Bloomberg
Seven charts that show that Brexit has already changed the city of London
(Bloomberg) – A month after Britain voted to leave the European Union, Boris Johnson was asked if he believed the money industry would block his right to trade freely. “I do, I do,” he told reporters. It has never been so easy. Half a decade later, with billions of dollars in assets and thousands of jobs set in the continent, the UK negotiated a bare-bones trade deal with the European Union, giving most cities a chance to lure companies into the flux. While both parties are expected to agree to co-operate for financial regulation, business is not usually expected to return. European cities such as Amsterdam, Dublin, Frankfurt and Paris have captured some transfers so far, though none. Yet emerged as the clear winner. Some of these changes, such as share trading volume, overnight. In other areas, like jobs, it’s a slow trend as companies and individuals try to work out which city suits them best in the developed-developed post-Brexit landscape. “We will have Frankfurt, Amsterdam, Paris and Dublin to play a small part in the financial system,” Meredith McGinness, the block commissioner for financial services, told reporters in March. “Markets will determine that and put the best way to do it.” The situation remains fluid and the end result is uncertain. The UK and the EU are set to sign a memorandum of understanding in late March to co-operate in monetary policy, which will pave the way for more access for British companies through so-called equivalents in the future. Some trends may change direction as the UK begins to set its own rules outside the sole market, while key areas of dominance that have dominated London for decades as financial center – including clearing deals – have so far proved sticky. “I don’t think you can build a financial center,” said Douglas Flint, chairman of Standard Life Aberdeen, UK fund manager. “The EU’s challenge is where you choose to find such a center and how other European Union rivals receive you to control whatever activities they carry out.” But, if the first three months of 2021 are any indication, Brexit will rebuild the financial centers. In Europe in the coming years. Here is what happened so far: Share Trading European equity markets opened on January 4th. Once in the pay-per-view, in the “Big Bang” shift. Almost all trading volume of shares of a European company that bolts the EU. London will soon lose the crown of Amsterdam as it is the top spot in the continent for buying and selling shares. Trading in Swiss equities, which had been blocked when Britain was a member of the EU, resumed in February, helping to boost business on the UK platform. Britain now hopes to boost equity markets by making it easier for companies to go public in London. Citi had an impact on its dominance after the European Union blocked companies within its borders from trading certain benchmark agreements on London-based platforms. Seeing a breakdown in the markets between the European Union and the UK, some banks have instead turned to Wall Street, where both jurisdictions allow trade, although London is still a dominant player when it comes to convenience trade. Derivatives clearing is a major part of the financial market yet faced with a lot of disruption: Derivatives clearing. The London Stock Exchange group PLC’s clearinghouse, LCH, won a European Union decision that allowed it to handle European business until June 2022. The European Union is making it clear, however, that it wants to shift the balance of power by advancing the business of more euro-denominations. Within its borders. The Bank of England has already pledged that the UK will resist any EU move to relocate trade. Investment banking is another area of historic public offering where Square Mile continues to outperform its continental rivals. Record listed in the UK is in its first phase in the quarter, bootmaker Dr. Companies ranging from Martens to Russian discount retailer Fix Price have jointly raised 7.2 billion. Before the UK government applies the effect of reducing the requirements of the proposed list. M&A bankers are also enjoying a bumper year. According to data compiled by Bloomberg, acquisitions of foreign companies in the UK have almost tripled this year to billion 3 billion. The takeover of publicly traded UK companies has more than quadrupled. However, this shows weakness rather than strength. British companies have become more sensitive targets in the past year as the valuation gap between domestic stocks and other major markets has widened. Jobs and asset finance companies have announced that around 00,000 jobs will move from the UK to the block, according to a study by consultancy EY. Wealth of about 3 1.3 trillion (1. 1.8 trillion) is also moving forward. Dublin has attracted the largest fixed number of payers of all types moving to the block. Frankfurt and Paris are also popular with large companies such as universal banks, investment banks and brokerages. Tax changes in product prices and the relatively sluggish UK economy have had the most impact on property prices, with Brexit uncertainty and the relocation of Brexit bankers exacerbating the current situation. Trends in property prices. Since the UK voted to leave the EU, London’s property prices have risen 6%, compared to Dublin’s fifth and Amsterdam’s 40%. 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