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Now for the latest financial news with World Business Report.
Brexodus fears grow in the City of London, as leading firms warn
thousands of staff may now be relocated.
No arrest warrant for Samsung boss Jay Y Lee.
but prosecutors vow to continue the corruption
We'll be live in Seoul in just a moment.
We start here in London, where fears of a costly Brexit
Leading firms are now weighing up moving thousands of staff out
of the UK, after Prime Minister Theresa May confirmed plans to leave
the European Single Market as well as the EU,
On Wednesday, the boss of HSBC said he's preparing to move
around 1000 of his 5000 London staff to Paris.
That would mean around 20% of its European revenue leaving
the UK, worth several billion dollars.
also told the BBC that 1000 jobs may go in London as a result of Brexit,
again around a fifth of its workforce.
And according to a report in the Handelsblatt newspaper
in Germany this morning, Goldman Sachs may halve its London
workforce, moving 3000 staff to New York and Continental Europe,
Goldman though says it has yet to make a decision on the matter
However, some believe this could be the tip of the iceberg
Back in October, consultants Oliver Wyman warned 75,000 UK
jobs are at risk if financial companies based here lose the right
Theresa May is addressing the World Economic Forum
in Davos today, she will also be meeting the bosses of some
of the big banks including Goldman Sachs and JP Morgan
Yesterday, Pierre Moscovici, former French Finance Minister,
now EU commissioner for Economic and Financial Affairs,
Taxation and Customs, spoke to our economics
He denied the EU would try to punish Britain for leaving the EU.
It is not about punishment. I said that we need to find a balanced and
positive agreement. I said we are friends and must work together. They
even said so in the European Parliament this morning in Davos.
But we must be clear that you cannot have all the advantages of being a
member of the club when you are out of the club. Our British friends
will bleed invented clubs. -- probably. They can understand that.
There you. That is one view. And now for another view.
Olivier Vardakoulias is Senior Economist
The plot has thickened. No surprise at all to hear some of the big
banks, global banks, who have big operations in London, are now
rethinking. Yes. That is because they perceive she has made
unattainable pledges. She will go for a hard Brexit, exiting the
Common Market and the EU and also the common union. What they are
afraid of, and rightly so, is basically that this will not
guarantee the so-called passport writes. Explain those rights for
those uninitiated in financial services. Any bank located, or
investment bank, located in the country, has the right to do
business in any European country, without needing to have an agreement
with individual member states of the EU. That is why, for example, you
have many American investment banks based in London. That is because
they can do business in whatever European country freely. That will
not be the case if the UK does not manage to reach a special agreement
for accessing the special European market. These banks will have to
negotiate and basically the UK will have to negotiate individually with
different member states. Quite frankly, the easy solution for these
banks is to relocate part of their activities on the continent. Not all
of them, part of them. It is interesting. When you look at the
sentiment from both sides, like Donald Tusk saying it will be a
difficult negotiation process, Theresa May saying if they do not
get the vote they want they will exit completely. In that situation,
what do we see for the future of the city of London in terms of how it
will operate? She implied in her speech that she will change the
goalposts in terms of how things go in London, taxing, regulation, so it
becomes better on the ground. Yeah. I think there are two things here.
Political posturing, if you want. On the one hand, you know, the way that
Theresa May presented that to European partners is that they will
withdraw from the European Court of Justice and so on. And then I will
try to basically seek market access without being part of the EU. And if
you do not do what I want, we will move offshore. Basically a tax haven
in the UK, that kind of model. She will try to liberalise the financial
sector even more, at our risk and peril, as the 2008 crisis showed,
and replaced the job losses from respectable bank activities by
attracting things like hedge funds or other financial activities. Now,
this is a very risky strategy. Not just because obviously it can
trigger different kinds of financial fragility within the system, but it
is also bad news for British working families. Turning the UK into a bank
haven will not help those who voted to leave the EU. Very interesting.
Thank you for your time today. I am sure I will talk to you again before
we leave the EU officially. Thank you for coming in. We will go to
South Korea next. That is where a growing
corruption scandal has led to the impeachment
of President Park Geun-hye, and has been threatening to suck
in the boss of Samsung, Some good news for him
in the past few hours though. Mr Lee was held by prosecutors
overnight on Wednesday, but early this morning he's been
allowed to go home after a court in Seoul threw out
a warrant for his arrest. Prosecutors wanted him arrested
on suspicion of bribery, embezzlement and perjury,
charges he denies. Let's talk to the BBC's
Kevin Kim in Seoul. He has been covering this for us. I
hope you are there. Tell us more about the latest and what happens
today. The last 24 hours were some of the longest and most dramatic for
Jay Y Lee. At the city jail, the head of the biggest company in South
Korea waited through the night until there was a decision to release in.
Early in the morning the judges said there was no sufficient reason to
put him behind bars. He was then seen walking out of jail with a
slight smile. Apparently he then went straight to work. I understand
the prosecutors are saying we will pursue this. We will not waver. They
seem to be very determined despite the decision of the judge. That is
correct. The message Jay Y Lee wanted to send is business as usual.
But this may not be the end of the problems for the chief of Samsung.
The company has been accused of bribery. He may still have to face a
trial if prosecutors face charges. The allegations are that he gave
millions of dollars in return for the votes of the national pension
fund in a big restructuring of the company. But in the meantime, Jay Y
Lee still stays a free man. Great to talk to you again. Thank you for
now. He was in Seoul for us. Squeezing in some other stories.
Renegotiating the Nafta trade deal with Canada and Mexico is the Trump
administration's top trade priority, according to commerce secretary
He was speaking to US senators at a confirmation hearing
Mr Ross said China was the "most protectionist" country among large
economies, but said Nafta is "logically,
the first thing for us to deal with."
Shares in TV streaming service Netflix soared as much as 9%
on the news it is growing much faster than expected.
Netflix added just over seven million new subscribers in the last
three months of 2016, a third more than forecast,
and expects to break the 100 million mark by the end of March.
Netflix has invested heavily in original content while ending
deals with top studios, a gamble that is paying off.
Financial markets. A mixed day. Good news for Japan. The Japanese yen
weakening. You can see the pound is keeping a close eye on it. Janet
Yellen talking yesterday in San Francisco saying that rates in the
US could be up again. They are predicting the month of March. That
is what is happening. I will see you again soon as we will review the
stories in the news in just a moment.
A disabled man has won his case at The Supreme Court,
after a dispute over wheelchair space on a bus.
It means bus drivers will have to do more