How businesses have reacted to Brexit... so far

As big companies threaten to move offices abroad and axe deals, we track the main Brexit-triggered business announcements
As big companies threaten to move offices abroad and axe deals, we track the main Brexit-triggered business announcements

Pulling out of the European Union has left British businesses in flux, with big companies revealing collapsed deals, job cuts and plans shift their bases to other countries.

As corporations and business groups scramble to react to Brexit, here's our round-up of what they have said so far. 

Property funds stop panic withdrawals

Six of Britain's biggest property funds have suspended trading in a bid to stem panic withdrawals, locking in holdings worth around £15bn.

Fund giant Standard Life was the first large manager to shut its £2.9bn portfolio on July 4, followed in quick succession by M&G, Aviva, Henderson, Threadneedle and Canada Life.

Major property funds are freezing holdings or writing down their portfolios in the wake of the Brexit vote
Major property funds are freezing holdings or writing down their portfolios in the wake of the Brexit vote

Aberdeen Asset Management took the drastic move of writing off 17pc of the value of its portfolio, in a bid to discourage investors from accessing their money.

Aberdeen's chief executive Martin Gilbert said: "Reducing the share price of the Fund reflects the changing market conditions over the past week or so and uncertainty around prices."

Sports Direct warns Brexit will hurt the high street

The troubled retailer said economic uncertainty would hit consumer spending, as it revealed a worse-than-expected fall in annual profits.

Sports Direct spooked investors in the wake of the result, revealing it did not have currency hedging in place for 2017.

Mike Ashley has faced a grilling from MPs over workplace practices at Sports Direct
Mike Ashley has faced a grilling from MPs over workplace practices at Sports Direct

Vodafone warns it may move its HQ out of the UK

"It is therefore not yet possible to draw any firm conclusions regarding the long-term location for the headquarters of the group.

We will continue to evaluate the situation and will take whatever decisions are appropriate in the interests of our customers, shareholders and employees."

Mobile giant Vodafone, based in London and Newbury, warned it could move its headquarters out of the UK if Britain's negotiations to leave the EU curb freedom of movement.

Vodafone said it would 'continue to evaluate the situation and will take whatever decisions are appropriate'
Vodafone said it would 'continue to evaluate the situation and will take whatever decisions are appropriate'

Vodafone said this week that the EU's unfettered movement of people, capital and goods had benefited the company, which generates just 11pc of its profits from its UK business.

RBS and Lloyds share sale put on hold

Britain's biggest lender, Lloyds Banking Group, has axed plans for a near-£9bn share placing due to market volatility following the referendum.

Shares in British banks, including Lloyds, were hard hit after the referendum vote
Shares in British banks, including Lloyds, were hard hit after the referendum vote

The Treasury had planned to sell the taxpayer-owned shares, which were bought during the financial crisis.

Richard Branson cancels deal worth 3,000 jobs

"We're not any worse than anyone else but I suspect we've lost a third of our value, which is dreadful for people in the workplace."

The business magnate claims that Virgin Group has axed a "very big deal" worth 3,000 jobs as a direct result of Brexit, warning that similar agreements are collapsing across the country.

Mr Branson, who founded Virgin in the 1970s, said Brexit had scuppered plans to buy a UK company due to concerns over "ongoing instability [which] will impact new expansion in the next few years in the UK."

The billionaire founder of Virgin's music-to-aeroplanes business empire has called on the Government for a second referendum, as well as lowering the voting age to 16.

John Lewis hints at Brexit price rises

The chain said sales at its department stores slumped in the week following the Brexit vote.

Andy Street, John Lewis' managing director, also warned that prices could increase if the pound fails to recover.

EasyJet attempts to get airline certificate in Europe

Carolyn McCall, easyJet's boss, insists the budget airline will keep its headquarters in Luton, where it was founded, but said that it has applied for an air operating certificate in another European country.

Carolyn McCall, easyJet's boss, said a move from Luton would not happen straight away
Carolyn McCall, easyJet's boss, said a move from Luton would not happen straight away

Under current rules, the single aviation market means airlines can operate services on any route in the EU as long as they have a certificate from a member country.

