Showing posts with label BREXIT. Show all posts
Showing posts with label BREXIT. Show all posts

Wednesday, 7 March 2018

Goldman puts London staff on notice for German move over Brexit stalemate

Goldman Sachs

Goldman Sachs has put more than a dozen UK-based banking, sales and trading staff on notice to move to Frankfurt within weeks, two sources with knowledge of the matter said, as it braces for divorce between Britain and the European Union.

After months of patience and private lobbying, the US investment bank has decided it can no longer wait for clarity from lawmakers on how its business might be impacted by Britain's imminent exit from the trading bloc and is taking the steps to minimise disruption to clients.

It has informed members of its London-based derivatives and debt capital markets teams working on German accounts that their activities will be relocated to its base in Frankfurt and to make the necessary preparations to move to those offices by end-June, the two sources told Reuters.

Several members of those teams have already negotiated and signed new German employment contracts in advance of the move, one of the sources added.

Goldman declined to comment.

Sunday, 26 November 2017

Not end of the world if Brexit is not followed by EU trade deal: WTO chief

Brexit without EU trade deal 'not end of world': WTO chief

The head of the World Trade Organisation (WTO) on Sunday said it would not be "the end of the world" if Britain failed to reach a post-Brexit trade deal with the EU, but there would be costs.

Roberto Azevedo told the Sunday Telegraph newspaper that although Britain would be better off with an agreement, the impact of falling back on WTO rules would be "manageable".

"About half of the UK's trade is already on WTO terms -- with the US, China and several large emerging nations where the EU doesn't have trade agreements," he said.

"So it's not the end of the world if the UK trades under WTO rules with the EU."

Britain intends to leave the EU's single market and customs union when it withdraws from the bloc in March 2019, but hopes to reach a free trade agreement (FTA) with Brussels before then.

However, trade talks have yet to formally start, and without a deal, bilateral trade would likely be subject to higher WTO tariffs as well as other barriers such as increased red tape.

"If you don't have a fully functioning FTA with the EU, there could be rigidities and costs -- but it's not like trade between the UK and EU is going to stop," Azevedo said.

Wednesday, 22 November 2017

Theresa May govt sets aside extra 3 billion pounds for Brexit

Britain's Prime Minister Theresa May. (File Photo: Reuters)

The UK government today announced that it is setting aside an extra 3 billion pounds over the next two years in preparation for Britain's exit from the European Union (EU) after last year's referendum in favour of Brexit.

In his much-anticipated Budget speech, UK Chancellor Philip Hammond was cheered in the House of Commons as he announced that the government will stand ready to allocate further sums in preparation for "every possible outcome" in the tough Brexit negotiations with Brussels.

"While we work to achieve this deep and special partnership [with the EU] we are determined to make sure the country is prepared for every possible outcome," Hammond said.

"We have already invested almost 700 million pounds in Brexit preparations and today I am setting aside over the next two years another 3 billion pounds and I stand ready to allocate further sums if and when needed. No one should doubt our resolve," he said.

The finance minister designed his Budget as a vision for a "Global Britain" after Brexit, which will have a "prosperous and inclusive economy where everybody has the opportunity to shine wherever in the UK they live, whatever their background".
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Thursday, 9 November 2017

Brexit supporter Penny Mordaunt replaces Priti Patel as UK aid secretary

Penny Mordaunt

Penny Mordaunt has been appointed as the new International Development Secretary after Priti Patel resigned over unofficial meetings with the Israeli ministers and businessmen.

"I'm delighted to have been appointed by the Prime Minister to be the new Secretary of State for International Development," the Independent quoted Mordaunt as saying.

"I'm looking forward to working with the team here to continue building a safer, more secure, more prosperous world for us all and really giving the British public pride in what we do," she added.
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Wednesday, 1 November 2017

Brexit to cost UK 10,000 finance jobs on day-1, 75,000 in all: BoE governor

Brexit

Job losses totalling 75,000 in and because of are "plausible", Bank of England Deputy Governor said on Wednesday.
Woods told British lawmakers that the 65,000 to 75,000 estimate was drawn up by consultants Oliver Wyman and not the of England, but that it was within a "plausible range of scenarios".
Woods also told a House of Lords committee that it was reasonable to expect that the UK financial sector will have lost about 10,000 jobs on "day one" of when leaves the European Union in March 2019.
"It's a moving feast," Woods said.

