Posts belonging to Category currencies

BREXIT: JPMorgan to move massively staff out of London

Dublin, Frankfurt and Luxembourg, new destinations for bankers

JPMorgan Chase & Co. plans to move hundreds of London-based bankers to expanded offices in Dublin, Frankfurt and Luxembourg as it prepares for the U.K. to lose easy access to the European Union’s single market after Brexit, the firm’s head of investment banking said.

“We are going to use the three banks we already have in Europe as the anchors for our operations,” Daniel Pinto said in an interview Tuesday in Riyadh, referring to the New York-based firm’s local entities. “We will have to move hundreds of people in the short term to be ready for day one, when negotiations finish, and then we will look at the longer-term numbers.”…  Wed.,  03 May 2017

Banks are now assuming there will be a “hard Brexit”

HSBC Says Companies Already Re-Routing Business

HSBC Holdings Plc said some of its largest clients have already asked for their business to be routed through the bank’s offices in mainland Europe and aren’t waiting to see what Brexit deal the U.K. hammers out with the continent’s trading bloc.…  Fri.,  14 April 2017

The City of London under threat

London will lose  a €930 billion  daily business — after Brexit

London will lose the business of euro clearing — a €930 billion (£792 billion, $995 billion) daily business — after Brexit, says France’s finance minister Michel Sapin.

Sapin said in an interview with the Financial Times that it is not possible for the City to continue the lucrative clearing business after Britain leaves the European Union on March 29, 2019 because it would hurt the EU’s “sovereignty.”…  Mon.,  10 April 2017

Iceland mulls to join Euro

Iceland may peg crown to euro, says finance minister

Iceland is considering pegging its crown to a major currency, most likely the euro, its finance minister said on Saturday, amid concerns the small North Atlantic nation’s economy risks overheating. Nearly a decade after a crash that brought down its banking system, Iceland has bounced back as increasing numbers of tourists flock to its geysers and drink in the trendy bars of the capital Reykjavik.

But worries about overheating have increased. Economic growth was 7.2 percent last year while the crown gained around 15 percent against the dollar. The currency, though volatile, is little changed since then.…  Tue.,  04 April 2017

Brexit: JPMorgan Said in Talks for Dublin Office

Citi Weighs EU Unit

JPMorgan Chase & Co. is in talks to buy a Dublin office building as the bank considers expanding in the Irish capital as one of its options for when Britain leaves the European Union, according to people with knowledge of the matter. The lender is negotiating the potential purchase of a building being developed by a venture between Kennedy Wilson Holdings Inc. and Ireland’s National Asset Management Agency, the people said, asking not to be identified because the plans are private. The building at 200 Capital Dock has about 130,000 square feet (12,000 square meters) of space, the people said. That’s enough for more than 1,000 workers.…  Fri.,  31 March 2017

“Get out of London now”

City vacancies plummet as firms move jobs overseas

According to Morgan McKinley’s London Employment Monitor, the jobs market was under stress in February, with a 23% decrease in jobs available month-on-month. Vacancies were also down 17% year-on-year. With Article 50 set to be triggered in the coming weeks, the recruitment website said that many large companies have found it was “easier to get ahead of the worst case scenario now” and leave London.

“The data suggests that Brexit has had a fundamental depressing effect on City jobs,” said Hakan Enver, operations director at Morgan McKinley’s financial services. “We’ve already witnessed, what was a handful of jobs leaving, become hundreds. How long before we’re looking at losing thousands, even millions?”…  Fri,  17 March 2017

FTSE 100 hits record high after US interest rate hike and Dutch election

European stock markets have hit their highest level in 15 months

European stock markets have hit their highest level in 15 months, as the Dutch election results calm fears over the region. Amsterdam’s stock exchange is romping ahead, hitting its highest level since the start of the financial crisis in 2007. And in London, the FTSE 100 is keeping climbing. It’s now up over 50 points at 7423 for the first time ever.…  Thu,  16 March 2017

US trade deficit: China is the real winner

How America has lost manufacturing jobs

President Donald Trump spent much of his election campaign attacking Mexico and China for, in his words, “killing us on trade” because of “bad trade deals.” As president, however, Trump’s harsh tone with Mexico has persisted while he has mostly backed off the stronger China rhetoric — even though China had a much larger impact on the manufacturing jobs the president has said he wants to “bring back” to the US.…  Tue,  07 March 2017

Currency war

Trump Calls Chinese ‘Grand Champions’ of Currency Manipulation

President Donald Trump declared China the “grand champions” of currency manipulation on Thursday, just hours after his new Treasury secretary pledged a more methodical approach to analyzing Beijing’s foreign exchange practices. In an exclusive interview with Reuters, Trump said he has not “held back” in his assessment that China manipulates its yuan currency, despite not acting on a campaign promise to declare it a currency manipulator on his first day in office.

Well they, I think they’re grand champions at manipulation of currency. So I haven’t held back,” Trump said. “We’ll see what happens.…  Fri.,  24 February 2017

TransferWise launches international money transfers via Facebook

Send Money from your FaceBook account 

Money transfer company TransferWise has launched a new service that allows users to send money internationally through Facebook Inc’s chat application, as competition in the digital payments landscape intensifies. The London-based startup said on Tuesday that it had developed a Facebook Messenger “chatbot”, or an automated program that can help users communicate with businesses and carry out tasks such as online purchases. TransferWise’s chatbot enables customers to send money to friends and family to and from the United States, Britain, Canada, Australia and Europe from Facebook Messenger. It can also be used to set up exchange rate alerts.

Facebook already allows its users to send money domestically in the United States via its Messenger app, but has not yet launched similar services internationally. TransferWise said its service will be the first to enable international money transfers entirely within Messenger.…  Tue.,  21 February 2017