How EU members are preparing for a no-deal Brexit | The Malaysian InsightCountries taking measures to cushion economies, safeguard trade, protect citizens' rights.
Read more »
Dozens of Britons march in southern Spain ahead of BrexitMany Britons fear they will lose their free access to Spanish healthcare, currently assured by the European Union, as a result of Brexit. FMTNews
Read more »
Billions of euros, millions of jobs: Europe's carmakers warn on no-deal BrexitBERLIN: A month before Britain is due to quit the European Union, the bloc's car-makers have joined forces to warn of billions of euros in losses in the event of a no-deal Brexit with production stoppages costing 50,000 pounds a minute in Britain alone.
Read more »
Johnson: Don't expect Brexit breakthrough in New YorkThe Prime Minister wants to improve the Withdrawal Agreement. FMTNews
Read more »