19/01/2017

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:00:00. > :00:00.Now for the latest financial news with World Business Report.

:00:00. > :00:17.Brexodus fears grow in the City of London, as leading firms warn

:00:18. > :00:24.thousands of staff may now be relocated.

:00:25. > :00:27.No arrest warrant for Samsung boss Jay Y Lee.

:00:28. > :00:29.but prosecutors vow to continue the corruption

:00:30. > :00:53.We'll be live in Seoul in just a moment.

:00:54. > :00:58.We start here in London, where fears of a costly Brexit

:00:59. > :01:03.Leading firms are now weighing up moving thousands of staff out

:01:04. > :01:06.of the UK, after Prime Minister Theresa May confirmed plans to leave

:01:07. > :01:09.the European Single Market as well as the EU,

:01:10. > :01:15.On Wednesday, the boss of HSBC said he's preparing to move

:01:16. > :01:18.around 1000 of his 5000 London staff to Paris.

:01:19. > :01:20.That would mean around 20% of its European revenue leaving

:01:21. > :01:22.the UK, worth several billion dollars.

:01:23. > :01:27.also told the BBC that 1000 jobs may go in London as a result of Brexit,

:01:28. > :01:29.again around a fifth of its workforce.

:01:30. > :01:31.And according to a report in the Handelsblatt newspaper

:01:32. > :01:34.in Germany this morning, Goldman Sachs may halve its London

:01:35. > :01:37.workforce, moving 3000 staff to New York and Continental Europe,

:01:38. > :01:52.Goldman though says it has yet to make a decision on the matter

:01:53. > :01:56.However, some believe this could be the tip of the iceberg

:01:57. > :02:07.Back in October, consultants Oliver Wyman warned 75,000 UK

:02:08. > :02:11.jobs are at risk if financial companies based here lose the right

:02:12. > :02:14.Theresa May is addressing the World Economic Forum

:02:15. > :02:17.in Davos today, she will also be meeting the bosses of some

:02:18. > :02:20.of the big banks including Goldman Sachs and JP Morgan

:02:21. > :02:29.Yesterday, Pierre Moscovici, former French Finance Minister,

:02:30. > :02:32.now EU commissioner for Economic and Financial Affairs,

:02:33. > :02:33.Taxation and Customs, spoke to our economics

:02:34. > :02:48.He denied the EU would try to punish Britain for leaving the EU.

:02:49. > :02:58.It is not about punishment. I said that we need to find a balanced and

:02:59. > :03:05.positive agreement. I said we are friends and must work together. They

:03:06. > :03:10.even said so in the European Parliament this morning in Davos.

:03:11. > :03:15.But we must be clear that you cannot have all the advantages of being a

:03:16. > :03:24.member of the club when you are out of the club. Our British friends

:03:25. > :03:32.will bleed invented clubs. -- probably. They can understand that.

:03:33. > :03:34.There you. That is one view. And now for another view.

:03:35. > :03:35.Olivier Vardakoulias is Senior Economist

:03:36. > :03:48.The plot has thickened. No surprise at all to hear some of the big

:03:49. > :03:53.banks, global banks, who have big operations in London, are now

:03:54. > :04:02.rethinking. Yes. That is because they perceive she has made

:04:03. > :04:10.unattainable pledges. She will go for a hard Brexit, exiting the

:04:11. > :04:15.Common Market and the EU and also the common union. What they are

:04:16. > :04:21.afraid of, and rightly so, is basically that this will not

:04:22. > :04:26.guarantee the so-called passport writes. Explain those rights for

:04:27. > :04:33.those uninitiated in financial services. Any bank located, or

:04:34. > :04:38.investment bank, located in the country, has the right to do

:04:39. > :04:43.business in any European country, without needing to have an agreement

:04:44. > :04:47.with individual member states of the EU. That is why, for example, you

:04:48. > :04:52.have many American investment banks based in London. That is because

:04:53. > :04:58.they can do business in whatever European country freely. That will

:04:59. > :05:03.not be the case if the UK does not manage to reach a special agreement

:05:04. > :05:07.for accessing the special European market. These banks will have to

:05:08. > :05:11.negotiate and basically the UK will have to negotiate individually with

:05:12. > :05:15.different member states. Quite frankly, the easy solution for these

:05:16. > :05:20.banks is to relocate part of their activities on the continent. Not all

:05:21. > :05:24.of them, part of them. It is interesting. When you look at the

:05:25. > :05:28.sentiment from both sides, like Donald Tusk saying it will be a

:05:29. > :05:33.difficult negotiation process, Theresa May saying if they do not

:05:34. > :05:39.get the vote they want they will exit completely. In that situation,

:05:40. > :05:43.what do we see for the future of the city of London in terms of how it

:05:44. > :05:48.will operate? She implied in her speech that she will change the

:05:49. > :05:54.goalposts in terms of how things go in London, taxing, regulation, so it

:05:55. > :06:02.becomes better on the ground. Yeah. I think there are two things here.

