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Brexit & election bites business & consumers

Monday, June 12, 2017 - 01:53

British business confidence has fallen sharply since last Thursday's inconclusive election that left Prime Minister Theresa May weakened ahead of Brexit talks. As Laura Frykberg reports, a survey of nearly 700 members of the Institute of Directors also exposed deep concern over the political uncertainty and its impact on Britain's economy.

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They're the backbone of the British economy. But UK data continues to show a change of trend by consumers. The latest, from credit card firm, Visa. Showing spending 0.8 percent lower last month than in May of 2016. Businesses themselves - are also less optimistic. An Institute of Directors survey showing confidence taking a negative swing of 34 points.. Many concerned that Britain's shock election result will hamper Brexit negotiations, due to begin in nine days time. (SOUNDBITE) (English) NICK PARSONS, GLOBAL HEAD FX STRATEGY, NAB, SAYING: "The uncertainty is simply playing havoc with potential total return calculation. We don't know for example whether we should be assuming a Sterling Dollar of 1.20 or of 1.40 in the medium term. It's not clear whether Euro Sterling should be at 85 or 95." Warnings too, keep coming from individual companies Airbus has threatened to move some production out of the UK.. Unless free movement of people and trade tariffs are high on the agenda of Brexit talks. But comments from the man tasked with leading them, David Davis.. Are more likely to fuel the turbulence - say some. (SOUNDBITE) (English) NICK PARSONS, GLOBAL HEAD FX STRATEGY, NAB, SAYING: "The pound was falling whilst he was saying we will have no access to the single market, we will not be part of the customs union and we will carry on as before. The pound reacted immediately to those comments by falling. That should send a clear warning signal, of the dangers of over-prioritising immigration above the economy." Moody's has also weighed with its forecast. The rating agency warning the inconclusive election could delay Brexit negotiations ENTIRELY. And in turn, prevent the country prioritising reducing its deficit.. That could mean, another downgrade .

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Brexit & election bites business & consumers

Monday, June 12, 2017 - 01:53