Wealth managers seeking new bases from which to serve European clients have landed on Luxembourg, with the Grand Duchy seen as a natural successor to London.

The UK economy is yet to feel the worst impacts of Britain’s divorce from the European Union, senior business leaders said, in spite of Prime Minister Rishi Sunak’s recent efforts to smooth relations with the bloc.

Citigroup Inc. is preparing to shift more business into the European Union on the back of fresh guidance from regulators this week, a top banker in the region said.

Trade body Make UK adds to pressure on Rishi Sunak as it calls for reset of relationships with Europe. / Business leaders say frayed relations with the EU are costing the British economy, as suppliers in the bloc grow more cautious about doing business with post-Brexit Britain.

The French capital will become a focus for the bank as it tries to recruit dozens of fresh staff.

The UK will be stuck with searing inflation for years because of Brexit, according to strategists at Wall Street’s top banks.

The new head of its European trading hub in Paris will expand the operation after Brexit. / Citigroup is expanding its trading hub in Paris, the latest sign of US investment banks stepping up their presence in the French capital after Brexit.

Businesses are stockpiling goods or looking elsewhere amid the threat of a no-deal Brexit.

Major banks are preparing to shift parts of their operations away from London as Theresa May is set to trigger Article 50.