London post-brexit as a financial center

Discussion in 'Wall St. News' started by TraDaToR, Dec 12, 2018.

  1. schweiz

    schweiz

    https://www.straitstimes.com/business/property/goldman-sachs-sells-london-hq-for-2b

    Yet telecoms giant BT and financial services firms KPMG, Lloyds Banking Group and now Goldman are cashing out. All have announced or completed sale and leasebacks in the past two years. The risk is these presage a repeat of what happened a decade ago.


    During the peak years of the financial crisis, 2007 to 2009, UK commercial property prices fell over 40 per cent. Firms such as Tesco, HSBC and BBVA sold off their bricks and mortar, raising more than US$3 billion (S$4 billion) via sale and leasebacks.

    HSBC's May 2007 deal to offload its London headquarters to Spanish property firm Metrovacesa raised £1.1 billion and implied a rental yield under 4 per cent.

    Goldman's 2018 deal has been struck at a similar yield, according to a person familiar with the situation. That is below historic averages and a sign that the market has got toppy.

    Given the risks to the City from a no-deal Brexit, Goldman's approach is reasonable.

    The United Kingdom government warned last Thursday that banks like Goldman could not rely on being able to do the same level of European banking business from London. Hence CEO Lloyd Blankfein will need flexibility to move staff to the continent.

    The fine print of the Goldman sale allows for this. Although the bank signed a lengthy 25-year lease with a 20-year break clause, its ability to sublet the building to other tenants will allow it to shrink its London workforce.
     
    #131     Dec 17, 2018
  2. Visaria

    Visaria

    You quoted a number from a guy who quoted a number to make your point so essentially it's your quote too. Btw Mr Rolet is no longer CEO of the LSE. He pulled his quote from his arse i would imagine since there is a slight discrepancy between 230k and 630 !

    As for Goldman they are free to do whatever they want in terms of where they place staff. Move em to Paris where they can hang out with the Yellow Jacket guys lol or maybe to Frankfurt where they will die of boredom. Either way i dont care.

    Funny thing is that they are free to leave the UK without penalty but we as a nation are having problems in leaving the shithole called the EU.
     
    #132     Dec 18, 2018
  3. d08

    d08

    UK alone is quite insignificant globally speaking, even more so without the banking sector. Not many Brits seem to acknowledge this. EU as a whole in negotiations is very powerful and you can get better results having more power.

    JSOP, I'm curious where all the Japanese-owned car manufacturers will export their products from now on? US has it's own factories (+Trump's agenda), EU exports will face extra taxes. In case you don't know, the vast majority of the UK made Toyotas, Hondas, Nissans are for export to the EU. Overnight all the German cars made in Germany, Slovakia etc. will be much more competitive. The only logical conclusion is to close the factories. Something tells me you don't concern yourself with details, you just yell "long live Britannia!" and that's that. That's not a plan.
     
    #133     Dec 18, 2018
    schweiz likes this.
  4. Visaria

    Visaria

    Have u taken into account the exchange rate and the probability of lower taxes in the Uk post brexit vis a vis the EU?
     
    #134     Dec 18, 2018
  5. d08

    d08

    What lower taxes? The amount going to EU is relatively small. UK pays $250 mln to EU weekly, so that's less than £4 per person per week. What major spending sprees are you expecting with £16 per month extra? People will have a pint with fish and chips extra every week, that's the plan to save the economy?
    Very low GBP will also screw the people, I get that it's literally an island but it's not an island economically. I'm surprised I had to mention that.

    I should mention that I'm anti-EU for the most part but I cannot just ignore the hard facts in the case of UK.
     
    #135     Dec 18, 2018
  6. Visaria

    Visaria

    My points re trade are that we are decreasing the amount of trade we do with the EU and as lovely as friction less trading is, it is not worth enough to the UK to oncur the costs (both economic and social) that i have already mentioned.

    You are correct in that trade benefits both parties even if one has a surplus. Im guessing thats what u r saying with your statement on fixed pies. However other costs have to be taken into account to see whether it makes sense or not. The UK people have decided it does not and hence our decision to leave.

    Note that it doesnt seem to benefit the EU either otherwise they would agree to a better deal than is currently proposed.
     
    #136     Dec 18, 2018
  7. Visaria

    Visaria

    Lower corporate taxes and other incentives for companies to set up here.

    10 billion a year is a steep price for membership.
     
    #137     Dec 18, 2018
  8. schweiz

    schweiz

    2018-12-18 11_09_19-Britain and the EU_ A long and rocky relationship - BBC News.jpg

    ROFLMAO. Just to show that you say a lot of nonsense. She said YES to EU!!!
     
    #138     Dec 18, 2018
    d08 likes this.
  9. schweiz

    schweiz

    Don't just copy nonsense from other sources. First try to understand global economy.
    It is not 10 billion, it is even less then 9 billion from which we should still substract all economical benefits. 1,5 billion already of scientific research.

    If the UK will leave we will at least not miss your "intelligence". The average IQ of the EU population will raise after the UK left (not sure if you understand what I mean unfortunatelly).

    PS: lower taxes and new incentives will add additional costs.
     
    #139     Dec 18, 2018
  10. d08

    d08

    I dissected what the 10 billion actually means to each person. You're saying the number without any context. You're going for an emotional response here, not practical.

    What does EU have to do with corporate taxes? There are EU countries that have low or non-existent corporate taxes. UK has had years to do this. Tax breaks for corporations also mean lower tax revenue, that means cut services.
     
    #140     Dec 18, 2018