18.5 C
New York
Sunday, October 17, 2021

Business survey says Brexit biggest threat to UK financial center

Business survey says Brexit biggest threat to UK financial center© Reuters. A man takes a photograph of the Canary Wharf financial district from Greenwich Park in London

By Huw Jones

LONDON (Reuters) – Uncertainty over Britain’s future trading relations with the European Union after Brexit is the most serious threat to London as the world’s top financial center, a business survey showed on Monday.

The quarterly survey from business lobby CBI and consultants PwC said optimism in the financial services sector fell for the third consecutive quarter in the three months to December, marking two years of flat or falling sentiment, though transactions remained stable overall.

Firms want as much clarity as possible on what Britain wants in future trade relations, the survey found.

“To restore some confidence, financial services firms absolutely must – no ifs, no buts – get as much certainty as possible on what the UK is aiming for in the Brexit negotiations, the opportunities of success and the consequences of failure,” CBI Chief Economist Rain Newton-Smith said in a statement.

The EU is due on Monday to approve criteria for negotiating a transition period that would bridge Brexit in March 2019 and the start of new trading terms.

Andrew Kail, head of financial services at PwC said a transition period is likely, but the financial sector must get ready to operate outside the bloc

“The industry will need to take positive action if it is to preserve its trading status and business model,” Kail said.

Paris, Frankfurt Dublin and Luxembourg are vying to attract financial services from London that need continued access to EU customers after Brexit.

French Finance Minister Bruno Le Maire told Reuters on Friday that Paris could overtake London as Europe’s most important financial center in a matter of years.

Financial company profits continued to improve in the final three months of last year, with a similar trend expected in the current quarter, the survey found. Headcount is expected to remain stable.

Separately the City of London Corporation, the municipal authority for the capital’s “Square (NYSE:) Mile” financial district, said nearly one in every five workers there in 2016 came from a European country, the highest on record.

Eighteen percent of the City’s workforce came from the European Economic Area, up from 8 percent a decade earlier. UK workers accounted for 59 percent of staff, the rest came from outside Europe.

“This data crystalizes the importance of European workers to the UK’s biggest financial center, and the need for a clear post-Brexit immigration policy,” City of London policy chief Catherine McGuinness said.

The CBI/PwC said that 54 percent of the 92 firms they surveyed said they want to make it easier to attract staff to Britain’s financial technology or fintech sector.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

10,816FansLike
12,893FollowersFollow
756FollowersFollow
- Advertisement -

Latest Articles

Popular Articles