Brexit Update: Frankfurt Waiting to Give Bankers “A New Home”
Frankfurt Waiting to Give Bankers “A New Home”
Recent industry surveys suggest most Londoners and United Kingdom (UK) based businesses prefer Frankfurt as an alternative location for work. Germany has launched a campaign to lure banking executives to the city that is already home to the European Central Bank (ECB) and nearly 200 foreign banks. Frankfurt Mayor Peter Feldmann has led the campaign highlighting the city’s sophisticated global community. In a recent interview he said, “We’re sorry things have turned out like they have, but now this sovereign decision, which everyone now believes is irreversible, has been made we say we’re ready and waiting to provide the bankers with a new home.”
Frankfort is already expected to absorb upwards of 20,000 banking jobs from the UK and is widely perceived as the favorite among other European cities competing for London jobs. A recent survey conducted by Ernst & Young found that 70 percent of respondents preferred Frankfort for relocation. Dublin came in second place with 13 percent followed by Paris with six percent. A similar survey of London bankers conducted by the Boston Consulting Group found respondents again favored Frankfurt over Amsterdam, Dublin, Luxembourg and Paris. With analysts now predicting the UK could lose as many 100,000 jobs in response to the Brexit vote, it is likely that all of these competing cities will see a bump in their workforce.
#Brexit: What’s Trending?
£1 GBP = $1.32 USD
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(as of 9:30 AM EST, 7/18/2016)
UK Citizens Seek EU Passports – European nations have reported a surge in inquiries and requests for passports from UK citizens in the weeks following the referendum.
Negative Sentiment Higher than 2008 – A survey conducted by Deloitte of attitudes among large UK businesses found that nearly 75 percent were “less optimistic” about their business’s future outlook, hitting the lowest levels since the survey began in 2007.
Home Price Predictions Fall Drastically – New data from Societe Generale warns that London residential property prices could fall by more than 30 percent. Commercial real estate prices are expected to fall just as much.
Johnson Softens Brexit Rhetoric – During his trip to Brussels, leading Leave advocate and new Foreign Secretary, Boris Johnson softened his tone towards the EU and Brexit. He said the referendum “in no sense means we are leaving Europe,” adding, “We are not going to be in any way abandoning our leading role in European participation and cooperation of all kinds.”
May to Meet with EU Members – UK Prime Minister Theresa May plans to meet with German Chancellor Angela Merkel and French President Francios Hollande this week in the first meeting amongst the leaders post-Brexit.