:06:03. > :06:06.Political posturing, if you want. On the one hand, you know, the way that

:06:07. > :06:13.Theresa May presented that to European partners is that they will

:06:14. > :06:19.withdraw from the European Court of Justice and so on. And then I will

:06:20. > :06:28.try to basically seek market access without being part of the EU. And if

:06:29. > :06:34.you do not do what I want, we will move offshore. Basically a tax haven

:06:35. > :06:40.in the UK, that kind of model. She will try to liberalise the financial

:06:41. > :06:47.sector even more, at our risk and peril, as the 2008 crisis showed,

:06:48. > :06:50.and replaced the job losses from respectable bank activities by

:06:51. > :06:56.attracting things like hedge funds or other financial activities. Now,

:06:57. > :07:00.this is a very risky strategy. Not just because obviously it can

:07:01. > :07:04.trigger different kinds of financial fragility within the system, but it

:07:05. > :07:12.is also bad news for British working families. Turning the UK into a bank

:07:13. > :07:17.haven will not help those who voted to leave the EU. Very interesting.

:07:18. > :07:21.Thank you for your time today. I am sure I will talk to you again before

:07:22. > :07:23.we leave the EU officially. Thank you for coming in. We will go to

:07:24. > :07:26.South Korea next. That is where a growing

:07:27. > :07:28.corruption scandal has led to the impeachment

:07:29. > :07:31.of President Park Geun-hye, and has been threatening to suck

:07:32. > :07:34.in the boss of Samsung, Some good news for him

:07:35. > :07:37.in the past few hours though. Mr Lee was held by prosecutors

:07:38. > :07:40.overnight on Wednesday, but early this morning he's been

:07:41. > :07:44.allowed to go home after a court in Seoul threw out

:07:45. > :07:46.a warrant for his arrest. Prosecutors wanted him arrested

:07:47. > :07:48.on suspicion of bribery, embezzlement and perjury,

:07:49. > :07:53.charges he denies. Let's talk to the BBC's

:07:54. > :08:07.Kevin Kim in Seoul. He has been covering this for us. I

:08:08. > :08:15.hope you are there. Tell us more about the latest and what happens

:08:16. > :08:23.today. The last 24 hours were some of the longest and most dramatic for

:08:24. > :08:29.Jay Y Lee. At the city jail, the head of the biggest company in South

:08:30. > :08:33.Korea waited through the night until there was a decision to release in.

:08:34. > :08:37.Early in the morning the judges said there was no sufficient reason to

:08:38. > :08:41.put him behind bars. He was then seen walking out of jail with a

:08:42. > :08:47.slight smile. Apparently he then went straight to work. I understand

:08:48. > :08:53.the prosecutors are saying we will pursue this. We will not waver. They

:08:54. > :08:58.seem to be very determined despite the decision of the judge. That is

:08:59. > :09:04.correct. The message Jay Y Lee wanted to send is business as usual.

:09:05. > :09:08.But this may not be the end of the problems for the chief of Samsung.

:09:09. > :09:13.The company has been accused of bribery. He may still have to face a

:09:14. > :09:17.trial if prosecutors face charges. The allegations are that he gave

:09:18. > :09:22.millions of dollars in return for the votes of the national pension

:09:23. > :09:28.fund in a big restructuring of the company. But in the meantime, Jay Y

:09:29. > :09:33.Lee still stays a free man. Great to talk to you again. Thank you for

:09:34. > :09:35.now. He was in Seoul for us. Squeezing in some other stories.

:09:36. > :09:39.Renegotiating the Nafta trade deal with Canada and Mexico is the Trump

:09:40. > :09:41.administration's top trade priority, according to commerce secretary

:09:42. > :09:44.He was speaking to US senators at a confirmation hearing

:09:45. > :09:48.Mr Ross said China was the "most protectionist" country among large

:09:49. > :09:50.economies, but said Nafta is "logically,

:09:51. > :09:56.the first thing for us to deal with."

:09:57. > :09:59.Shares in TV streaming service Netflix soared as much as 9%

:10:00. > :10:02.on the news it is growing much faster than expected.

:10:03. > :10:05.Netflix added just over seven million new subscribers in the last

:10:06. > :10:08.three months of 2016, a third more than forecast,

:10:09. > :10:11.and expects to break the 100 million mark by the end of March.

:10:12. > :10:13.Netflix has invested heavily in original content while ending

:10:14. > :10:27.deals with top studios, a gamble that is paying off.

:10:28. > :10:37.Financial markets. A mixed day. Good news for Japan. The Japanese yen

:10:38. > :10:42.weakening. You can see the pound is keeping a close eye on it. Janet

:10:43. > :10:45.Yellen talking yesterday in San Francisco saying that rates in the

:10:46. > :10:51.US could be up again. They are predicting the month of March. That

:10:52. > :10:56.is what is happening. I will see you again soon as we will review the

:10:57. > :11:02.stories in the news in just a moment.

:11:03. > :11:05.A disabled man has won his case at The Supreme Court,

:11:06. > :11:07.after a dispute over wheelchair space on a bus.

:11:08. > :11:11.It means bus drivers will have to do more