Brexodus from City of London to the EU slows

[snoop1130]

Brexodus from City of London to the EU slows

By Huw Jones

 

 

LONDON (Reuters) - The shift in financial staff and assets from the City of London to the European Union because of Brexit has eased after Britain completed its full departure from the bloc, a tracker from consultants EY showed on Tuesday.

 

Financial services are not included in the EU-UK trade deal that came into effect on Jan. 1, largely cutting off the City from the EU.

 

Financial firms in Britain have opened subsidiaries in the EU, with Dublin and Luxembourg the most popular destinations, EY said.

 

“After the major hurdle of standing up new EU hubs, the days of significant swathes of asset and job relocation announcements appear to have passed and will likely be replaced by the slower yet ongoing movement of people and assets to Europe for compliance purposes,” Omar Ali, a financial services managing partner at EY, said.

 

EY said in its latest Brexit Tracker that job moves have risen to almost 7,600, up by 100 since October, while the number of new hires in Europe since Britain’s EU referendum in 2016 remains flat at around 2,850 new jobs.

 

The loss is a small fraction of total jobs in British financial services and is far lower than initial predictions.

 

There was also an incremental rise in the relocation of assets, now totalling almost 1.3 trillion pounds ($1.82 trillion), up from 1.2 trillion pounds previously, EY said.

 

On Jan. 4, more than 8 billion euros ($9.63 billion) in daily share trading shifted from London to Amsterdam and Paris, followed by chunks of trading in euro-denominated swaps.

 

The EU is targeting the clearing of euro swaps, which London dominates, although EU’s Ali said splitting markets would not benefit Europe.

 

“Fragmentation of European financial services will serve to only benefit the U.S. and Asia,” he said. Some of the swaps trading that has left London has moved to New York.

 

EY calculated its figures from public statements by 222 of the largest banks, insurers, fintechs and asset managers since June 2016 to the end of February 2021. A quarter, or 57 firms, said Brexit has or will have a negative impact on them, up from 49 in January 2020.

 

-- © Copyright Reuters 2021-03-02

 

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[wombat]

Has UK fully departed from EU?

[SunnyinBangrak]

13 hours ago, snoop1130 said:

EY said in its latest Brexit Tracker that job moves have risen to almost 7,600, up by 100 since October, while the number of new hires in Europe since Britain’s EU referendum in 2016 remains flat at around 2,850 new jobs.

 

The loss is a small fraction of total jobs in British financial services and is far lower than initial predictions.

Do I understand this correctly? 100 people have moved from London city to Europe for financial work purposes since OCTOBER???? That would be the incredible rate of less than one person leaving daily, hardly mass exodus. This would seem to confirm what my British friends were telling me about what they called "project fear" which they said was the establishment pumping out pure fake news and propaganda designed to overturn their democratic referendum on whether to remain/leave the EU. 

 

[Chomper Higgot]

2 hours ago, SunnyinBangrak said:

Do I understand this correctly? 100 people have moved from London city to Europe for financial work purposes since OCTOBER???? That would be the incredible rate of less than one person leaving daily, hardly mass exodus. This would seem to confirm what my British friends were telling me about what they called "project fear" which they said was the establishment pumping out pure fake news and propaganda designed to overturn their democratic referendum on whether to remain/leave the EU. 

 

 

Are you sure?:

 

”

There was also an incremental rise in the relocation of assets, now totalling almost 1.3 trillion pounds ($1.82 trillion), up from 1.2 trillion pounds previously, EY said.

 

On Jan. 4, more than 8 billion euros ($9.63 billion) in daily share trading shifted from London to Amsterdam and Paris, followed by chunks of trading in euro-denominated swaps.”

[Knocker33]

https://www.bbc.com/news/business-56155531

[rickudon]

Nobody's moving during the Pandemic. Lets see what the situation is at the end of 2021.

