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Money Big banks ‘preparing to move London jobs abroad’ due to Brexit uncertainty

14:36  08 november  2017
14:36  08 november  2017 Source:   pressassociation.com

S&P, Fitch leave UK credit rating on hold but warn on Brexit

  S&P, Fitch leave UK credit rating on hold but warn on Brexit Standard and Poor's and Fitch held their credit ratings for Britain unchanged on Friday, but both remained gloomy about the outlook due to the likelihood of the country reaching a bad deal in its divorce talks with the European Union.Having already stripped Britain of its top-notch "AAA" rating, both agencies stuck with their "AA" rating with a negative outlook, warning they were likely to downgrade again.

Britain’s biggest banks are preparing to relocate out of the UK in the first few months of 2017 amid growing fears over the impending Brexit negotiations, while smaller banks are making plans to get out before He writes: “It is understandable that other European cities want to attract jobs from London .

Frankfurt has emerged as the biggest winner in the fight for thousands of London -based jobs that will have to be relocated to new hubs inside the European Union after Brexit . We’re tracking jobs that the banks say they plan to move , with updates to follow.

Big banks ‘preparing to move London jobs abroad’ due to Brexit uncertainty © Provided by The Press Association Big banks ‘preparing to move London jobs abroad’ due to Brexit uncertainty

Banking giants have reportedly warned the US government they could be forced to start moving thousands of jobs out of London within months due to uncertainty over Brexit.

A consortium of banks including JPMorgan Chase, Goldman Sachs and HSBC warned US commerce secretary Wilbur Ross that they might start moving staff abroad in the near future, the Financial Times said.

Senior executives blamed lack of clarity over whether the Government will secure a transition deal to help them navigate the change in financial regulation after the UK leaves the EU.

Blankfein Brexit Tweet Reveals Worry London Desks to Stay Empty

  Blankfein Brexit Tweet Reveals Worry London Desks to Stay Empty In his second tweet with the hashtag #Brexit, Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said his bank was still investing in its new London office, but suggested policy makers will ultimately decide whether the building is fully used as the Wall Street firm once intended. "In London," Blankfein said in a post Monday that contained an aerial shot of construction nearing completion. "GS still investing in our big new Euro headquarters here. Expecting/hoping to fill it up, but so much outside our control."In London. GS still investing in our big new Euro headquarters here.

Goldman Sachs has suspended plans to move key operations from the US to London because of the uncertainty created by the vote to leave the EU. Brexit transition deal needed by Christmas, says Bank official. Deputy governor Sam Woods says City firms will start to move jobs and business out

Without any indication that a transitional Brexit agreement is near, banks may move their operations out of London in favor of stable overseas Many of those large banks have already cautioned the American government that Brexit uncertainty may drive thousands of jobs out of London .

The paper said the banks also outlined their concern that they had received no clear indication of what the final Brexit deal might look like at the closed-door meeting during Mr Ross’s visit to London on Friday.

Without this clarity, they told Mr Ross they would move chunks of their operations to the US or other EU cities.

Possible contingency plans have been debated by banks since before the EU vote, but the discussions have become increasingly urgent, a source told the FT.

Catherine McGuinness, policy chair at the Corporation of London, which is the City’s local government, told the FT “the fear of a crash-out is rising”.

She said the next three months could prove the tipping point for many banks for their future operations in London, adding: “We really shouldn’t understate or underestimate what a critical moment we’re at for this sector.”

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Brexiteers appear to back £40bn EU divorce bill .
Theresa May appears to have won the backing of Cabinet Brexiteers to double the UK's "divorce bill" offer from £20bn to £40bn.At a tense two-hour meeting of senior ministers in 10 Downing Street, Boris Johnson and Michael Gove are believed to have agreed to the move - with conditions.

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