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EU Economics

‘COMPLETELY WRONG!’ Claims Frankfurt to dwarf London as finance capital ‘LAUGHABLE’

BREXIT will turn the City of London into an even bigger international powerhouse, according to a top economist.

Lloyd BlankfeinGETTY

Lloyd Blankfein CEO of Goldman Sachs


Liam Halligan rubbished threats of a  exodus in the financial industry, after Goldman Sachs CEO Lloyd Blankfein claimed London would be replaced at the financial capital of Europe.Mr Halligan, a former asset manager who has co-authored the book ‘Clean Brexit’ , told Express.co.uk: “Brexit will make the City even more global oriented and even more competitive.

 “It will future proof jobs and further establish the City’s global reach.

“The City is the world’s hyper-global business destination.

Goldman Sachs are moving to a new European HQ in London


It is just absurd to think that any European investment bank is going to put its European HQ anywhere other than London

Liam Halligan

“It is just absurd to think that any European investment bank is going to put its European HQ anywhere other than London.”Mr Halligan slapped down Mr Blankfein after he said he would be “spending a lot more time in Frankfurt”, by pointing out Goldman Sachs’ new European headquarters offices in Farringdon, London.

And he lashed out at doom-mongering banks now forced to backtrack on their original Brexit predictions because they are “being proved completely wrong by events”, and because their concerned clients are asking them, “what do you mean you’re leaving London?”

According to Halligan big banks like Goldman Sachs are caught between using Brexit to “get the regulations they want, while making sure that their clients realise that they’re not actually going anywhere”.

TweetTWITTER

Lloyd Blankfein took to Twitter to talk Brexit

Goldman Sachs famously claimed after the referendum vote a portion of its 5,000 workers would leave the City and according to Halligan, that figure is now 500.And UBS previously said it would move 1,000, but the number is now 100, according to Mr Halligan.

Today, the EU will decide which European city will host London-based agencies the European Medicines Agency (EMA) and European Banking Authority (EBA). Frankfurt is favourite to secure the EBA, leading to more claims the German city could become a centre for global finance.

But it is not the first time Frankfurt has been mooted for such a role. After the UK rejected the opportunity to join the euro in 1992 banks, according to Mr Halligan, “talked about cutting London jobs”, but again in 2017, “the idea that London can be threatened by Frankfurt – number 23 financial capital in the world – or Paris – number 31 – is laughable”.

He added: “London is in competition with New York and Singapore.”Halligan says the outlook for the City is particularly positive and there is now a genuine opportunity for firms to get a deal on skilled work visas. After that, Halligan believes the City will benefit from the UK’s ability to “cut” service oriented trade deals with other countries.

He added: “Less than 10% of the world’s economies are covered by EU trade deals.

“Because (EU free trade agreements) are cut by 27 countries trying to work together – dominated by the French and Germans – they gold plate agriculture, gold plate manufacturing but (British) services aren’t anywhere.”

Clean Brexit by Halligan and Lyons BITEBACK PUBLISHING

Clean Brexit is the new book by Liam Halligan and Gerard Lyons


On this global opportunity Halligan disagrees that Brexit has made Britain “isolationist” and that this will damage the City’s position as the world’s global capital for financial services.He added: “In 60 years of trying the EU has not struck a trade deal with the US, with China, with India, with Brazil.

“We’re tearing down a tariff barrier that’s around the EU. We’re stepping outside arguably the most protectionist region in the world. We’re seeking to strike trade deals with the major economies of the world which the EU has never done.”

In February Germany’s finance minister Wolfgang Schäuble even admitted the UK’s financial centre serves the who of the European economy, with quality not found on the Continent.

Lloyd Blankfein on TwitterTWITTER

Goldman Sachs CEO talks up Frankfurt on Twitter

Other leading City figures mirror Schäuble’s pragmatism against a European inclination to “punish” the City for Brexit with Michael Spencer, founder and chief executive of NEX Group, who said any such move would be “incoherent, protectionist and damaging”.Mr Halligan cites London’s deep pools of liquidity – the want of doing a certain trade at a certain price – as making the city central for the EU as well as the UK.

He added: “It’s all about critical mass. The more likely it is that those prices reflect the global prices if you’re in a liquid market. If there are many many asset classes the London market is often very liquid just because everyone is trading there.”

https://www.express.co.uk/finance/city/881959/Brexit-City-London-Frankfurt-Goldman-Sachs

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