Experts predict that London will surpass the EU and remain the continent’s “dominant financial powerhouse.”
THE CITY OF LONDON is damaged and bruised as a result of Brexit, but it will still be Europe’s largest financial center, according to a top financial analyst.
According to another, the Square Mile is a “global market” with a reach well beyond that of any other market on the continent. Chancellor Rishi Sunak’s optimistic Mansion House speech earlier this month, in which he declared freedom from EU laws and regulations had left the UK free to “do things differently,” prompted William Wright, managing director of the New Financial think group.
Mr. Wright told Marketplace that the scenario was not without some difficulties.
“More than 400 companies have transferred certain employees and assets to the EU in order to ensure future market access and access to EU clients,” he said.
“We estimate that almost $1.2 trillion in bank assets have been shifted or are being transferred from the UK to the EU.”
He said that this amounted to 10% of the UK banking sector.
Mr Wright projected that as a result of Brexit, up to 35,000 jobs in the City might be affected – that is, relocated from London or generated in the EU rather than the capital.
Nonetheless, he stressed that the figure only accounted for 10% of the total number of individuals engaged in the City’s international financial services sector.
London will continue to be Europe’s largest and most powerful financial center.
“The City has been dented, bruised, and harmed, but it is not a fatal event,” he continued.
“London will remain by far the largest and most powerful financial center in Europe, but as a result of Brexit, it may no longer be the most powerful financial center in Europe in the long run.
“European business will be concentrated in cities such as Frankfurt, Paris, Dublin, and Luxembourg.”
Former CEO of the London International Financial Futures and Options Exchange and chairman of lobbying group City United Project, Brexiteer Daniel Hodson, was also upbeat.
“The City is a worldwide market,” he remarked.
“It deals in a wide range of currencies and products, and it has a depth that much exceeds any market on the European continent.”
Referring to London’s liberation from regulatory constraints. “Brinkwire News in Condensed Form.”