Financial withdraws $ 1.2 trillion from Britain before Brexit

The UK financial sector is preparing for Brexit and More and more companies are transferring some of their activities and heritage to the continent, reports a study by the think tank New Financial.

The financial center of London will be particularly affected when the UK leaves the European Union (EU), to the point that more than 275 financial corporations withdrew capital values ​​for a total of 1.2 billion USD.

According to the report quoted by the German weekly Spiegel, 10 major banks and investment banks transferred $ 1,046,000,000 (800 000 million pounds sterling) of the country at the EU.

In that Intangible badets of insurers for $ 45,780 million and investment managers for $ 85,000 million.

According to New Financial, more than 250 companies set up new factories on the continent; More than 210 people have applied for new banking licenses or created new legal entities.

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In all, transfer costs are estimated at between three and four billion dollars. This process will continue to be emphasized, said the head of the new finance, William Wright.

"This will diminish Britain's influence on the European financial and banking sector, this will reduce tax revenues and exports of financial services to the EU, "Wright said.

The biggest The center of attraction is in Dublin, where about 100 transfers were counted be mainly wealth managers those who chose the Irish capital. Next come Luxembourg with 60 transfers, Paris with 41 and Amsterdam with 32.

The German city of Fráncoft is the preferred destination for banks, while the Dutch capital is reserved for commercial platforms. and commercial houses.

Tomorrow vote of the British legislators

Tomorrow Tuesday, the British Parliament will have to vote again on an exit agreement from the EU and, if it confirms it, the UK will leave the EU bloc on March 29th.

However, many German companies expect a difficult Brexit to come to fruition without agreement, and it is unclear whether the initial date will be respected or postponed until June.

In January German industrial production unexpectedly falls by 0.8% for him The collapse of car manufacturing (9.2%)in the midst of tensions over the American trade war. and China and the uncertainty around Brexit.

same could be the conclusion of a decade of export-dependent German expansion for all this series of threats: the global slowdown, the tariff disputes generated by President Donald Trump's "United States" policies and the potentially chaotic exit of the United Kingdom from the European Union.

The same factors affect the rest of the EU and the current data new arguments for the cautious move of the European Central Bank (ECB) to his policy last week.

"Industrial production is an undeniable fact and is really the impression that the European economy is slowing down"Commented Antoine Bouvet, Mizuho's rate strategist." This gives credibility to the see that the deceleration is not temporary"

The German newspaper Handelsblatt reported that the The federal government has reduced its GDP growth outlook to 0.8% by 2019, the second reduction in less than two months. German industrial production fell 0.8%, below market expectations, namely an increase of 0.5%, said the German Statistics Office.

Auto production fell 9.2% in January, according to separate data from the Ministry of Economy.

The Organization for Economic Cooperation and Development (OECD) indicated that levy signs of slowdown in economic activity and that in the euro area, these signs They are particularly marked in Germany and Italy.

For both countries, the composite leading indicators showing anticipated inflections in the economic cycle fell significantly in January, by 19 cents for Germany and 9% for Italy, so that they were respectively 99.38 points and 99.18 points. below level 100 which marks the long-term average.

In its statement on indicators, the OECD noted that France was not strong enough and indicated that its rate of growth was stabilizing: it lost 3 cents to 99.08 points. In a similar situation, Spain, whose indicator in January remained stable at 99.39 points, after falling for more than a year.