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HSBC plans Paris move after Brexit

Wednesday, January 18, 2017 - 01:48

HSBC has announced it will move staff responsible for generating around a fifth of its UK-based trading revenue to Paris following Britain's exit from the European Union. As David Pollard reports, the announcement came just a day after Britain's PM said she was prepared to leave EU markets.

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These aren't all bankers queuing for the Eurostar. But look ahead - and some could be from HSBC. Staff responsible for around a fifth of their UK trading revenues are to move to Paris. Brexit too much of a push despite the pull London has. (SOUNDBITE) (English) PANMURE GORDON CHIEF ECONOMIST, SIMON FRENCH, SAYING: "There there are still a lot competitive advantages the City of London enjoys: the time zone, the language, the infrastructure to the fore. And those aren't going to change whether financial service passporting is in play or not." But the 'worst case scenario is now the base case', according to one bank executive. The hard Brexit outlined by Theresa May dashing hopes banks will retain access to European markets. Stuart Gulliver has previously mentioned around 1,000 roles moving to Paris ... Though the HSBC chief now says the move won't come for another two years, or when Brexit becomes effective. Those words spoken in Davos - where the UK prime minister was to meet banking leaders later in the week. (SOUNDBITE) (English) PANMURE GORDON CHIEF ECONOMIST, SIMON FRENCH, SAYING: "A lot chief executives, both at HSBC and other bulge bracket banks will want to see development potentially on a deal - single-market access for certain sectors where financial services will have a strong case to make before it makes any larger decisions about relocations." The HSBC divisions that house the jobs made around 384 million dollars profit in 2015. Relatively small beans for global banks - but with potentially a big impact on London's confidence. It's only two and half hours by train to Paris, less by plane. The English Channel only a small jump - even as Brexit widens the gap with Europe.