Tuesday, 31 October 2017

The dangerous trend threatening the future of the nation-state

Donald Trump

When the historian Arthur Schlesinger, Jr., published his bestseller The Disuniting of America in 1991, he didn’t seriously entertain the worst-case scenario suggested by the title. At the time, the Soviet Union and Yugoslavia were imploding, while separatist movements in Quebec, East Timor, Spain’s Basque country, and elsewhere were already clamouring for their own states.

But when it came to the United States, Schlesinger’s worries were principally focused on the far smaller battlefield of the American classroom and what he saw as multiculturalism’s threat to the mythic “melting pot.” Although he took those teacup tempests seriously, the worst future Schlesinger could imagine was what he called the “tribalization of American life.” He didn’t contemplate the actual dismemberment of the country.

Today, controversies over hate speech and gender politics continue to roil American campuses. These, however, are probably the least important conflicts in the country right now, considering the almost daily evidence of disintegrative pressures of every sort: demonstrations by white supremacists, mass shootings and police killings, the current dismantling of the federal government. Not to speak of the way cities and states are defying Washington’s dictates on immigration, the environment, and health care. The nation’s motto of e pluribus unum — out of many, one —is in serious danger of being turned inside out.

A country that hasn’t had a civil war in more than 150 years, where secessionist movements from Texas to Vermont have generally caused merriment rather than concern, now faces divisions so serious and a civilian arsenal of weapons so huge, that the possibility of national disintegration has become part of mainstream conversation. Indeed, after the 2016 elections, predicting a second civil war in the United States — a real, bloody, no-holds-barred military conflict — has become all the rage among journalists, historians, and foreign policy pundits across the political spectrum.
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Tuesday, 17 October 2017

UK hate crimes surge on Brexit, terror attacks

brexit, UK, Britain, EU

The UK has registered a 29 per cent surge in hate crimes in the wake of Brexit and terrorist attacks in the country, according to new Home Office figures released today.

There were 80,393 offences in 2016-17, compared with 62,518 in 2015-16, the largest increase since the UK Home Office began recording figures in 2011-12.

The number of hate crime incidents recorded by British police forces reached a record monthly level of 6,000 incidents in June this year.

This peak was higher than the previous monthly peak of 5,500 in July 2016, seen in the aftermath of the referendum in favour of Briatain's exit or 'Brexit' from the European Union (EU).

"The increase over the last year is thought to reflect both a genuine rise in hate crime around the time of the EU referendum and following the Westminster Bridge terrorist attack (March 2017), as well as ongoing improvements in crime reporting by police," the Home Office report noted.

The crimes continued to rise after the Westminster Bridge attack on the Houses of Parliament when terror suspect Khalid Masood rammed a car into pedestrians and stabbed a policeman on duty at the Parliament gates, followed by the Manchester suicide bombing in May and terror attacks in London in June.

Sunday, 15 October 2017

Brexit a 'very big disadvantage' for UK, says Hillary Clinton

Hillary Clinton

Hillary Clinton said Brexit would put Britain at a "very big disadvantage" and force companies to move resources to continental Europe, in an interview aired today.

Britain leaving the European Union could cause serious disruption for the country as it tries to reorder its trading relationships, she told BBC television.

"I think it would be a very big disadvantage to Britain," said Clinton, the Democratic Party candidate who lost to Donald Trump in last year's US presidential election.

"No deal meaning no preferential trade deals, which means products in Britain would not have the kind of easy access to the European market that you've had under EU membership.

"It could very well mean that there would be more pressure on businesses in Britain, if not to leave completely, at least (to) also have sites and employment elsewhere in Europe.

"The disruption for Britain could be quite serious," the former US secretary of state said.
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Monday, 9 October 2017

Brexit talks stutter, but EU leaders might give Theresa May a break

Theresa May

European Union (EU) negotiators see no big breakthrough in a new round of Brexit talks from Monday nor when Theresa May attends a summit next week, yet leaders could offer the beleaguered British prime minister a hand, EU officials believe.

Talks which began on Monday in Brussels have a thin schedule - British Brexit Secretary David Davis is to meet EU negotiator Michel Barnier on Tuesday and again on Thursday. But Wednesday is blank on the timetable and officials will not touch on the knottiest outstanding problem - how much Britain pays the EU.
That all but rules out "miracles" on key divorce issues that Barnier's boss says are needed for May's 27 fellow EU leaders to agree to open the talks she wants on a post-Brexit free trade pact when they all meet in Brussels next Thursday and Friday.

