Banking's Disrupters Face Upheaval of Their Own in Brexit Vote – Bloomberg

Entrepreneurs who’ve flocked to London in recent years to upend the financial world with technology are dreading one potential disruption they can’t control: Britain leaving the European Union.

A decision to quit the 28-nation bloc in Thursday’s referendum would threaten trade and regulatory benefits that have made London a hub for financial startups, as well as a center for global banking. Polls show the outcome is too close to call. 

“The people we deal with are petrified about Brexit,” said Mike Laven, chief executive officer of Currencycloud Ltd., a London-based firm that processes cross-border payments.

Finance-focused startups are a bright spot for the U.K.’s technology scene, making launch parties at the top of the Gherkin in the City or pizza-fueled conferences at Level 39, the tech accelerator in the heart of Canary Wharf, regular events. The so-called fintech industry has benefited from fast-track regulation and EU immigration rules that have lured legions of young European code writers to London from elsewhere on the continent.

Investment in the British firms soared 53 percent to 660 million pounds ($974 million) last year, topping any other European nation, according to Accenture Plc. At least two London-based fintech companies — Funding Circle Ltd. and TransferWise Ltd. — have been valued at more than $1 billion.

Young firms have attracted investments from Barclays Plc, Banco Santander SA’s U.K. unit and other British commercial banks. Last Friday, Bank of England Governor Mark Carney announced the 322-year-old institution was launching an accelerator to work with fintech startups.

Click here for a guide on what to look out for on the night of the vote count

This promising story could have an unhappy ending if Britain opts out of the EU. Today, companies can save money and time by getting licensed in one EU nation and selling their products across the bloc, an arrangement known as “passporting.” Many companies set up shop in the U.K. because of its speedy licensing compared with other EU countries. If the U.K. leaves, a firm such as Currencycloud could lose the passporting privilege, and have to submit applications in every nation where it wants to operate, a costly chore.

Separating from Europe would be “catastrophic” for the fintech industry, resulting in a loss of $5 billion in investment over the next five years and prompting companies to leave for the U.S. or other European countries, according to a report Tuesday from research firm William Garrity Associates.

Diminished Role

“Following Brexit, fintech startups may realize it makes more sense to set up an office within the EU, and existing companies may relocate some of their staff to the EU,” said Jan Hammer, a partner at Index Ventures in London, a venture capital firm that has invested in the sector. Splitting with the EU would “diminish London’s role as a leading fintech hub,” he said.

Laven said he’s taking steps to become regulated in different European countries before the vote as a precaution. “There’s no denying that a break from the EU would cause disruption to businesses — especially in the financial industry,” he said in a statement.

Brexit would cloud the plans of British peer-to-peer lenders. Funding Circle, the U.K.’s No. 1 online marketplace for small and medium-sized companies, announced Tuesday that the European Investment Bank would use the platform to make 100 million pounds in loans to British firms. CEO Samir Desai says Brexit would not upset the deal, but there would be little chance of expanding the program if the U.K. left.

Tech Setback

Those concerns also apply to the broader technology industry. Entrepreneurs, venture capitalists and rank-and-file employees argue a break with Europe would undermine attempts to turn London into a global technology hub. A Brexit would make it harder to raise money and threaten recruitment.

Niklas Zennstrom, the co-founder of the Internet phone service Skype, said the city risks losing entrepreneurs like him. In 2003, he chose London for Skype’s headquarters instead of his native Sweden because of the city’s position as a financial hub and its allure to potential employees who could easily move there from across Europe.

“If Britain were to leave Europe, then today’s entrepreneurs would have to reconsider their flight options,” said Zennstrom, who sold Skype in 2005 for $2.6 billion and is now a venture capitalist. “A Brexit would put U.K. tech companies at an immediate disadvantage when it comes to raising money and finding and hiring the right talent.”

Best Recruits

Advocates for Brexit say those fears are misplaced. An independent U.K. would be able to craft more tech-friendly policies, including immigration rules that allow for more high-skill workers to enter the country, said Steve Hilton, a former adviser to Prime Minister David Cameron who founded CrowdPac, a political organizing platform. 

