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UK consumer morale takes Brexit dive

Friday, July 08, 2016 - 01:49

A post-referendum survey shows British consumer morale suffered its biggest drop in more than five years after last month's decision to leave the European Union. But, as Laura Frykberg reports, the hunt for new bilateral trade deals is getting underway - with a visit by UK business secretary Sajid Javid to India.

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More than half of Britain voted for change. Now they want it, to stay in their wallets. New data from market research company GfK shows since the referendum consumer confidence has dropped. From -9 to -1, its sharpest fall in over five years. What's on paper, and what's put into practice though, can be very different. (SOUNDBITE) (English) SEVEN INVESTMENT MANAGEMENT, BEN KUMAR SAYING: "Brexit has an impact on what you say when you're asked how confident you're feeling, but I really don't think it impacts at the moment whether you go out into the High Street and buy goods. I don't think Brexit affects when you buy a house, you're not worried about the larger economic concerns when you put down a deposit for a house, you're worried about having saved enough, you're worried about that's the perfect house for me." Questions around future trade deals with Britain are less straightforward. For decades, deals have been done through the EU. Now Britain's going it alone, it's courting countries for new agreements. India is among the first. British Business Minister Sajid Javid is there, in a bid for the UK to hold on to its third largest investor. (SOUNDBITE) (English) SEVEN INVESTMENT MANAGEMENT, BEN KUMAR SAYING: "Countries like India and China obviously really important to the UK. Negotiating a trade deal at anything less than five years would be super-human. The one thing that could speed it up is if we just try and tweak the terms of the EU deal that we have already. Will India go for that? It depends what we can offer them in return." Five U.S. investment banks have also offered a trade-off. We'll help keep London a financial centre, if you guarantee continued access to EU markets. But with negotiations on Britain's divorce from Brussels yet to even begin. It's too early for any promises.

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UK consumer morale takes Brexit dive

Friday, July 08, 2016 - 01:49