[Loiner]

On 3/2/2021 at 11:37 AM, snoop1130 said:

The loss is a small fraction of total jobs in British financial services and is far lower than initial predictions

The never was an exodus. It was all Remainer hype and hope. 

[Lancelot01]

15 hours ago, Chomper Higgot said:

 

Are you sure?:

 

”

There was also an incremental rise in the relocation of assets, now totalling almost 1.3 trillion pounds ($1.82 trillion), up from 1.2 trillion pounds previously, EY said.

 

On Jan. 4, more than 8 billion euros ($9.63 billion) in daily share trading shifted from London to Amsterdam and Paris, followed by chunks of trading in euro-denominated swaps.”

Pin  money.

[7by7]

On 3/3/2021 at 1:33 AM, SunnyinBangrak said:

Do I understand this correctly? 100 people have moved from London city to Europe for financial work purposes since OCTOBER???? That would be the incredible rate of less than one person leaving daily, hardly mass exodus.

 

You appear to not understand at all.

 

Firstly, it's not people that have moved; it's jobs. 

 

Secondly, as the article actually says "EY said in its latest Brexit Tracker that job moves have risen to almost 7,600, up by 100 since October."

 

On 3/3/2021 at 1:33 AM, SunnyinBangrak said:

This would seem to confirm what my British friends were telling me about what they called "project fear" which they said was the establishment pumping out pure fake news and propaganda designed to overturn their democratic referendum on whether to remain/leave the EU. 

 

During the referendum campaign, any and all information regarding the negative effects of leaving were dismissed by the various Leave campaigns as 'Project Fear.' 

 

Although die hard Brexiteers refuse to acknowledge it, Johnson's Withdrawal Agreement and then his Trade and Cooperation Agreement have both shown that in most areas Project Fear was actually Project Reality.

[7by7]

23 hours ago, Knocker33 said:

https://www.bbc.com/news/business-56155531

 

How many of the 7,600 and counting lost jobs will these replace?

 

As said in another topic; how many of those 'offices' will just be a post Office box?

 

[7by7]

14 hours ago, Lancelot01 said:

Pin  money.

 

Do you really consider £1.3 trillion and counting to be pin money?

 

Then you must consider the total amount paid by the UK to the EU budget to be so negligible it's hardly worth considering!

 

"The UK’s net contribution to the EU between 1973 and 2018 was about £216 billion in real terms (accounting for the way prices change over time and using 2019 prices). The net contribution was £156 billion in cash terms (not accounting for inflation)." (Source)

 

Of course, we have contributed for a further two years after that and there is also the so called divorce bill. You can look up those amounts if you wish, but I doubt that's raised the amount by £1.084 trillion in real terms, let alone £1.144 trillion in cash terms!

[candide]

On 3/3/2021 at 2:33 AM, SunnyinBangrak said:

Do I understand this correctly? 100 people have moved from London city to Europe for financial work purposes since OCTOBER???? That would be the incredible rate of less than one person leaving daily, hardly mass exodus. This would seem to confirm what my British friends were telling me about what they called "project fear" which they said was the establishment pumping out pure fake news and propaganda designed to overturn their democratic referendum on whether to remain/leave the EU. 

 

That's the idea of a "win", from the Brexiteers' perspective: It's bad, but not as bad as expected! ????

[rickudon]

Of course the financial institutions started moving jobs 3 years ago (20,000 jobs lost in 2018) - they had their European subsidiaries all set up before October last year. So not surprising only 100 in the last 3 months or so. As the withdrawal agreement as signed contained little in the way of agreement on financial services, you can bet that a lot of planning and assessment of future needs is taking place currently. Expect the drain to start opening wider after Easter.

 

How many jobs will be lost in the next few years in the financial sectot we do not know, maybe they will find a way round the EU barriers, but i am guessing that stagnation is a best case scenario. Of course Covid distorts the scene, so assessing any losses will be a long term thing. All i know is that my UK income has basically been frozen as a result of the budget, 0.4% increase this year at best, so probably shrinking once inflation is taken into account.

