Foreign News

$1 Trillion Is Leaving Britain Because Of Brexit

Published

6 years ago

January 8, 2019

Banks and other financial companies have shifted at least £800 billion ($1 trillion) worth of assets out of the country and into the European Union because of Brexit, EY said in a report published Monday.

Many banks have set up new offices elsewhere in the European Union to safeguard their regional operations after Brexit, which means they also have to move substantial assets there to satisfy EU regulators. Other firms are moving assets to protect clients against market volatility and sudden changes in regulation.

The consultancy said the figure represented roughly 10% of the total assets of the UK banking sector, and was a “conservative estimate” because some banks have not yet revealed their contingency plans.

“Our numbers only reflect the moves that have been announced publicly,” said Omar Ali, head of financial services at EY. “We know that behind the scenes firms are continuing to plan for a ‘no deal’ scenario.”

EY has tracked 222 of the biggest UK financial services companies since the Brexit referendum in June 2016.

Britain is scheduled to leave the European Union in just 81 days, but Prime Minister Theresa May still needs to win support in the UK parliament for the divorce deal she struck with the rest of the European Union.

Parliament is due to vote on the deal next week. If May ultimately fails to push the agreement through, the chances of the country crashing out of the European Union without a deal will soar.

The Bank of England said the fallout from that scenario would be worse than the 2008 financial crisis.

For financial institutions, a no-deal Brexit would be a nightmare. The country’s agreements with EU regulators would cease to exist and banks would find themselves in a legal vacuum, meaning they would be unable to continue doing some of their business across the bloc.

While the European Union has said it will implement some steps to avoid a complete meltdown, it said its contingency plan is only a short-term solution aimed at protecting its own interests.

“Financial services firms have no choice but to continue preparing on the basis of a ‘no deal’ scenario,” Ali said.

EY said that the companies it tracks have already created around 2,000 new jobs elsewhere in the European Union in response to Brexit.

Deutsche Bank (DB), Goldman Sachs (GS) and Citi (C) have already moved parts of their business out of the United Kingdom. Dublin, Luxembourg, Frankfurt and Paris were the most popular destinations.

EY said financial companies were likely to move more assets and create more jobs in other European cities over the coming weeks. “The closer we get to March 29 without a deal, the more assets will be transferred and headcount hired locally or relocated,” Ali added.

London has been Europe’s undisputed financial capital for decades, and is home to the international headquarters of dozens of global banks.

The financial services industry employs 2.2 million people across the country, and contributes 12.5% of GDP. It generates £72 billion ($100 billion) in tax revenue each year, according to the City of London Corporation.

The UK economy has already suffered from Brexit. Inflation spiked and consumer confidence dropped, hurting the country’s retail sector. Business investment has fallen dramatically, as companies put plans on hold because of the uncertainty. Major manufacturers, including Airbus, have warned they may have to quit the United Kingdom if there’s a no-deal Brexit.

German engineering group Schaeffler is closing two plants in the United Kingdom because of the uncertainty.
The latest evidence of the pain came on Monday, when the UK Society of Motor Manufacturers and Traders said new car registrations in the country fell 6.8% in 2018. It was the second consecutive year of declines.

Foreign News

NiDCOM BOSS HAILS DR. ELENITOBA-JOHNSON ON HIS INDUCTION INTO THE US ACADEMY

Published

1 week ago

October 28, 2024

august24admin

NiDCOM BOSS HAILS DR. ELENITOBA-JOHNSON ON HIS INDUCTION INTO THE US ACADEMY

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H
Hon. Abike Dabiri- Erewa, Chairman/CEO, Nigerians in Diaspora Commission (NiDCOM) has congratulated Dr. Kojo Elenitoba-Johnson on his induction into the US National Academy of Medicine (NAM), describing it as “an honour well- deserved”.

In a statement by Abdur- Rahman Balogun, Director of Media,Public Relations and Protocols, stated that Dr. Elenitoba- Johnson has yet achieved another ground breaking milestone in the Medical world globally.

Dabiri-Erewa described the honour as a demonstration of his outstanding professional achievement and unwavering commitment to service in the medical field.

She applauded his constant research and studies on ways of ameliorating the needs of his patients which has earned him this great honour, the highest honour in the field of health and medicine.

The NiDCOM boss urged Elenitoba- Johnson not to be relentless in the discharge of his duty and to keep making Nigeria proud as hard work pays, an example being the honour he just got.

She also prayed to God for protection and directions as he joins the League of Medical Professionals doing great things globally.

Dr. Kojo Elenitoba-Johnson, an international leader in the fields of Hematopathology and Molecular Genomic Pathology as well as a translational researcher also held leadership positions at the University of Utah, University of Michigan and University of Pennsylvania.

National Academy of Medicine (NAM) works alongside with the National Academy of sciences and National Academy of Engineering to provide independent objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions.

NAM members make a commitment to volunteer their services in National Academies activities.

Foreign News

NiDCOM BOSS CONGRATULATES GBENGA OGUNJIMI ON D.C’s HONOUR TO NIGERIAN CENTRE

Published

2 weeks ago

October 22, 2024

august24admin

NiDCOM BOSS CONGRATULATES GBENGA OGUNJIMI ON D.C’s HONOUR TO NIGERIAN CENTRE

AJAGBE ADEYEMI TESLIM

Foreign News

Africa CDC Strengthens Laboratory Capacity for Mpox and Other Outbreaks in Burundi

Published

3 weeks ago

October 17, 2024

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and referral processes while ensuring biosafety and biosecurity practices. These outcomes are crucial for an effective response to mpox outbreaks and generally contribute to strengthening sample referral and biosafety and biosecurity measures in Burundi.

Africa CDC has also strengthened Burundi’s response to the ongoing mpox outbreak by donating critical equipment and materials.

The donation includes an Illumina MiniSeq sequencing system and reagents, a high-performance computer server, mpox qPCR testing kits, and other essential consumables.

In addition, the INSP team has been trained on molecular testing, sequencing, and interpretation of results.

“These resources provided, and skills built, will enhance the country’s molecular testing and sequencing capabilities, enabling accurate and timely detection and characterization of mpox cases and boosting the national testing and pathogen detection capacity,” said Dr. Yenew Kebede.