Economics
Watch – ‘Hard Brexit’ or ‘no Brexit’ says EU president Tusk
This will be music to the ears of staunch Brexiteers, but will terrify everyone else. The EU council president, Donald Tusk, has said that there is only one type of Brexit…and it’s a Hard Brexit. Tusk rejected Boris Johnson’s claim that the UK would end up with a better deal with the EU than it has now. Donald’s remarks are the first time he has taken such a hardline against the UK. This comes as there are various reports US...
Brexit: is London’s loss the North’s gain?
Brexit has already proved hugely divisive - to the point where the unity of the United Kingdom is once again in question - but it is also presenting golden opportunities for those able to position themselves on the right side of history. It is, however, hard to see how metropolitan London - as a global finance and business hub - is going to gain from the sort of ‘hard’ Brexit that is currently being championed by the hard-liners to Theresa...
Treasury warns ‘Hard Brexit’ could cut 10% off GDP & cost up to £66bn
This news must panic even the most ardent of “Brexiteers,” as a leaked Treasury document would destroy the UK economy. The fall that has been predicted would damage jobs across the country and send business to the wall. The report was shared with The Times and suggests that GDP might fall to almost ten per cent if the UK leaves the European project and opts to follow World Trade Organisation rules. The paper was published by the ex-Chancellor George Osborne...
“Hard Brexit” woes as pound falls to 31-year low against the dollar
As the Conservative party conference appears to be ratcheting up the anti-EU sentiment within the party, a ‘hard Brexit’ seems more likely, even though, ironically, some of the conference centre was actually funded via EU cash. The anti European hyperbole and Theresa May’s fears of being attacked by the right of her party, led her to reveal that article 50 will be invoked by March 2017, this means the UK will be out of Europe by 2019. However, there may be...
Has Britain Escaped the Brexit Blow?
In the immediate wake of Brexit, British citizens had a minor meltdown. There were multiple reports of people who had voted to exit only to demonstrate their discontent, and calls for a second referendum once citizens understood how high stakes their decision really was. The FTSE 100 plummeted, the value of the pound fell to a 31-year low, and there were doomsayers on every corner. So it comes as nothing short of a surprise to see that, nearly three months...
More Brexit blues: OECD halves UK growth forecast
Another day, another Brexit horror story, this time the OECD (The Organisation for Economic Cooperation and Development) has cut the UK’s growth target in half, by a whole percentage point. These forecasts have been reduced due to the impact of Brexit and a wider weakness in the broader global outlook. The report states: “While markets have since stabilised, sterling has depreciated by around 10% in trade-weighted terms since the referendum. For 2016, GDP growth has been supported by a strong performance...
Is New Cash in a Cashless Economy Futile?
Nearly five years since the last note launched, the Bank of England will today release its first ever polymer fiver. The so-called 'plastic fiver' is longer lasting, harder to destroy and smaller than other bank notes, with the first notes leaving distribution centres shortly after midnight tonight. From there they will be taken to ATMs in six major cities in England and Wales, with members of the public being able to withdraw them from around 9am onwards. A new five pound note...
Is life really more expensive in London?
According to a major report by Savills, London became the most expensive city in the world to live in two years ago, taking over from the previous world leader, Hong Kong. And those of us who live here can no doubt attest to the cost of housing – whether we’re buyers or renters. But what about everything else? Of course, such reports depend on which variables are included. But the most expensive places to live always include the “usual suspects”...
FDI Figures ‘Misleading’
FDI figures that show the UK enjoyed record breaking inward investment have been branded misleading. New figures show that 2,213 inward investment projects were secured in 2015-16 - an 11 per cent increase on the previous year. This led to around 116,000 jobs being created or safeguarded - the second highest number on record, the Department for International Trade said. However Professor Nigel Driffield of Warwick Business School said that in the period that covers these figures the expectation among political commentators...