Ms McCall said that the FTSE 100 airline has no plans to shift abroad as "at the moment we know that Luton will remain Luton in terms of large numbers of people".

Visa could shift its London datacentre

The payments giant is considering cutting hundreds of UK jobs as it considers plans to relocate to the continent. 

Visa, which employs more than 1,000 people in London, could shift to Europe over concerns that the data it holds from card transactions should not leave the EU, Sky News reported.

Barclays abandons its Brexit 'crisis plan'

"We had a crisis leadership structure in place, we stood that down yesterday. Banks are continuing to operate pretty much as normal, and we should feel good about that."

Steven Cooper, Barclays' head of personal banking, reassured savers that it is no longer in crisis mode despite the large falls in banks' share prices after the vote.

Barclays abandoned a 'crisis leadership structure'
Barclays abandoned a 'crisis leadership structure'

He said plans to hold extra cash in branches to cope with a possible stampede of withdrawals from worried consumers, as well as a crisis-mode leadership structure, had been scrapped. "Frankly none of that has been needed," he said.

HSBC rules out London move (again)

HSBC, Europe's biggest bank, has ruled out a move from its Canary Wharf headquarters for the second time this year.

HSBC had considered re-domiciling over concerns about tax and bank regulations in the UK, but the plans were voted down by its board last February.

Douglas Flint, HSBC's chairman, told The City UK conference: "We said at the time we made the decision that we'd taken [Brexit] into consideration and that in the event of this outcome we would not call for that to be revisited."

Siemens puts export and investment plans on hold

German company Siemens, which makes wind turbines in Britain, said it is putting its wind power investment plans on hold. The energy firm employs around 1,000 people at its manufacturing hub in Hull, but said plans to export turbine machinery were up in the air. 

Siemens said plans to export wind turbine machinery were up in the air
Siemens said plans to export wind turbine machinery were up in the air

"Those plans were only beginning to happen and I expect that they will stall until we can work out exactly what the plan is," Juergen Maier, Siemens UK chief executive, told the Guardian

United Overseas Bank halts London lending

Meanwhile in Singapore, a major lender has halted lending on property purchases in London and urged foreign investors to be "cautious" of buying in the capital.

It comes as property funds slashed the values of their portfolios in the wake of the vote, as Brexit has prompted expectations of a correction in house prices.

United Overseas Bank, which mainly lends to wealthy Singaporeans who favour new-build luxury flats, said:

"As the aftermath of the UK referendum is still unfolding and given the uncertainties, we need to ensure our customers are cautious with their London property investments."

Dixons Carphone turns to forex hedging

Electricals and mobile retailer Dixons revealed its Brexit contingency plans included setting up long-term credit facilities and carrying out foreign currency hedging to guard against the plunging pound. 

Sterling dipped to a 30-year low against the dollar last Friday, spooking businesses that are based in Britain but have operations abroad.

Chief executive Sebastian James, who heads the company's Dixons, Currys, Carphone Warehouse and PC World brands, described the referendum result as "unsettling" and issued a plea for Britain to remain in the single market.

Daily Mirror publisher takes 'mitigating actions'

Trinity Mirror, which publishes the Daily Mirror and a dozen local newspapers, told investors that it has taken 'mitigating actions' to guard against uncertainties resulting from Brexit.

The FTSE 250 group said: "We will continue to invest in digital growth and take the necessary mitigating actions to support profits given the increased uncertainty arising from the outcome of the UK's referendum."

Shell backs the single market

Ben van Beurden, chief executive of the oil giant, told an audience:

"Shell has always been clear about the benefits of the single market and free movement of people, both for the UK and the EU as a whole"

Mr van Beurden declined to say whether the Anglo-Dutch company's structure and UK operations could be affected if trade and movement barriers were imposed, but said Shell's status as a UK plc domiciled for tax purposes in the Netherlands made it a "natural advocate for a very integrated UK in the EU".

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