UK firms cut investment plans as Brexit alarm hits new high - survey

[snoop1130]

UK firms cut investment plans as Brexit alarm hits new high - survey

 

FILE PHOTO: Hot air balloons fly over Canary Wharf during the Lord Mayor's Hot Air Balloon Regatta, in London, Britain June 9, 2019. REUTERS/Simon Dawson

 

LONDON (Reuters) - British companies are more worried about Brexit than at any time since the 2016 referendum decision to leave the European Union and they plan to reduce investment and hiring, a survey of chief financial officers showed on Monday.

 

The survey conducted by Deloitte, a financial advisory firm, found that 83% of the CFOs believed that leaving the EU would hurt Britain’s long-term business environment.

 

Only 4% said it was a good time to take on more balance sheet risk, the lowest percentage since the collapse of Lehman Brothers in 2008 which helped trigger the financial crisis.

 

Britain’s economy has slowed sharply after a strong start to 2019 when companies were rushing to prepare for the original Brexit date in March which has been delayed until Oct. 31.

 

Surveys published last week suggested the economy shrank in the second quarter and Bank of England Governor Mark Carney warned of the growing risks from a no-deal Brexit and from an escalation of trade tensions in the world economy.

 

Almost two thirds of the CFOs surveyed by Deloitte expected to cut hiring in the next three years as a result of Brexit and 47% expected to reduce capital spending.

 

British companies cut back on business investment throughout 2018, the longest such run since the global financial crisis, raising concerns about the longer-term impact of the Brexit crisis on the country’s economy.

 

Separately on Monday, the Confederation of British Industry, an employers group, said it expected business investment would fall by 1.3% in 2019, the biggest decline since the financial crisis, even if Britain manages to avoid a no-deal Brexit.

 

“Brexit uncertainty is crippling business investment. “We’re at risk of falling further behind our G7 competitors,” Rain Newton-Smith, the CBI’s chief economist, said.

 

The CBI kept its forecast for British economic growth in 2019 at 1.4% but cut its forecast for 2020 slightly to 1.5% from a previous estimate of 1.6%.

 

The Deloitte survey was based on responses from 79 CFOs, including 48 from FTSE 350 companies and was conducted between June 12 and 28.

 

-- © Copyright Reuters 2019-07-08

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[nauseus]

Quite an appropriate picture!

[Mavideol]

6 minutes ago, snoop1130 said:

“Brexit uncertainty is crippling business investment. “We’re at risk of falling further behind our G7 competitors,”

it was all a matter of time until reality started to sink in.... here we go, keyboard warriors what's next, denial after denial that the survey conducted by Deloitte is not accurate and/or reliable but 83% of CFO's (Chief Financial Officers) are worried

[Loiner]

So much hot air from Remainer business that they can fly balloons with it.
Worried that they will loose continued access to euro wage slaves. Worried that they have not prepared properly for what the nation voted for.


Sent from my iPhone using Thaivisa Connect

[Jack Mountain]

Why need investments if you can steal oil tankers?

 

https://www.channelnewsasia.com/news/world/seized-supertanker-was-full-to-capacity-with-crude-gibraltar-11703066?cid=cna_flip_070214

Edited July 8, 2019 by Jack Mountain
link added.

[tomacht8]

No problem for hard core brexiteers.

Business not important.

Is all project fear.

 

[bannork]

36 minutes ago, tomacht8 said:

No problem for hard core brexiteers.

Business not important.

Is all project fear.

 

The only answer they have to news like this is, 'But 37% off the adult UK population voted for Brexit so it must happen.'

Ostriches up to their necks in the sand 

[geoffbezoz]

24 minutes ago, bannork said:

The only answer they have to news like this is, 'But 37% off the adult UK population voted for Brexit so it must happen.'

Ostriches up to their necks in the sand 

We often complain on here regarding the poorly educated Thais and the stupidity in the way they act due to the fact the educational system deprives them of the means to make rational arguments based on learning. However the UK has or once had an educational system second to none yet the crass ignorance , short sighted stupidity shown to the entire world by those voting for Brexit beggars believe and it is now the UK which, is not only the laughing stock of the world, but on course to become one of the poorest, if not the poorest nation in the 1st world within perhaps the next decade.

 

[bannork]

I've yet to meet a foreigner who thinks Brexit is a good idea. 

[alant]

15 hours ago, Mavideol said:

it was all a matter of time until reality started to sink in.... here we go, keyboard warriors what's next, denial after denial that the survey conducted by Deloitte is not accurate and/or reliable but 83% of CFO's (Chief Financial Officers) are worried

agree the uncertainty is causing lots of problems, bad mistake to not exit in March.

[JonnyF]

Frankly I'm surprised that the uncertainty caused by our inability to leave has not caused even more problems.

