UK pound falls to fresh 2.5-year low against Singdollar as 'Brexit' fears persist

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Cities, like Frankfurt, Dublin, Amsterdam, Luxembourg, and Paris, are eagerly seeking to replace London, after the Brexit. Once the UK lose the access of EU single financial market, financial institutions in UK, will rush to move out, and settle in equivalent cities within EU. Which one, is the winner city? Hmm...

Could Paris really steal City of London crown after Brexit?

Hours after the UK’s vote for Brexit was announced, online adverts saying “Welcome to the Paris Region” aimed at international banks and investors were already running in the Financial Times and the Wall Street Journal.

Brexiters might have been short of a plan B, but officials in Paris’s financial district and the wider Paris region, despite being pro-remain, had been preparing for months to promote their financial sector and urge any bankers considering leaving the City of London to think about moving to France. More than 4,000 letters were immediately sent to investors boasting of the benefits the wider Paris Île-de-France region, run by the rightwing Valérie Pécresse, who was previously Nicolas Sarkozy’s budget minister.


'Paris has changed permanently': a day on duty with mayor Anne Hidalgo
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When the president, François Hollande, took an instant hard line on Brexit, saying the City of London could no longer continue its highly prized business of clearing euro-denominated derivatives, it looked like France would push the moral argument for restricting the UK’s huge financial services post-Brexit and attempt to reap the benefits for Paris.

But the issue of whether Paris might stand to gain from any potential City of London restrictions remains a giant question mark on a page of uncertainties. Like everything else about Brexit, it is far more complex than it looks.

The competition for any financial services that might leave the City – and it’s not yet clear what they might be – is ferocious, with a range of cities queuing up. These include Frankfurt, which is home to the European Central Bank and the financial capital of Europe’s biggest economy, and Dublin with its attractive corporate tax rates, as well as Amsterdam and Luxembourg. Paris is far from a certainty.
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https://www.theguardian.com/world/2016/j...it-bankers
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Paris and Berlin will be vying for the billions of trade currently cleared in London. I put my money on the Germans [SMILING FACE WITH OPEN MOUTH]

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Both Singapore and HK, will benefit from the fall-out...

Brexit puts London's offshore renminbi lead under threat
04 Jul 2016 10:58
[SHANGHAI] Brexit has cast a shadow over London's coveted status as the top offshore renminbi hub in Europe, although bankers say the city still has strong cards to play against its continental rivals.

The UK's June 23 referendum came less than a month after China's Ministry of Finance printed debut Dim Sum bonds of 3 billion renminbi (S$616 million) in London, the latest in a series of initiatives going back five years to promote the internationalisation of the renminbi in London.
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REUTERS
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It is 5% lower than Singapore's. It is a struggle, between tax, and market size. I reckon, the market size, will win eventually...

Britain plans to cut corporate tax to under 15%: report
04 Jul 2016 09:10
[LONDON] British finance minister George Osborne plans to slash corporation tax to under 15 per cent to tempt businesses to stay following the country's shock vote to leave the European Union, the Financial Times reported Sunday.
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AFP
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Is this the end of booming property market in London/UK ?? But should not be too big a hit on their GDP since construction contributes only around 7%.
 

U.K. Construction Shrinks at Fastest Pace Since 2009 on Brexit

U.K. construction unexpectedly shrank at the fastest pace since 2009 in June as the impending vote on Britain’s European Union membership stymied residential building.

A Purchasing Managers’ Index slid to 46 from 51.2 a month earlier, Markit Economics said in London on Monday. Economists in a Bloomberg News survey had predicted a reading of 50.7, above the 50 level that divides expansion from contraction.
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intrigue .. wow mentioned about Singapore sia  

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(04-07-2016, 06:23 PM)sgd Wrote:

haha
nobody wants to carry this bomb and have it as part of their legacy
All trying to shrink away from their false promises
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Second Property Fund Suspends Trades Over Brexit Fears

Aviva Investors suspended trading in a 1.8 billion-pound ($2.4 billion) real estate investment fund, after Standard Life Investments froze its fund Monday, as investors demanded their money back in the wake of Britain’s vote to leave the European Union.


The money manager halted the Aviva Investors Property Trust following a “lack of immediate liquidity,” according to a statement Tuesday. “We have acted to safeguard the interests of all our investors by suspending dealing in the fund with immediate effect.”

Investors are pulling money as industry commentators warn that London office values could fall by as much as 20 percent within three years of the country leaving the EU. During the financial crisis of 2007 and 2008, real estate funds were forced to freeze operations after withdrawals surged, contributing to a property-market slump that saw values drop more than 40 percent from their peak in the U.K.

“The dominoes are starting to fall in the U.K. commercial property market,” said Laith Khalaf, a senior analyst at Hargreaves Lansdown. “The problem these funds face is that it takes time to sell commercial property to meet withdrawals, and the cash buffers built up by the managers have been eroded by investors heading for the door.”
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(05-07-2016, 11:48 PM)BlueKelah Wrote: Second Property Fund Suspends Trades Over Brexit Fears

Aviva Investors suspended trading in a 1.8 billion-pound ($2.4 billion) real estate investment fund, after Standard Life Investments froze its fund Monday, as investors demanded their money back in the wake of Britain’s vote to leave the European Union.


The money manager halted the Aviva Investors Property Trust following a “lack of immediate liquidity,” according to a statement Tuesday. “We have acted to safeguard the interests of all our investors by suspending dealing in the fund with immediate effect.”

Investors are pulling money as industry commentators warn that London office values could fall by as much as 20 percent within three years of the country leaving the EU. During the financial crisis of 2007 and 2008, real estate funds were forced to freeze operations after withdrawals surged, contributing to a property-market slump that saw values drop more than 40 percent from their peak in the U.K.

“The dominoes are starting to fall in the U.K. commercial property market,” said Laith Khalaf, a senior analyst at Hargreaves Lansdown. “The problem these funds face is that it takes time to sell commercial property to meet withdrawals, and the cash buffers built up by the managers have been eroded by investors heading for the door.”

Long term Asset- short term liabilities (redemptions) mismatch. problem with the structure.

Is this going to be replay of the 2 Bear Sterns funds in 2007?
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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