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Business

Passporting to clearing: Brexit's buzzwords

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Business

Passporting to clearing: Brexit's buzzwords

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COMING UP:Passporting to clearing: Brexit's buzzwords

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Transcript

00:00:00
>> Something must be up when the French President takes an interest in London's financial plumbing. Francois Hollande saying Paris should become the center for Euro clearing. That's one of several buzz terms to be heard a lot since the Brexit vote. Passporting, free movement, and single-market access, some of the others.
00:00:22
But what exactly do they mean? Reuters regulation correspondent Huw Jones.>> What's at stake for Britain is how much access will we continue to have to the EU single market. Single market's 500 million people, the world's biggest trading block. Some sectors, like banks, very worried. It could see the door being shut as the last chunk of their business gone out of the window.
00:00:47
>> The single market is where Britain sells most of its goods, nearly half its overseas shipments. If the UK is shut out, that could mean all exporters face tariffs or other barriers. As for banks, they might lose passporting the right to sell their services all around the EU.
00:01:05
That could cost them the business of Euro clearing the settlement of financial transactions in the single currency.>> People will worry, well, this is the start of the erosion of London as a global financial center>> Can you really compete with New York, and Singapore, Shanghai, if you can't even do basic stuff in his own backyard?
00:01:24
>> EU leaders say that UK can keep access to the single market, if it also accepts free movement of people. That's the right of EU citizens to live and work in the UK, something Brexit campaigners blame for the surge in immigrants. Whoever becomes the next Prime Minister, therefore, faces a tough choice.
00:01:44
Curb immigration at the cost of single market access, or accept free movement and break a promise to pro-Brexit voters. No one ever said running the country was easy.