Brussels performs another smash and grab on the UK
Despite the fact that EU regulations regarding hedge funds and private equity companies have been introduced on a European bases there is no doubt that MPs in Brussels were looking to rein in the power of the London financial arena. This is just the latest in a long line of new regulations which are "aimed at Europe" but coincidently reduce the power of London and its competitiveness on the world wide financial scene.
The risk which the Brussels MPs take is that by weakening London, and attempting to spread the power across Europe, the general competitiveness of the European investment markets will fall as a whole. This could open more doors for the likes of the US and Asian markets which have been looking to take on London for some time and have now been given the perfect opportunity. Quite why the European Union did not use London as the flag bearer of the European financial arena, using its power to open new doors, is puzzling but the damage has already been done and the European investment arena will be changing dramatically in the weeks, months and years ahead.
We are now seeing the consequences of transferring power to the European Union in relation to various vital elements of the UK economy, i.e. financial services!
Share this..
Related stories
HSBC announces £12.5 billion rights issue
One of the strongest banking companies in the world, HSBC, has today been forced to go cap in hand to investors for an additional £12.5 billion after announcing a rights issue. The heavily discounted rights issue is vital to enable the other company to increase its Tier 1 capital ratio after taking a severe hit from its US operations. However, unlike Royal Bank of Scotland which had been criticis...
Read MoreLondon Stock Exchange to take a controlling share in rival
The London Stock Exchange is believed to be on the verge of announcing a deal which would see the company take a 60% stake in loss-making trading platform rival Turquoise. The London Stock Exchange has been in talks with its rival since October and many believe it is on the verge of injecting up to £20 million into the operation in exchange for 60% of the business. This is quite a clever move...
Read MoreIs Japan Airlines on the verge of bankruptcy?
Shares in Japan Airlines fell by 45% today as speculation intensifies regarding a potential bankruptcy petition from the company. This comes despite the fact that American Airlines has increased its offer of investment from $1 billion to $1.3 billion and other potential investors are waiting on the sidelines. It was also announced that company's employees have agreed to a reduction in pension payo...
Read MoreHenry Paulson in talks with US banks
Henry Paulson has emerged from his bunker to begin talks with the massive array of US banks as details of the $700 billion recapitalisation of the US financial system begin to emerge. While the UK market had its own day in the sun with an 8% rise it was the US market which took the lead with an 11% rise of just under 1,000 points!
Slowly but surely we are seeing an increased accept...
FTSE 100 closes under 4000 level as concerns mount
The FTSE 100 index today closed down just over 100 points at 3990.86 amid concerns of a possible stalling of the UK recovery and depressing news from America. As we touched on in one of our earlier post, the Bank of America released figures which on the surface seemed fairly upbeat only for one-off gains and a substantial increase in debt provisions to take the gloss off the announcement. The rath...
Read More