Brexit watch, round 2

Natwest is the only bank who has written to its customers so far. The rest are waiting on the BoE to see what it does in the next few weeks as it tries to shore up the economy after Brexit

That's OK, I'm all for decentralisation. Here in the Midlands Birmingham Airport has just picked up two lucrative contracts which will ensure hundreds more jobs.

Maybe to probably!

"A major high street bank has paved the way for the introduction of negative interest rates for the first time in Britain by warning customers it may have to charge them to accept deposits.

The warning by NatWest was made in a letter changing the terms and conditions for the bank’s 850,000 business customers, which range from self-employed traders, charities and clubs to big corporations."

www.theguardian.com/business/2016/jul/25/natwest-paves-way-for-introduction-of-negative-interest-rates

NatWest is probably waiting to see what the Bank of England decides to do next month. It's highly likely base rate will be cut to 0.25%. If that doesn't work, the B of E might need to go down to 0%. NatWest is probably warning its business customers well in advance for legal reasons.

Sweden, Denmark, Switzerland and Japan already have banks with negative interest rates.

If those are the Jet2 contracts, they're going to have the same problems that Ryanair is anticipating if the UK is locked out of the Open Skies Agreement.

Well you'd better write to their CEO and Board of Directors the DD and offer your services to them as you're obviously more 'in the know' than they are

You failed to mention the negative interest rates being applied by the European Central Bank to countries in the Eurozone www.theguardian.com/business/2014/jun/05/european-central-bank-cuts-deposit-rates

Yes but the whole point is that it is BREXIT that has caused these problems in the UK.

In a letter to the Guardian I thought an eminently sensible suggestion

"The vote was extremely close and the yes-no option over simple. Therefore, if we are to be true to our democratic principles, shouldn't the degree of change be proportionate to the gap that separates the leavers from the remainers?"

Brexit lite!!!!!

It was never going to be plain sailing WW but if we're not careful we will 'talk ourselves into a recession'. Other countries, and notably the Eurozone, have lived with this and others, like the Scandinavian countries have pulled through. Japan has lived with this for years.

I take your point that it's not ideal, but like the FTSE 100 and 250 things are not as bleak as forecast and, with the right attitude, we will get through this. I know you and others are feeling angry/upset/ disillusioned/frightened but the UK will survive and probably be a better place to live in the end.

I can be as optimistic as I like as can you anya but unfortunately we don't have control over the markets or huge businesses. Emotion plays no part in their decision making - simply the need to pursue a profit.

Undoubtedly the UK will survive, but for me it will be smaller and narrower of mind such a shame when we could have taken a strong roll as leader and influencer - given a good strong government which we have sadly lacked of late.

Better for who, Anya?

Not better for me or my family Anya. We don't need to talk the economy down, it is doing it already. We are going to be spending squillions in legal fees and administration as we try to extricate ourselves from the EU and that is without the billions we will spend on keeping the Irish borders safe; already the spectre of a unified Ireland has risen, thanks to Martin McGuiness, and when you combine that with Nicola Sturgeon going for best of 3 devolution referenda, the future looks bleak and expensive and possible rather small and lonely.I have never, and will never, get over the sheer stupidity of holding this vote, it doesnt matter that it was an election pledge, that fact hasnt stopped political parties from breaking their pre-election promise before so why should this one have mattered so much. I have however moved on from my initial fury, it has now morphed into fear. Fear for the economic and cultural future, and fear for what will happen when all those who voted Brexit finally realise that they have been deceived and that they are now facing a far worse future.

I'm still full of fury! It is the sheer arrogance and lies told by the elite that so gets to me.

GillT57 - excellent post, thank you. And now the polls in the USA have tipped, and it seems many pro Sanders Democrats will abstain from voting- literally giving Trump the Presidency.

I am full of dread and despair - tragic.