The U.K. has enough “Hungarian waiters,” he said at a June 16 event, and should instead encourage engineers and other tech-savvy workers to move to the country from around Europe, Asia and elsewhere. 

“The EU prevents us from being open to talent from around the world,” he said. “The test should be ‘do you have skills we need?”’

Damian Kimmelman, the founder of London-based DueDil Inc., a startup that provides data about private companies, said it’s not that simple. If the U.K. were to leave the EU, Kimmelman said the company will expand in other countries. About 20 of his 100 employees are from European countries outside the U.K.

“Why would I pour resources into building a company in the U.K., when I can have a tougher time hiring, a higher cost of living and have a smaller applicant pool?” he said.

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Donald Trump blasts California protesters as "thugs and criminals" – CBS News

Donald Trump slammed the protesters at his recent California campaign events as “thugs and criminals,” calling for police to dole out harsh punishments in a tweet early Saturday.

The “protesters” in California were thugs and criminals. Many are professionals. They should be dealt with strongly by law enforcement!

— Donald J. Trump (@realDonaldTrump) April 30, 2016

Protests erupted Friday in Burlingame, where Trump spoke at California’s GOP convention, with demonstrators shutting down streets and spilling out across the grounds of the Hyatt Regency hotel.

Video of the crowds showed a largely peaceful demonstration, though there were some pockets of aggressive protesters — including some flag-burners and egg-throwers.

“No hate in our state,” demonstrators chanted early in the day, with a few carrying Mexican flags in protest of Trump’s anti-immigrant policies.

According to Burlingame police, five people were arrested and one suffered a non-serious injury.

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Saturday

Protesters try to block Trump’s entrance at Calif. GOP convention

Hundreds of protesters outside the California state convention forced Donald Trump to leave his motorcade and walk to the venue where he was to s…

Because protesters surrounded the building, Trump, arriving with his Secret Service entourage, was forced to hop a low fence in order to enter the event space.

While speaking to the Republican convention, the billionaire made light of the situation, joking that he now knew what it felt like to cross the U.S.-Mexico border.

“We went under a fence and through a fence,” Trump said Friday. “And oh boy, it felt like I was crossing the border, actually.”

The protest was the second massive demonstration against Trump in just as many days.

During a large rally in Southern California Thursday night, violence broke out near the Orange County Fairgrounds while Trump spoke to an audience of approximately 18,000 supporters.

Two patrol cars were damaged, but no major injuries were reported.

On Thursday, Costa Mesa police arrested and released 17 people on charges of failing to disperse.

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Voters' 'Bernie or Bust' efforts persist despite Sanders' vow not to be another Ralph Nader – Los Angeles Times

In recent months, Bernie Sanders has transformed Dennis Brandau from a guy who hated politics into a first-time voter. On Tuesday, the 29-year-old line cook will proudly cast a ballot for the Vermont senator in Pennsylvania’s Democratic presidential primary.

But the bruising campaign this year also has turned Brandau into a fierce opponent of the Democratic front-runner, former Secretary of State Hillary Clinton. He says he has a hard time imagining backing her this fall if she wins the nomination.

“I don’t know if I can vote for her,” Brandau said. “I don’t even want to hear her talk.”

Sanders’ chances of winning the nomination have dimmed since his 16-point loss to Clinton in last week’s New York primary. Polls show he faces an uphill race in several of the five Eastern states that vote on Tuesday, as well as in California’s June 7 primary.

Some of his supporters remain so steadfast, however, that a #BernieOrBust movement has picked up momentum on Twitter. So has an online pledge for supporters who vow to vote for Sanders as a write-in candidate if he loses the nomination.

A recent McClatchy-Marist poll found that 1 in 4 Sanders supporters would not back Clinton as the nominee, a sign of the party’s deep divide — and Clinton’s high negatives — at this point of the race.