 

Can you imagine if the UK had a general election and 3 years later the losing side were still trying to stop the new, democratically elected government taking power with schemes such as withholding funds for education and housing, asking for another vote on the basis that the winning side didn't know which "version" of the party they were voting for, completely revoking the result for no good reason other than their side lost?

 

The UK would be a laughing stock and investment would be put on hold. Just as it does when certain Remain politicians sabotage the process due to their lack of maturity, integrity and democratic principles. 

[Estrada]

Those idiots that voted for Brexit swore blind that my State Pension that fell by 25% after they voted for it, would climb back up after 3 weeks because Nigel Fromage said so, won't compensate me for my loss. Now I am losing 32% due them voting for Brexit "Because Nigel and Boris said we would be better off out of the EU" and the UK has not even left the EU! If the UK leaves without a deal we will be losing 50% of our pensions due to the exchange rate.

 

The UK would be a laughing stock and investment would be put on hold. Just as it does when certain leave politicians sabotage the UK economy instead of doing their duty to protect the economy from a huge mistake, due to their lack of maturity, integrity and democratic principles. 

[Estrada]

1 hour ago, JonnyF said:

Frankly I'm surprised that the uncertainty caused by our inability to leave has not caused even more problems.

 

Can you imagine if the UK had a general election and 3 years later the losing side were still trying to stop the new, democratically elected government taking power with schemes such as withholding funds for education and housing, asking for another vote on the basis that the winning side didn't know which "version" of the party they were voting for, completely revoking the result for no good reason other than their side lost?

 

The UK would be a laughing stock and investment would be put on hold. Just as it does when certain Remain politicians sabotage the process due to their lack of maturity, integrity and democratic principles.  

The UK would be a laughing stock and investment would be put on hold. Just as it does when certain leave politicians sabotage the UK economy instead of doing their duty to protect the economy from a huge mistake, due to their lack of maturity, integrity and democratic principles. 

[Srikcir]

10 hours ago, Loiner said:

Worried that they have not prepared properly for what the nation voted for.

It's not so much a worry for what the nation voted for but the worry of what the nation will HAVE after Brexit. Forthwith, the current parliament direction is threatening towards a 'No Deal' with the EU - a worst case scenario for CFO's.

[Estrada]

10 hours ago, Loiner said:

So much hot air from Remainer business that they can fly balloons with it.
Worried that they will loose continued access to euro wage slaves. Worried that they have not prepared properly for what the nation voted for.


Sent from my iPhone using Thaivisa Connect

The company that I founded 50 years ago in the UK, although I left in 1994. It depends heavily in being able to send its service engineers all over the EU without the problems of customs clearances. It cannot service its European customers if it has to obtain customs clearances or pay duties. It went into receivership as a direct consequence of vote leave, financed by our former customer, Lord Bamford of JCB. He has given a slush fund to Boris Johnson and the Conservative leave campaign that must have already passed GBP 1 Million. He is making money hand over fist selling his JCBs which are now 25% cheaper for export outside of the EU. Wake up to the fact that you were conned by Billionaire businessmen as well as Nigel Fromage and Boris Johnson.

[Mavideol]

2 hours ago, alant said:

agree the uncertainty is causing lots of problems, bad mistake to not exit in March.

there's an old saying """learn from your mistakes""" I guess this didn't apply to the UK

[the guest]

The penny has dropped it appears. UK is very much reliant on other countries, and recently the country has been given a small taste of things to come. There are always consequences, and for a country that sold most core industry to foreigners, they will be reminded on how vulnerable the country is, if indeed a "hard" BREXIT happens.

 

I doubt the country will leave on the 31st October, there is too much at stake !

[nauseus]

40 minutes ago, Estrada said:

Those idiots that voted for Brexit swore blind that my State Pension that fell by 25% after they voted for it, would climb back up after 3 weeks because Nigel Fromage said so, won't compensate me for my loss. Now I am losing 32% due them voting for Brexit "Because Nigel and Boris said we would be better off out of the EU" and the UK has not even left the EU! If the UK leaves without a deal we will be losing 50% of our pensions due to the exchange rate.

 

The UK would be a laughing stock and investment would be put on hold. Just as it does when certain leave politicians sabotage the UK economy instead of doing their duty to protect the economy from a huge mistake, due to their lack of maturity, integrity and democratic principles. 

32%...50%...? Lack of maturity? RIght.

[nauseus]

38 minutes ago, Estrada said:

The company that I founded 50 years ago in the UK, although I left in 1994. It depends heavily in being able to send its service engineers all over the EU without the problems of customs clearances. It cannot service its European customers if it has to obtain customs clearances or pay duties. It went into receivership as a direct consequence of vote leave, financed by our former customer, Lord Bamford of JCB. He has given a slush fund to Boris Johnson and the Conservative leave campaign that must have already passed GBP 1 Million. He is making money hand over fist selling his JCBs which are now 25% cheaper for export outside of the EU. Wake up to the fact that you were conned by Billionaire businessmen as well as Nigel Fromage and Boris Johnson.

