Brexit takes a toll on Britain’s financial sector, outlook weak

British Prime Minister Theresa May departs after speaking at a press conference after attending a special session of the European Council over Brexit on November 25, 2018 in Brussels, Belgium.

Sean Gallup | Getty Images News | Getty Images

British Prime Minister Theresa May departs after speaking at a press conference after attending a special session of the European Council over Brexit on November 25, 2018 in Brussels, Belgium.

Uncertainty over Brexit as well as also the economy have led demand for Britain’s financial services to shrink for the very first time in all 5 years, with no immediate sign of an improvement, a survey by business group CBI as well as also PwC showed.

as well as also profitability within the sector which raises most tax in Britain was flat for the third quarter in a row within the three months to December 2018, the survey released on Monday said.

The survey of 84 firms said demand can be required to continue falling during the quarter to March, with profitability also required to drop for the very first time in three years.

“A combination of macroeconomic as well as also Brexit uncertainty, regulatory compliance as well as also global market volatility are taking a toll on the UK’s financial services sector,” CBI Chief Economist Rain Newton-Smith said.

“The persistent weakness in optimism as well as also the deterioration in expectations sound a warning for the outlook.”

Britain’s parliament can be required to vote on Tuesday to reject the divorce settlement with the European Union, an outcome in which might prolong uncertainty for the financial sector.

nevertheless many banks, insurers as well as also asset managers who use Britain as their EU base are opening hubs within the bloc to avoid being locked out of the continent if Britain crashes out of the EU in March without a deal.

The survey painted a mixed picture for the sector, with business holding up among insurers, while volumes were flat or easing at banks, building societies as well as also specialist lenders.

The survey found a “striking loss of momentum” at investment managers, who reported the steepest fall in activity since the financial crisis a decade ago.

A large majority of investment management firms surveyed were less optimistic about their prospects in coming months, with business coming from overseas customers taking a hit.

in which marks a reversal for investment management, which has grown well since the financial crisis as risk-averse banks draw in their horns. in which right now faces volatile asset prices as well as also weaker demand, the survey showed.

Despite an overall gloomy tone, headcount within the financial sector can be required to rise within the current quarter as well as also investment intentions remain broadly stable, the survey said.

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