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Brexit weekly news digest 11 March

Just days before the scheduled exit date from the EU, the Prime Minister is to present the latest negotiated deal in front of the Commons for a round of meaningful votes.  The agreement will either be accepted, rejected and a no deal scenario be voted upon or an extension on Article 50 to be voted in.  The media is not reporting favourably on the adoption of the latest incarnation of deal, so by Thursday of this week, the UK may be entering a different Brexit landscape.

 The BBC reports that if no agreement can be reached, and the UK ultimately leaves the European Union on 29 March with no deal in place, reports last week suggested the UK government might cut trade tariffs on between 80% and 90% of goods, with story  some tariffs being scrapped completely. Business Secretary Greg Clark told the BBC that new tariff schedules would be published only after next week's vote on Mrs May's Brexit agreement, if it became clear the UK would be leaving the EU without a deal.

A study, by capital  markets think tank New Financial  on the impact of Brexit on banking and finance firms says some £900bn in financial firms' assets have been moved out of the UK.   The report says 275 finance and banking firms have moved some or all of their business with Dublin the most popular location. It says the hit to London was bigger than expected and would get worse.

Ryanair have said  that EU regulations require that airlines flying under a European licence must be majority-owned and controlled by shareholders from the trading bloc.  Ryanair said that to comply with these regulations it would have to restrict the rights of British shareholders, who control about 20% of the company’s stock, to bring them into line with other non-EU investors, so UK investors cannot buy any more share options.

The BBC report on how some small businesses are preparing, in the event of a no deal, deal and they’re tactics include keeping manufacturing in the UK, a ‘wait and see’ approach along with looking for ways to innovate out of any difficult trading times.

The Bank of England has offered  UK banks access to additional Euros to avoid and ‘cash crunch’ in a no deal Brexit scenario.  The Bank of England said most financial stability risks in Britain from a no-deal Brexit had been mitigated, and UK banks had enough liquidity to go for months without needing to tap markets.  But as a precaution it will launch a new weekly auction of euros from next week to ensure that banks based in Britain can borrow in Europe’s single currency.

Further stories of businesses stockpiling   as An engineering firm has stockpiled key components worth £2.5m due to "uncertainty" over Brexit.  MAN Energy Solutions, which makes marine engines, said the move was part of its "risk mitigation". The company has also reviewed export arrangements and would use other ports if delays occur at Dover.

 

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