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Michael Bloomberg says Brexit could hit UK business Michael Bloomberg says Brexit could hit UK business
(about 13 hours later)
Former New York mayor Michael Bloomberg says that a Brexit vote on 23 June could hit UK-EU trade and leave British-based "employees worse off". Former New York mayor Michael Bloomberg says a Brexit vote on 23 June could leave the UK "disadvantaged".
And he warns financial jobs could leave London for Paris or Frankfurt. He also said it would reduce the ability of Britain - and America - to "influence the dialogue" in Europe.
Writing in The Times Mr Bloomberg says "a vote to leave is a risk" and asks "is the risk worth taking?" Mr Bloomberg told the BBC's Today programme that the UK might in the future fail to negotiate trade deals as beneficial as its current ones.
Leave campaigners said the EU benefited "big businesses and fat cats who care about their bonuses" but did not "work for the British people". Leave campaigners said the EU helped "big businesses and fat cats" but did not "work for the British people".
Mr Bloomberg's name also appears on a letter, signed by a number of the major multinationals investing in the UK, warning of Brexit dangers. Mr Bloomberg's name appeared on a letter in the Financial Times on Wednesday, signed by a number of major multinationals investing in the UK, warning of Brexit dangers.
This letter, which features firms such as Airbus, Microsoft, Cisco, Hitachi, Mars, and IBM warns that leaving the EU could "materially affect future investment decisions" by companies such as theirs. The letter, signed by executives from firms such as Airbus, Microsoft, Cisco, Hitachi, Mars, and IBM, warned that leaving the EU could "materially affect future investment decisions" by companies such as theirs.
It goes on to say that "if there is one thing we as investors don't like, it is economic uncertainty", and concludes that "as investors, it is therefore very much in our interest that Britain stays in the EU." It added that "if there is one thing we as investors don't like, it is economic uncertainty", and concluded that "as investors, it is therefore very much in our interest that Britain stays in the EU".
'Troubling' Trade deals
Meanwhile, in his Times article Mr Bloomberg expands on his fears. Mr Bloomberg, who founded the financial news and data empire that bears his name, told the BBC that "the UK would be disadvantaged compared to the situation they have now", if it voted to leave the EU.
"I have carefully evaluated the question of Brexit and concluded the risks involved are troubling," writes Mr Bloomberg, who founded the financial news and data empire that bears his name. "They [the UK] have a special relationship with the rest of the EU, they have the borders that they can control, unlike the rest of the EU, they have a trade surplus with the rest of the EU. They have some abilities to influence the dialogue, without which - they would, and America, which is my concern, would not benefit," he said.
"No one can say for certain if an 'out' vote would shrink the financial services industry, which accounts for about 12% of the UK's economic output and the bulk of our customer base. "It's not for me to tell British people how to vote, it is for me to explain what, as the employer of 4,000 people in the UK... what it means for our employees, and what it means for our company and what it means for America. And then that has to go into the thinking of the British people, who have to do what they think is right for themselves and the other countries that they have relationships with."
"But in my conversations with CEOs of banks and other industry leaders, with rare exceptions, they see Brexit as a serious complication that could lead some jobs to shift to the continent over time. Some in Frankfurt and Paris are rooting for Brexit for this reason." Mr Bloomberg added that it would be in the interests of the EU to negotiate trade deals which did not have as many benefits for the UK as current ones, to discourage other EU members from leaving.
'Punishing rival' "We live in an international, global world. A very big part of the UK's economy is based on exports to the EU and to other countries, so they certainly have an interest in the health of those other countries, and those countries having a respect for the UK. That's what creates jobs here in the UK.
Mr Bloomberg adds: "I also worry Brexit will leave our UK employees worse off. "The trade balances are dramatically weighted in favour of the UK in dealing with the EU, and if they were to drop out, it's really hard to see how they could ever negotiate a trade deal with the EU that would give them the benefits they have now. After all, the EU would have every interest to not give them those, so that nobody else would drop out of the EU."
"No one knows for certain how the UK would fare in trade negotiations with the EU, but we know Brussels would hold substantial leverage, given that the UK is far more dependent on the EU for exports than the EU is dependent on the UK.
"What price EU leaders would exact is impossible to predict, but deterring other countries from breaking away - not to mention the opportunity to punish an old rival - will likely discourage them from looking sympathetically upon Britain. Even if fair terms are secured, achieving them may take years, and families may feel a pinch well into the next decade."
He said that as an entrepreneur these were risks that he found unsettling.
'Stitch up''Stitch up'
Responding to the multinationals' letter, Employment Minister Priti Patel, who is campaigning to leave the EU, said: "Of course Brussels is good for big businesses and fat cats who care about their bonuses - they can afford to spend huge amounts of money on lobbyists and lawyers to help them stitch up the rules.Responding to the multinationals' letter, Employment Minister Priti Patel, who is campaigning to leave the EU, said: "Of course Brussels is good for big businesses and fat cats who care about their bonuses - they can afford to spend huge amounts of money on lobbyists and lawyers to help them stitch up the rules.
"But it is bad for smaller businesses and entrepreneurs."But it is bad for smaller businesses and entrepreneurs.
"The British people will not be browbeaten into making a choice against their interests on 23 June.""The British people will not be browbeaten into making a choice against their interests on 23 June."
On Wednesday night, both sides of the EU debate set out their stall in speeches to the CBI.On Wednesday night, both sides of the EU debate set out their stall in speeches to the CBI.
Former Tory leader Lord Howard criticised the business lobby group's warnings about the effects of a Leave vote, and said a "lack of democracy" in the EU was damaging businesses.Former Tory leader Lord Howard criticised the business lobby group's warnings about the effects of a Leave vote, and said a "lack of democracy" in the EU was damaging businesses.
But former Labour chancellor Lord Darling said leaving the EU could trigger another UK recession.But former Labour chancellor Lord Darling said leaving the EU could trigger another UK recession.