Democratic pollster Anna Greenberg says she is confident that many Sanders supporters will ultimately vote for Clinton if she wins the nomination, especially if she faces Republican front-runner Donald Trump or Texas Sen. Ted Cruz.

“They might have to hold their noses to vote for her, but she’s going to seem better … than the alternative,” Greenberg said.

Sanders has pledged to back Clinton if she is the nominee, and has spoken often of the necessity of defeating Trump.

At a rally Saturday in Baltimore, he was introduced by civil rights leader Benjamin Jealous, who told a crowded downtown arena: “Our No. 1 purpose in this election must be to defeat Donald Trump.”

Election 2016 | Live coverage on Trail Guide | Track the delegate race | Sign up for the newsletter  

Sanders appeared to ease some of his harsher attacks on Clinton, focusing instead on their different positions. He criticized her support of free-trade deals, her super PAC spending and her refusal to release transcripts of paid speeches she gave to Wall Street firms while she was out of office. The large crowd responded with loud boos.

In interviews, Sanders has said he has no intention of being another Ralph Nader — the third-party candidate blamed by many Democrats for siphoning votes from Democratic nominee Al Gore in 2000, helping give the White House to George W. Bush.

“In the heat of the campaign things look intense, but eventually everybody comes together,” said Democratic strategist Bill Carrick.

Tensions were just as high in 2008 when Sen. Barack Obama beat Clinton for the nomination, he noted, but Clinton ultimately endorsed Obama and campaigned for him.

Anne Sabin, an accountant who heard Sanders speak in the Philadelphia suburb of Oaks, says he opened her eyes to the need for campaign finance reform.

She hopes Sanders “crushes” Clinton and gets the nomination, she said. “But if he doesn’t, I’ll vote for Hillary, holding my nose while I pull the lever.”

Early in the race, Sanders drew applause in a debate by telling Clinton that he was “sick and tired of hearing about [her] damn emails,” declining to join Republicans in attacking her for using a private email server while she was secretary of State.

But after his insurgent campaign caught fire he hammered her on other issues, saying at one point that he didn’t think she was qualified to be president, a charge he later withdrew. But as vitriol grew on both sides, he stopped urging supporters to stop booing Clinton at his rallies.

Although Clinton and Sanders agree broadly on many policies that Republicans oppose, such as raising the minimum wage and letting people who are in the country illegally stay here, the longtime political independent has portrayed her as a political insider beholden to special interests. That image will be hard to shake.

“I’m not going to vote for Hillary Clinton,” said Hugh Espey, executive director of the Iowa Citizens for Community Improvement Action Fund, a community organizing group backing Sanders. “She’s a part of the rigged political system.”

While Espey believes Sanders has forced Clinton to the left on some issues, noting her opposition to the proposed Trans-Pacific Partnership trade deal, he doesn’t trust her to keep those promises in office, and doesn’t believe she will stand up to Wall Street.

His group, which is working to raise the minimum wage in Iowa, is one of many organizations trying to capitalize on the enthusiasm surrounding the Sanders campaign to build support for other causes.

“This is a movement moment,” Espey said. “What we’re doing is building the political revolution Bernie’s talking about.”

Sanders often speaks not just of winning the presidency, but of starting a “political revolution.”

His rallies often feel more like festivals than political events, with fans selling homemade T-shirts and candles and local bands sometimes kicking off his speeches. Millions of individuals have contributed money to help him keep pace with Clinton’s fundraising operation.

RoseAnn DeMoro, executive director of National Nurses United, which is backing Sanders, says if Clinton wins the nomination she’ll have a messaging problem in the fall election.

“Saying ‘I’m not Trump’ is not the most inspiring message,” DeMoro said. “People might vote for her, but they won’t work for her.”

Alex Vader, 24, agrees. In recent weeks, she and her boyfriend have hit the pavement for Sanders near Philadelphia.

“We were out in the snow and rain for Bernie,” said Vader, an engineering student. “I wouldn’t do that for Hillary. She doesn’t inspire me that much.”

