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Tuesday, March 21, 2017

Goldman Sachs will move jobs out of London before Brexit deal struck

Goldman Sachs will begin moving hundreds of people out of London before any Brexit deal is struck, the banking giant's European boss has said.

The remarks from Richard Gnodde, chief executive of Goldman Sachs International, come as Theresa May prepares to trigger Article 50 for leaving the European Union next week.

Banks have been working on their response to the vote for several months after warnings before the June referendum that such an outcome would result in jobs moving.

Mr Gnodde told CNBC: "We are going to start to execute on those contingency plans."

"For this first period, this is really the period as we put in place contingency plans, this is in the hundreds of people as opposed to anything greater than that."

However he added that London would remain a "very significant global hub".

The bulk of the Wall Street firm's European operations are in Britain, where it has around 6,000 employees providing services across Europe.

:: EU leaders to hold first Brexit summit on 29 April

Financial firms rely on "passporting" rights to sell their services across the continent but these look likely to go after the Prime Minister said the UK would leave the single market.

Mr Gnodde said the big question was whether the Britain and the EU would agree on transitional arrangements as they try to hammer out a Brexit deal.

He said: "We can't bank on them so we have to have contingency plans and that's what we're going to start to execute on."

Mr Gnodde said Goldman would initially start hiring staff in Europe and moving people out of London, as well as investing in infrastructure and technology over the next 18 months.

He did not say which locations would benefit but mentioned that Goldman had banking licences in France and Germany and offices in several European cities.

Mr Gnodde added: "What our eventual footprint will look like depends on the outcome of negotiations and what we're obliged to do because of them.

"Whatever the scenario, whatever the outcome, London will remain for us a very significant regional hub and a very significant global hub."

The remarks come after London mayor Sadiq Khan warned that banks could start making plans to move out of the UK as soon as Article 50 is triggered - if there is no reassurance that there will be a transitional deal.

HSBC and UBS have warned that they could each transfer 1,000 jobs from London.

No African citizens granted visas for African trade summit in California

An annual African trade summit in California had no African attendees this year after at least 60 people were denied visas, according to event leaders.

The African Global Economic and Development Summit, a three-day conference at the University of Southern California (USC), typically brings delegations from across Africa to meet with business leaders in the US in an effort to foster partnerships. But this year, every single African citizen who requested a visa was rejected, according to organizer Mary Flowers.

Some are now questioning whether the denials to the Los Angeles event could be tied to the anti-immigration policies of Donald Trump, who is pushing forward with a travel ban against six Muslim-majority countries despite ongoing legal challenges.

Flowers said roughly 60 to 100 people from at least a dozen nations were denied entry to the summit, which went on as planned with a much smaller group last Thursday through Saturday.

“I don’t know if it’s Trump or if it’s the fact that the embassies that have been discriminating for a long time see this as an opportunity, because of talk of the travel ban, to blatantly reject everyone,” Flowers said in an interview on Monday. “These trade links create jobs for both America and Africa. It’s unbelievable what’s going on.”

The problems for the trade summit mark the latest example of restricted travel to the US under Trump, whose controversial immigration policies and rhetoric have impacted a wide range of industries and communities. Soccer players, musicians, doctors, tech workers, protesters and others from across the globe have been denied access to the US, which has also experienced a slump in tourism since Trump’s inauguration.

Rejected participants at the trade summit came from Nigeria, Cameroon, Angola, Ethiopia, Sierra Leone, Guinea, Ghana, South Africa and more, according to Flowers. Trump’s travel ban covers Somalia, Sudan and Libya in Africa, and citizens from those countries did not seek visas for the event.

“This conference puts Americans in touch with real people so they can do real business,” said Flowers, CEO of Global Green Development Group, which does economic development work in Africa.

A spokesperson for the US state department declined to comment on claims of rejections for summit participants, saying in a statement: “We cannot speculate on whether someone may or may not be eligible for a visa, nor on any possible limitations … Applications are refused if an applicant is found ineligible under the Immigration and Nationality Act or other provisions of US law.”

This is not the first time the summit has struggled with visa problems, according to Flowers, who has been organizing the event since 2013. In past years, she said, roughly 40% of interested African participants were denied entry.

But the 100% rejections this year meant there were only 50 to 75 participants total instead of the 150 to 200 who typically attend, she said. “Financially, that’s a gaping hole – a whole bunch of people who would have contributed not just to the event and to USC, but to the city around.”

She said many of the applicants who were rejected had already registered for the event and paid initial visa fees, but then were denied after short interviews – even when they brought extensive documentation, such as bank statements and property records.

The long-term impact of the visa denials is a lack of new trade links and business partnerships between US entrepreneurs and African nations, said Flowers, who also represents southern California as a member of the District Export Council, a trade group affiliated with the US commerce department.

