Businesses face difficult 2 months for Great Britain – N Ireland trade
The argument over the N Ireland Protocol creates the risk of a trade war developing between the UK and EU
The argument over the N Ireland Protocol creates the risk of a trade war developing between the UK and EU
The Brexit debate has always been about politics, not economics. So it was no surprise that December’s UK-EU Trade & Cooperation Agreement (TCA) was the first trade deal in history to actually increase barriers rather than reduce them. The reason is that Brexiters are focused on a very narrow concept of “sovereignty”. And last week’s
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Asian LNG prices reached $32.50/MMBTU this month, up from less than $2/MMBTU in June. The Shanghai Containerised Freight Index hit $8000/TEU container (Twenty-foot Equivalent Unit), up from prior rates of $1500/TEU. In Europe, UK supermarkets have warned of containing food shortages in N Ireland due to the new Brexit trading rules. None of this would
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Most companies had closed when the new EU-UK Trade and Cooperation Agreement (TCA) was finally announced on Christmas Eve. And they are only now starting to get their heads around what it all means. Essentially, it creates the biggest shake-up to the UK’s trading relationships since 1973. As the BBC’s Economics Editor reported: “It is
(Picture credit Shutterstock) A. Article 50 of the Lisbon Treaty set out the rules for leaving the European Union. As with most negotiations, it assumed the leaving country would present its proposals for the post-withdrawal period – which would then be finalised with the other members. But the UK government has little experience of trade negotiations, as these
On Friday, the UK premier confirmed what many of us have expected for a long time. There is unlikely to be a trade deal with the EU27 when the UK leaves at the end of December: “We should get ready for 1 January with arrangements that are more like Australia’s – based on simple principles
I warned before the June 2016 Brexit referendum that Brexit was all about politics, and Boris Johnson’s bid to become prime minister: “All the evidence suggests that his real motive for deciding to lead the Leave campaign was that – win or lose – this would make him the likely successor to David Cameron as
Most people missed the fact that last Tuesday was the last possible date to delay the UK’s exit from the EU at the end of the year. Yet as Germany’s leader, Angela Merkel warned on Wednesday: “To put it mildly, progress in the negotiations has been very limited. I will continue to press for a good
A. Article 50 of the Lisbon Treaty set out the rules for leaving the European Union. As with most negotiations, it assumed the leaving country would present its proposals for the post-withdrawal period – which would then be finalised with the other members. The UK government, however, has still not yet set out its post-Brexit
The IMF has now confirmed that the world economy has moved into the synchronised slowdown that I forecast here a year ago. Its analysis also confirms the importance of the issues highlighted then, including “rising trade barriers and increasing geopolitical tensions”, a sharp decline in manufacturing, contraction in the auto industry and structural forces such
Finally, after three and a half years, the UK has reached “the end of the beginning” with Brexit, in Winston Churchill’s famous phrase. Since the referendum, its leaders have consistently refused to confront the real choices that have to be made over what type of Brexit it wants to have: In June 2016, then premier
The UK is about to go to the polls again to try and decide the Brexit issue. Chemicals will be one of the industries most affected by the decision, as it depends on cross-border supply chains. As the UK Chemical Industries Association has warned: “The chemical industry in the UK and in Europe needs a
Pity the poor UK voters as they prepare to vote in probably the most critical election of their lives. As they battle the wind and rain to vote in the first December election for 100 years, they already know there are only 3 likely outcomes: Tory majority, Brexit by end-January, EU trade deal uncertain Labour
Canada’s normally pro-UK ‘Globe and Mail’ summed up the prevailing external view of Brexit last week: “We begin this editorial with an apology to you, our faithful readers. In March, we described the Brexit situation, then careening through its third year and nowhere close to resolution, as an “omnishambles. “An omnishambles is a state of
New UK premier, Boris Johnson, said last week that the UK must leave the EU by 31 October, “do or die, come what may”. This means UK, EU27 and EEA companies now have less than 100 days to prepare for a UK No Deal Brexit. That’s less than 70 working days – and even less
One of the best things I learned at school was the simple mnemonic: “To ASSUME can make an ASS of U and ME” Unfortunately, most of those involved in the UK’s Brexit debate have failed to remember it. As a result, it seems likely that the UK will end up leaving the European Union on 31
Thank goodness for backbench MPs and the European Union. Without their efforts, the UK would by now have left the EU without any trade deals, or ongoing relationship with it’s biggest export market. And as the Duke of Wellington said in another context, “It was a damn close-run thing”: In a historic vote, MPs decided
With the European Commission saying that a No Deal is now “likely“, small businesses across the UK and EU27 have begun to look forward to the opportunities that it will create, as this 1 April report from Ready for Brexit suggests. Businesses across Europe are thrilled by the uncertainty of Brexit. “We’re absolutely loving it”
BASF has been working with Ready for Brexit (the online platform I co-founded last year) as part of its programme to prepare its UK supply chain for Brexit. Here, Ready for Brexit’s editor, Anna Tobin, reports on the workshops that BASF has been running this month for SMEs. The world’s largest chemical business, BASF, has
