Also Read | Covid curve slumping across IndiaThis doesn’t depend on the trade deal currently under negotiation.
Hopes of a positive outcome have buoyed sterling this week, and an agreement is crucial for goods industries with complex supply chains, such as autos and food.
But a deal that preserves anything like the status quo in financial services isn’t on the table.That means U.K.-based financial institutions will lose their “passports" to transact freely in the EU on Dec.
31, while EU companies won’t be able to deal as freely in London. The change will fragment liquidity and add cost and complexity for all manner of operations that in recent decades have settled in London.Among the few beneficiaries will likely be U.S.