Brian Moynihan, chief executive of Bank of America, has cautioned Sir Keir Starmer against tightening regulation in the City, just a week after the Chancellor opted not to raise taxes on lenders in the Budget.
Moynihan noted that Bank of America employs around 6,000 people in the UK and said London still has “plenty of upside” in its efforts to attract global businesses. But he warned that excessive red tape could push talent and investment elsewhere.
“If you make it hard to operate, that’s when people start to make decisions,” he told Bloomberg.
Bank shares have risen 3.6pc across the FTSE 100 and FTSE 250 since Rachel Reeves confirmed she would not seek additional taxes from the sector to fund her spending plans.
Moynihan added: “Our advice is be the best place for non-UK-based companies to operate and you’ll get companies coming here. It won’t be that people leave; it’s just where the next 500,000 people are going to go.”
Wall Street subdued ahead of inflation data
US stock indexes edged higher this morning as investors awaited delayed inflation figures due later today.
The Commerce Department is set to publish the personal consumption expenditures (PCE) index for September — the Federal Reserve’s preferred inflation gauge — marking the first major data release since a 43-day government shutdown paused official reporting.
The numbers arrive just days before what could be the Fed’s most contentious meeting in years, with policymakers split over whether to cut interest rates next week. Most officials have stressed they want clearer evidence that inflation is moving closer to the 2pc target before easing policy further.
In premarket trading, the Dow Jones Industrial Average rose 0.1pc, the S&P 500 edged up 0.2pc and the Nasdaq 100 gained 0.4pc.
