MarketLine Blog

Posts tagged to Brexit

Minority Conservative government: Hung parliament will provide a better deal for business

MarketLine

The declaration of a hung parliament but with a Conservative party government is good news for the economy and businesses because the likelihood of a ‘hard Brexit’ has suddenly been reduced because in order to survive, the government will require support from opposition groups. Given the opposition parties are all but wholly united on a ‘soft Brexit’, the policy of the previous government could be about to change radically. The change makes the possibility of the UK buying access to the single market and passporting much greater than has been… Read more

Car manufacturing sector booming in the UK: Weaker pound boosts exports, yet Brexit worries persist

MarketLine

2017 has been a good year for the UK car manufacturing sector as far as production levels are concerned, with the country manufacturing cars in March 2017 at a level last seen in the year 2000. Manufacturing levels have been boosted by a strong rise in exports of cars, which has come about due to the weak pound, low crude oil prices and rising demand for British cars in the Asia-Pacific region, as well as in the United States. However all of this has been happening among the backdrop of… Read more

Spring Budget 2017: Budget statement to address Brexit effect and to impact business rates

MarketLine

The economic forecasts released by the UK government before and after the referendum, are astounding in how much they have changed: from an optimistic positive outlook quoted by George Osborn, to a more bleak negative picture for the next five years. Uncertainty playing a major part has led to the outcome of more borrowing for the UK government in order to cover the worst case scenario of lower valued tax receipts in the future. With the Spring statement being the first and last one this April (there will only be… Read more

Primark expansion: The impact of Brexit on its profit margins

MarketLine

Primark, first established as Penneys in 1969 now has over 290 stores in Europe and the US collectively. In 2017, AB Foods the parent company of Primark has stated a further 16 Primark stores are to open across Europe and the US. Following the loss of BHS in 2016, a niche in the market was identified, a niche which Primark intends to capitalize on. Primark has been identified as the leading low-cost clothing retailer in recent years competing against the likes of ASDA and H&M. The branches in Europe were… Read more

Brexit – the meaning of a messy divorce for the Euro area.

MarketLine

The lending channel between many industries and banks in the Euro area has been far from normal since 2008. This factor puts Britain in a better position to negotiate Brexit next year. The Euro area will embark on a period of further unprecedented slowdown by detaching itself from the world’s fourth largest economy. Credit to industries coming from the banking sector is key for the region to grow as the single currency area has a bank-based model as opposed to a capital market model. Debt financing to companies is largely… Read more

Brexit and Trump’s disastrous effect on science

MarketLine

2016 has been a rollercoaster of a year with regards to political incidences. With the UK voting in favor of leaving the EU in June 2016 and then a follow up of the US voting for President-elect Donald Trump in November of the same year, this has led to a degree of uncertainty in the scientific field. With funding at the forefront of scientific research and the advancement of scientific breakthroughs, the future has been thrown into turmoil as the individuals working in both countries, the US and the UK,… Read more

Uncertainty over political events trumps fundamentals as markets fall

MarketLine

On Thursday June 23, 2016 the UK went to the polls to decide on its future as a member of the European Union (EU). By a small margin, the country opted to leave and despite the fact that no steps to enact Article 50 have yet been taken by Theresa May and her government, speculation about an imminent implosion of the British economy has been rife, damaging the value of the Pound and serving as a rather convenient scapegoat for everything from companies’ poor performance to increased prices, to political… Read more

Post-Brexit effect on inflation

MarketLine

The UK voted to leave the European Union (EU) in a referendum undertaken in June 2016. The separation will be complex and will take many years to complete. However, the effects have been felt immediately. Since Brexit, the pound has dropped by 18%. After an initial tumble following the result, it fell further in October following Prime Minister Theresa May’s signal that she would use Brexit to tighten borders, even if it means losing access to the EU’s single market on the current terms. On October 18, the Office for… Read more

EU before Brexit – looking underneath the headlines

MarketLine

Data from eurostat puts the number of unemployment in the Euro area at 16 million in 2016, close to 10% of its population aged between 18 and 74 years of age. This is equivalent to the entire population of the Netherlands or 8 times the population of Paris. Clearly, the number of Europeans struggling on a daily basis is much higher than the official figure coming from the eurostat. This is because any person that works at least one hour per week is considered to be employed. The failure to consistently reduce… Read more

Brexit skepticism and predicting the unpredictable

MarketLine

In a bizarre confluence of polarized opinions battling amidst the wanton exposition of misinformation by careerist politicians, the UK has voluntarily plunged itself into a prolonged period of economic and political uncertainty by voting to the leave the European Union. The Prime Minister has resigned, any potential successor from the Leave campaign lacks public credibility or electability, and the Chancellor claims to have no responsibility for delivering a plan for the country in terms of how to navigate and exploit the proposed exit. All those currently in power are willing… Read more

UK Economy – held back by euro area Treaty

MarketLine

The Maastricht Treaty has been slowly asphyxiating any possibility of sustained economic recovery in Britain. It has been partially responsible for the erratic recovery of manufacturing, production and construction industries. The Gross Domestic Product (GDP) of Britain peaked back at pre-crisis level in the second quarter of 2013 driven mainly by the growth of the services industry. This industry is 13 per cent larger in value compared to 2009 (figure below). Production, construction and manufacturing industries are on average 7% smaller than their pre-crisis levels. The majority of UK industries… Read more