The prime minister revived an increasingly sour dialogue two weeks ago by offering concessions in a speech in Florence. But talks that followed left big gaps on three core issues on which the EU demands "significant progress" before Barnier can so much as mention what happens after Britain leaves in 18 months time.

Yet such is the opposition to compromise that May faces within her own party that many EU diplomats think leaders could give her some hope at the summit to help her face down calls for Britain to simply walk out without a deal - an eventuality that the Europeans are nonetheless preparing for.
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Saturday, 7 October 2017

Theresa May to meet business chiefs on Brexit

Britain's Prime Minister Theresa May prepares her speech that she will deliver Wednesday at the Conservative party conference, at the Manchester Central Convention Complex in Manchester, England. (Photo: AP| PTI)

British Prime Minister Theresa May is to meet business chiefs on Monday in a bid to reassure them that the Brexit process is on track, following a bruising week for her leadership.

A plot to oust her by around 30 MPs in her Conservative Party went public yesterday, but cabinet colleagues refused to join the push.

The plot came after her showpiece speech to the centre- right party's annual conference on Wednesday -- intended to steady her leadership -- was plagued by mishaps.

A prankster managed to hand her an unemployment notice, a persistent cough left her almost unable to deliver her speech, while the set behind her started falling down.

Monday's business meeting at May's Downing Street office will come as British and European Union negotiators resume talks in Brussels in the hope of a breakthrough in the Brexit negotiations.

Tuesday, 3 October 2017

Uber CEO Khosrowshahi to meet London transport chief in bid to keep licence

Dara Khosrowshahi

Uber's new global boss Dara Khosrowshahi will meet London's transport regulator on Tuesday as the taxi hailing app fights to keep its licence in one of its most important foreign markets.

Transport for London (TfL), which runs and regulates the capital's transport system, shocked Uber last month by deeming it unfit to run a taxi service and refusing to renew its licence.

TfL cited the firm's approach to reporting serious criminal offences and background checks on drivers.

Reuters reported on Monday that Uber's top boss in Britain, Jo Bertram, would be quitting in the next few weeks to take up an undisclosed new role outside the company.

Uber's British management has been criticised by London Mayor Sadiq Khan, who is also chairman of TfL. Khan said the firm needed to spend less time hiring "an army of PR experts and an army of lawyers" and instead address issues raised by TfL.

Khan, a centre-left politician from Britain's opposition Labour Party, approved Tuesday's meeting between Khosrowshahi and TfL Commissioner Mike Brown, who is in charge of TfL's day-to-day operations.
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Monday, 18 September 2017

10,000 finance jobs in UK affected in first Brexit wave, reveals survey

Job seekers, Job Fair, Amazon Jobs Day, US

Around 10,000 finance jobs will be shifted out of Britain or created overseas in the next few years if the UK is denied access to Europe’s single market, according to a Reuters survey of firms employing the bulk of workers in international finance.

Frankfurt was by far the most popular destination for the new roles, the survey showed, with Paris a distant second.

The results from 123 firms came from the first comprehensive public survey to ask the biggest banks, insurers, asset managers, private equity firms and exchanges in Britain about the specific details of their plans so far in case of a so-called “hard” Brexit.

Canvassing was conducted by email and telephone interviews between Aug. 21 and Sept. 15, weeks after companies submitted detailed plans on their Brexit preparations to the Bank of England as required on July 14. The Bank declined to comment on the results of that survey.

Nearly half of the companies surveyed told Reuters they would have to move staff or restructure their businesses because of Brexit, which is due to take place in March 2019. Another third said it would have no impact, and the remainder said they were still deciding on their plans or declined to comment.
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Sunday, 10 September 2017

Europe's bank regulators on expensive hiring binge ahead of Brexit

Europe's bank regulators on expensive hiring spree before Brexit

Europe's regulators are competing to hire risk specialists to prepare for an influx of banks escaping Brexit, nudging up salaries and stretching staff budgets.

Wall Street giants Goldman Sachs, Citigroup and Morgan Stanley, which have big operations in London, intend to expand in the European Union after Britain's departure.

Germany's financial regulator, Bafin, and the French and Irish central banks intend to hire dozens of new recruits in the coming year, according to officials.

The European Central Bank, which has overall responsibility for supervising banks, is also seeking new staff.