[foreverlomsak]

On 3/2/2021 at 6:37 PM, snoop1130 said:

Brexodus from City of London to the EU slows

Of course it's going to slow, 10% of 100 is 10 leaving 90, 10% of 90 is 9 leaving 81, and so on, not rocket science is it.

Once the last one goes it will stop.

[david555]

If all looks so good for the City 's Euro passporting  .... why they are "whining & warning" E.U. then so much ....? ???? ????

they wont go broke by loosing our E.U. 25%...????

 

few of dozens similar links ....

City of London faces Brexit uncertainty over access to EU markets | Financial sector | The Guardian

 

Brexit news: EU official admits plan to restrict City of London's financial power | Politics | News | Express.co.uk

 

Brexit punishment: EU official admits plan to restrict City of London's financial power

BRUSSELS has warned that it could limit the City of London's access to EU markets in the row over Northern Ireland trade.

By JOE BARNES, BRUSSELS CORRESPONDENT

PUBLISHED: 09:50, Thu, Mar 4, 2021 | UPDATED: 10:33, Thu, Mar 4, 2021

 

Financial services commissioner Mairead McGuinness signalled the bloc will not grant the UK favourable terms in future talks over the financial services sector. British and Brussels officials are currently hammering out a memorandum of understanding to establish how the two sides can work together in the future. But Ms McGuinness suggested this new pact would not recreate post-Brexit access to the EU’s market for British bankers and fund managers.

 

more...

Edited March 5, 2021 by david555

[Red Forever]

Reading the above comments it's apparent that posters explaining (with references) that Project Fear became Project Reality on June 24th 2016 have a much more pragmatic slant on the outpouring of Brexit related horror.

Those who were duped by the right wing Brexit spivs are stuck in their "will of the people", "democratic referendum" narrative. Sad.

[kingdong]

On 3/4/2021 at 10:41 AM, 7by7 said:

 

Do you really consider £1.3 trillion and counting to be pin money?

 

Then you must consider the total amount paid by the UK to the EU budget to be so negligible it's hardly worth considering!

 

"The UK’s net contribution to the EU between 1973 and 2018 was about £216 billion in real terms (accounting for the way prices change over time and using 2019 prices). The net contribution was £156 billion in cash terms (not accounting for inflation)." (Source)

 

Of course, we have contributed for a further two years after that and there is also the so called divorce bill. You can look up those amounts if you wish, but I doubt that's raised the amount by £1.084 trillion in real terms, let alone £1.144 trillion in cash terms!

And in my humble opinion worth every penny as an investment for the future.

[Chomper Higgot]

6 hours ago, kingdong said:

And in my humble opinion worth every penny as an investment for the future.

Losing £1.3 Trillion from the UK’s financial services industry is not by any stretch of the imagination ‘an investment’.

 

It’s a loss, a Brexit generates loss.

 

 

[kingdong]

4 hours ago, Chomper Higgot said:

Losing £1.3 Trillion from the UK’s financial services industry is not by any stretch of the imagination ‘an investment’.

 

It’s a loss, a Brexit generates loss.

 

 

No problem to me chomper,but there again i,m merely a resident in the uk and see things happening on a daily basis,however,sorry if brexit affected you,but yiu can,t make an ommlette without breaking eggs,short term pain for long term gain.

[7by7]

2 hours ago, kingdong said:

No problem to me chomper,but there again i,m merely a resident in the uk and see things happening on a daily basis,however,sorry if brexit affected you,but yiu can,t make an ommlette without breaking eggs,short term pain for long term gain.

 

I, too, am a UK resident.

 

Short term pain? Very much so.

 

Long term gain? Highly unlikely when we've no longer got completely free trade with our largest market. For an explanation, see Johnson promised tariff-free trade – so why is Brexit reality so different? Although as it's from the Guardian, you'll probably dismiss it without even reading it.

