Bank Of England – Brexit Financial Risks Are To European Firms

Think on matters just for a moment. Who is at risk from a no deal Brexit cutting The City off from the European markets? The firms in The City of the customers in the markets?

Say that all food shops closed for 90 days starting tomorrow. Who has the problem? Sure the food suppliers are more than a bit pissed about it but who has the actual problem? The people who can’t eat for 90 days, obviously enough. So, if The City can’t service the Europeans then who has the problem, The City of those not being serviced?

The Bank of England getting this right of course:

Publishing its twice yearly financial stability report, the central bank said progress had been made to ready UK and European banks, as well as international lenders based in London, for a no-deal scenario. However, it warned that about half of EU companies using banks registered in Britain could be cut off from their banking services after Halloween, as they had yet to fully prepare for Brexit. “In the absence of further action by EU authorities, some disruption to cross-border financial services is possible. Although such disruption would primarily affect EU households and businesses, it could amplify volatility and spill back to the UK in ways that cannot be fully anticipated or mitigated,” the Bank said.

The translate that out of centralbankese, “they’ve a hell of a problem although we’ll mutter something more to be polite as well.”

Or, as we’ve been saying for some time now. it’s not The City that has the problem with Brexit even one of the no deal variety.

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Leo Savantt
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Leo Savantt

No Deal is the only deal that’s not really on the table. The real choice is the WA deal/treaty or multiple smaller deals, some of which have already been struck. The EU continue to maintain that the WA can not be opened for any changes, so it looks like lots of individual deals, which is looking more and more like the best outcome.

Quentin Vole
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Quentin Vole

‘No deal’ is black propaganda from Remainiacs, usually to be prefaced by ‘catastrophic’ or ‘devastating’. In reality, reverting to WTO terms would swiftly trigger lots of those side deals by larger industries – think pharma, aerospace, motors, transport – many of which are already agreed and just awaiting a signature.

Q46
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Q46

EU started in 1993.

How ever did everybody manage before that?

About 170 Countries are not in the EU, how do they manage?

When did the EU become the whole Universe?