{"id":19874,"date":"2016-08-05T15:14:45","date_gmt":"2016-08-05T14:14:45","guid":{"rendered":"https:\/\/www.diaryofanadi.co.uk\/?p=19874"},"modified":"2016-08-05T15:14:45","modified_gmt":"2016-08-05T14:14:45","slug":"brexit-woes-continue","status":"publish","type":"post","link":"https:\/\/diaryofanadi.co.uk\/?p=19874","title":{"rendered":"Brexit Woes Continue"},"content":{"rendered":"

Story #1<\/strong> \u2013 The Bank of England has cut interest rates to 0.25%<\/a>. This is the first cut since 2009 (during the major recession) and the lowest ever rate. The Bank has also said rates could go lower still if the economy worsens.\"Interest<\/p>\n

Remember that lower interest rates are all right if you owe money, but not if you are saving it. It means that a typical mortgage might be \u00a325 cheaper per month, but the annual interest on saving of \u00a310,000 would be \u00a325 less. The theoretical purpose of the rate cut is that since saving money is not advantageous, people go out and spend it, thus stimulating the economy.<\/p>\n

The GBP was immediately affected by this announcement, and fell 1.5% on the day (and it\u2019s already a further 1% down the day after that).<\/p>\n

Story #2<\/strong> \u2013 A Survey has shown that recruitment was hit in July<\/a> as a direct result of Brexit. \"Job<\/p>\n

Job placements in July fell more sharply than at any time since 2009. I\u2019ll remind you again that 2009 was in the middle of the great recession. Those who took part in the data gathering exercise stated Brexit was to blame.<\/p>\n

The Bank of England has already said it expects unemployment to rise to 5.5% over the next two years. It currently stands at 4.9%, and for all practical purposes has been falling each year since 2012.<\/p>\n

Story #3<\/strong> \u2013 Nissan says it is \u201creasonably optimistic\u201d that things will be all right<\/a> as a result of Brexit. This is roughly the same as being \u201creasonably optimistic\u201d that you\u2019re going to win the lottery this week. The hopeful lotto winner will have invested \u00a32 on his or her numbers, and it would be foolish not to be optimistic, otherwise they may just as well have thrown that two quid in the river. Nissan, in comparison, has invested billions in Sunderland. So you can see the parallel \u2013 it is hardly going to openly flush that kind of money down the toilet. The CEO has virtually contradicted himself by warning:<\/p>\n

\n

\u2026[further] Investment [in Sunderland] depends on the outcome of UK-EU talks on Brexit<\/p>\n<\/blockquote>\n

You see, Sunderland is a European plant which happens to be based in the UK. Most of its exports are to Europe. And he added that:<\/p>\n

\n

\u2026there was “no doubt” that prices for Renaults, and other cars made in Europe and sold in the UK, will rise due to falling value of sterling.<\/p>\n<\/blockquote>\n

Of course, report after report makes it clear that Brexit has screwed up the GBP, and what the Nissan CEO is really wondering is how the hell he is going to keep on explaining the UK\u2019s death spiral as a reason to keep manufacturing in Sunderland.<\/p>\n

I should also point out that they\u2019re not very bright in Sunderland. They were the first vote in on referendum day and they voted to leave the EU by a large margin. I don\u2019t think \u201cirony\u201d would be the right word to describe the situation if Nissan upped tents, particularly when you consider the existing unemployment situation in the North East.<\/p>\n

But don\u2019t worry, everyone. The Nissan guy is \u201coptimistic\u201d and I\u2019m sure a multi-billion pound manufacturing plant and the associated multi-multi-billion pound bill Nissan would have if they needed to move it is completely irrelevant  as a source of his optimism. It more likely comes from the same source as that guy at the soup kitchen in Blackpool<\/a>, who thinks that foreigners are preventing him from getting a job.<\/p>\n","protected":false},"excerpt":{"rendered":"

Story #1 \u2013 The Bank of England has cut interest rates to 0.25%. This is the first cut since 2009 (during the major recession) and the lowest ever rate. The Bank has also said rates could go lower still if the economy worsens. Remember that lower interest rates are all right if you owe money, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[98,87],"tags":[],"class_list":["post-19874","post","type-post","status-publish","format-standard","hentry","category-brexit","category-news"],"aioseo_notices":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/diaryofanadi.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/19874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/diaryofanadi.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diaryofanadi.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diaryofanadi.co.uk\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/diaryofanadi.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19874"}],"version-history":[{"count":0,"href":"https:\/\/diaryofanadi.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/19874\/revisions"}],"wp:attachment":[{"href":"https:\/\/diaryofanadi.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diaryofanadi.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diaryofanadi.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}