Last year England voted to leave the European Union, which as a country is has the right to do. It has taken a little while before the reality is beginning to set in, London is one of the banking centers of the world including Europe. The other cities have banking operations but London had an advantage in terms of language (English tends to be the international trading language); reasonably stable governments  and good life style for the bankers.

Within the rules of European Union was all companies had similar access to the other countries rules or a seemingly passport to sell financial services to the others. With Britain leaving the European Union the passport will be revoked. Thus those traders will have move to an European Union country to continue the business. It was reported by Pamela Barbaglia of Reuters at the annual economic forum in Davos, Switzerland, the CEOs of HSBC and UBS and since then Citibank and Morgan Stanley have announced they are moving people from London to another city, unless Britain can negotiate the status quo. HSBC is looking at Paris, other companies are looking at Frankfurt. Every other city in the European Union are lobbying for any of the other jobs the banks provided – either front end or support services. There will be office space for rent in London as well as other changes as the years go by.

Linking to dividend paying stocks, all democratic countries are allow to turn inward or go outward as their citizens choose. In England, the country decided to be independent, as soon it will be facing more consequences with the change. Some will be good, some will be bad depending on your point of view. With President Trump’s speech he is going to focus on what is good for the US, rather than what is good for the US in the worldwide context. It will have an effect if your company has operations outside the US. The more the US tightens its borders and regulations concerning the borders, the less the diversification of business to over countries will be a good thing. Time will tell.

There are more questions than answers, till the next time – to raising questions.