UPDATE 1-Brexit extension would be a "sticking plaster" - City of London

Extending Britain's departure date from the European Union would only be a "sticking plaster" if deep-seated issues are left unresolved, City of London financial district chief Catherine McGuinness said on Thursday. Prime Minister Theresa May is in Brussels on Thursday to ask the EU for a delay to Brexit, which is legally set to take place on March 29.

Parliament has twice rejected the divorce settlement negotiated by May and Brussels, but she could push for a third vote next week. "It's imperative we avoid a no-deal Brexit," McGuinness told a City & Financial conference.

"An extension would be welcome and let's hope our EU partners agree to that," McGuinness said. "But it would only be a sticking plaster unless the deep underlying issues are resolved and we actually make progress. To me it feels like we are caught in something of a hamster wheel."

McGuinness said she expected London's strengths as a global financial centre to remain. However, she said it also appeared that financial services had been "thrown under a bus" in terms of Britain's efforts to secure a divorce settlement with the bloc.

UK financial services minister John Glen told the conference that the sector had every right to feel frustrated with Britain's failure so far to secure a divorce settlement with just a week to go before Brexit Day. Despite parliament having so far rejected Britain's divorce, settlement, it was important to recognise "how unlikely" a no-deal Brexit was, Glen said. (Reporting by Huw Jones; Editing by Toby Chopra)