HSBC drives FTSE higher after launching review of UK base

HSBC shares have jumped 3.5% after the bank launched a full review of its UK domicile in light of increased levies and a possible referendum on EU membership.

HSBC has long made noises about a possible change of domicile, but the announcement of a review, expected to take six months, represents the first concrete step towards a possible move away from the UK. The government's levy on banks, which has gradually risen since its introduction in 2010 and was increased again in March's Budget, is among the factors prompting the review. The bank, which is holding its AGM today, also said a government referendum on EU membership, which would take place in the next Parliament should the Conservatives win power, could jeopardise economic stability. ...