Sterling at risk of losing reserve currency status

Post-Brexit shocks to sterling have rocked the currency’s reserve currency statusPost-Brexit shocks to sterling have rocked the currency’s reserve currency status

After Britons voted narrowly to exit the European Union earlier this year, they may not have anticipated the effect on the country’s currency and financial reputation. But with sterling reaching its lowest value in 40 years and the country stripped of its Triple-A credit rating, there are also fears that its prized reserve currency status could be under threat, should it fail to secure continued access to the European single market, according to US ratings agency Standard & Poor. Read more…

Hard Brexit could result in British banking crisis

Head of Germany’s central bank warns that UK could lose its status as the financial centre of EuropeUK could lose its status as the financial centre of Europe

Since the UK’s vote to leave the European Union, there’s been no clear indication of how the British government intends to carry out the political and economic split. Article 50 of the Lisbon Treaty must be invoked before Brexit can begin but with the clock ticking on a two-year negotiation timetable as soon as the process is triggered, the prime minister seems reluctant to push the button too soon. Britain sells almost half of its exports via the single market. A ‘soft’ Brexit would minimise the economic impact on the UK but is unlikely to assuage the concerns of those who voted to reduce immigration. Read more…

Brexit means Brexit – or does it?

The British public voted for Brexit, but when is it going to happen?The British public voted for Brexit, but when is it going to happen?

In June this year, a referendum was held in the UK over whether or not to remain part of the European Union (EU). The shock vote by the British public to leave the European Union caused a dramatic shift in sentiment and left a kingdom that seemed a long way from united. Despite assurances by the then government that wheels would be put in motion to trigger Article 50 of the Lisbon – and continued talk by the new prime minister that ‘Brexit means Brexit’, there’s seems no further clarity on what form Britain’s secession from the EU would take. Read more…

Will London lose its ranking as the world’s financial capital post-Brexit?

London is the financial capital of the UK but will it maintain its appeal after Brexit?The race is on to be the new London

June’s surprising referendum result has put the UK on track to leave the European Union, at the same time sparking speculation that its capital city will experience a mass exodus as overseas-owned banks seek to secure their trading position within Europe. Some organisations already have a foothold in mainland Europe and may be prepared to adopt a ‘wait and see’ approach before jumping ship. But if London does lose its passporting arrangements, which European cities are in line to seize its banking crown? Read more…

What kind of post-Brexit deal can the UK negotiate with the EU?

The Brits may have voted for Brexit but how will it continue to trade with the EU?Where do we go from here?

With the UK now steering a course to leave the European Union, following a public referendum in June, the focus has shifted to Brexit specifics and speculation is rife over how the British government will reframe its relationship with the country’s biggest trading partner from hereon in. Negotiations based on an existing model, such as that operated by Norway or Switzerland seem the most likely route but with Leave campaigners favouring a ‘hard’ Brexit, could the UK be left out in the cold? Read more…