I have to write a piece on this for our morning email alert. This is what I'm thinking. Urgh, HSBC full-year results tom too.
FTSE bosses back 'In' campaign; Boris says 'Out'
FTSE 100 bosses are on a collision course with London mayor Boris Johnson over a potential Brexit.
Up to half of the chairmen and chief executives of the blue chip index's constituents are expected to sign a joint letter in support of staying in the EU this week, according to a report by Sky. The news comes as Johnson, the Conservative MP for Uxbridge and South Ruislip, threw his weight behind the 'Out' campaign in his Sunday Telegraph column yesterday, following considerable speculation.
The campaigning on both sides is set to gather momentum after prime minister David Cameron set the 23 June date for the referendum at the weekend. The move followed three days of intensive meetings in Brussels as he attempted to gain further concessions from the EU.
According to Sky, the wording of the open letter from some of the UK's biggest employers was agreed with the prime minister's office. The signatories are believed to include GlaxoSmithKline chief executive Sir Andrew Witty, BT chief executive Gavin Patterson and Vittorio Colao, the CEO of Vodafone. The wording of the letter is expected to emphasise that the firms they represent 'employ hundreds of thousands'. It is also reported to say that exiting the EU 'would put the economy at risk', highlighting Cameron's efforts to 'reduce the burden of regulation'.
Protecting the City of London's interests has been a central plank of Cameron's attempts to renegotiate the UK's terms with Europe. It will therefore come as a blow that Johnson is backing the 'Out' campaign. The maverick MP said in his much-anticipated column that the referendum is a 'once in a lifetime chance to vote for real change'. He added that remaining in the EU would result in 'an erosion of democracy', but stopped short of criticising Cameron, praising him for 'doing his best' to secure a better deal.
The City is not united on staying in
FTSE 100 chiefs' decision to back the 'In' campaign has echoes of when the City grandees clubbed together to support the 'No' campaign during the Scottish independence referendum in 2014.
Then, as now, Standard Life has been a vocal player. In its full-year results on Friday, the group's chairman, Sir Gerry Grimstone, warned that Brexit would be 'potentially damaging' to the UK, adding: 'We believe that access to the EU single market is in the best interests of our customers and clients.'
However, it is easy to level the self-interest argument against big business. Realistically, how many finance directors at large multi-national employers would be expected to vote in a change that could result in a massive overhaul of their systems and processes?
That said, the nay-sayers do seem to be centred in Mayfair rather than the City. Billionaire hedge fund moguls Crispin Odey and Sir Michael Hintze, founder of CQS, are both ardent backers of the 'Out' campaign and are understood to have provided not insignificant financial backing.
How to spin the split?
Taking it at face value, the fact that the likes of Glaxo and Standard Life have put their muscle behind the 'In' campaign is arguably more valuable than Odey et al backing the 'Out' faction. Will the public be more swayed by two massive employers warnings of an exit or the perceived self-interest of a couple of hedge fund billionaires?
The fact that such intelligent people are so polarised on the issue only serves to underline the complexity of the decision. Is this really something best left to the man on the street?