“After three centuries, the Lloyds of London will no longer be â€œof London.â€ The company is moving its headquarters, its CEO Inga Beale confirmed on Friday.
Talking to Bloomberg TV on the sidelines of the World Economic Forum in Davos, Beale confirmed that following Prime Minister Mayâ€™s announcement last Tuesday, Lloyds was going ahead with its contingency plan.
Many insurance companies will be moving a big part of their operations, since passporting rights and licensing are key to the sectorsâ€™ business in Europe. Lloyds stands to lose as much as 11% of its premiums that come from Europe or little under 1bn Euros.”
See Lloyds of London are leaving LondonTrump can break trade deals and impose tariffs but businesses can relocate to continue enjoying free trade and avoiding tariffs. Trump urged UK to jump off a cliff with Brexit and now UK is reaping their own whirlwind.
What will be the blow to USA GDP and jobs? It’s a guess, but I would expect ~20% reduction sooner or later. 28% of USAian GDP depends on trade, so I could be a bit high but tariffs not only reduce trade but also reduce free cash-flow in the economy so there’s a multiplier effect. Of the hundreds of $billions in total trade via NAFTA, the trade deficit of the USA is a tiny percentage. Meanwhile millions of jobs depend on that trade. Trump will cut off workers’ noses to spite their faces. NAFTA increased trade threefold since inception. Trade is good for workers.
So, be warned USAians. You voted in a guy who had almost nothing to do with trade for his real estate business. Of course he has no qualms about fracturing trade. You told him you hated trade taking away your jobs after all… Now you will reap the whirlwind but the world will carry on with USA imposing sanctions on itself. We will thrive even if there are a few years of disruption as we build more seaports to get around USA.