Bad Brexit deal ‘could back­fire’

May warned over threat to in­vest­ment

Daily Mirror - - FINANCE -

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

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