PARIS, June 28 (Reuters) – President Emmanuel Macron will declare on Tuesday that Paris is back on the global finance map by inaugurating JPMorgan’s new commercial hub in the French capital which he hopes will attract more bankers leaving Britain after Brexit.
The CEO of the American bank, Jamie Dimon, will be one of some 120 international CEOs who will travel to Versailles on Monday for Macron’s now traditional “Choose France” summit during which he presents France as an investment destination.
The next day, Dimon and Macron will visit JPMorgan’s new hub in central Paris, a stone’s throw from the Louvre, where around 440 employees will be based, many of whom have moved from London.
Macron’s advisers say this speaks to the appeal of pro-business reforms France has implemented since the former investment banker was elected in 2017.
JPMorgan’s new trading room is the latest real-life example of how Brexit has changed the European financial landscape since January.
Paris is at the forefront of attempts to relocate euro derivative clearing from London to the EU after Britain’s ‘Big Bang’ liberalization of financial rules in the 1980s drained financial capital of this activity and staff.
Global banks like JPMorgan have long used London as a gateway to the EU, but with Brexit largely separating Britain from the bloc’s financial market, banks have spent millions of dollars at hubs in Paris, Frankfurt and elsewhere in the block to avoid disturbances.
EY has calculated that more than 7,500 financial jobs and $ 1.3 trillion in assets have been moved from London to the EU.
After these early moves, financial firms are now deciding whether there is enough business in London and the EU for two operations to be profitable.
âWe may reach a tipping point many years from now when it might make sense to move all functions that serve Europe from the UK to mainland Europe,â Dimon told shareholders in a letter this year.
Think tank New Financial said in a report in May that Paris had attracted 102 of the 440 UK companies that have opened units in the EU, just behind the 135 in Dublin.
Officials say past tax measures have helped create 3,000 new finance jobs in Paris since Brexit and that no new benefits are expected this week when Macron courts executives at the Palace of Versailles.
“London had everything. Our ambition is for Paris to have everything too,” a Macron adviser told reporters.
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Reporting by Michel Rose and Gwenaelle Barzic in Paris and Huw Jones in London; edited by ClÃ©lia Oziel
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