Herewith my letter. There is much more I could have added but letters have to be brief. Of the UK bank lending to business, over 80% is for construction with over 80% of that construction being in London and over [...]
Post Brexit Bounce: It Will Need To Keep On Bouncing For Years
A Datastream chart of the month showing, “bumper UK retail sales in July as consumers shrugged off Brexit gloom,” was sent to me as a client of Cazenove Captial, a well known UK investment manager. It shows a definite upturn in UK sales figures excluding auto-fuel, from June until September. I replied,” yes, it’s encouraging for now. People with stagnant incomes, getting out there and supporting the UK economy shows good spirit. However, the government ministers charged with delivering Brexit seem to be milling about without much clarity of purpose. Meanwhile the EU negotiators will need to drive a hard bargain with the UK to set an example to deter other members states from following the UK’s lead. Therefore, UK consumers will need to keep on shopping for years to come to maintain our plucky economic prospects…now that would be the chart of decade”.
He replied in agreement and I hope more of a plan than the UK government appears to have at the moment. Meanwhile EU leaders have met, like a gathering storm, recently in Bratislava without the UK to discuss its post-Brexit future.
Mui, J; (2016), “ Chart of the month – September: Bumper UK retail sales in July as consumers shrugged off Brexit gloom,” Cazenove Capital Management , Schroders PLC, London UK.