CHIEF-EXEC.eu

June 22, 2020

Brexit trade wars: beware corporate America’s power

The idea that the UK after Brexit could expect to get some sort of inside running for a beneficial trade agreement with the US needs…

Brexit. Will the UK prime minister have to blink first?

How the EU confounds its critics

Is the United Kingdom safe in Boris Johnson’s hands?

From Berlin to Brexit: A short history of European walls

An ‘economic competitor’ on the EU’s doorstep?

What dark forces lie behind the Brexit façade?

Boris Johnson’s deceit maketh the man

Boris for PM offers succour north of the Border

January 10, 2019

Brexit reality: the UK is part of Europe

A shallow stretch of water between mainland Europe and mainland UK does not separate the United Kingdom from the consequences of what happens in Europe….

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EU’s credit rating can survive €750bn stimulus
The EU’s plan to issue €750bn of bonds to fund its Covid-19 recovery poses no immediate threat to the bloc’s credit rating, according to the biggest agencies, despite big divisions between member states on how to pay the money back. The EU’s 27 governments agreed in July a landmark response to the coronavirus crisis by empowering the European Commission to raise €750bn of debt and to hand the proceeds to stricken economies in the form of loans and grants. The deal included a promise to explore new sources of income – such as a European digital tax or levy on carbon imports – to pay back the EU’s biggest ever exercise in joint borrowing. But governments are divided over the levies. Rating agencies say these taxes will not be crucial in determining how creditworthy the EU’s bonds are. Financial Times, August 11

Lockdown causes fastest job losses for a decade
The lockdown obliterated jobs at the fastest pace since the financial crisis a decade ago, according to official figures. Nearly a quarter of a million jobs – 220,000 – were lost between April and June, according to the Office for National Statistics. This was the sharpest deterioration since the May-July period in 2009, when 254,000 jobs were lost. The downturn continued into July. An ONS analysis of tax data shows that the number of people on UK payrolls fell by almost three quarters of a million – 730,000 – between March and July. Although hundreds of thousands of people have lost their jobs since the lockdown was imposed, the unemployment rate remains at close to a record low of 3.9 per cent. The official joblessness rate is masking a much bigger reduction in working hours because many of those who lost their jobs have stopped looking for work altogether. The Times, August 11

Govt defends England’s test and trace system
The government has defended its test and trace programme in England amid plans to cut 6,000 contact tracers. Health minister Edward Argar insisted it was a “successful system” and would be strengthened by giving more powers to local public health teams. The plans mean people who have been in contact with confirmed coronavirus cases may get a knock on their door if tracers cannot reach them by phone. Labour said it came nowhere near the PM’s pledge to be “world-beating”. But Mr Agar dismissed that suggestion, saying: “We’ve always said that this system would evolve, and what it’s doing here is exactly that: evolving and flexing”. “We have reached in the past 10 weeks, since this was set up pretty much from scratch, around a quarter of a million people – that’s a quarter of a million chains of transmission that have been broken by this.” BBC news, August 11

Johnson blocks plan to invite Sturgeon to cabinet meetings
Boris Johnson has blocked a radical proposal by Michael Gove, cabinet office minister, to shore up the union by inviting Nicola Sturgeon, Scotland’s first minister, to take a seat at the UK government’s cabinet table. Mr Gove proposed the plan as a way of containing growing public support in Scotland for independence by giving Ms Sturgeon, leader of the Scottish National Party, a direct say in policy decisions taken at Westminster that affect the whole of the UK. One person briefed on the discussions said: “Michael suggested it at cabinet as one of a number of ideas to address the Scottish question, but Boris didn’t like it. He doesn’t like the idea of [Ms] Sturgeon being seen as on the same political level as him.” Mr Gove, who chairs the union cabinet committee, which sets policy to bind the devolved nations and regions of the UK closer to Westminster, argued that inviting Ms Sturgeon to cabinet would clearly show that decisions taken in London would continue to have an important impact on the whole of the UK. Financial Times, August 11

UK retail sales remain robust in July
UK retail sales remained robust in July as more shoppers returned to the high street following the easing of coronavirus lockdown restrictions. But purchases remained focused on life at home, with sales of luxury items subdued. Sales by value increased 3.2 per cent in July compared with the same month in 2019. This was the second consecutive month of growth following three months of falling sales, according to data published on Tuesday that was compiled by advisory services firm KPMG and the British Retail Consortium, an industry body. The government ordered the temporary closure of non-essential shops from March 23 through to June 15, the biggest areas for growth were based around house improvements and homeworking. Purchases of furniture, computer equipment and home accessories increased the most of any category, year-on-year. Financial Times, August 11

