2016-07-25

Brexit a Month Later: Chicken Little Forecasts, Reality Check (videos)

Brits abroad | Brexit Breakdown:

Published on Jul 22, 2016: Now that the UK has a new government, Theresa May and her ministers have been looking further afield as the country prepares to negotiate its way out of the EU. James Blitz rounds up the week’s Brexit news.

U.K. PM Theresa May: Britain Won’t Leave EU Before End of 2016:

U.K. Prime Minister Theresa May speaks at a press conference following her first meeting with German Chancellor Angela Merkel. Published July 20, 2016
The only thing we have to fear is fear itself.--Franklin D. Roosevelt, U.S. President, FDR's First Inaugural Address (1933)
"... the arguments for big short-run damage from Brexit look quite weak ... Indeed, the rebound in British stocks, which are now above pre-Brexit levels, is already causing some backlash against conventional economists and their Chicken Little warnings. Sorry, people, sloppy thinking is always a vice, no matter what cause it’s used for." -- Paul Krugman, Nobel Prize-winning economist, June 30, 2016, NYTimes.com

Markets in Europe since the June 23rd Brexit vote: UK's FTSE100 UP +6.19%; Germany's DAX DOWN -1.07%, France's CAC40 DOWN -1.90%, Friday, July 22:
Top to Bottom: FTSE100, DAX, CAC40 (source: google.com)
CNN.com[UK Prime Minister] May reiterated her commitment to Britain leaving the EU, following the vote to do so in a referendum last month. But although the country is leaving the EU, she said, "The United Kingdom is not leaving Europe. "I'm very clear, Brexit does mean Brexit," she said. "We will make a success of it. What we need to do in negotiating the deal is ensure that we listen to what people have said about the need for controls on free movement. But we also negotiate the right deal, and the best deal for the trade of goods and services for the British people." She also stressed that Britain should not be limited by focusing exclusively on its relationship with its European neighbors but should instead look to build beneficial ties throughout the world.

UK explores multi-billion pound free trade deal with China | BBC.com"[UK] officials are looking at New Zealand's free trade agreement with China which took four years to negotiate and came into effect in 2008. Care would have to be taken over security concerns and the possibility of China "dumping" cheap imports in the UK - for example steel.... At the G20 many countries are now moving into practical mode ... [Brexit vote is] now a matter for the history books. The British public have spoken. The present challenge is seeing how the fifth largest economy in the world can take advantage of that decision, rebuilding a "close" trading relationship with the EU and new economic relationships with countries, like China, which, it should be remembered, has never had a free trade agreement with any EU country."

See also: News Review [24Jul] | DomainMondo.com:  As noted before on Domain Mondo, the EU actually needs the UK more than the UK needs the EU (which is why the UK, instead of EU-dependent Greece, will be the first member state to leave the EU)... UK Property Market Proves Resilient post-Brexit and One month after Brexit: ... "little Brexit effect on [UK] retail sales growth" and ecommerce transactions "showing similar growth rates to those before the referendum."

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