peteblue
Welcome back Wayne
Make your mind up lad, should we give it to the car industry or not.......or maybe just lower their taxes, or rates, or etc......
Current Affairs EU In or Out
- Thread starter micknick
- Start date
- Status
Make your mind up lad, should we give it to the car industry or not.......or maybe just lower their taxes, or rates, or etc......
peteblue
Welcome back Wayne
I see that the Eu would rather that our newspapers don't refer to any Muslim terrorists as being Muslim. The Eu like to control newspaper coverage and don't like a free press. I'd rather our imperfect press than the subservient stuff you see on the continent........
Maybe you should read it again lad, not difficult to understand.
The world of business and finance do not like uncertainty, they are a jumpy lot. They have to advise investors about all things financial and as such will have to pencil in the like scenario that the UK leaving the EU will have certain consequences.
Pound under pressure as Hammond launches Wall Street charm offensive
28m ago09:18
Analyst: On the road to a sterling crisis
Fears that the City will lose its EU ‘passporting rights’ have undermined the pound since June’s referendum.
Britain is already running a very sizeable current account deficit, at around 6% of GDP, due to the persistent gap between imports and exports.
So if London financial firms are locked out of the EU, Britain will suffer a fall in ‘invisible earnings’. That could be compounded by a drop in physical exports, depending on the trade terms which Britain agrees with the rest of the world.
Desmond Lachman, resident fellow at the American Enterprise Institute, fears that the current account deficit will get even worse, pushing the pound down.
He writes:
There appear to be at least two reasons to believe that market fears about the consequences of a hard Brexit for continued large capital flows to the UK are not misplaced. The first is that, were the UK no longer to have ready access to Europe’s single market for its exports, it would lose its attractiveness as a location for foreign companies’ European investments. This was precisely the point that the Japanese government made at the September G20 meeting in China – when it publicly warned its UK counterparts of the likelihood that Japanese companies would relocate out of the UK in the event of a hard Brexit.
The second reason is that a hard Brexit would almost certainly result in the loss of the ‘financial passport’ that City of London financial institutions currently enjoy for accessing the European market. A Financial Conduct Authority report in September suggested that as many as 5,500 UK financial firms could be affected by such a loss of passport rights. Major international banks including JP Morgan Chase and Goldman Sachs have warned that, if the City loses its financial passport, they will need to conduct at least part of their European operations from outside the UK.
A key point that those in favour of a hard Brexit overlook is that a rapid drying up of foreign capital flows to the UK would have dire consequences for domestic living standards. A further currency dip would raise import costs and increase inflation. Moreover, there is a likelihood that domestic economic policy would need to be tightened – both to contain inflation and to make room for a large narrowing in the external current account deficit that foreigners would no longer be prepared to finance. UK households would be forced to reduce their consumption levels painfully, while businesses would be forced to cut back on their investment plans, to the detriment of future UK growth prospects".
Of course the UK could pay a 'fee' to remain trading in the single market, similar to what Norway and Switzerland do. The amount would have to be worked out between both parties.
There is a long way to go before the May government invokes Article 50 and there is a lot that will happen economically and politically before then. That will either make the markets/finance more jittery or calm them down. But May having a go at Carney, over QE and interest rates, will only add to the jitters and will be seen as a fight between the government and the Bank of England over economic policy. She really does need to engage brain before she speaks. Playing to those on fixed income who want high interest rates might go down well with the Tory blue rinse brigade at a Tory conference but won't go down well in the world of finance.
If May is pushing for higher interest rates, this will have a profound effect on those buying property and those borrowing.
Pound under pressure as Hammond launches Wall Street charm offensive
28m ago09:18
Analyst: On the road to a sterling crisis
Fears that the City will lose its EU ‘passporting rights’ have undermined the pound since June’s referendum.
Britain is already running a very sizeable current account deficit, at around 6% of GDP, due to the persistent gap between imports and exports.
So if London financial firms are locked out of the EU, Britain will suffer a fall in ‘invisible earnings’. That could be compounded by a drop in physical exports, depending on the trade terms which Britain agrees with the rest of the world.
