This week, the EU and the UK started negotiations in Brexit’s next bruising chapter, laying down tough red lines for a post-divorce future following Britain’s withdrawal from the bloc. Michel Barnier, the EU’s chief Brexit negotiator, and his UK counterpart David Frost will hold a news conference in Brussels today to wrap up the first round of trade talks. Brussels insists on maintaining its current fishing rights in British waters and wants London to agree to a number of EU regulations, including environmental standards, workers’ rights and state aid rules – something Boris Johnson pledged not to do.

Moreover, according to a recent Spectator report by John Keiger – a former professor at the University of Cambridge – there is another thing French President Emmanuel Macron is actively working towards in the trade talks.

Mr Keiger claimed that for France, Brexit is the best opportunity to dethrone London as the continent’s banker.

The report reads: “According to the widely respected Z/Yen ‘Global Financial Centres Index’, New York is the most competitive financial centre in the world, followed by London in second place.

“But, on current trends, Paris and China’s financial centres are on track to overtake London by 2021.

“The post-Brexit negotiations are Paris’s opportunity to dethrone London.

“It has already snapped up the European Banking Authority from London and Macron manoeuvred France’s former finance minister Christine Lagarde into her seat at the head of the ECB.”

However, in an interview with Express.co.uk, Lord David Owen explained why Mr Macron’s plans could easily be scuppered by a UK-US trade deal – which Britain hopes to strike by 2020.

The former Foreign Secretary and SDP co-founder argued that if the City of London and New York become interconnected following a comprehensive agreement, there is no chance Frankfurt or Paris will attract more business.

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He said: “If New York is linked to London, and they have all that clout and authority.

“They will be able to put in cheaper things.

“Now, they have already put people in some other European countries because of Brexit, but unless they want to put up barriers, their industry is going to start saying: ‘I am sorry, I am getting an offer from JP Morgan London that is significantly lower over a ten year period investment. I can’t afford to not give it a go.’

“The City of London is very adaptable and it will have to compete. They are going to have to start cutting their costs and their bids will be lower.

“If they are closer to America, they can then pull in all that finance.

“In most of these big deals, money goes where the cheapest thing is. They don’t care about boundaries. Business doesn’t.”

Lord Owen added: “I don’t think myself we should underestimate the City of London getting closer to American city financing, allowing us the flexibility to underbid.

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“Been told by a politician you have to use Frankfurt or Paris is nonsense. Unless they want to go to a completely regimented, protectionist system, those people will not go. They will not get the investment.”

This week, International Trade Secretary Liz Truss published the country’s five negotiating aims for a UK-US trade deal.

The 180-page document pledges to protect the NHS, maintain food standards, lower import taxes, or tariffs, on many UK exports – and increase trade in services.

It estimates that a deal with the US could boost transatlantic trade by some £15.3billion, and add £3.4billion to the UK economy.

Talks are expected to begin on Monday.

The discussions will take place in both the UK and US and be overseen by the Government’s chief negotiation adviser Crawford Falconer – formerly New Zealand’s chief negotiator and ambassador to the World Trade Organisation.

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