Brexit news: London 'WILL remain at heart of European capital markets'

Brexit news: London 'WILL remain at heart of European capital markets'

Political uncertainty surrounding Brexit has long sparked speculation of banks and big businesses ditching Britain in favour of new financial hubs, including Paris and Frankfurt.

JPMorgan and Bank of America are just some of the names who have already established their intent to move some business elsewhere.

But Clifford Abrahams, chief financial officer of ABN Amro, has brushed aside any fears for the economical future of London as he maintained the capital will still exist at the hub of European markets.

Speaking to CNBC, Mr Abrahams described London as “the financial capital of Europe” before adding his bank is “well prepared” to guide clients smoothly through the Brexit transition.

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He said: “That is where the buyers and sellers are, the liquidity is and that is important for Europe as a whole including us at ABN Amro.”

While Mr Abrahams did admit liquidity is beginning to seep from the capital, he said it would be “disappointing” and a “disbenefit for the whole European market” to not have liquidity in one location.

He continued to play down fears of businesses fleeing London, saying “there hasn’t been a serious migration yet” despite many “preparing for the worst”.

Mr Abrahams said: “Personally, I still think London will still be at the heart of European capital markets, whatever the legal and constitutional changes.”

Brexit news: Emmanuel Macron has been ruthless on his quest to openly poach business from London (Image: GETTY)

Latest Brexit developments have seen Theresa May fighting to save her career after backlash erupted in her Cabinet yesterday following the unveiling of her draft EU withdrawal agreement.

Four ministers quit in fury yesterday and other senior Government figures resigned as they refused to back the Prime Minister and her vision for Brexit.

Dominic Raab stood down as Brexit Secretary and Esther McVey quit her post as Work and Pensions Secretary as they separately tore down Mrs May’s draft proposal for how Britain to leave the EU.

Other minsters to resign throughout the day included Suella Braverman and Shailesh Vara, while Anne-Marie Trevelyan, Ranil Jayawardena and Rehman Chishti left their posts as key figures in Government.

Brexit news: London will remain ‘at the heart of European capital markets’ (Image: GETTY)

The political unsettlement caused the pound to nosedive, falling as low as €1.26 against the euro after reaching €1.50 the day before.

Emmanuel Macron has been ruthless on his quest to openly poach business from London, having earlier this year unveiled plans to make Paris Europe’s biggest financial centre.

Paris is said to have been the “most aggressive” of all the EU countries in trying to persuade banks into shifting operations after Britain leaves the bloc.

It has already won a bid to become the new home of the European Banking Authority, which will move from London after Brexit.


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