The Guardian reports that arch-Eurosceptic MP John Redwood has been advising clients in his day job to pull their money out of the UK:
In the piece for the Financial Times, the Conservative MP – who has a £180,000 second job as chief global strategist for Charles Stanley – said the European Central Bank was promoting faster growth when the UK was seeing a squeeze on credit.
“Mario Draghi, ECB president, is now doing whatever it takes, not just to rescue the euro but to promote a much-needed economic recovery,” he wrote. He also compared the US and Japan’s approach favourably to the UK’s.
The piece was published on 3 November but came to greater prominence after a scathing comment piece was published over the weekend by a Forbes commentator, Frances Coppola, who wrote that the MP had “advocated a course of action by the UK government that he knows would seriously damage the UK economy”.
Coppola wrote: “To protect his job as an investment manager, he warned his wealthy clients to get their money out before the disaster hits. To me, this smacks of disaster capitalism. Engineer a crash while ensuring your own interests are protected, then clean up when it hits. This is despicable behaviour by a lawmaker.”
“He is advising investors to move their money out of the UK, all the while pushing in parliament for a destructive hard Brexit that would see even more investment desert the country,” Brake said.
“Major investors may be able to move their money abroad, but it is ordinary people who will suffer from the impact of a hard Brexit on jobs and living standards. The fact that even arch-Brexiteers are now losing confidence in Brexit Britain shows why we must give people a chance to think again and, if they choose to, stay in the EU.”
And speaking of cars also in the Guardian Honda has been warning MPs of the consequences of leaving EU customs union:
The devastating impact of a hard Brexit on the UK car industry was laid bare on Tuesday to MPs, who were told every 15 minutes of customs delays would cost some manufacturers up to £850,000 a year.
Presenting the industry’s most detailed evidence yet to the business select committee, Honda UK said it relied on 350 trucks a day arriving from Europe to keep its giant Swindon factory operating, with just an hour’s worth of parts being held on the production line.
The Japanese-owned company said it would take 18 months to set up new procedures and warehouses if Britain left the customs union but that, with 2m daily component movements, even minor delays at Dover and the Channel tunnel would force hundreds of its trucks to wait for the equivalent of 90 hours a day.
If Britain leaves without a trade deal, ministers plan to apply World Trade Organization tariffs that stand at 10% for finished vehicles and about 4.5% for automotive components. More than a third of the 690 cars a day produced by Honda in Swindon are sold in Europe, which is also the source of 40% of the company’s parts.
While 56% of British car exports go to Europe, just 7% of EU exports go the UK. “The UK is an important market but what matters more is protecting the EU single market,” said Hawes.
What is the betting that Honda, Nissan et al are currently scouting out factory locations in Eastern Europe? You bet they are.