HSBC and UBS issue new warnings over Brexit jobs exodus

HSBC and UBS have issued fresh warnings over an exodus of staff following Brexit, a day after Theresa May confirmed the UK would leave the single market.

The remarks by the two global banks at the World Economic Forum in Davos suggested each could move 1,000 workers out of London, echoing warnings from the sector before last June's vote.

HSBC chief executive Stuart Gulliver said it would move "in about two years' time when Brexit becomes effective".

He said employees involved in activities covered by financial regulation would need to move to France, though other key operations would remain in the City.

The prospect of the banking giant shifting roles to Paris in the event of a Brexit vote was first revealed by Mr Gulliver to Sky News last year.

But the latest remarks, more than six months after the vote and a day after Mrs May's speech fleshed out details of the Government's plans, firm up the prospect of jobs leaving.

It is not the first time HSBC has threatened a shift out of the capital.

Last year it completed a review of where its headquarters should be located that had threatened to see it leave London, before deciding to remain in the UK after reforms by George Osborne cut its tax bills.

Meanwhile, Axel Weber, chairman of Switzerland's UBS, told the BBC that around 1,000 of its London employees would be affected by Britain losing its "passport" to sell financial services in Europe.

The City has been lobbying to try to retain passporting rights but the prospect of doing so looks more difficult with Britain outside the single market.

The comments from HSBC and UBS come ahead of a meeting between Mrs May and Wall Street bank bosses to discuss her Brexit plans.

The financial services sector is not alone in expressing Brexit-related jitters, with Toyota the latest carmaker to speak up.

The chairman of the company, which employs 3,400 staff in the UK at two factories, told the Financial Times it had held talks with the Government to discuss future competitiveness but would not make any knee-jerk decisions on future UK investment.

Takeshi Uchiyamada made his comments in the wake of similar remarks by Jaguar Land Rover and Nissan - which announced it would build new models at its Sunderland plant after Government assurances.