Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

Could Brexit impact UK business model?

Monday, September 19, 2016 - 01:48

London's first Fashion Week since the Brexit vote is in full swing. For the moment the catwalk appears to have weathered the storm, but signs are emerging that other industries may not. Laura Frykberg reports.

▲ Hide Transcript

View Transcript

Fashion week is big business in Britain. It brings the economy billions of pounds. But since Britain voted to leave the EU, questions loom over the lucrative industry. (SOUNDBITE) (English) CEO, BRITISH FASHION COUNCIL, CAROLINE RUSH, SAYING: "For us it is really important that as much as possible it doesn't and if anything we use this as an opportunity to reaffirm partnerships to create new partnerships and to be able to build businesses not only with Europe but also with the rest of the world." For now then, there's still confidence on the catwalk. But signs the economy may lose its swagger are creeping in. A new survey by Lloyds bank suggests business confidence has fallen to 12 percent - a four-year low. Although, some aren't convinced Brexit is to blame. (SOUNDBITE) (English) INDEPENDENT MARKET ANALYST, JEREMY BATSTONE-CARR, SAYING: "If you look further out it is my view that UK corporate investment has been on a deteriorating trend for quite a while, and this of course has a lot to do with the persistent deterioration of productivity, that the UK economy has experienced. " Lloyds says companies expect to hire fewer staff, export less and reduce capital spending. Britain's largest industry, the service sector, has the gloomiest outlook. It's dropped by 30 points. It's a far cry from other data since the vote. Perhaps that could be Britain's savior. (SOUNDBITE) (English) INDEPENDENT MARKET ANALYST, JEREMY BATSTONE-CARR, SAYING: "I'm particularly encouraged by the extent to which retail sales data has held up. The UK is of course a consumption based economy, as are many developed economies. If that data holds up again in September as I suspect seems fairly likely. I think that the UK economy is going to surprise on the upside." But clearly some see storms ahead, It all depends on which forecast you listen to.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Could Brexit impact UK business model?

Monday, September 19, 2016 - 01:48