Was your company competing with JCB?

[UnkleMoooose]

5 hours ago, bannork said:

I've yet to meet a foreigner who thinks Brexit is a good idea. 

Of course not-:

a) It will impact their benefit claims.

b) It's nothing to do with them.

[Loiner]

Those idiots that voted for Brexit swore blind that my State Pension that fell by 25% after they voted for it, would climb back up after 3 weeks because Nigel Fromage said so, won't compensate me for my loss. Now I am losing 32% due them voting for Brexit "Because Nigel and Boris said we would be better off out of the EU" and the UK has not even left the EU! If the UK leaves without a deal we will be losing 50% of our pensions due to the exchange rate.
 
The UK would be a laughing stock and investment would be put on hold. Just as it does when certain leave politicians sabotage the UK economy instead of doing their duty to protect the economy from a huge mistake, due to their lack of maturity, integrity and democratic principles. 

Nobody cares about your pension for living it up in the sun. Brexit is for the citizens and their dependents in the UK. That’s where it matters. If your pension is not enough now, it still has the same value in the UK.

[Loiner]

The company that I founded 50 years ago in the UK, although I left in 1994. It depends heavily in being able to send its service engineers all over the EU without the problems of customs clearances. It cannot service its European customers if it has to obtain customs clearances or pay duties. It went into receivership as a direct consequence of vote leave, financed by our former customer, Lord Bamford of JCB. He has given a slush fund to Boris Johnson and the Conservative leave campaign that must have already passed GBP 1 Million. He is making money hand over fist selling his JCBs which are now 25% cheaper for export outside of the EU. Wake up to the fact that you were conned by Billionaire businessmen as well as Nigel Fromage and Boris Johnson.

Nobody conned me at all. OMG, did I believe that big red bus sticker or those Russian blokes???
Bramford is one of the UKs biggest businesses and exporters. He knows how it will work, so is a Brexit supporter.

[bannork]

1 hour ago, UnkleMoooose said:

Of course not-:

a) It will impact their benefit claims.

b) It's nothing to do with them.

I haven't met any foreigners claiming benefits in Thailand. I've met Russians, Iranians, South Africans, Americans and Kenyans. They said Brexit will never happen, the British aren't that stupid.

[Stupooey]

2 hours ago, Loiner said:

Nobody cares about your pension for living it up in the sun. Brexit is for the citizens and their dependents in the UK. That’s where it matters. If your pension is not enough now, it still has the same value in the UK.

Ah yes, Harold Wilson's infamous "pound in your pocket".

[tomacht8]

2 hours ago, Loiner said:

Nobody cares about your pension for living it up in the sun. Brexit is for the citizens and their dependents in the UK. That’s where it matters. If your pension is not enough now, it still has the same value in the UK.

Simple minds at work.

His pension has definitely not

the same value, even in the UK.

You have no idea about exchange rate parities and purchasing power effects.

 

Your statement shows that you have no idea of economic contexts.

 

[Jimbo1964]

10 hours ago, bannork said:

I've yet to meet a foreigner who thinks Brexit is a good idea. 

You should get out more then !

[Loiner]

Simple minds at work.
His pension has definitely not
the same value, even in the UK.
You have no idea about exchange rate parities and purchasing power effects.
 
Your statement shows that you have no idea of economic contexts.
 

A pound is still a pound and it’s still £1.99 a pint for John Smiths in Wetherspoons.
There have been no noticeable increases in prices even for imported goods, except possibly a new Porsche which went up immediately.
When we import from around the world without EU tariffs many prices will decrease.

[Nigel Garvie]

6 hours ago, nauseus said:

Was your company competing with JCB?

I may be wrong, that is for him to say, but on the face of it the phrase "Our former customer" should have been a good indication. People in business supply services/goods to their customers, they don't compete with them.

 

[nauseus]

7 minutes ago, Nigel Garvie said:

I may be wrong, that is for him to say, but on the face of it the phrase "Our former customer" should have been a good indication. People in business supply services/goods to their customers, they don't compete with them.

 

Well I see what you mean but if JCB were suddenly making money "hand over fist" then would it not follow that service company x would have had an opportunity for even more work? I just don't buy this forced into receivership having to occur right after the vote bit. No need too give up so quickly unless there were other problems? I think there's more to this story.

[Nigel Garvie]

1 hour ago, Jimbo1964 said:

You should get out more then !

in reply to

   11 hours ago,  bannork said: 

I've yet to meet a foreigner who thinks Brexit is a good idea. 

 

I have spoken to a lot of non UK Europeans in Thailand. Most of them have reported that the focus that we have shone on the economic idiocy of Brexit, has put huge numbers of their fellow countrymen completely off the idea.