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Brexit weekly digest 19 August

The Brexit agenda has become a political subject once again, with the leaders of the main political parties offering solutions to leadership tensions, with suggestions of an emergency government formation to block a No Deal exit.  The business community are again raising their concerns about the uncertain EU exit conditions and the rise in negative economic indicators.

UK banks are significantly behind schedule in moving staff  to the European Union ahead of Brexit and risk being caught off guard if Britain leaves without a deal, the European Central Bank said on Wednesday.   Many London-based banks are having to expand their EU operations to continue doing business in the bloc after Brexit, under plans agreed with the ECB

Séan Rickard, the former chief economist of the National Farmers’ Union has written a report, launched by Farmers for a People’s Vote which is a forensic analysis of the effect of a crash-out Brexit. The high proportion of UK farm exports to the EU would stop, barred by regulatory barriers and deterred by tariffs: 27% on chickens, 46% on lamb and 65% on beef. The government says it will remove or sharply lower all tariffs on imported food to keep prices down as the pound plunges. But this report shows how that import surge would wreck British farming.  A flock of sheep was herded along Whitehall by campaigners who say a no-deal Brexit could force half of UK farms out of business

Britain is asking logistics providers to bid for a £25m express freight contract to deliver medicines into the country on a daily basis after it has left the European Union on Oct. 31.  The Department for Health and Social Care said the contract would form part of its contingency plans to deal with any complications that stem from Britain’s departure from the world’s biggest trading bloc.

The Guardian highlight the causal chain of events  and consequences, in their view, of Brexit which includes the Governments GDP forecast loses of almost 10% under the No Deal scenario versus other deal options.

Asda has reported a fall in sales in the first six months of the year and warned about "uncertainty surrounding Brexit".  Sales fell 0.3%, even though second-quarter sales rose after being boosted by Easter.  Asda boss Roger Burnley said consumer confidence was at a six-year low, "due in no small part to the ongoing uncertainty around Brexit".

Royal Bank of Scotland on Friday said deteriorating economic conditions before Brexit were likely to derail next year’s profitability and cost targets after it reported strong first-half results, including a 1.7 billion pound dividend.

 

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