But filling such positions is difficult, partly because risk specialists are in hot demand and budgets of public institutions are limited.

"We are seeing a lot more competition in hiring people for risk, in both the public sector and the private sector," said Nigel David, a head-hunter at Charles Levick in London. "You are seeing salaries shoot up."

Ireland's central bank said late last year it had set a target of boosting staff numbers this year by almost 10 percent, or 170 people, in part to cope with Brexit.
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Monday, 7 August 2017

Britain better fix its identity crisis fast - or risk a disastrous Brexit

Brexit

There are lots of productive ways to analyse Brexit – why it happened, how it’s developing, and how it might turn out. One of the most interesting is to use the idea of an identity to understand both why the process is proving so painful for the UK, and also why the rest of Europe still seems so confused about why the UK is engaging in this process at all.

Identity is one of those concepts that we’re all familiar with on the surface, but would probably struggle to define. Here, we’re going to define it broadly as the image an actor has of themselves. We all imagine ourselves to be a certain person – an image we make up of lots of individual components. We are English, we are a Grimsby Town fan, a gamer, and so on. Those components are what we call roles, and together they create our identity.

Countries, such as the UK, have identities too. They imagine themselves to be some things, and tell themselves and others that they are those things. Comb through the speeches of any British politician and you’ll find an argument as to what the UK is, and what it can be, based on that imagined self. For example, see Theresa May’s Lancaster House speech in January 2017, where she laid out her plan for Brexit. She argued that the UK’s “history and culture is profoundly internationalist”, and that that positioned it very well to build a “truly global Britain”.
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Friday, 4 August 2017

Brexit: Ireland invites Indian companies to increase investment footprint

Photo: Shutterstock

Ireland is wooing United Kingdom (UK) -based Indian companies increasingly worried over the impending economic challenges in serving the European markets after the UK's proposed exit from the European Union, or Bexit, following a national referendum in this regard.

While Irish Premier Leo Varadkar has said that the UK can enter a customs union with the EU or even a deep-rooted Free Trade Agreement (FTA), Indian companies are apprehensive about the changes in cross-border trade, corporate taxation and logistics after Brexit.

Amid all this, Martin D Shanahan, CEO of IDA Ireland — the nations investment promotion body — was in India last month to meet companies in Mumbai, New Delhi and Bengaluru.

Ireland is uniquely positioned as one of the few feasible alternatives to Britain for doing business, Shanahan told Business Standard. Saying that the nation has a large English-speaking populace, a skilled workforce and commercial ties with the EU, Shanahan also laid stress on the fact that the country is much cheaper than destinations like Germany and Italy.

The country is also building on existing Indian companies which has a presence in Ireland. Among these, while companies in the IT segment such as TCS, HCL, Wipro and Mindtree dominate the landscape, pharma firms are also increasingly making their presence felt, Shanahan said.
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Standard Chartered expects Brexit relocation will cost $20 million

Standard Chartered expects Brexit relocation will cost $20 million

Standard Chartered will need to spend around $20 million making Frankfurt its European base in order to secure market access to the European Union when Britain leaves the bloc, Chief Executive Bill Winters told Reuters.

Global banks have started enacting contingency plans to ensure they can still serve EU clients after Britain leaves in March 2019 and the cost of those plans has begun to emerge.

Emerging markets-focused lender Standard Chartered said in May that it was in talks with regulators about making Frankfurt its European base, where it already has a branch from which it conducts euro clearing activities.

"It will cost us $20 million probably," Winters said of the associated costs of converting that branch to a subsidiary.

"Capital won't go in until you activate the subsidiary, so let's say March 2019 and that amount is purely dependent on Bafin (Germany's banking regulator), but would probably be in the hundreds of millions."

Standard Chartered currently has around 100 staff in Frankfurt and has office space capacity to add another 20.

"One question is where can people sit after Brexit?" Winters in an interview with Reuters.

"It would be costly to physically move all your people who deal with a European client. Basic sales staff and relationship managers are already in situ across the continent."
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Friday, 28 July 2017

Air France buys 31% stake in British carrier Virgin Atlantic

Virgin Atlantic


Air France has taken a big piece of Britain's second-biggest long-haul airline, Virgin Atlantic.

According to The Independent, the French airline, which also owns KLM of the Netherlands, is to buy a 31 per cent stake in Virgin Atlantic for 220m GBP.

It leaves the Virgin Group with just one-fifth of the airline's equity. Delta will keep a 49 percent stake in Virgin Atlantic.