Desmond Lachman, resident fellow at the American Enterprise Institute, fears that the current account deficit will get even worse, pushing the pound down.
He writes:
There appear to be at least two reasons to believe that market fears about the consequences of a hard Brexit for continued large capital flows to the UK are not misplaced. The first is that, were the UK no longer to have ready access to Europe’s single market for its exports, it would lose its attractiveness as a location for foreign companies’ European investments. This was precisely the point that the Japanese government made at the September G20 meeting in China – when it publicly warned its UK counterparts of the likelihood that Japanese companies would relocate out of the UK in the event of a hard Brexit.
The second reason is that a hard Brexit would almost certainly result in the loss of the ‘financial passport’ that City of London financial institutions currently enjoy for accessing the European market. A Financial Conduct Authority report in September suggested that as many as 5,500 UK financial firms could be affected by such a loss of passport rights. Major international banks including JP Morgan Chase and Goldman Sachs have warned that, if the City loses its financial passport, they will need to conduct at least part of their European operations from outside the UK.
A key point that those in favour of a hard Brexit overlook is that a rapid drying up of foreign capital flows to the UK would have dire consequences for domestic living standards. A further currency dip would raise import costs and increase inflation. Moreover, there is a likelihood that domestic economic policy would need to be tightened – both to contain inflation and to make room for a large narrowing in the external current account deficit that foreigners would no longer be prepared to finance. UK households would be forced to reduce their consumption levels painfully, while businesses would be forced to cut back on their investment plans, to the detriment of future UK growth prospects".
Of course the UK could pay a 'fee' to remain trading in the single market, similar to what Norway and Switzerland do. The amount would have to be worked out between both parties.
There is a long way to go before the May government invokes Article 50 and there is a lot that will happen economically and politically before then. That will either make the markets/finance more jittery or calm them down. But May having a go at Carney, over QE and interest rates, will only add to the jitters and will be seen as a fight between the government and the Bank of England over economic policy. She really does need to engage brain before she speaks. Playing to those on fixed income who want high interest rates might go down well with the Tory blue rinse brigade at a Tory conference but won't go down well in the world of finance.
If May is pushing for higher interest rates, this will have a profound effect on those buying property and those borrowing.
davek
Player Valuation: £150m
The EU are a Nato stooge organisation...it's stalking horse.
Mind you, that wont stop our government ramping up the anti-Russian/Putin rhetoric and committing to mad Yank inspired Nato plans for a 'ralid deployment force' to confront any move by Russia to protect its ethnic groups in the Baltic states etc.
really its xenophobic to want firms to show figures of were there workforce is employed from?Front page of today's National:
most of that speech sounded remarkably like red Eds pre election , war on the utilities/ big companies not a fan of her party but it was a decent effort , even if we all know she will not do most of it.
cant be Thatcher 2 we have nothing left to sell off
I don't know that it's xenophobic but it is incredibly bureaucratic. Aren't we (ie the UK) supposed to be helping companies to grow, not burdening them with unnecessary paperwork?
davek
Player Valuation: £150m
It's the menace behind it. It has to be taken in context of her longer held views about EU nationals remaining within the UK and the rise of hate crimes against immigrants. She was also the Home Office Minister responsible for sending out vans warning of repatriation for non-EU migrants and stationing border control guards at railway stations checking for identity.
She's basically making a play for the Ukip vote and doing so with the most inflammatory language. A nasty piece of work.
think its aimed at specific areas, like the meat/fish industry, that have firms near entirely employing from say Lithuania and not employing local workers, it will just be another box on the contract of employment not to time consuming.
There was a lot in that speech that was not very business friendly , which is a surprise from a tory leader, but it will be a vote winner as it gives an illusion of caring for the local working class, she has gone straight for the disillusioned Essex man that some in the Labour party seem to try so hard to alienate.
Getting away from the tribalism of it all she has played it a lot better than the labour leader a week ago, hate to say that but its true.
- Status