Sunday, 28 August 2016

Discussions by 'the other three'





Today there is going to be a meeting in Naples of 'the other three', i.e. France, Germany and Italy, regarding Brexit and the way forward. I suppose they need to discuss whether or not to be hard on Britain going forward, in order to prevent further dissention from their own countries. Maybe it is not going to be about that, perhaps it will be whether or not to give us a better deal than either Switzerland or Norway, both non members of the E.U.  We shall see or maybe not.

Iain Duncan Smith, a leading campaigner for the Leave Campaign back in June, has demanded that Brexit be started now, but he has been advised!! that Brexit may take five years.  Leavers see this as a stalling tactic in the hope that agreements will never be concluded allowing us to leave the E.U. but in the meantime in today's Daily Mail, there is a headline which reads 'Project Fear bank admits UK shares could beat Europe's'.

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'Apparently the Germans are blaming us for cuts in their car jobs. The Opel group are looking to cut working hours in the wake of Brexit owing to the weaker pound. The cuts will be made at their factories in Elsenach and Russelsheim.

The Vauxhall Corsa is Britain's second most popular car after the Ford Fiesta. The three door model, which accounts for half of those sales, is made in the Elsenach factory.

Opel also produces the insignia saloon in Germany.  Vauxhall and Opel have both been owned by General Motors since before the Second World War and their lines were merged in the 1970's.

Opel had already warned Brexit would cost it £305 million due to currency moves and weaker demand if there was an economic downturn.

It said about 5,000 workers would have hours reduced, with the severity depending heavily on UK sales.

'The Brexit situation is an issue for everybody who does business in and with the UK at the moment,' the firm said.

'There will be an impact on our European financial performance if the pound remains at its current level for the res of the year'.  Around 2.7 million new cars had been expected to be sold in Britain this year, 70,000 more than in 2015.

In the aftermath of the vote for Brexit, car makers warned that their sales could fall - and analysts said that they could drop by up to 20% if Britain were to enter a recession.

However, robust retail sales figures suggest that consumers have not been cowed by the apocalyptic warnings during the referendum campaign.  Although no detailed statistics on car-buying have been released since the vote, dealers say that nothing has changed.

Marshall Motor Holdings and Lookers, which between them have more than 350 sites across the country, have both said it has been business as usual.'

from The Daily Mail 22/08/2016

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