Brexit drives finance from UK
LONDON: Britain’s financial services sector will accelerate plans to move some business overseas after Prime Minister Theresa May said this week the country will quit the European Union’s single market.
Businesses have been calling for clarity on what Britain’s relationship with Europe will be before deciding how to reshape their operations, but most major firms are now set to relocate some business to ensure they can still trade with Europe.
London’s future as Europe’s financial centre is one of the biggest issues in Brexit talks because it is Britain’s largest export sector and biggest source of corporate tax revenue. “The worst case now seems to be the base case,” a senior executive at one major global bank said after May’s speech, adding that contingency planning would continue apace.
May will meet the heads of several big players, including Goldman Sachs and JP Morgan chief executives Lloyd Blankfein and Jamie Dimon, at the World Economic Forum in Davos for private talks today.