Firms plan Brexit exodus

Dozens of French and German companies based in Britain are preparing to return to mainland Europe, officials say.

Dozens of French and German companies based in Britain are preparing to return to mainland Europe because of Brexit, officials have claimed.

Almost one in 10 German respondents to a survey by DIHK, Germany’s chamber of commerce, said they would transfer investments home or to other EU nations. Thirty London-based financial firms told French officials they planned to cross the Channel.

The findings came as British PM Theresa May prepared to trigger Article 50 overnight and set in motion the two-year process of exiting the EU. British businesses said it was vital that “political posturing” be replaced with “a grown-up dialogue”.

The pound slipped against both the US dollar and the euro, on concerns about Britain’s future relationship with its biggest trading partner. Sterling fell US0.7c to $US1.248, and 0.4 euro cents lower at €1.1518.

Traders expect volatility to pick up. Oxford Economics expects the pound to recover to $US1.32 in 2017 due to “Brexit fatigue” while Deutsche warned it could fall as low as $US1.06.

Research by Reuters suggested that uncertainty was stifling decision-making. The number of IPOs in London in the first three months of 2017 dropped to eight, its lowest in four years.

DIHK surveyed 2200 companies, finding that 40 per cent expected a decline in British business conditions “in the coming months” and 9 per cent wanted to transfer investments back.

It is estimated London could lose 30,000 jobs due to Brexit.

The Times