Bad Brexit deal ‘could backfire’
May warned over threat to investment
THE boss of HSBC yesterday backed demands for a transitional Brexit trade deal – but warned that it could backfire.
Many business leaders have demanded Theresa May makes sure there’s no cliff edge ge when the UK quits the EU in March 2019.
But HSBC chief Stuart Gulliver said a deal with no real detail in it was “likely to result in hesitation from m overseas investors”.
He added that “a transitional period without clarity may just postpone investment” and that investors could decide to look elsewhere. But Gulliver added that his bank had not seen any negative impact from business customers to the Brexit vote to date. His comments came as banks bank have been backpedalling ling on previous threats to move mov jobs abroad. HSBC H played down a prev previous warning that it could shift 1,000 from the UK. Ch Chairman Iain Mackay said: s “It may be less than 1,000 employees.” Meanwhile, the boss of Wall Street banking giant Goldman Sachs said he expects to fill the firm’s new European headquarters in London. Lloyd Blankfein’s backing came despite his tweeting earlier this month that he will be “spending more time” in Frankfurt, a rival to London.
Swiss bank UBS had earlier said it could move as few as 250 staff from the capital because of Brexit, lower than the 1,000 initially feared.
HSBC earlier reported that profits rocketed by 448% to £3.5billion in the three months to September 30.
The bank reaped the benefits of a greater focus on Asia.
Gulliver, who is due to retire next February, said shareholders had shared £47bn in dividends during his seven years in charge.
PRESSURE PM needs deal to avoid cliff edge