Corty Byron, 30, a musician who opened up the Sanders rally Saturday at a gym in Millersville with Woody Guthrie’s “This Land is Your Land,” said he would willingly support Clinton in the fall.

A guitarist in the band has vowed to write in Sanders’ name in November if he isn’t on the ballot.

Byron says that he is terrified of Trump winning, and that Sanders has had an impact just by running and it would be a mistake for liberal voters not to vote for Clinton on principle.

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Voters' 'Bernie or Bust' efforts persist despite Sanders' vow not to be another Ralph Nader – Los Angeles Times

In recent months, Bernie Sanders has transformed Dennis Brandau from a guy who hated politics into a first-time voter. On Tuesday, the 29-year-old line cook will proudly cast a ballot for the Vermont senator in Pennsylvania’s Democratic presidential primary.

But the bruising campaign this year also has turned Brandau into a fierce opponent of the Democratic front-runner, former Secretary of State Hillary Clinton. He says he has a hard time imagining backing her this fall if she wins the nomination.

“I don’t know if I can vote for her,” Brandau said. “I don’t even want to hear her talk.”

Sanders’ chances of winning the nomination have dimmed since his 16-point loss to Clinton in last week’s New York primary. Polls show he faces an uphill race in several of the five Eastern states that vote on Tuesday, as well as in California’s June 7 primary.

Some of his supporters remain so steadfast, however, that a #BernieOrBust movement has picked up momentum on Twitter. So has an online pledge for supporters who vow to vote for Sanders as a write-in candidate if he loses the nomination.

A recent McClatchy-Marist poll found that 1 in 4 Sanders supporters would not back Clinton as the nominee, a sign of the party’s deep divide — and Clinton’s high negatives — at this point of the race.

Democratic pollster Anna Greenberg says she is confident that many Sanders supporters will ultimately vote for Clinton if she wins the nomination, especially if she faces Republican front-runner Donald Trump or Texas Sen. Ted Cruz.

“They might have to hold their noses to vote for her, but she’s going to seem better … than the alternative,” Greenberg said.

Sanders has pledged to back Clinton if she is the nominee, and has spoken often of the necessity of defeating Trump.

At a rally Saturday in Baltimore, he was introduced by civil rights leader Benjamin Jealous, who told a crowded downtown arena: “Our No. 1 purpose in this election must be to defeat Donald Trump.”

Election 2016 | Live coverage on Trail Guide | Track the delegate race | Sign up for the newsletter  

Sanders appeared to ease some of his harsher attacks on Clinton, focusing instead on their different positions. He criticized her support of free-trade deals, her super PAC spending and her refusal to release transcripts of paid speeches she gave to Wall Street firms while she was out of office. The large crowd responded with loud boos.

In interviews, Sanders has said he has no intention of being another Ralph Nader — the third-party candidate blamed by many Democrats for siphoning votes from Democratic nominee Al Gore in 2000, helping give the White House to George W. Bush.

“In the heat of the campaign things look intense, but eventually everybody comes together,” said Democratic strategist Bill Carrick.

Tensions were just as high in 2008 when Sen. Barack Obama beat Clinton for the nomination, he noted, but Clinton ultimately endorsed Obama and campaigned for him.

Anne Sabin, an accountant who heard Sanders speak in the Philadelphia suburb of Oaks, says he opened her eyes to the need for campaign finance reform.

She hopes Sanders “crushes” Clinton and gets the nomination, she said. “But if he doesn’t, I’ll vote for Hillary, holding my nose while I pull the lever.”

Early in the race, Sanders drew applause in a debate by telling Clinton that he was “sick and tired of hearing about [her] damn emails,” declining to join Republicans in attacking her for using a private email server while she was secretary of State.

But after his insurgent campaign caught fire he hammered her on other issues, saying at one point that he didn’t think she was qualified to be president, a charge he later withdrew. But as vitriol grew on both sides, he stopped urging supporters to stop booing Clinton at his rallies.

