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Pound slides amid fears over no-deal Brexit

Pound slides amid fears over no-deal Brexit

Business
The pound has fallen sharply against the US dollar on renewed worries about the political turbulence around Brexit. Sterling slipped by more than a cent to less than $ 1.29 during overnight trading on Asian markets and the declines were extended later as London opened, taking the currency close to $ 1.28 and about 1% lower on the day.It came amid weekend reports that more ministers were on the verge of quitting the government and added to falls for the currency at the end of last week, before which the pound had been trading at more than $ 1.31.Sterling has been gripped by volatility amid uncertainty about whether the UK will leave the EU next March without a trade deal in place.Credit ratings agency Moody's said on Monday that the risk of a no-deal withdrawal had risen. ...
Philip Hammond: No-deal Brexit would require new Budget

Philip Hammond: No-deal Brexit would require new Budget

Business
The government will set a new Budget if it is unable to reach a Brexit deal with the EU, the chancellor has said.Philip Hammond said a no-deal Brexit would require a "different response", with "fiscal buffers" being maintained to provide support for the economy.Mr Hammond was speaking on the eve of his Budget, which he will present to the Commons on Monday.He also hinted at more funds for the universal credit rollout, after claims that millions of homes will lose money.The spending plans take place at a time of uncertainty over Brexit, with no deal in place five months before the UK's departure date.Questioned about the impact of a no-deal Brexit, Mr Hammond told Sky News' Ridge on Sunday programme: "We would need to look at a di...
No-deal Brexit would hit UK economy, says IMF

No-deal Brexit would hit UK economy, says IMF

Business
The International Monetary Fund has warned that a "no-deal" Brexit on World Trade Organization terms would entail "substantial costs" for the UK economy. Such an outcome would affect "to a lesser extent" other EU economies. It said challenges in getting a deal done were "daunting" and warned against further UK interest rate rises. The IMF said it expected Britain's economy would grow by about 1.5% a year in 2018 and 2019 if a broad Brexit agreement was struck.Christine Lagarde, the IMF's managing director, added: "Those projections assume a timely deal with the EU on a broad free trade agreement and a relatively orderly Brexit process after that."The IMF said that all likely Brexit scenarios would "entail costs for the UK economy...
Brexit: Carney warns no-deal could see house prices plunge

Brexit: Carney warns no-deal could see house prices plunge

Business
The Bank of England's governor has warned the cabinet that a chaotic no-deal Brexit could crash house prices and send another financial shock through the economy.Mark Carney met senior ministers on Thursday to discuss the risks of a disorderly exit from the EU.His worst-case scenario was that house prices could fall as much as 35% over three years, a source told the BBC.The warning echoes some of the Bank's previous comments.The Bank of England routinely carries out "stress tests" to check whether the banking system can withstand extreme financial shocks.Its latest one was conducted in November, when it said a 33% fall in house prices could occur in a worst-case scenario. Several reports said that the Bank governor also told the Downing Street meeting tha...
No-deal Brexit threatens Jaguar Land Rover UK future

No-deal Brexit threatens Jaguar Land Rover UK future

Business
UK plants and at least 40,000 jobs are at risk if the country leaves the European Union without a free trade deal, Britain's biggest carmaker has warned. Jaguar Land Rover (JLR) has told the government that, while its "heart and soul" are in the UK, a bad Brexit could force a re-think, with a "no-deal" scenario forcing it out of the UK because of an expected £1.2bn surge in tariff costs.JLR exports 80% of its cars worth £18bn annually.Dr Ralf Speth, chief executive of JLR, said: "We, and our partners in the supply chain, face an unpredictable future if the Brexit negotiations do not maintain free and frictionless trade with the EU and unrestricted access to the single market."We urgently need greater certainty to continue to invest heavily in the UK and safeguard ...