Brexit: Five things we learnt last week
A round up of last week's biggest Brexit news.
1. Article 50 date set
In her first speech at the conservative party conference on Sunday, Prime Minister Theresa May said she intends to trigger Article 50 by the end of March 2017. This would mean that the UK would leave the EU by the summer of 2019.
The announcement brought with it a call for clarity over the future of the UK’s access to the single market. This uncertainty meant that the value of the pound suffered a further drop.
2. Companies are over ‘initial shock’ of Brexit – PWC
According to audit and advisory firm PwC, companies are now over the “initial shock” of the Brexit vote.
Bob Moritz, Chairman of PwC International, said that he is beginning to see companies “getting back to business, working through scenarios, impacts and the opportunities, which, when so much uncertainty remains, is essential".
Although Brexit continues to influence the value of the pound and the performance of the FTSE 100, Bob said that it won’t directly affect how the Big Four firm operates.
He said: “"For us, PwC is organised on a country by country basis, and we are used to working internally cross-border, and for clients as well, so we won’t be affected by any potential changes."
3. Carney agrees with PM’s call for an economic shakeup
Mark Carney, Governor of the Bank of England, agreed with statements made by Theresa May during her keynote speech at the Conservative conference, calling for a change to the UK economic landscape.
The Prime Minister said that the ultra-low rates and money creation that have been part of the UK economy for the past seven years had caused adverse side-effects.
Mark said: “I entirely agree with the spirit of what the Prime Minister said. I have long said that monetary policy has been overburdened. There needs to be a better balance of monetary policy, fiscal policy and structural policy."
Interest rates were held at 0.5% for more than seven years before being reduced to a new record low of 0.25% in the BOE’s post-Brexit package of measures announced in August.
Source: The Guardian
4. IMF names UK as the world’s fastest growing economy
Despite previously predicting that the UK economy would suffer and the country would fall into recession in the event of a Brexit vote, the International Monetary Fund (IMF) last week crowned the UK the world’s fastest growing economy.
The IMF said that the Bank of England had helped to “maintain confidence” in the UK economy as a result of its actions post-Brexit. It predicted that the UK economy will grow by 1.8% this year.
Source: The Telegraph
5. The Chancellor says London will remain 'world’s leading international financial centre'
Chancellor Philip Hammond flew to New York on Thursday to reassure bankers that London will still be a global finance hub in post-Brexit Britain. During the trip he attended the annual IMF meeting where he met with the heads of major finance institutions such as Goldman Sachs, Citi and Morgan Stanley.
The Chancellor said that his aim was to listen to their concerns and that he will do “everything I can to ensure the City of London retains its position as the world’s leading international finance centre".
Source: The Guardian