Last week did not go as Boris Johnson and the Brexiteers had hoped. The seedy Scranton boy has no time for the intolerant Toffs who run Blighty, and his Irish eyes hate to look at plans that violate international law and plunge his ancestral homeland back into the bloodshed of his ancestral homeland and potentially cut out a potential human pillar Post EU place in the sun for Great Britain. The perfidious continents on the other side of the canal also feel their oats and are not particularly kind to their former partner.
However, Brexit was never about facing tough realities or making difficult decisions. It was about coming up with your most extravagant fantasy, closing your eyes and trying to make it a reality – and that fantasy is no about a London more in line with Florence or Prague than with a real, vital city and global financial center. And Chancellor of the Exchequer Rishi Sunak certainly doesn’t dream of a world in which an increasingly irrelevant London continues to be one of the New Yorks and Singaporeans (and, to be honest, Frankfurts) of the world.
“We are starting a new chapter in the history of financial services and renewing the UK’s position as the world’s leading financial center,” said Sunak.
The plan is to make the UK a leader in green finance and run a series of reviews to ensure that its financial sector is being efficiently regulated. The UK Chancellor announced a task force to update UK rules for listing securities to make fundraising in London easier.
Hoping to encourage the EU to shake hands, the UK Treasury released a series of its own equivalency decisions on Monday in relation to EU-based companies. This includes recognizing that EU-traded derivatives are traded as traded rather than over-the-counter by the UK and therefore have lower capital requirements.
The Treasury Department said the publication of its own equivalency decisions was “due to its commitment to be open, predictable and transparent, even when the EU is not clear about its approach”.
The early return to that open-minded, lovably delusional vision? Not great, even among the equally delusional.
SoftBank has had internal discussions about whether to move the unit that manages its $ 100 billion Vision fund from the UK to Abu Dhabi.
A person close to Mr. Misra … said the move was primarily due to the Japanese conglomerate’s attempt to obtain a much lower tax rate on profits booked by SBIA … Other people aware of the discussions said the company had spent months discussing regulatory benefits beyond reduced tax rates.
Britain plans to keep up with New York as a financial hub after Brexit [WSJ]SoftBank’s Vision Fund unit is considering moving from the UK to Abu Dhabi [FT]Trump’s defeat weakens Boris Johnson in urgent Brexit talks [NYT]