 

Even Brexit supporters like Rees-Mogg and Ratcliffe have shown little faith in any long term gains of Brexit; having since 2016 moved investments and factories out of the UK and into the EU! 

[kingdong]

1 hour ago, 7by7 said:

 

I, too, am a UK resident.

 

Short term pain? Very much so.

 

Long term gain? Highly unlikely when we've no longer got completely free trade with our largest market. For an explanation, see Johnson promised tariff-free trade – so why is Brexit reality so different? Although as it's from the Guardian, you'll probably dismiss it without even reading it.

 

Even Brexit supporters like Rees-Mogg and Ratcliffe have shown little faith in any long term gains of Brexit; having since 2016 moved investments and factories out of the UK and into the EU! 

You keep replieing to my posts in patronising terms,so i,ll say it just once it dosrn,t bother or affect me as i planned for the future,i am not a shiny arsed spiv working in the city,but have lost my livelihood twice so can,t say i,ve any sympathy for them if they loose their jobs,they,ll just have to do what i did and evolve and retrain.try sparing a thought to those who are resident here and having a hard time  and perhaps give them the benefit of your wisdom and how brexit is the root cause of their current predicament.

[Loiner]

I too am a U.K. resident. 

Short term pain? Not a bit, nor long term either. In fact, contrary to what was ‘promised’, we didn’t feel a thing except a warm fuzzy feeling inside. 

 

Some Remainers are probably feeling more dizzy than fuzzy warm. It’s all that spinning they’re doing - spinning like a top. 

[kingdong]

1 minute ago, Loiner said:

s all that spinning they’re doing - spinning like a top. 

And twisting like chubby checker.

[Chomper Higgot]

9 hours ago, kingdong said:

You keep replieing to my posts in patronising terms,so i,ll say it just once it dosrn,t bother or affect me as i planned for the future,i am not a shiny arsed spiv working in the city,but have lost my livelihood twice so can,t say i,ve any sympathy for them if they loose their jobs,they,ll just have to do what i did and evolve and retrain.try sparing a thought to those who are resident here and having a hard time  and perhaps give them the benefit of your wisdom and how brexit is the root cause of their current predicament.

Having supported Brexit, and you tell us, voted for Brexit you now tell those of us who warned Brexit would damage the UK economy and that people would lose their jobs, should:

 

”try sparing a thought to those who are resident here and having a hard time”.

 

Voting and indeed not voting has consequences, a lesson millions of Britons are once again learning.

 

Will of the people and all that, then why the need to spare a thought for anyone, other perhaps for those who voted against the obvious self-harm of Brexit.

 

The people who voted or chose not to vote are adults, it will do them some good the suffer the consequences of their own choice in this Brexit mess.

 

 

 

 

Edited March 7, 2021 by Chomper Higgot

[7by7]

16 hours ago, kingdong said:

You keep replieing to my posts in patronising terms,

Patronising terms; how so?  By reminding you of what you, yourself have previously posted, disagreeing with you and providing evidence to support my opinion? That's what happens on a forum!

 

16 hours ago, kingdong said:

so i,ll say it just once it dosrn,t bother or affect me as i planned for the future

Good for you. But it does bother and affect an increasingly large proportion of the population; as evidenced in the general election by the 53+% who voted for parties promising, at least, a second referendum on the withdrawal agreement.

 

I'm not a great believer in the veracity of opinion polls, but they do show that support for Brexit, although fluctuating, has in the main fallen as the effects become more and more clear (source).

 

If your plans are based on what the various Leave campaigns said, you'll be in for a hard time.

