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Brexit gloom deepens for UK banks

Monday, January 23, 2017 - 01:30

Optimism about the business environment for Britain's financial services firms fell for a fourth consecutive quarter, according to a survey, the longest decline since the global financial crisis. Ciara Lee reports

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More bad news for the UK's banking sector and its post-Brexit future. Sources say Morgan Stanley, which bases the bulk of its European staff in Britain, could move up to 1000 jobs out of Britain. And its US-rival Citigroup, which already has a large unit in Dublin, may shift 100 positions. Leading financial firms warned for months before last June's referendum that there would be fallout in the event of a leave vote. HSBC and UBS said last week they could each move about 1,000 jobs out of London. SOUNDBITE (English) CHRIS BEAUCHAMP, SENIOR MARKET ANALYST, IG, SAYING: "Questions arise over where they would go. Clearly Frankfurt has some issues with its financial interconnectivity with the rest of the world. There's questions over Paris and the tax regime. Dublin is fairly small in that sense. So I wouldn't like to say there is nowhere else for them to go, but I certainly think it will be a lot more difficult that people suggest." Prime Minister Theresa May has shed more light on Brexit plans, including leaving the European single market. Banks had hoped to retain "passporting" rights that let them sell their services across the EU out of their London hubs. It comes as optimism about the business environment in Britain's financial services has fallen for a fourth consecutive quarter. A survey by lobby group CBI and consultancy PwC suggests the banking sector is particularly pessimistic. 90 percent surveyed said preparing for the impact of Brexit is now their top challenge. ///

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Brexit gloom deepens for UK banks

Monday, January 23, 2017 - 01:30