The airline founded by Sir Richard Branson in 1984 will retain its identity and independence as a British carrier with a UK operating certificate.

Talking about the deal, Sir Richard said, "This is a fantastic opportunity to extend our network and create a stronger customer champion, as well as being extremely beneficial to our people and the Virgin Atlantic brand that our customers love dearly."

The Virgin Atlantic president also wrote a letter to his staff, which read, "We've had to endure a consistently uneven playing field with British Airways keeping a stranglehold on Heathrow slots, enabling it to feed its long-haul operation from a myriad of short-haul flights across the UK and Europe."

Adding, "And now we have Brexit, which before it's even happened, has had a negative effect on the financial performance of both our holiday company and the airline, principally due to the collapse in the value of the pound."
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Friday, 21 July 2017

Bank of America picks Dublin as new base for EU operations post Brexit

Brexit

Bank of America on Friday became the first Wall Street lender to pick Dublin as its new base for its European Union operations as Britain prepares to leave the bloc.

International banks are planning to set up subsidiaries in the EU to ensure they can continue to serve clients if their London operations lose the ability to operate across the bloc once Britain leaves in March 2019.

Frankfurt and Dublin are emerging as early winners for banks' post-Brexit operations.

"Bank of America has operated in Ireland and engaged in the local community for almost 50 years," said Brian Moynihan, chairman and CEO of Bank of America.

The bank did not say how many roles would be moved or created in the Irish capital, where it currently has over 700 staff and a fully licensed entity, but said that some roles would also move to other EU locations.

The Irish government, which has been keen to attract investment banks to Dublin, welcomed the news.

"This announcement...is a strong endorsement of Ireland's attractiveness as a location for investment, and of the government's approach to securing Brexit-related activities," Irish Prime Minister Leo Varadkar said following the announcement and a meeting with Moynihan in Dublin on Friday.
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Wednesday, 19 July 2017

Morgan Stanley to shift 200 jobs to Frankfurt, prepare for post-Brexit EU

morgan stanley, morgan

Morgan Stanley has picked Frankfurt as a new temporary hub to operate in the European Union when Brexit takes effect, a person familiar with the situation said.

The New York investment bank will double staff in the German city from 200 to 400 in order to be ready to continue to operate in Europe by the March 2019 deadline for Brexit to take effect, the person said on Wednesday.

"It's a short-term solution," the person said, adding that Morgan Stanley executives continued to consider other cities for its long-term headquarters.

Morgan Stanley currently employs about 5,000 people in London but will relocate some traders as well as marketing and administrative staff to Frankfurt.

The bank also plans to shift a smaller number of banking and trader jobs to Paris, Dublin, Madrid and Milan, the person said.

Morgan Stanley plans to later take a decision on the permanent headquarters for the EU operations. French President Emmanuel Macron, among other European leaders, has been actively trying to lure bankers to Paris for the post-Brexit era.

Frankfurt has already been picked as the EU headquarters by Standard Chartered and Nomura.

JPMorgan Chase has transferred hundreds of jobs to Dublin but has not announced plans for a permanent headquarters for the EU.

Murdochs warn Britain a delay to Sky-Fox deal could hit inward investment

Murdochs warn Britain a delay to Sky-Fox deal could hit inward investment

James and Lachlan Murdoch urged the British government to let their company buy pay-TV group Sky, saying on Wednesday that further delays to the $15 billion deal could sour the climate for foreign investment in Britain after Brexit.

The Murdochs' Twenty-First Century Fox was dealt a blow last month when Britain's media secretary, Karen Bradley, said she was persuaded that buying Sky could give the family too much influence over the media.

Bradley said she was minded to refer the deal for a lengthy investigation, but has not yet announced her final decision.

"While we await the outcome of the regulatory process, important investment decisions will inevitably need to be deferred," the two sons of Rupert Murdoch said in a letter to Bradley, dated July 14 and published on Wednesday.

"There is also the broader risk of a potential harmful effect on other companies' inward investment decisions currently under consideration in the UK."

Fox executive chairman Lachlan and chief executive James said the deal was one of the biggest investments in Britain since the country voted to leave the European Union last year.

"Our proposed transaction will be carefully scrutinised by others keen to gauge the government's commitment to creating a climate conducive to investment, or in the words of the Prime Minister and several of your fellow ministers, 'open for business'," they told Bradley.
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