Humiliation for Labour lefties as JPMorgan threatens to axe new UK HQ | UK | News
JPMorgan boss Jamie Dimon says new headquarters in Canary Wharf will be at risk if UK acts hostile (Image: Getty)
JPMorgan boss threatens to pull the plug on new £3bn headquarters London If Sir Keir Starmer is replaced by a new Prime Minister who is “hostile to the banks”. Giant investment bank It announced plans to build in Canary Wharf last November.
Chief Executive Jamie Dimon said: Bloomberg TV construction plans will not be compromised Political instability in England but it will happen “if they become hostile to the banks again”. He told the news outlet: “I have always objected to the fact that we have not harmed the UK in any way. [have] It has probably paid $10 billion in extra taxes so far. I don’t think this is right or fair. “If this becomes too much, we’ll re-evaluate.”
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A new office in Canary Wharf will boost the local economy by £9.9bn and create 7,800 jobs, according to JPMorgan.
The new HQ plan was announced by the bank a day after banks were more or less exempt from measures announced by Chancellor Rachel Reeves in the Budget.
News of Mr Dimon’s stark warning came as markets reacted to turmoil in Downing Street as Prime Minister Sir Keir Starmer defied calls for him to resign following Labour’s disastrous local election results.
More than 80 of Labour’s 403 MPs are currently Calls for Sir Keir’s resignation He demanded immediate or a timetable for his resignation, including some ministers.
Speculations regarding the Prime Minister’s future economic massacre The yield on UK 10-year bonds rose to 5.10% on Tuesday, from 5.01% the previous day.
Banks have been sold amid reports that there could be a windfall tax on the sector if there is a change at the top of government.
JPMorgan’s banking team said: “Banks narrowly avoided a higher tax rate in the last budget, but our base case now assumes the UK banking surcharge will rise from 3% to 5%.”
Sterling fell from $1.3651 on Monday to $1.3505 on Tuesday afternoon. Against the euro, sterling fell from 1.1584 euros to 1.1517 euros on Monday.
Shadow Chancellor Sir Mel Stride said markets could see Sir Keir was weak and lurching left to appease the reserves. He warned Sir Keir could soon be replaced by rivals looking to borrow, tax and spend even more.
Saxo UK investor strategist Neil Wilson said until there was clarity on Britain’s leadership, market volatility and the increasing likelihood of a rout would increase.
He added: “At a time when the fiscal position is already fragile and risks are rising due to rising inflation from rising energy prices and a weak growth outlook for the economy, a swing to the left could create uneasiness among bond vigilantes.
“In the event of a new leadership ticket, there is a risk of additional government spending on cost-of-living measures such as supporting rising energy bills, increasing the minimum wage, increasing benefits and freezing rents, alongside a range of potential aid mechanisms.
“This would be a toxic combination for the gilts – higher spending, lower growth and entrenched inflation.”