BofE will ‘step up QE’ if economy struggles again
The Bank of England will do more and faster quantitative easing if the economy slows and markets wobble again, a senior official has said. Sir Dave Ramsden, deputy governor for markets and banking and a member of the Bank’s monetary policy committee, said that the pace of gilt purchases under QE would accelerate if “we saw signs of [market] dysfunction” and that the Bank had “significant headroom to do more QE” if economic risks crystallised. Sir Dave, 56, was speaking four days after the Bank released forecasts that showed the recession would not be as deep as was feared in May but that the recovery would be more drawn-out. The Times, August 11

Love of Stilton drives wedge between UK and Japan in post-Brexit trade talks
Having promised to rush through a post-Brexit trade deal, Japan and Britain made significant progress only to discover that the fate of Stilton has driven a wedge between them. During recent talks in London, international trade secretary Liz Truss and the Japanese foreign minister, Toshimitsu Motegi, reached a “substantial” preliminary agreement on trade, promising to conclude a preliminary deal by the end of this month. But after reaching a broad consensus over auto tariffs and going “significantly” further than expected in sectors such as financial services, they reportedly reached a stalemate over Stilton after Truss insisted on making it part of the negotiations … Britain is seeking more preferential terms for its blue cheeses amid pressure on Boris Johnson from British farmers concerned about the imminent loss of EU subsidies, according to the Nikkei Asian Review business newspaper. The Guardian, August 11

Russia’s Covid-19 vaccine approved for use
Russian President Vladimir Putin has said a locally developed vaccine for Covid-19 has been given regulatory approval after less than two months of testing on humans. Mr Putin said the vaccine had passed all the required checks, adding that his daughter had already been given it. Officials have said they have plans to start a mass vaccination in October. Experts have raised concerns about the speed of Russia’s work, suggesting that researchers might be cutting corners. Amid fears that safety could have been compromised, the World Health Organization urged Russia last week to follow international guidelines for producing a vaccine against Covid-19. The Russian vaccine is not among the WHO’s list of six vaccines that have reached phase three clinical trials, which involve more widespread testing in humans. BBC news, August 11

Secondary pupils spread coronavirus like adults
Secondary school pupils are likely to transmit coronavirus as easily as adults, according to official research used by ministers to argue that it is safe for all children to return to class next month. Scientists at Public Health England believe that tougher rules are likely to be needed for older children, despite finding that primary pupils do not seem to pass the virus to each other. Gavin Williamson, the education secretary, said yesterday that a study being conducted by PHE of thousands of pupils who returned to schools in June showed that there was little risk in government plans for all children to be back in the classroom for the new academic year next month. However, The Times understands that researchers working on the study are unhappy with the way ministers have used the findings, which have not been fully analysed. The Times, August 11

Wall St backs Biden with millions in donations
Joe Biden’s campaign coffers are being bolstered by Wall Street donors who have decided that tax rises are a price worth paying to oust President Trump. Despite more than three years of regulations being slashed and taxes being cut, the frustrations felt by many bankers and financial executives have forced them into Mr Biden’s corner. Seth Klarman, a billionaire hedge fund manager, donated $3 million to Republican candidates in 2016 but this time has already donated that amount to groups supporting Mr Biden. “I’ve seen meaningful numbers of people put aside what would appear to be their short-term economic interest because they value being citizens in a democracy,” he told The New York Times. The Times, August 11

Lebanese govt quits after Beirut port explosion
Lebanon’s besieged government has fallen, one week after a cataclysmic explosion destroyed Beirut port, with the country’s prime minister, Hassan Diab, claiming the disaster was the result of endemic corruption. Diab announced the resignation of the government after more than a third of ministers quit their posts, forcing Diab himself to resign. Diab, who has been prime minister for nine months, was due to notify the president, Michel Aoun, who was expected to accept his resignation. “I said that corruption is rooted in every part of the state,” the prime minister said. “But I found out that corruption is greater than the state. A political class is using all their dirty tricks to prevent real change. The more we tried to get to them, the bigger the walls became. This disaster is the result of chronic corruption,” said Diab, repeating: “The corruption network is bigger than the state.” The Guardian, August 10

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