08-22-2016, 11:52 PM
U.K. retail sales posted a strong beat on Thursday, adding to a positive picture for the country's economy following the decision to leave the European Union. July retail sales - an indicator of post-Brexit vote sentiment - posted a monthly rise of 1.4 percent versus consensus expectations of a 0.2 percent increase. The yearly figure saw a rise of 5.9 percent, according to official data by the Office for National Statistics.
UK July retail sales show strong beat with monthly rise of 1.4%
There were warnings of recession before the EU referendum and more such gloomy forecasts have followed the vote to leave. But after a week of official economic data – including inflation and unemployment – gave a clearer impact of the immediate consequences of the poll, what do the numbers so far tell us? Employment is up, shoppers kept spending and a weaker pound has boosted UK tourism. At the same time, inflation has picked up, house prices have wobbled and businesses say they are nervous about hiring and investing.
Boom or gloom? The economic verdict on Brexit … so far | Business | The Guardian
The options come down to something the well-dressed City slicker knows all about. Does it go for an off-the-peg arrangement, or have something made bespoke? Off-the-peg would be best for many in financial services: they would prefer that if the UK is to leave the EU, it should at least stay in the single market, which would include that all-important passporting. However, it is looking increasingly likely that the off-the-peg solution is just not an option. That is because membership of the single market has always come at a high price, allowing the free movement of people from across the EU and paying money into the coffers of the EU. The City, which has been testing the waters, seems to have decided that is just not going to happen. As prime minister Theresa May said, "Brexit means Brexit". And with many voters deciding to vote Leave to keep "our money" and to reduce immigration, the price of membership of the single market would be unacceptably high. That leaves a "bespoke" solution, one based on the Swiss Model (pun intended), one where the UK negotiates a series of deals with the EU covering different industries. This is what Switzerland has done and it is a very prosperous country, but it does raise several areas of concern for the financial services industry in the UK. For a start, the City will want a better deal than the Swiss enjoy. The perfect illustration of that is the fact that one of the reasons the City is so successful is that it has attracted all those banks to London to do business in the EU, including all the major Swiss ones.