Companies across the UK and EU27 are realising there are now just 30 working days until the UK leaves the EU on 29 March, and starts to trade on WTO terms. If this happens, every supply chain involving a movement between the UK and EU27 will change. And many supply chains involving movements outside the
The Financial Times has kindly printed my letter below, arguing that it seems the default answer to almost any economic question has now become “more stimulus” from the central bank. After 15 years of subprime lending and then quantitative easing, last week’s warning from the Bank of England suggests there are fewer and fewer economic
“That couldn’t happen” are probably the 3 most dangerous words in the English language. They mean “I don’t want to think about something that might be painful“. So if you hear MPs saying a “No Deal Brexit can’t happen“, ignore them. They are wrong. ‘NO DEAL’ BREXIT IS THE LAW OF THE LAND The issue
The Brexit debate had appeared to be a simple game of Snakes & Ladders till now. The Leave campaign landed on the ladders that led to its goal of No Deal, whilst the throw of the dice left Remain on the snakes, tumbling down towards irrelevance. Yet today, at the very last minute, there are
“The UK is now facing a national crisis”, according to Margaret Thatcher’s former Defence Secretary, Michael Portillo, speaking to a dinner in London on Thursday night. Brexit continues to tear the UK apart, and places the economy at greater and greater risk. On Thursday, premier Theresa May had unveiled her draft Withdrawal Agreement with the
I well remember the questions a year ago, after I published my annual Budget Outlook, ‘Budgeting for the Great Unknown in 2018 – 2020‘. Many readers found it difficult to believe that global interest rates could rise significantly, or that China’s economy would slow and that protectionism would rise under the influence of Populist politicians. […]
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Europe’s petrochemical sector must prepare now for the trade war, US start-ups, Brexit and the circular economy, as I discuss in this interview with Will Beacham of ICIS news at the European Petrochemical Association Conference. With higher tariff barriers going up between the US and China, the market in Europe is likely to experience an influx of […]
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Time is running out for the UK government to agree a Brexit deal with Europe. As my new analysis for ICIS Chemical Business highlights, companies need to move quickly to prepare for the “No Deal” scenario Legendary England footballer Gary Lineker best summarised the general sense of disbelief over the state of the Brexit negotiations when […]
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This is the Labor Day weekend in the USA – the traditional start of the mid-term election campaign. And just as in September 2016, the Real Clear Politics poll shows that most voters feel their country is going in the wrong direction. The demographic influences that I highlighted then are also becoming ever-more important with time: […]
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Last week, the UK’s Foreign Secretary, its chief Brexit negotiator and several junior ministers, resigned. President Trump gave an interview attacking the UK prime minister, Theresa May, and suggesting her policies would “kill” any future trade deal with the US. And the EU 27’s main negotiator on the critical Brexit issue, Michel Barnier, warned: “On both […]
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Suddenly, businesses across Europe are waking up to the realisation that the UK is currently on course to leave the European Union (EU) on 29 March next year, without a deal on trade and customs. As Katherine Bennett, the UK boss of aerospace giant, Airbus, warned on Friday: “This is not project fear, this is […]
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It is almost a year since Donald Trump became President. And whilst he has not followed through on many of his promises, he has indeed introduced the major policy changes that I began to discuss in September 2015, when I first suggested he could win the election and that the Republicans could control Congress: “In the […]
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We are living in a strange world. As in 2007 – 2008, financial news continues to be euphoric, yet the general news is increasingly gloomy. As Nobel Prizewinner Richard Thaler, has warned, “We seem to be living in the riskiest moment of our lives, and yet the stock market seems to be napping.” Both views […]
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“There isn’t anybody who knows what is going to happen in the next 12 months. We’ve never been here before. Things are out of control. I have never seen a situation like it.“ This comment from former UK Finance Minister, Ken Clarke, aptly summarises the uncertainty facing companies, investors and individuals as we look ahead […]
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Next week, I will publish my annual Budget Outlook, covering the 2018-2020 period. The aim, as always, will be to challenge conventional wisdom when this seems to be heading in the wrong direction. Before publishing the new Outlook each year, I always like to review my previous forecast. Past performance may not be a perfect […]
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UK voters were never very bothered about membership of the European Union (EU) before the Brexit vote last year. Opinion polls instead showed they shared the general feeling of voters everywhere – that their country was heading in the wrong direction, and it was time for a change. Now, last week’s Conservative Party conference showed […]
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We are living in an ever more uncertain world, where “business as usual” is becoming the least likely option for the future. Companies and investors need to adapt quickly to this new normal environment, if they want to maintain revenue and profit growth. One example comes from the American company 3M, which has become legendary […]
