Re: Taking the Hit.
Originally Posted by
Banchory
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If the markets thought the UK leaving the EU was a good thing they would be betting on the pound not against it.
The fact is the pound has been falling and is likely to fall further on news of a no deal Brexit. Whether it rebounds would seem to be unlikely in a no deal scenario and whether it will recover over time is going to be dependant on a number of factors not least How quickly the UK can replace its lost trade agreements and forge others and how well UK and UK domiciled companies adapt to trading with the EU on WTO rules
I would love to see those who short the pound lose their shirts but I doubt it will happen
The pound is falling for a number of reasons, including Brexit. It will bounce back it always does - its not as low as it was in 2008 if my memory serves me right ? YMMV
As for replacing our trade agreements there are only really 2 in question - one with the EU and the other with South Korea. So far we have South Korea ready to sign, plus Switzerland on the way. Then there is the USA which we will be signing up the first few bilateral agreements in September and Japan is also on the horizon.
How many ratified FTA has the EU completed to countries outside the single market ? Go on have a google and then look at the populations of the countries in EFTA.
If the EU want to trade with us without an FTA then we will be subjected to the common external tariff just like any other 3rd country. We simply buy our stuff that's in the best interest for the UK, unlike in the past when its in the best interest of Germany and France. I don't see why you think Brexit is a continuation of the protectionism of the EU - it isn't at all. You should bear this in mind when you post on here.
My company won't have any issues trading with WTO rules and neither should any other - they do this with the all other 3rd countries at the moment. Besides, the EU doesn't have trade deals with the USA or China and they are the two biggest economies in the world.
We can also create free ports and free towns, lower taxes such as corporation tax and VAT to make sure that the UK is one of the best places on the planet for business.
If anything it's the EU that needs to find a new market to replace the one thats just about to walk away and slam the door shut. It needs to find this replacement that has the potential of 100 billion in free trade that imports more than it exports and contributes 11.2 billion net back into it. A country prepared to sign up the single market, customs union, the Euro and be governed by Brussels and the ECJ.
So far its found Macedonia and Albania
Not going well is it