Although Clinton and Sanders agree broadly on many policies that Republicans oppose, such as raising the minimum wage and letting people who are in the country illegally stay here, the longtime political independent has portrayed her as a political insider beholden to special interests. That image will be hard to shake.

“I’m not going to vote for Hillary Clinton,” said Hugh Espey, executive director of the Iowa Citizens for Community Improvement Action Fund, a community organizing group backing Sanders. “She’s a part of the rigged political system.”

While Espey believes Sanders has forced Clinton to the left on some issues, noting her opposition to the proposed Trans-Pacific Partnership trade deal, he doesn’t trust her to keep those promises in office, and doesn’t believe she will stand up to Wall Street.

His group, which is working to raise the minimum wage in Iowa, is one of many organizations trying to capitalize on the enthusiasm surrounding the Sanders campaign to build support for other causes.

“This is a movement moment,” Espey said. “What we’re doing is building the political revolution Bernie’s talking about.”

Sanders often speaks not just of winning the presidency, but of starting a “political revolution.”

His rallies often feel more like festivals than political events, with fans selling homemade T-shirts and candles and local bands sometimes kicking off his speeches. Millions of individuals have contributed money to help him keep pace with Clinton’s fundraising operation.

RoseAnn DeMoro, executive director of National Nurses United, which is backing Sanders, says if Clinton wins the nomination she’ll have a messaging problem in the fall election.

“Saying ‘I’m not Trump’ is not the most inspiring message,” DeMoro said. “People might vote for her, but they won’t work for her.”

Alex Vader, 24, agrees. In recent weeks, she and her boyfriend have hit the pavement for Sanders near Philadelphia.

“We were out in the snow and rain for Bernie,” said Vader, an engineering student. “I wouldn’t do that for Hillary. She doesn’t inspire me that much.”

Corty Byron, 30, a musician who opened up the Sanders rally Saturday at a gym in Millersville with Woody Guthrie’s “This Land is Your Land,” said he would willingly support Clinton in the fall.

A guitarist in the band has vowed to write in Sanders’ name in November if he isn’t on the ballot.

Byron says that he is terrified of Trump winning, and that Sanders has had an impact just by running and it would be a mistake for liberal voters not to vote for Clinton on principle.

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Voters' 'Bernie or Bust' efforts persist despite Sanders' vow not to be another Ralph Nader – Los Angeles Times

In recent months, Bernie Sanders has transformed Dennis Brandau from a guy who hated politics into a first-time voter. On Tuesday, the 29-year-old line cook will proudly cast a ballot for the Vermont senator in Pennsylvania’s Democratic presidential primary.

But the bruising campaign this year also has turned Brandau into a fierce opponent of the Democratic front-runner, former Secretary of State Hillary Clinton. He says he has a hard time imagining backing her this fall if she wins the nomination.

“I don’t know if I can vote for her,” Brandau said. “I don’t even want to hear her talk.”

Sanders’ chances of winning the nomination have dimmed since his 16-point loss to Clinton in last week’s New York primary. Polls show he faces an uphill race in several of the five Eastern states that vote on Tuesday, as well as in California’s June 7 primary.

Some of his supporters remain so steadfast, however, that a #BernieOrBust movement has picked up momentum on Twitter. So has an online pledge for supporters who vow to vote for Sanders as a write-in candidate if he loses the nomination.

A recent McClatchy-Marist poll found that 1 in 4 Sanders supporters would not back Clinton as the nominee, a sign of the party’s deep divide — and Clinton’s high negatives — at this point of the race.

Democratic pollster Anna Greenberg says she is confident that many Sanders supporters will ultimately vote for Clinton if she wins the nomination, especially if she faces Republican front-runner Donald Trump or Texas Sen. Ted Cruz.

“They might have to hold their noses to vote for her, but she’s going to seem better … than the alternative,” Greenberg said.

Sanders has pledged to back Clinton if she is the nominee, and has spoken often of the necessity of defeating Trump.

