Goldman Sachs to Talk to UK Labour Party

The British Labour Party’s would-be finance minister, John McDonnell, has accepted an invitation for talks at the Wall Street bank Goldman Sachs (GS.N) as it seeks better relations with a political party whose leaders have pilloried bankers.

Banks in London had hardly bothered to court Labour since 2015, when it elected the leftist Jeremy Corbyn as its leader – but are taking it more seriously after a strong election in which it deprived the Conservatives of their absolute majority and left Prime Minister Theresa May severely weakened.

McDonnell’s spokesman said he had accepted Goldman’s invitation.

“I said of course I would (meet),” McDonnell said in an interview with Bloomberg, which first reported news of the plan to meet a top executive. “We’ll even make him a cup of tea and throw in some Rich Teas (biscuits) as well.”

There is clearly work to be done. The U.S. investment bank Morgan Stanley (MS.N) has told investors political uncertainty is a bigger threat to Britain than Brexit, given the risk of Corbyn winning power and dismantling its free-market economy.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza