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Britain moves away from Brexit and is preparing to build a new relationship with the EU

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Britain moves away from Brexit and is preparing to build a new relationship with the EU

Britain moves away from Brexit and is preparing to build a new relationship with the EU
July 05
14:00 2016

After the referendum in the UK, in which the citizens voted for the country’s exit from the EU, the index of the business confidence has fallen sharply. According to the BBC, both the sociological research agency YouGov and the Centre for Economics and Business Research (CEBR) have confirmed this.
The number of companies that are pessimistic about the prospects for the UK economy have grown twice within a week after the voting ended. Before the referendum the proportion of negatively-minded companies was 25%. After the referendum the figure has grown to 49%.
The reduction of business confidence may force the companies to completely abandon investments and hiring new workers.
“This suggests that the economy is set for a very significant slowdown over the next three-six months”, – said Scott Corfe, the director of CEBR, in the interview of the BBC’s Newsnight program.
The sociological agency YouGov pointed at the growth of negative sentiment among the consumers last week. The consumer confidence has fallen to the index of May 2013.

In addition, a slight fall in prices was recorded in the second quarter of this year at the London residential real estate markets of the premium class, informs the research of the international real estate agency Savills.

According to experts, the uncertainty regarding the United Kingdom’s membership in the European Union had the impact on the prices of the premium real estate. Over the three months that preceded the referendum, the prices for premium real estate of the UK capital have fallen by 0.2%. Accordingly, the fall in prices at the real estate market has amounted to -0.7% for the year, and – 1.4%, compared with a peak, which had occurred shortly before December 2014 when the stamp duty for the most expensive homes has increased.

The cost for the premium property in central London has decreased most greatly (-1.4% in the second quarter of the current year). Furthermore, a slight fall in prices was recorded in the suburb of London (- 0,4%).
Lucian Cook, the head of Savills Residential Research, said: “After the referendum the market was characterized by very contradictory trends. In fact, this means that to determine the effect of the UK withdrawal from the European Union on the real estate market will only be possible in a few months, when the situation has stabilized. “
Meanwhile, the country is preparing for the forming of new trade relations with the European Union. The UK government asked the private sector for help, namely the auditors of KPMG and EY, a consulting firm McKinsey, etc. According to the Financial Times the country’s leadership hopes that large companies will provide their experts, because there are very few people among the civil servants of the United Kingdom who are able to conduct the complex trade negotiations.
“We want the most talented and the best to participate in the negotiations. We need to involve not only officials with the necessary skills and expertise, but also people from outside “, – reads the statement of the British government.

The BBC reported that David Cameron, the Prime Minister of the UK, called the upcoming talks as “the most serious challenge faced by the government officials in recent decades”.

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