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“This summit is designed to bring Africa to America’s doorstep for investments and trade,” said Flowers, who is now working on a power plant project in Nigeria, with a collaboration that emerged from a past trade summit.

“We can’t have the government telling us to go do business with Africa and then you slam the doors in their face,” she added, noting that Trump has been in contact with Nigeria’s president. “We can’t survive as an internal country. We have to operate globally or we won’t be powerful.”

Following the visa rejections, Flowers is now also in contact with US congresswoman Karen Bass, who represents Los Angeles and is the ranking member of the Africa subcommittee.

“When restrictive policies and practices are followed by US embassies when granting visas to Africans, it can hurt opportunities between US and African business entities,” Bass said in a statement to the Guardian on Monday. “I encourage the Department of State to make sure these policies are flexible enough to encourage the free flow of business ideas and opportunities.”

President Donald Trump gives daughter Ivanka White House office

Donald Trump has increased his family's grip on the White House by installing his daughter Ivanka close to the Oval Office and giving her access to state secrets.

An administration official confirmed reports that the President's 35-year-old daughter would be getting her own West Wing office, classified information clearance, and a government-issued phone.

The admission will dismay anti-nepotism campaigners, coming two months after her husband Jared Kushner was given a senior position in the administration.

Mr Kushner's appointment as a chief adviser to President Trump overturned decades of legal advice on a law that states public officials cannot "appoint, employ, promote, advance, or advocate for appointment" a relative to their own departments.

The clearance was issued on the President's inauguration day by the Justice Department, which advised that Congress "has not blocked, and most likely could not block, the President from seeking advice from family members in their personal capacities".

Since her father was elected, Ms Trump has raised conflict of interest questions by appearing at meetings with world leaders, including with Japan's Prime Minister Shinzo Abe in November.

It was later revealed that the meeting came at the same time she was trying to negotiate a lucrative deal for her clothing line with a state-backed Japanese firm.

She was seated next to German Chancellor Angela Merkel last week at a White House meeting on trade attended by the CEOs of BMW and Siemens, despite her only relevant qualification being a degree in economics.

Ms Trump's 'mini-bio' on the movie database IMDb, on which artists and their agents provide the content for a fee, states: "She is known for her work on The Apprentice USA (2004), Born Rich (2003) and 15th Annual Miss Teen USA Pageant (1997)."

Rail workers to strike on the day of the Grand National

Workers at three rail companies are to stage a 24-hour strike on the day of the Grand National next month.

Members of the Rail, Maritime and Transport (RMT) union at Southern, Merseyrail and Arriva Trains North will walk out on 8 April, threatening fresh travel misery for hundreds of thousands of passengers.

Many head to the Grand National in Aintree, Liverpool, by train, meaning any disruption to Merseyrail services will hit those going to one of the biggest horse races in the world.

The dispute is over staffing and the role of conductors.

The RMT also said a planned strike on Southern, which is owned by Govia Thameslink Railway (GTR), on 4 April had been moved to the 8th after the company offered fresh talks if the industrial action was suspended.

General Secretary Mick Cash said: "RMT members on Southern Rail have been fighting for safety and access to rail services for nearly a year now and it is time for the company to get out of the bunker and to start making some progress.

"There is no reason for Southern/GTR to drag their heels and the RMT is prepared to meet on the 4th of April as they have requested.

"We now have plenty of breathing space to get talks under way and we would urge the company to seize the opportunity that our decision today has opened up for both parties and the union would prefer for the talks to happen sooner rather than later."

A Southern spokesman said: "We have received no official confirmation from the RMT and will review our response when we do."

Richard Allan, deputy managing director of Arriva Rail North, said: "We are surprised that RMT has announced strike action for April 8 as we had been in contact with their officials in the last 24 hours to organise further talks.

"We have been clear that we want the RMT, along with our people, our customers and stakeholders, to play a role in bringing our modernisation plans to life.

"We want to work with everyone on how we modernise the way we provide customer service and continue to run a safe and reliable railway."

An increased service often runs on Aintree race days and a special timetable is put in place for the annual three-day Grand National festival.

RMT members at the three firms staged a 24-hour strike last week, with the most disruption on Merseyrail services after drivers refused to cross picket lines.

Talks between the company and the union broke down on Monday, with little sign of any progress in a dispute over plans to introduce new driver-only trains by 2020.

Rotherham sex abuse survivor wants royal pardon for crimes

A victim of a child grooming gang in Rotherham has called for royal pardons for all people who got criminal records while being abused.

Sammy Woodhouse was just 14 years old when she was targeted and during the years of the abuse that followed she went on to commit many crimes.

She told Sky News police treated her like a criminal rather than a victim when she came forward.

"I'm asking for a royal pardon for myself and for all survivors all over the country ... asking for our criminal records to be wiped," Ms Woodhouse said.

"I'm 31 years old and I still have a criminal record from being groomed as a child. I feel like I'm still being blamed.

