Lagarde anticipates "pain" as UK prepares departure from the European Union

Lagarde anticipates “pain” as UK prepares departure from the European Union

Thursday, January 19th 2017 - 06:26 UTC

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The head of the International Monetary Fund has warned the UK there is still likely to be “pain” ahead as Theresa May prepares to trigger the UK's departure from the European Union. Christine Lagarde told the BBC the Brexit process would be complicated. Read full article

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Devonian
The same Christine Lagarde who predicted dire consequences if the people of Britain dared to vote to leave the EU. I note she is being a bit more cautious with her current comments. Where does she get that year-round tan? She must spend a lot of time out of Washington DC - because it certainly isn't very warm or sunny there at present.
Jan 19th, 2017 - 11:20 am - Link - Report abuse 0
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Zaphod
Is that the same Lagarde?
The depth, breadth and scope of London will ensure is continues to remain a considerable financial hub. Likely will again lose its #1 ranking status behind New York, but maybe just for a while :)

1000 jobs moving from UK to EU is just corporate positioning to retain access to both markets, but retaining a predominant UK based domicile structure for the economic/geopolitical structure, tax and regulatory benefits that brings. Not unreasonably some existing EU financials might move comparable or possibly more in the opposite direction (in order to retain access to the UK).

If HSBC move 1000 and a similar number from UBS, and JP Morgan and Goldman Sachs move fewer than 7000 combined, you're looking at less than 10,000 in total from across 4 major players with 250,000 current in the UK, around 4%. Many of which are EU workers already that were moved to the UK. In comparison to the 1M more workers that might be required due to less regulatory (UK Brexit) and lower taxes (potential for the UK to perhaps cut corporate tax to 10% or less) and 10,000 fades into insignificance. Let alone existing EU based desks being moved from the EU into London/UK in order to maintain 'access' to the UK and the global trade partnerships that provides.

Obviously the EU will in time lock out London as much as possible from being the EU's financial lungs. To its own economic detriment, not that that has bothered it in the past
Jan 19th, 2017 - 05:36 pm - Link - Report abuse 0
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Briton
Lagarde anticipates

Another crooked weasel and anti brit,

we will do ok thanks, and the unmighty EU will surely regret the threats and intimidation,

they would be better of making a fair deal and be friends,
rather than punishment that will inevitably backfire.
Jan 20th, 2017 - 08:57 pm - Link - Report abuse 0
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