Investment ALREADY Being Pulled Over Brexit
By Daryl Jackson, News Editor
22 Jun 2017
There is more uncertainty for the economy surrounding the Brexit negotiations.
Speaking to the BBC, Chancellor Phillip Hammond, has admitted that businesses are already pulling investment because of it.
“The thing that is causing concern in the business community is the risk of a cliff edge,” Mr Hammond said.
“The sooner we can reassure businesses that there is going to be a smooth path from where we are now to the future arrangements we put in place with the European Union, the sooner we will have that sigh of relief and start seeing businesses investing again.”
He added that the UK may need “transitional arrangements” with the European Union for YEARS after the two-year negotiation deadline.
He said it was in the interests of both Britain and the EU that there was an early agreement in the Brexit negotiations to ensure there was no “cliff edge” break when the UK finally leaves in 2019.
He added: “We are leaving the European Union but when you buy a house you don’t necessarily move all your furniture in on the first day you buy it. This is a process.
“What people will expect us to do is put in place arrangements that allow us then to move from where we were when we were members of the European Union to where we are going to be in a long-term future partnership with our European neighbours which we hope and expect to negotiate.
“But we will do that via process so we will avoid cliff edges and disruption to business, disruption to the lives of citizens. That is in everybody’s interests.”
Guardian Columnist Rafael Behr says that the upcoming negotiations do not look good for Theresa May. He said:
“In terms of confidence and stability, the continuing haggling [with the Democratic Unionist Party] behind closed doors furnishes only cause to doubt the prime minister’s effectiveness in negotiation – the single most essential skill that we need her to demonstrate in the coming years.”
The Queen’s speech on Tuesday contained eight bills relating to Brexit.
“It’s just that one of those – the proposed absorption of European rules into UK statute to facilitate subsequent amendment or repeal – is such a monstrously complicated task, requiring high levels of technical expertise and close scrutiny, it is hard to imagine parliament having the capacity to do much else over the next two years. At least not if Brexit is to be handled responsibly.
"The clock is counting down, and the pretence that May might be prepared to walk away without a deal is melting in the midsummer heat. It was always a bluff. It was called on day one.
"The danger is obvious, to anyone watching from the outside. Ever deeper into national denial we plunge, while the world looks on aghast at a once sensible country affirming an act of collective self-harm with all the state pomp it can muster. Our parliament is an international laughing stock.”
US Federal Reserve adds almost $91 billion of short-term cash to repo market
World Gold Council: Uncertainty combined with low interest rates will likely bolster gold investment demand
Palladium passes $2,500 per ounce as demand for platinum group metals surges
Edward VIII Sovereign sells for UK record £1 million