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Tag: Brexit

RBS warns of Brexit harm as profits double

RBS warns of Brexit harm as profits double

Business
Media playback is unsupported on your device Royal Bank of Scotland has reported profits of £1.62bn for 2018, more than double the £752m it made a year earlier.RBS chief Ross McEwan called the results "a good performance in the face of economic and political uncertainty".Mr McEwan said the UK economy faced "a heightened level of uncertainty related to ongoing Brexit negotiations".He told the BBC that Brexit could have a bigger impact on the economy than the Bank of England has suggested. Mr McEwan said: "Larger corporations are pausing on their investments. And this cannot be good for the economy long-term because those large corporations then employ smaller businesses and individuals."If this goes on for a long period of time we'r...
Brexit: Mark Carney warns of no-deal 'economic shock'

Brexit: Mark Carney warns of no-deal 'economic shock'

Business
Media playback is unsupported on your device Bank of England governor Mark Carney has urged MPs to solve the Brexit impasse in a speech warning of growing threats to the global economy. He said a no-deal Brexit would create an "economic shock" at a time when China's economy is slowing and trade tensions are rising."It is in the interests of everyone, arguably everywhere" that a Brexit solution is found, he said. The Bank has already cut its UK growth forecasts, partly due to Brexit issues. In a speech at the Barbican, in London, Mr Carney said trade tensions and Brexit are "manifestations of fundamental pressures to reorder globalisation", and that quitting the bloc could undermine global expansion."It is possible that new rules of the road wi...
Government to miss Brexit trade deal target

Government to miss Brexit trade deal target

Business
By Adam Parsons, business correspondent, in Switzerland Government officials have admitted for the first time that they will not be able to renegotiate all trade treaties involving the European Union by the end of March.The UK is party to around 40 European treaties, covering trade with more than 70 countries and making up 12% of the UK's total trade. In the event of no deal, each would need to be rewritten, either with new terms or by mirroring the existing terms, a process known as "rolling over".Two years ago, the International Trade Secretary Liam Fox said that updated versions of all those treaties should be ready to sign within a minute of Britain leaving the EU.Now, according to senior government sources, expectations have been tempered. In...
Fox tests tariff-free trade and nets Brexit backlash

Fox tests tariff-free trade and nets Brexit backlash

Business
By Adam Parsons, business correspondent For years now, people have been suggesting that Britain might leave behind the European Union, forget all tariffs and create a new way of trading with the world.The idea is that cheap imports would drive down prices for domestic and business consumers. That the threat of being beaten by low-prices Chinese rivals would make British businesses become more efficient, or perhaps provoke them into moving into other areas.It is, in some respects, the very acme of a capitalist model - that we put ourselves at the mercy of the economic tides of the world. If a British industry can't compete with global competitors then it withers.If that sounds brutal, that's because it is.Patrick Minford, the economist whose work influence...
Remain MPs blame Brexit for Nissan withdrawal

Remain MPs blame Brexit for Nissan withdrawal

Business
MPs have said Brexit uncertainty is to blame for news that Nissan will withdraw from plans to manufacture its X-Trail model in the UK.Nissan had pledged to manufacture the new SUV model in the UK four months after the referendum - a move seen as a major vote of confidence in the country's manufacturing outside the EU. But Sky News' City editor Mark Kleinman learned on Saturday that the Japanese carmaker is to withdraw from the arrangement on Monday.The news casts doubt over Nissan's future investment in the UK, and stokes debate about the future of British car manufacturing less than eight weeks before the UK is scheduled to leave the European Union.Many Remain supporters said the withdrawal was a worrying indicator of Brexit having a corrosive impact on the British economy. ...