London banking future after brexit
I will be graduating from a semi target by 2020 and as the banks like Nomura and Morgan Stanley are shifting their operations to Frankfurt, I am quite afraid of the future of London banking and how it's gonna affect the job opportunity. What do you guys think about London as a financial hub? I guess Paris can't be the next London atleast in a couple of years due to socialism and other factors and Frankfurt is soo small to take what London has been doing for years and it will be a nightmare for them and Amsterdam has a potential but not sure whether banks will be Ready for that challenge.
They shouldn't. If they throw a temper tantrum and move offices outside of the EU they will only be hurting themselves.
As per Armstrong:
He's not wrong. If you've been watching the markets for the past few years then you would know that the EU has been aggressively cracking down on the movement of money within the EU, even to the point to where they are trying to figure out how to outlaw both cash and short-selling. You would also have noticed that there have been massive capital outflows from Europe to the USA.....THAT is why stock market valuations are so high. It has nothing to do with "fair value" or investors anticipating growth. It's money trying to escape the conditions in the EU by one of the few means that isn't blocked by "money laundering" laws.
By moving outside the EU, the UK stands to benefit from capital fleeing the EU....and large capital inflows, should the UK transition and manage it well, will mean that London investment banks will have a good time.