ECB Warns Banks Not to Relocate Staff

  • The Brexit transition period is less than two months away.
  • Credit Suisse issued a research report said Weilai (NIO) to car Q3 results are better than market expectations.
  • Deutsche Bank said sales are less affected by the domestically produced Model Y, and NIO is given a Buy rating. 

The European Central Bank stated that banks should not use the new coronavirus epidemic as an excuse to delay the transfer of employees to the European Union when they promote their Brexit plans. The ECB stated that future actions need to be planned with the new coronavirus epidemic as the basic assumption and try to avoid delays.

The European Central Bank (ECB) said today that UK-based financial institutions must not use the pandemic as an excuse to avoid relocation.

The bank pointed out that although there are telecommuting arrangements, a sufficient number of employees must also be deployed in the EU to manage risks while ensuring effective supervision by the European Central Bank.

“Banking Supervision has provided flexibility where required, notably to account for the impact of the lockdown measures and travel restrictions on the relocation of staff,” it said. “No additional flexibility is foreseen in principle.”

The Brexit transition period is less than two months away. Since institutions headquartered in the United Kingdom will not be able to maintain a single license passage under the trade agreement, multinational banks have been expanding their operations in the EU to ensure that they can serve customers.

Tory MP Peter Bone told MailOnline, “basically any big bank already has something there. There is nothing to move that is an idle threat. I’m afraid I don’t think any of our banks will take any notice because they have already done it.”

The migration costs of employees and assets are inherently high. The epidemic has made the situation more complicated. Employees face travel restrictions and must maintain social distancing when dealing with schools and real estate brokers.

The European Central Bank stated that although banks have been granted a certain degree of flexibility in necessary areas, it is “in principle not expected to grant further flexibility.”

The banking supervision department under the central bank released the latest information on Wednesday that the central bank expects to obtain relevant certification that employees have or will be integrated into the new EU hub in a timely manner.

Ashwani Gupta, Nissan’s chief operating officer (COO), told Reuters, “if it happens without any sustainable business case, obviously it is not a question of Sunderland or not Sunderland, obviously our UK business will not be sustainable, that’s it.”

Credit Suisse Group AG is a global wealth manager, investment bank and financial services firm founded and based in Switzerland.

Credit Suisse issued a research report said Weilai (NIO) to car Q3 results are better than market expectations. NIO’s ES8 revenue contribution was higher than expected.

Taking into account the better-than-expected gross profit margin, the bank will increase Weilai’s profit forecast for 2020-2022 by 11.8%-33.9%.

The key catalyst for NIO’s target price of $60 is that NIO will soon launch a new flagship sedan on NIO DAY. The current highest price of NIO is $54.20.

Deutsche Bank said sales are less affected by the domestically produced Model Y, and NIO is given a Buy rating. Deutsche Bank analyst Edison Yu said in a research report that it is expected that Weilai’s Q3 financial report will disclose record-high revenue and profits.

Therefore, NIO is given a Buy rating with a target price of $34, which is about 25% lower than NIO’s current share price. At the same time, analysts of the bank said in a research report that Tesla’s upcoming China-made Model Y SUV will not have much impact on Weilai’s similar products ES6 and EC6.

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Benedict Kasigara

I have been working as a freelance editor/writer since 2006. My specialist subject is film and television having worked for over 10 years from 2005 during which time I was the editor of the BFI Film and Television.

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