Daily Management Review

Former brokers are making money on Brexit in Luxembourg


12/11/2017


Two former brokers from London that now live in Luxembourg found an interesting way to make money on Brexit, Bloomberg writes.



C. Martinez
C. Martinez
Mark Hollis and John Heffernan opened a shop. Now, they are offering financiers leaving the City of London a constant supply of British products such as Marmite or Yorkshire tea.

According to businessmen, the Home from Home store, which sells other favorite products of expats, has already attracted many financiers who are moving from London to Luxembourg.

After voting for the exit of Great Britain from the European Union, several European cities joined the race for attracting London business. Several funds, banks and insurers have already chosen Luxembourg. Earlier this year, American International Group Inc. insurance company said that it plans to open a branch in this country.

In addition, RSA Insurance Group Plc, the American insurer FM Global, and the insurer Lloyd's of London Hiscox Plc, together with the investment company Blackstone and other asset managers like M&G Investments, chose Luxembourg as the new European home. JPMorgan Chase & Co. is plannig to transfer some London bankers to the Grand Duchy, too.

"Some financial companies - I think there are now over 20 of them - said they are going to move to Luxembourg, mainly funds and insurance companies," Mark Hollis told Bloomberg, noting that Brexit can bring more customers to their store.

Capital markets, asset management, private banking, cross-border insurance and reinsurance remain one of the main areas for the financial center of Luxembourg. In addition, Luxembourg serves as a base for several EU institutions, including the European Court in Luxembourg, the European Investment Bank and the European Stability Mechanism (ESM).

Although Brexit benefits his business, Hollis is not among the supporters of Britain's withdrawal from the EU.

"I think this is a completely wrong decision for the UK," he said. "They voted for it, so they have to deal with it."

On Friday, the UK and the European Union reached agreements that allow them to move to trade negotiations.

The second stage will be even more difficult and important than the first. German Chancellor Angela Merkel said that it would be much more difficult than the “divorce” procedure lasting the last eight months.

source: bloomberg.com






Science & Technology

Chinese Study Claims Heart Diseases Can Be Reduced By Having An Egg A Day

Asteroid mining: Reality or fiction?

3D Printing Used For Life Saving Kidney Transplant In Two Year Old At U.K. NHS

California to require solar panels for new homes by 2020

Blockchain Enables De Beers To Track Diamond From The Miner To The Retailer

Microsoft releases Windows 10’s April 2018 Update

DNA Sequencing Project Proposed For All Complex Life Forms On Earth By An Int’l Team

Facebook may start production of its own microprocessors

Long-Term Alcohol Monitoring Could Be Possible With A New Injectable Chip Developed By U.S. Researchers

Sweden Now Has The First Electrified Road In The World

World Politics

World & Politics

The British government is trying to unblock money to pay off the national debt

Ministerial Visit From India To North Korea Aimed At Strengthening Ties

What countries are the biggest losers of Trump’s Iran decision?

World's Oldest Elected Prime Minister Is Malaysia’s 92 Year Old Mahathir Mohamad

Why Is U.S. Pulling Out Of The Iran Deal A Big Deal For The World

Merkel, Macron, May call on Iran to adhere to the nuclear deal

Arab Region Driven In ‘Wrong Direction’ In Last 10 Years, Say Arab Your: Survey

German doctors demand a tax on sugar