At a rally Saturday in Baltimore, he was introduced by civil rights leader Benjamin Jealous, who told a crowded downtown arena: “Our No. 1 purpose in this election must be to defeat Donald Trump.”

Election 2016 | Live coverage on Trail Guide | Track the delegate race | Sign up for the newsletter  

Sanders appeared to ease some of his harsher attacks on Clinton, focusing instead on their different positions. He criticized her support of free-trade deals, her super PAC spending and her refusal to release transcripts of paid speeches she gave to Wall Street firms while she was out of office. The large crowd responded with loud boos.

In interviews, Sanders has said he has no intention of being another Ralph Nader — the third-party candidate blamed by many Democrats for siphoning votes from Democratic nominee Al Gore in 2000, helping give the White House to George W. Bush.

“In the heat of the campaign things look intense, but eventually everybody comes together,” said Democratic strategist Bill Carrick.

Tensions were just as high in 2008 when Sen. Barack Obama beat Clinton for the nomination, he noted, but Clinton ultimately endorsed Obama and campaigned for him.

Anne Sabin, an accountant who heard Sanders speak in the Philadelphia suburb of Oaks, says he opened her eyes to the need for campaign finance reform.

She hopes Sanders “crushes” Clinton and gets the nomination, she said. “But if he doesn’t, I’ll vote for Hillary, holding my nose while I pull the lever.”

Early in the race, Sanders drew applause in a debate by telling Clinton that he was “sick and tired of hearing about [her] damn emails,” declining to join Republicans in attacking her for using a private email server while she was secretary of State.

But after his insurgent campaign caught fire he hammered her on other issues, saying at one point that he didn’t think she was qualified to be president, a charge he later withdrew. But as vitriol grew on both sides, he stopped urging supporters to stop booing Clinton at his rallies.

Although Clinton and Sanders agree broadly on many policies that Republicans oppose, such as raising the minimum wage and letting people who are in the country illegally stay here, the longtime political independent has portrayed her as a political insider beholden to special interests. That image will be hard to shake.

“I’m not going to vote for Hillary Clinton,” said Hugh Espey, executive director of the Iowa Citizens for Community Improvement Action Fund, a community organizing group backing Sanders. “She’s a part of the rigged political system.”

While Espey believes Sanders has forced Clinton to the left on some issues, noting her opposition to the proposed Trans-Pacific Partnership trade deal, he doesn’t trust her to keep those promises in office, and doesn’t believe she will stand up to Wall Street.

His group, which is working to raise the minimum wage in Iowa, is one of many organizations trying to capitalize on the enthusiasm surrounding the Sanders campaign to build support for other causes.

“This is a movement moment,” Espey said. “What we’re doing is building the political revolution Bernie’s talking about.”

Sanders often speaks not just of winning the presidency, but of starting a “political revolution.”

His rallies often feel more like festivals than political events, with fans selling homemade T-shirts and candles and local bands sometimes kicking off his speeches. Millions of individuals have contributed money to help him keep pace with Clinton’s fundraising operation.

RoseAnn DeMoro, executive director of National Nurses United, which is backing Sanders, says if Clinton wins the nomination she’ll have a messaging problem in the fall election.

“Saying ‘I’m not Trump’ is not the most inspiring message,” DeMoro said. “People might vote for her, but they won’t work for her.”

Alex Vader, 24, agrees. In recent weeks, she and her boyfriend have hit the pavement for Sanders near Philadelphia.

“We were out in the snow and rain for Bernie,” said Vader, an engineering student. “I wouldn’t do that for Hillary. She doesn’t inspire me that much.”

Corty Byron, 30, a musician who opened up the Sanders rally Saturday at a gym in Millersville with Woody Guthrie’s “This Land is Your Land,” said he would willingly support Clinton in the fall.

A guitarist in the band has vowed to write in Sanders’ name in November if he isn’t on the ballot.

Byron says that he is terrified of Trump winning, and that Sanders has had an impact just by running and it would be a mistake for liberal voters not to vote for Clinton on principle.

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