Turkey hikes interest rates as Bank of England warns on Brexit risks – business
All the day’s economic and financial news, as UK central bank leaves interest rates on hold and Turkey announces a whopping rate hike
BRUSSELS (Reuters) – The European Union will not reconsider parts of the Brexit agreement with Britain that have already been agreed on, like the divorce bill London will have to pay, a spokesman for the bloc’s executive said on Thursday.
Prime Minister Theresa May suggested on Wednesday London could refuse to pay a financial settlement to the bloc if the sides fail to reach a comprehensive agreement on Britain’s withdrawal from the EU.
“We will not be revisiting those areas of the withdrawal agreement that are now settled, including the financial settlement,” the European Commission spokesman told a regular news conference.
‘No-deal’ Brexit? Britain sets out the damage for consumers and business
DEAL OR NO DEAL?
As May tries to clinch a deal with Brussels, she is facing rebels in her Conservative Party who say they will vote down any deal that fails to deliver a sharp break with the EU.
Raab, speaking to BBC radio, said he did not believe May’s government would lose a vote in parliament on the deal.
Michel Barnier, the EU’s chief negotiator, said on Monday that a Brexit deal was possible “within six or eight weeks” if negotiators were realistic in their demands.
Last month, the government published 25 technical papers out of a total of more than 80, which detailed how tariffs, financial services, state aid and pharmaceuticals would operate if Britain departs without a divorce deal.
Ever since the shock 2016 Brexit vote, major companies have been planning for Brexit, but chief executives say the scale of disruption from a disorderly Brexit is such that it is hard to prepare for.
Profit at Britain’s biggest department stores group, John Lewis Partnership, was wiped out in the first half as it was forced to match discounting by its struggling rivals on a fiercely competitive high street.
“With the level of uncertainty facing consumers and the economy, in part due to ongoing Brexit negotiations, forecasting is particularly difficult,” John Lewis said.
Brexiteers accept there is likely to be some short-term economic pain but say Britain will thrive in the longer term if cut loose from what they see as a doomed experiment in German-dominated unity and excessive debt-funded welfare spending.
Opponents of Brexit fear that leaving the bloc will weaken what remains of Britain’s global influence, further undermine its reputation as a haven for investment and hurt the economy for years to come.
Writing by Guy Faulconbridge, editing by David Stamp and Kevin Liffey