BREXIT News update 28th July 2017

by David Baber, Managing Director.

From now on until Britain has left the EU, CPA are going to post regular blogs for the comments we have seen in the press and elsewhere about Brexit, which is perhaps the most momentous event that will happen to the UK for a very long time and will have long-term implications for every citizen living in this country for good or ill. We aim to be balanced in our reports which will be divided into three categories;

  • Category 1 – Positive comments on Brexit
  • Category 2 – Negative comments on Brexit
  • Category 3 – Neutral comments on Brexit

Or see all posts referencing Brexit

Please find below our latest Brexit blog which has been compiled today on 28th July 2017:-

BREXIT; POSITIVE COMMENT: In an article in The Telegraph by Tim Wallace of 21st July he stated that profit warnings have fallen to the lowest level in 7 years as British companies disregard any gloom. So much better is the situation in profits performing better than anticipated, only 45 profit warnings were issued in the second quarter, which were down by a third compared with the same quarter of 2016.  Mr Howard Archer, Chief Economic Advisor to the EY Item Club, stated “We have pencilled in marginally improved GDP growth of 0.3 pc quarter-on-quarter in the second quarter.” 

BREXIT; POSITIVE COMMENT: The Daily Telegraph, July 24th – In an article by Ambrose Evans-Pritchard he wrote “Germany’s king-makers demand a Brexit cabinet” with a sub heading “Resurgent free democrats urge Mrs Merkel and the EU not to punish the UK and to dins a fair deal”.

The article went onto say that the fast rising political party in Germany, The Free Democratic Party, said it will push for an amicable compromise in Brexit also if it joins the ruling coalition this autumn. They gave the ruling that it will be a fatal error for Europe to humiliate Britain. The party’s Economical Chief told the Daily Telegraph that in Germany they are hearing great concerns from companies and trade unions about what could happen there if there is a crash Brexit and no deal in place, small enterprises being very concerned and many German companies rely on financing from the City of London.

BREXIT; NEUTRAL COMMENT:  “Brexit is not to blame for shrinking chocolate bars” In reports by Financial Times, The Daily Telegraph, The Scotsman and the Yorkshire Post, on 25th July, it was stated that using a 5-year analysis, the ONS confirmed that the trend for products to shrink so producers can avoid putting prices up has not been influenced by the vote to leave the EU.

BREXIT; POSITIVE COMMENT: In The Times of 26th July in an article by Catherine Philip the Diplomatic Correspondent, it was stated that Trump vows to strike ‘very big’ trade deal with UK.

BREXIT; NEGATIVE COMMENT: In The Times of 26th July it was reported in an article by Sarah Collins, the Brussels Correspondent, that MEPs have accused Britain of jeopardising a Brexit deal, saying it will be impossible to meet an October deadline unless London gives in on money and citizens rights.

The article went onto say negative aspects regarding a financial settlement and the European parliament having a veto on the final “Divorce deal” with MEPs taking a hard line on the UK’s June offer on citizens’ rights.

BREXIT; POSITIVE COMMENT: As reported in The Times, BBC and elsewhere on 26th July, BMW has confirmed that it choses the Oxford factory to produce the electric minis. This means the electric minis will be assembled in Britain and that the possibility of it being manufactured on the Continent putting 8,000 British jobs at risk will no longer be a threat.

BREXIT; POSITIVE COMMENT: The Morning Account of 26th July “Brexit: Our chance to shape a vibrant economy” was stated by Grant Thornton’s Managing Partner in Yorkshire, who wrote an article in the Yorkshire Post as to how the firm considers Brexit an opportunity to reshape the economy.

BREXIT; NEGATIVE COMMENT: July 27th  “Labour backs away from supporting a hard Brexit” in an article in The Times by Lucy Fisher, Senior Political Correspondent, there was an article saying “Labour has opened the door to supporting Britain remaining inside the single market, in a significant change of the party’s position”. This is in total opposition to what Jeremy Corbyn said a few days ago that “A Labour government would take Brexit out of the single market.” Also, Mr Gardiner, the shadow international trade secretary, said this week that retaining long-term membership of the customs union was a “deeply unattractive” option.