Business groups warning of a no-deal Brexit - Reuters
As reported by Reuters, a no-deal Brexit next march is rapidly becoming a possible reality, and business leaders are beginning to make urgent statements warning that a hard-landing would be disastrous for UK industries.
Key quotes
"Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said carmakers were “increasingly concerned” about the lack of clarity around the manner of Britain’s departure from the European Union.
With less than eight months until the divorce is due to take place, Prime Minister Theresa May has yet to find a proposal to maintain economic ties with the bloc that pleases both sides of her divided party and is acceptable to negotiators in Brussels.
“No deal... is just not an option. It would be seriously damaging to the industry not just in the UK but in Europe as well,” Hawes told reporters as he presented SMMT’s mid-year update on British car production.
The industry employs more than 850,000 people directly and indirectly in Britain.
While carmakers were encouraged by May’s Brexit proposals published this month, Hawes said big questions remained around the costs of any new customs arrangements, Hawes said.
British car output in the first six months of 2018 fell by an annual 3.3 percent to 834,402 with disappointing domestic demand cancelling out strong exports, SMMT said.
Economists polled by Reuters have said a no-deal Brexit is the third most-likely outcome, behind a new free trade deal between Britain and the EU and continued membership by Britain of the European Economic Area’s single market."
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
