Business

May tells bankers they’re a precedence for Brexit amid job warnings

LONDON (Reuters) – British Prime Minister Theresa May instructed bankers from corporations resembling Goldman Sachs on Thursday they have been a precedence for her within the Brexit talks, simply as new warnings emerged of job losses within the London monetary sector until there’s a commerce deal.

Britain’s Prime Minister Theresa May leaves 10 Downing Street in London, January 10, 2018 REUTERS/Peter Nicholls

May’s feedback distinction sharply together with her stance earlier than final 12 months’s election when she made some extent of displaying voters she wished to interrupt with what some thought of an excessively cosy relationship between massive business and the government.

“It was an encouraging, positive meeting,” a banker briefed on the talks stated. “The whole point of the meeting was to say to us, look we know you feel we haven’t prioritised you so far in the negotiations, but we will.”

Last 12 months, bankers complained that they weren’t being listened to by May’s government as Britain ready to go away the European Union, which is because of occur in March 2019.

As May plots Britain’s course for Brexit, London’s huge monetary providers business is scrambling to organize for dropping entry to the world’s greatest buying and selling bloc, the City of London’s greatest problem since a minimum of the 2007-2009 monetary disaster.

May met in Downing Street with a few of Europe’s strongest financiers together with Mark Tucker, the HSBC (HSBA.L) chairman, Axel Weber, the UBS (UBSG.S) chairman, and Richard Gnodde, chief govt of Goldman Sachs International (GS.N).

The assembly centered on Brexit, how you can make Britain a extra enticing place for monetary providers and how you can rein in govt pay, three individuals briefed on the talks stated.

Barclays (BARC.L) chief govt Jes Staley instructed May that Britain’s tax regime is uncompetitive and extra might be performed to make it extra enticing, sources stated.

A spokesman for May stated the executives requested for extra readability on the longer term relationship between Britain and EU and the prime minister requested them to stress the good thing about preserving London’s place as Europe’ monetary centre.

“LOST DECADE”

FILE PHOTO – Office blocks of Citi, Barclays, and HSBC banks are seen at nightfall within the Canary Wharf monetary district in London, Britain November 16, 2017. REUTERS/Toby Melville

The assembly got here after London Mayor Sadiq Khan warned that Britain could be shunted right into a “lost decade” of low funding and shed nearly 500,000 jobs if it fails to agree a commerce cope with the EU.

Khan cited analysis from the Cambridge Econometrics consultancy which confirmed that in a no-deal situation, the business that fares the worst will likely be monetary providers, with as many as 119,000 fewer jobs nationwide.

Hours earlier recruitment agency Morgan McKinley stated Brexit was the primary cause for a 37 % drop in new jobs out there in London’s monetary sector final month.

London vies with New York because the world’s monetary capital. By far the most important EU monetary centre, London dominates the $5.1-trillion-a-day global international change market and hosts extra banks than another centre.

But different EU capitals see Brexit as a possibility to seize business from London. The EU has already proposed that clearing of euro-denominated derivatives, performed primarily in London, might transfer to the euro zone with out a complete Brexit deal.

A stand-off between Britain and the EU over future entry to the one market for London’s monetary providers business is shaping as much as be one of many key Brexit battlegrounds earlier than Britain is because of depart the bloc in March 2019.

A FAREWELL TO LONDON?

Many banks, insurers and different monetary corporations are enacting contingency plans to shift components of their European operations to the continent as a result of they’re prone to lose the appropriate to promote their merchandise freely inside the bloc from London.

Bloomberg reported that Germany would demand Britain pay for monetary corporations to have entry to the EU market after Brexit, although EU officers stated Britain wouldn’t be capable to cherry choose its post-Brexit relationship.

A spokesman for May on Thursday stated Britain is not going to pay for market entry.

Reporting By Andrew MacAskill and Anjuli Davies. Additional reporting by Lawrence White, Huw Jones and Carolyn Cohn.; enhancing by Guy Faulconbridge/Jeremy Gaunt

Our Standards:The Thomson Reuters Trust Principles.

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