Maybe we’ll stay?

“Wait and see”, “Nobody wants to make a bad decision by moving quickly” and “I don’t think London will lose its gravitational pull”. These comments came from UBS, JPMorgan and Barclays respectively last week, reflecting a distinct softening, as Theresa May strikes a conciliatory tone. Some have interpreted her comment about avoiding “a cliff edge” as an indication of a transitional deal, which would take away some of the immediacy of business relocation decisions.  With 37% of its workforce in Finance & Insurance and 61% of its annual growth coming from those sectors, the City would welcome such a deal. In fact, the Governor of the BoE last week called for it. But might EU states be wary of giving Britain a lenient transitional arrangement? And how might May frame this politically, when for many, Brexit really should mean Brexit. Like UBS, we will “wait and see”.