Yesterday, senior EU negotiators warned that “the chances of Britain crashing out of the EU without a new (trade) deal were now “over 50%””. Clearly, therefore, the UK’s preparations are not going well. Instead of building trust, the UK’s Brexit Secretary, David Davis, seems to think that threats – such as promising “the row of […]
The UK goes to the polls on 8 June in a surprise General Election. And premier Theresa May has clearly decided to base her campaign on a ”Who governs Britain?” platform, as she highlighted when launching her campaign last week: “Britain’s negotiating position in Europe has been misrepresented in the continental press, the European Commission’s stance […]
Brexit negotiations are likely to prove a very uncomfortable ride for UK consumers as Russell Napier of Eric, the online research platform, warned last week: □ ”Public sector debt remains at near-historic highs (in peace time!) and for the first time this public sector debt comes with a private sector bubble □ Credit card debt […]
The UK economy set off into the Great Unknown on Wednesday, when premier Theresa May officially notified the European Union of the UK’s intention to leave (Brexit) by the end of March 2019. In response, the EU released its draft guidelines for the negotiations: “The first phase of the negotiations should aim to […]
“May God bless the USA and God bless Boeing” was President Trump’s sign-off in his speech on Friday at Boeing’s South Carolina factory. Earlier he had told the workforce building the 787 Dreamliner: “This is our mantra: Buy American and hire America. We want products made in America, made by American hands. Our goal as a […]
Europe is heading in to the Great Unknown, as Monday’s post highlighted. The UK, The Netherlands and France are not the only political uncertainties that we face. Elections are also due in Italy and in Germany. Italian elections. After premier Renzi’s referendum defeat last year, it seems like that Italy will hold elections this year, […]
Next month sees the start of a process that could change all our lives. Whether we live in Europe, or outside it, the political decisions about to be made have the potential to impact every country in the world – for better or worse. And yet, nobody has yet begun to put together the various […]
If you want to know what is happening to the global economy, the chemical industry will provide the answers. It has an excellent correlation with IMF data, and also benefits from the fact it has no “political bias”. It simply tells us what is happening in real-time in the world’s 3rd largest industry. The chart […]
2016 saw the Great Reckoning for the failure of stimulus policies begin to impact companies and markets. The blog’s readership has increased significantly as a a result, as shown in the chart above, with its visits now totaling nearly 500k. Its readership includes 197 countries and over 11k cities. Readers also remain very loyal, with […]
Nobody likes change, particularly on the scale that is taking place all around us today. Understandably, we prefer to live in a state of Denial. This is why “Impossible” is my Word of the Year for 2016. The main feature of the word is that it is a statement, and a very clear statement. People […]
This week, the new UK premier, Theresa May, highlighted how the central banks have encouraged the populists’ rise: “We have to acknowledge some of the bad side-effects. People with assets have got richer, people without have not.” The problem, of course, goes wider than this. The continuing failure to recover from the 2008 Financial Crisis […]
The summer is over, and the UK government now has the job of deciding its objectives for the Brexit negotiations. These, like all major negotiations, will no doubt be long and difficult. They will also inevitably create major uncertainty for companies, investors and individuals as they progress. I have personally led major negotiations in a […]
Until recently, the job description for a UK (and most Western) politician has been fairly simple – look good on television, and only say something when it has been approved by a focus group. The reward was the ability to jet off to important sounding meetings of the G7 and G20, and have agreeable dinners […]
First, the good news. It has long been recognised that the UK economy is over-dependent on financial services, and that its housing market – particularly in London – is wildly over-priced in relation to earnings. The Brexit vote should ensure that both these problems are solved: Many banks and financial institutions are already planning to […]
The UK’s Brexit referendum is fast becoming a bitter battle for the Conservative Party leadership. It is hard to believe that Boris Johnson, who leads the Leave campaign, really cares either way about the issue of leaving Europe: He told Germany’s Der Spiegel only last year: ‘We can’t leave Europe. We’re part of the European Continent. What […]
“Confusion now hath made his masterpiece”. This quotation from Shakespeare’s great tragedy, Macbeth, aptly sums up the state of the world economy. Policymakers refuse to accept that the BabyBoomer-led economic SuperCycle is over. And so they continue to believe that adding vast amounts of electronic money to the financial system will return the economy to SuperCycle levels […]
Slowly, but surely, a UK vote to leave the European Union is becoming more likely. In any referendum, the Yes campaign (in this case called Remain) have to argue a positive case. But this is not happening in the UK – and the vote is less than 3 months away. Unsurprisingly, therefore, as the poll […]
Financial markets are very bad at evaluating political risk. They assume people will always be rational, and expect a ‘business as usual’ scenario to continue. But as we all know, people are not always rational. And emotion, as today over immigration may cloud their judgement. This week has seen the first signs of this complacency […]