"I think there's a lot of survivors out there in the country that want to come forward but that are scared, they're scared that they're going to be prosecuted themselves."

Ms Woodhouse said the crimes she committed while an abuse victim could have seen her jailed for more than a full-life sentence.

"When my solicitor looked at all the criminal things I'd done, some of it I'd already been charged with, some of it I hadn't, I could've been looking, if found guilty and caught, at 102 years in prison.

"It's a very daunting thing and it's something that could have prevented me from coming forward. I want other people to come forward and report their abuse ... and this is preventing them from doing that."

Ms Woodhouse said the nature of some of the offences she committed is also limiting her chances of moving on.

"On my record there's assault, possession of dangerous weapons, I was involved in burglaries, drug dealing, a lot of very serious things. A lot of that the police didn't know about until I came forward in 2013 and told them.

"The things that are on my criminal record at the moment actually make me a risk to other people, makes me a danger to them and I think that's really unfair, the fact that I'm still being blamed for my own abuse."

By coming forward she has waived her right to anonymity, but it is something she does not regret.

"I felt up until yesterday when I waived it (anonymity) that I'd been living in the shadows of my abuser, and that he's still been controlling my life.

Six members of the grooming and abuse gang - four men and two women - were found guilty of a host of offences involving the sexual exploitation of girls in Rotherham after a trial in February last year.

Three brothers, Arshid, Basharat and Bannaras Hussain - were charged with more than 70 offences committed over a 16-year period from 1987 but, even after three official reports, the affair is far from over.

The investigation into police misconduct over the scandal has implicated more than 90 current and former South Yorkshire Police officers - with some potentially facing criminal charges.

Power Rangers film introduces first LGBT superhero to the big screen

A reboot of 1990s kids' show Power Rangers has made history by introducing cinema's first LGBT superhero.

Despite less than positive reviews, the big screen version of the "mighty morphin" heroes has also been praised for being culturally and ethnically diverse.

It shows Yellow Ranger Trini, played by singer-turned-actress Becky G, having "girlfriend problems", before being tasked with saving the planet.

Electronic devices ban on some UK-bound flights

The Government has banned large electronic devices being carried in cabin luggage on aircraft flying into the UK from six countries.

The ban affects direct inbound flights from Turkey, Lebanon, Jordan, Egypt, Tunisia and Saudi Arabia.

The devices covered by the ban are laptops, tablets and phones which are larger than a typical smartphone, measuring 16cm by 9.3cm by 1.5cm.

These will now have to be checked into the plane's hold.

For example, an Apple iPhone 7 Plus, the firm's biggest phone, will not be affected by the ban.

The move follows the United States, which has imposed restrictions on flights originating in Cairo, Abu Dhabi, Dubai, Kuwait, Jordan, Morocco, Saudi Arabia, Doha and Istanbul.

The ban was ordered by Prime Minister Theresa May on Tuesday following a number of meetings on aviation security.

Security sources have told Sky News the move is not a reaction to a specific intelligence threat, rather a response to the ongoing general threat to aviation.

The affected airlines have been told about the order, but Number 10 said it may take a few days to fully implement the security measure.

UK airlines operating direct flights which will be affected are British Airways, easyJet, Jet2.com, Monarch, Thomas Cook and Thomson, while overseas airlines impacted are Turkish Airlines, Pegasus Airways, Atlas-Global Airlines, Middle East Airlines, EgyptAir, Royal Jordanian, Tunis Air and Saudia.

A Government spokesman said: "The safety and security of the travelling public is our highest priority.

"That is why we keep our aviation security under constant review and put in place measures we believe are necessary, effective and proportionate.

"The additional security measures may cause some disruption for passengers and flights, and we understand the frustration that will cause, but our top priority will always be to maintain the safety of British nationals.

"Decisions to make changes to our aviation security regime are never taken lightly.

"We will not hesitate to act in order to maintain the safety of the travelling public and we will work closely with our international partners to minimise any disruption these new measures may cause."

The UK has been in contact with US authorities over the issue, the PM's spokesman said.

When asked why the US ban differs from that imposed by the UK, he said: "We have each taken our own decisions. Our decisions are for us."

Julian King, the EU's commissioner for security, told Sky News he would contact the UK Government to discuss its ban.

Sky News has contacted the airlines affected by the ban.

British Airways said: "Following an announcement by the UK Government we are advising customers departing from affected airports to arrive in good time at check-in and to refer to ba.com for the latest information.

Our flights continue to operate as normal."

Thomas Cook said: "The new measures mean that laptops, tablets and e-readers will not be allowed in hand luggage and must be placed in the hold.

"This includes duty-free purchases of these devices in the airport. There will be no restrictions on regular-sized mobile phones, including the iPhone 7 Plus or Samsung Galaxy S7 Edge."

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