Brexit weekly digest 10 Sepetember
10 September 2019
The political landscape has shifted again this week with legislation being proposed to prevent a no deal exit from the EU, being supported in the Commons.
The bill is due for ascension on Monday 9th September, which will compel the Prime Minister to revisit the EU for an extension and alternative agreement. This has not been well received by the Prime Minister.
At the start of the week the government announced its new ‘Get ready for Brexit’ £100 million PR campaign. According to government research it was found that 42% of SME don’t know how to prepare for Brexit and the campaign is in response to SME’s planning needs.
French authorities have recruited 700 additional customs officials and upgraded their technology in an effort to ensure the smooth transit of goods in and out of the European Union after the U.K. leave
The construction industry measure of new orders is measured by the latest PMI (Purchasing Manager’s Index) IHS Markit/CIPS UK and their survey recorded the biggest slump in orders since March 2009 with the worst hit sector being commercial property market attributed lack of confidence amongst developers reluctant to award new contracts
A survey reported that manufacturing activity reduced in the UK in August to lowest levels since 2012 which was attributed to EU based clients re-routing supply chains to avoid anticipated border disruptions in and out of the UK pre and post Brexit. Further reports though also indicated that output worsened in August in Germany, Austria, Ireland, Italy and Spain while France, the Netherlands and Greece reported growth.
On Monday afternoon the Chancellor Mr Javid had a meeting with some of the UK’s senior financiers who warned that most SME’s were not prepared to deal with Brexit and the impact on their supply chains.
Political leaders debated the controversial issue of the impact of a no deal Brexit would have on fresh food supplies in terms of availability and pricing with the UK presently importing a third of its fresh food requirement from the EU. The British Retail Consortium which represents many of the UK based supermarkets issued a statement stating that for their members it will be “impossible to mitigate it fully as neither retailers nor consumers can stockpile fresh foods” and that a no-deal Brexit would be “the worst of all worlds for our high streets and those who shop there”
Reuters published a graphic showing impact of global currencies against the US$ in 2019 YTD with the euro faltering at -4.4% compared the GBP at -1% less resulting in the GBP nearing parity with Euro
The pound hit its lowest level since the 1980s (other than the flash crash in October 2016) as traders sold sterling ahead of the impromptu crucial Brexit showdown but after the lunchtime announcement of a rebel cross party alliance that was looking to block a no deal Brexit sterling recovered slightly
The boss of Lego confirms that they have plans in place to manage stocks into the UK in good time for the Christmas period in case of a new deal basis and announced plans to open 16 Lego new stores in the UK.