DD2 on the phone last night said their business figures have been the worst they've ever had this month. They buy from abroad and sell in Stirling- and the situation seems bleak. Every cloud though- as DD1 and SIL's businesses have seen the picture on the wall and will probably relocate here within a year.

Nobody is 'talking the UK into a recession' - it's happening, because it makes sense in a world where all businesses are globally linked. Whether you like it or not- nowdays the UK is just a small Island somewhere to the North of Europe. It had a very influential rôle as part of Europe- as a leader- and was indeed getting back on its feet after the last recession- making the best of Europe could offer. The timing could not have been worse!

whitewave, as you point out it was a very simple choice - leave or remain. Nowhere was it clearly explained what leave could mean. Some camps take the view it means leave but still retain the benefits with alterations for the key 'freedom of movement', others that we float our own boat and decide our own destiny. In a modern world you are never in complete control of that unless you hold all the cards which we don't. Indeed, it was ever thus. There was 'world wide' exchange of goods long before capitalism was invented as a study of ancient history shows us. That's why I feel that a second vote from the people on the final changes would be acceptable. If the majority then vote to leave they do it with full knowledge of exactly what that means and we abide by it. I have accepted that we will Brexit regardless of the terms agreed.

I didn't fail to mention the ECB. I didn't know I was being asked for an inclusive list.

I'm sure the CEO is far more 'in the know' than I am, but all the low-cost airlines rely on the Open Skies Agreement for their prices. I expect they will be lobbying the government to include it on the ever-lengthening list of demands to be put on the agenda during the negotiations. All those demands, if granted, will come at a price.

What's done is done. All the ranting and raving and gnashing of teeth and beating of brows isn't going to make it better.

Isn't there something about accepting

Way, way back in the Good Old Days before credit/debit cards didn't banks used to charge for cheque book accounts? It's nothing new and there's been mutterings about negative equity since the last crash, I remember having a big 'discussion' with friends about how it could work at a gathering a couple of years back.

I don't think this latest news is altogether the result of Brexit but more Brexit is an excuse. And there's a lot of that about. Want it hide bad news? Blame Brexit. This is going to be a long process which we now have little influence over. We just have to sit tight, think positive and not panic.

I'm not ranting and raving and certainly not gnashing my teeth, but I'm certainly not turning a blind eye to what's going on. Why should I?

But that is the whole point Anya 'what is done,is actually NOT done'

This is a very different situation from charging for cheque book accounts. Charging for accounts was to cover admin costs. The government is trying to stop people keeping excessive money in bank accounts by encouraging them to spend it, to avoid deflation and to stimulate the economy.

This isn't totally as a result of BREXIT, because the economy was already fragile (despite Osborne's claims), but further uncertainty hasn't helped.

The issue now is how the government deals with it. It could use the situation as an excuse for further austerity (aka more cuts to public services and the already vulnerable) or it could choose to invest in stimulus. The justification for the latter is that borrowing rates have never been so low.

Sitting tight and hoping everything will come out in the wash isn't an option for the government.

Brexit has resulted in a fall in the value of the £, lower investment and less spending. This has happening just over the past month. Yes the economy was definitely more fragile than Osborne ever admitted, but Brexit can be solely blamed for what has happened over the past month. I am sure that what we are seeing would not have happened if the vote had been remain.

What I mean DD is that Brexit is a fact. We are going to exit the EU and I'm pretty sure that it is the interest of this government and all concerned that we get the best deal we can. I'm delighted that you're not a-gnashing of your teeth, renting your garments or anything else of a biblical nature but consider the quote below (not being of a religious bent I've removed the 'god' word)

">>> grant me the serenity
To accept the things I cannot change;
Courage to change the things I can;
And wisdom to know the difference."

I'm sure too WW but it has happened, we knew it would, everybody knew it would, yet enough people were prepared to live with that to still vote 'out'.

Ah but Brexit is something we could try hard to change through argument and debate.

So I choose to be courages in the face of all the Brexiters!