Following Brexit, UBS Group AG (UBS - Free Report) is likely to relocate around 1500 of its London workforce to a European Union (EU) country. This was stated by the CEO, Sergio Ermotti, in an interview with Japanese newspaper Nikkei.
Though London serves as an important financial center and a gateway to the EU market for several global banks, Brexit is likely to lead the city lose its status.
Earlier in July, UBS’ investment bank head, Andrea Orcel, in a statement to Bloomberg warned that a “significant percentage of UBS's 5,000 London employees would likely have to move if the UK lost its passporting and euro clearing rights.” But he said the UBS would still have a base in the U.K.
The Brexit Impact
On Jun 23, 2016, Britain voted to exit the European Union. The referendum roiled the global markets, including currencies and stocks, causing the British pound to fall to its lowest level in decades. Further, stock markets across the globe tumbled.
UBS was also not untouched. Since Brexit vote, the company shares have declined 9.6% on NYSE, as of Sep 6, 2016.
Further, the referendum was a huge blow to the European project of forging greater unit. Post-Brexit, Britain would lose its passporting and euro clearing rights. Through passporting, banks can freely sell services and products across the EU, which is part of the negotiations between the U.K. and the trading bloc.
Global banks that use London to serve EU will be at a disadvantage, compared to the existing European lenders inside the trading bloc. They will have to face the long process of obtaining approval from local regulatory authorities for relocating their workforce.
UBS is one of the banks including Morgan Stanley (MS - Free Report) and JPMorgan Chase & Co.(JPM - Free Report) that are planning to shift their operations/workforce to continue providing services to EU countries if Brexit makes it impossible to run such services from London.
Currently, UBS Group AG carries a Zacks Rank #3 (Hold). Other better ranked stock in the same space is Banco Macro S.A. (BMA - Free Report) , sporting Zacks Rank #1 (Strong Buy).
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Following Brexit, UBS Group AG (UBS - Free Report) is likely to relocate around 1500 of its London workforce to a European Union (EU) country. This was stated by the CEO, Sergio Ermotti, in an interview with Japanese newspaper Nikkei.
Though London serves as an important financial center and a gateway to the EU market for several global banks, Brexit is likely to lead the city lose its status.
Earlier in July, UBS’ investment bank head, Andrea Orcel, in a statement to Bloomberg warned that a “significant percentage of UBS's 5,000 London employees would likely have to move if the UK lost its passporting and euro clearing rights.” But he said the UBS would still have a base in the U.K.
The Brexit Impact
On Jun 23, 2016, Britain voted to exit the European Union. The referendum roiled the global markets, including currencies and stocks, causing the British pound to fall to its lowest level in decades. Further, stock markets across the globe tumbled.
UBS was also not untouched. Since Brexit vote, the company shares have declined 9.6% on NYSE, as of Sep 6, 2016.
Further, the referendum was a huge blow to the European project of forging greater unit. Post-Brexit, Britain would lose its passporting and euro clearing rights. Through passporting, banks can freely sell services and products across the EU, which is part of the negotiations between the U.K. and the trading bloc.
Global banks that use London to serve EU will be at a disadvantage, compared to the existing European lenders inside the trading bloc. They will have to face the long process of obtaining approval from local regulatory authorities for relocating their workforce.
UBS is one of the banks including Morgan Stanley (MS - Free Report) and JPMorgan Chase & Co.(JPM - Free Report) that are planning to shift their operations/workforce to continue providing services to EU countries if Brexit makes it impossible to run such services from London.
Currently, UBS Group AG carries a Zacks Rank #3 (Hold). Other better ranked stock in the same space is Banco Macro S.A. (BMA - Free Report) , sporting Zacks Rank #1 (Strong Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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