 

16 hours ago, kingdong said:

,i am not a shiny arsed spiv working in the city,but have lost my livelihood twice so can,t say i,ve any sympathy for them if they loose their jobs,they,ll just have to do what i did and evolve and retrain

Many City workers are, indeed, overpaid; no argument from me on that. However, if your plans for the future involve a personal or company pension, or both, guess who manage those funds and invest them on your behalf; the 'shiny arsed spivs' you have no sympathy for! Even if your money's in a bank or building society, the same applies. So, unless it's all in a box under your bed, those 'shiny arsed spivs' are working for you!

 

But regardless of what anyone thinks of them, the City, as shown, contributes massive amounts to the UK economy, and much of that money is leaving the UK and moving to the EU. City 'spivs' retraining to replace EU seasonal agricultural workers wont make up for that loss! 

 

16 hours ago, kingdong said:

try sparing a thought to those who are resident here and having a hard time

I spare more than a thought for all those who are suffering because of Brexit; such as the fishing communities and the people of Northern Ireland, both sold out by Johnson.

 

16 hours ago, kingdong said:

and perhaps give them the benefit of your wisdom and how brexit is the root cause of their current predicament.

I have done so, here and elsewhere, on many occasions. Unlike you and many other Brexiteers, I don't expect you or anyone else to take my word for it. So I supply evidence from many sources, including the UK government, to support my comments.

[7by7]

16 hours ago, kingdong said:

16 hours ago, Loiner said:

s all that spinning they’re doing - spinning like a top. 

And twisting like chubby checker.

 

Instead of resorting to such remarks, why don't you two try providing some actual benefits of Brexit, with evidence to support your comments?

 

Could it be because you can't find any?

[Loiner]

2 hours ago, 7by7 said:

 

Instead of resorting to such remarks, why don't you two try providing some actual benefits of Brexit, with evidence to support your comments?

 

Could it be because you can't find any?

You have plenty of time on your hands to find Remainer propaganda, why not try looking for some Brexit positives yourself, as you ignore everything posted by Leavers.

[7by7]

1 hour ago, Loiner said:

You have plenty of time on your hands to find Remainer propaganda, why not try looking for some Brexit positives yourself, as you ignore everything posted by Leavers.

 

I have looked for some Brexit positives; but like you, I find it difficult to find any!

 

Those that are there are made insignificant by the negatives.

 

Such as the topic of this thread. EU finance companies opening offices in the City and providing 1000 new jobs are not replacing the 7,600 British jobs lost so far in the City!

 

 

[kingdong]

1 hour ago, 7by7 said:

 

I have looked for some Brexit positives; but like you, I find it difficult to find any!

 

Those that are there are made insignificant by the negatives.

 

Such as the topic of this thread. EU finance companies opening offices in the City and providing 1000 new jobs are not replacing the 7,600 British jobs lost so far in the City!

 

 

What about the fiasco of the eu showing their true colours in trying to invoke article 16 as a deflection for their " handling " ???? of the corona vaccine programme? Are germany and belgium still sticking to their previous policy of not vaccinating 55-65 year olds? All projections of your predicted financial doom are victims of the worldwide corona pandemic as for my personal predicament,i learnt my lessons in life down to personal experience,not attending seminars in the canterbury arms.well would love to sit conversing with you but have a pending meeting with my financial advisor,terry the spiv.

[kingdong]

13 hours ago, Chomper Higgot said:

Having supported Brexit, and you tell us, voted for Brexit you now tell those of us who warned Brexit would damage the UK economy and that people would lose their jobs, should:those waiting

 

”try sparing a thought to those who are resident here and having a hard time”.

 

Voting and indeed not voting has consequences, a lesson millions of Britons are once again learning.

 

Will of the people and all that, then why the need to spare a thought for anyone, other perhaps for those who voted against the obvious self-harm of Brexit.

 

The people who voted or chose not to vote are adults, it will do them some good the suffer the consequences of their own choice in this Brexit mess.

 

 

 

 

Obvious self harm to whom chomper?the unemployed?those waiting for an affordable housing association property to rent?the homeless? Now we,ve got a worldwide financual depression un the post due to the corona pandemic.