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Brexit woes see UK firms curtail investment plans

Monday, July 10, 2017 - 01:51

The chances of Britain's economy The chance of Britain's economy picking up steam diminished further on Monday as surveys showed major companies have curtailed their investment plans and that consumers spent less on their credit cards, as Brexit self-harm continues. Kate King reports.

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SOUNDBITE ( English) US PRESIDENT, DONALD TRUMP SAYING: "We're working on a trade deal that will be a very, very big deal, very powerful deal, great for both countries." It was the headline Theresa May was after, but those who scratch even a little deeper will know any deal can't be negotiated until after the UK leaves the EU in 2019. And Brexit uncertainty, continues to weigh on sentiment. Data released on Monday highlighting more evidence of a downturn in the British economy. Major companies now curtailing their investment. (SOUNDBITE) (English) WILSON KING INVESTMENT MANAGEMENT, HEAD OF RESEARCH, RICHARD HUNTER, SAYING: "We haven't really got into the nuts and bolts of the negotiations. There's been a lot of chest thumping needless to say but it's the actual detail which companies are really willing and really need." A separate survey from credit card firm Visa showing consumer spending fell in June. Capping the weakest quarter in nearly four years. Disposable income is being squeezed amid rising inflation and weak pay growth. So while Theresa May is optimistic... SOUNDBITE (English) BRITISH PRIME MINISTER, THERESA MAY, SAYING: "This is a powerful vote of confidence in British goods, British services..." It's clear others don't share the same confidence. One of her senior ministers telling media on Sunday that a trade deal with the U.S won't be enough to offset damage done by leaving the European Union. (SOUNDBITE) (English) WILSON KING INVESTMENT MANAGEMENT, HEAD OF RESEARCH, RICHARD HUNTER, SAYING: "Whether a UK US deal can make up for the current situation whereby the U.K. is leaving leaving the EU of course is moot. It will certainly help in terms of the longer term perspective. " The government says bilateral trade deals, rather than an EU-wide deal, are one of the key benefits of leaving the bloc. But the president of one of Britain's biggest bussiness lobby groups is warning against rushing into an agreement with the U.S. saying not every trade deal is good for both parties.

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Brexit woes see UK firms curtail investment plans

Monday, July 10, 2017 - 01:51