After Brexit vote, will businesses stay or go?
A leading business group says 20 percent of its members plan to move some of their operations outside of the U.K. in light of the country’s decision to leave the European Union.
The Institute of Directors said Monday that a survey of its 1,000 members showed that three out of four believe that Britain’s exit from the EU, or Brexit, will be bad for business.
Simon Walker, the director-general of the group, says that while businesses will be busy working out how they are going to adapt, “we can’t sugar-coat this, many of our members are feeling anxious.”
The group says over a third of its members say that the vote result will prompt them to cut investment in their businesses.
Britain votes to leave the EU, but will financiers leave London?
The implications of Britain’s departure from the European Union have also started to bite on British businesses.
Real estate agent Foxtons has issued a profit warning, expressing concern that an upturn anticipated in the second half of the year is “now unlikely to materialize.”
The parent company of British Airways, IAG, warned on Friday that profits would take a hit this year. Budget airline easyJet also warned on profit, saying it anticipates economic and consumer uncertainty this summer.
The profit warnings come amid fears that thousands of jobs could be lost in London’s financial heartland. JPMorgan, HSBC and Goldman Sachs all said prior to the vote that thousands of jobs could be moved to the continent in the event of a British exit from the EU, or Brexit.