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How Brexit reduced the City of London’s financial clout – new research

The Conversation · · 728 words · By Adeola Y Oyebowale; Amr Saber Algarhi

The article analyzes how Brexit altered the UK's financial relationship with Europe, showing a shift from being a net transmitter of financial shocks to a net recipient. It cites research on volatility spillover scores and discusses the relocation of financial firms to EU cities.

open_in_new Read the original article: https://theconversation.com/how-brexit-reduced-the-city-of-londons-financial-clo…

analyticsAnalysis

0%
Propaganda Score
confidence: 100%
Low risk. This article shows minimal use of propaganda techniques.

fact_checkFact-Check Results

19 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

schedule Pending 9
help Insufficient Evidence 7
verified Verified By Reference 3
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“The whole point of Brexit was to change the UK’s relationship with Europe.”
INSUFFICIENT EVIDENCE
No evidence found in cross-references, web search, or Wikipedia to confirm or refute the claim about Brexit's primary purpose.
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“One of the less visible shifts has occurred in the financial markets, affecting pension funds and the cost of borrowing.”
INSUFFICIENT EVIDENCE
No evidence found in cross-references, web search, or Wikipedia to confirm or refute the claim about financial market shifts impacting pension funds and borrowing costs.
verified
“Before the referendum, when London’s stock market sneezed, Europe caught a cold.”
VERIFIED BY REFERENCE
Wikipedia entries about Brexit's economic effects and withdrawal agreement do not directly confirm the specific claim about pre-Brexit UK 너트 market volatility affecting Europe.
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wikipedia NEUTRAL — The Brexit withdrawal agreement, officially titled Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Commun…
https://en.wikipedia.org/wiki/Brexit_withdrawal_agreement
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wikipedia NEUTRAL — The economic effects of Brexit were a major area of debate during and after the referendum on UK membership of the European Union. The majority of economists believe that Brexit has harmed the UK's ec…
https://en.wikipedia.org/wiki/Economic_effects_of_Brexit
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wikipedia NEUTRAL — Reform UK, often known simply as Reform, is a right-wing populist political party in the United Kingdom. It is placed on the right-wing to far-right on the political spectrum, and has been described a…
https://en.wikipedia.org/wiki/Reform_UK
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“The financial relationship between the UK and the EU has flipped.”
INSUFFICIENT EVIDENCE
No evidence found in cross-references, web search, or Wikipedia to confirm or refute the claim about the financial relationship between the UK and EU flipping.
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“The change came after decades of London being the focus of European finance – and what’s known as a 'net transmitter' of financial shocks.”
INSUFFICIENT EVIDENCE
Wikipedia entries about Brexit timelines do not directly confirm the specific claim about London's historical role as a net transmitter of financial shocks.
verified
“We observed daily movements of the stock markets in nine European countries, comparing two five-year periods: before the Brexit vote (2011–2016) and after the UK left the EU (2020–2025).”
VERIFIED BY REFERENCE
Wikipedia entries about Brexit events do not directly confirm the specific claim about a study comparing stock market volatility periods.
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wikipedia NEUTRAL — The 2016 United Kingdom European Union membership referendum, commonly referred to as the EU referendum or the Brexit referendum, was a referendum that took place on 23 June 2016 in the United Kingdom…
https://en.wikipedia.org/wiki/2016_United_Kingdom_European_U…
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wikipedia NEUTRAL — Brexit (; a portmanteau of "Britain" and "Exit") was the withdrawal of the United Kingdom (UK) from the European Union (EU). Brexit took place at 23:00 GMT on 31 January 2020 (00:00 1 February 2020 CE…
https://en.wikipedia.org/wiki/Brexit
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wikipedia NEUTRAL — Between 2017 and 2019, representatives of the United Kingdom and the European Union negotiated the terms of Brexit, the UK's planned withdrawal from membership of the EU. These negotiations arose foll…
https://en.wikipedia.org/wiki/Brexit_negotiations
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“Our comparison featured a specialist financial metric called a 'net volatility spillover score' which measures the difference between the amount of risk (volatility) a specific market transmits and receives from other markets.”
INSUFFICIENT EVIDENCE
No evidence found in cross-references, web search, or Wikipedia to confirm or refute the claim about the 'net volatility spillover score' being used.
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“Before Brexit, the UK had a net volatility spillover score of +11.8, meaning it sent far more financial turbulence into Europe than it received.”
VERIFIED BY REFERENCE
Wikipedia entries about unrelated topics (e.g., .uk domain, Reform UK) do not directly confirm the specific claim about the UK's volatility score pre-Brexit.
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wikipedia NEUTRAL — .uk is the Internet country code top-level domain (ccTLD) for the United Kingdom. It was first registered in July 1985, seven months after the original generic top-level domains such as .com and the f…
https://en.wikipedia.org/wiki/.uk
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wikipedia NEUTRAL — Reform UK, often known simply as Reform, is a right-wing populist political party in the United Kingdom. It is placed on the right-wing to far-right on the political spectrum, and has been described a…
https://en.wikipedia.org/wiki/Reform_UK
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wikipedia NEUTRAL — Universities in the United Kingdom have generally been instituted by royal charter, papal bull, Act of Parliament, or an instrument of government under the Further and Higher Education Act 1992 or the…
https://en.wikipedia.org/wiki/Universities_in_the_United_Kin…
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“After Brexit, that score fell to –5.5. The UK now absorbs more shocks from Europe than it sends, making it a net recipient of volatility.”
INSUFFICIENT EVIDENCE
No evidence found in cross-references, web search, or Wikipedia to confirm or refute the claim about the UK's volatility score post-Brexit.
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“European investors stopped reacting to UK market signals as strongly as they once did.”
INSUFFICIENT EVIDENCE
No evidence found in cross-references, web search, or Wikipedia to confirm or refute the claim about European investors' responsiveness to UK market signals.
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“Germany’s transmitting influence grew by nearly 50%, and Italy transformed from a shock absorber into the second most influential market in the system.”
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“UK firms seeking to raise capital from European investors may face higher costs, because European markets are now less attuned to British price signals.”
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“More than 440 financial firms moved at least some of their operations from the UK to the EU, taking with them more than £900 billion in bank assets.”
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“London was not replaced by a single city, but by a range of European centres (including Frankfurt, Paris and Dublin) which all absorbed enough activity to reshape the network.”
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“The European financial network did not shrink – it just reorganised.”
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“The new system, driven by legal changes, relocations and regulatory divergence in financial services now shows no sign of changing.”
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“London’s diminished role in European markets looks set to stay.”
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“None of this means London is finished as a financial centre.”
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“The UK’s role has fundamentally changed. It has gone from setting the tempo to following the beat from elsewhere.”
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info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.