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"Insurance is another sector that’s European activity is highly concentrated in London and where Brexit may hurt. But the UK’s main competitors are in Asia (Singapore and Tokyo) and the US. The access that London has to EUropean money is based on proximity and historic relationships, not on being part of the EU. In short, even in insurance markets it is hard to see a rapid shift away from the City of London."

If yes, why can it be used that way?

source: http://www.businessinsider.com/this-is-why-london-wont-lose-its-crown-as-europes-financial-capital-2016-8

closed as off-topic by P. E. Dant, Em., Glorfindel, Brian Tompsett - 汤莱恩, Chenmunka Sep 3 '16 at 17:43

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    Ungrammatical. Either "sector whose European activity is" or " ...sector, the European activity of which is ..." – Tᴚoɯɐuo Sep 1 '16 at 11:10
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    To me, "Insurance is another sector in which European activity..." sounds better. – G-Cam Sep 1 '16 at 12:34
  • This is just a typographical error. The writer probably wrote Insurance is another sector that’s highly concentrated, then began editing the article, added "European activity" and then didn't bother to finish his edit before submitting the article. – P. E. Dant Sep 3 '16 at 4:30
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    I'm voting to close this question as off-topic because the usage is just a failure of proofreading by the author. – P. E. Dant Sep 3 '16 at 4:31
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    Hmmm. The author is Simeon Djankov. He's Bulgarian, and it's not unlikely that he is trying to apply the Saxon genitive to that. In that case, it would be whose! – P. E. Dant Sep 3 '16 at 4:43
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This is just a mistake. The word "that's" is a contraction for either "that is" or "that has", which is clearly incorrect here.

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    Please explain why this is incorrect. Many of our users are learners and so they might not find it "clear". Also, that's can also be a contraction for that has. – Em. Sep 3 '16 at 4:15
  • Anyone whose question was whether "that's" was correct in this context would understand that "Insurance is another sector that [is/has] European activity is highly concentrated..." is incorrect. – David Schwartz Sep 3 '16 at 6:48

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