The British pound surged against the dollar on Monday, gaining more than 1.6 per cent after Britain and the European Union extended discussions on a post-Brexit trade deal.
While the decision by British Prime Minister Boris Johnson and Ursula von der Leyen, the European Commission President to continue talks beyond Sunday saw sterling jump the most in two months to $1.3437 at 12.45pm London time on Monday, the extension was not welcomed by businesses which fear mass disruption if Britain exits the EU without a deal.
“The pound and FTSE 250 are enjoying a welcome boost in early trade, with traders reaching for UK-related markets amid tones of slight optimism that weekend talks provided a narrow opportunity for a trade deal,” said Joshua Mahony, senior market analyst at online trader IG.
“With less than three weeks left until the UK leaves the EU, brinksmanship is going to have to move aside in favour of compromise if a deal is going to pass before year-end. From a traders’ perspective, the prospect of a potential breakthrough does provide some floor for the pound for the time being.”
French Finance Minister Bruno Le Maire warned on Monday that in the event of no deal: "The losers will be the British. We don't lose much.”
According to French government estimates, Brexit would only snip 0.1 per cent off gross domestic product (GDP) in France next year and trade to Britain "was not much as far France's total global trade volume is concerned", Mr Le Maire told a French radio station.
S&P global ratings said on Monday that the economic and political consequences of not reaching a deal "are large enough for both sides to strive to find common ground”.
“A no-deal scenario would have important implications for the UK economy, the country's ability to attract inflows of capital and labour over time and its public and external finances,” S&P said.
A significantly weaker-than-expected economic recovery would place downward pressure on its sovereign ratings on the UK.
“This could happen, for instance, if merchandise and services exports from the UK lose access to key European markets for a prolonged period,” the ratings agency said.
A ratings downturn could also emerge if foreign financing for the UK’s large external deficit diminishes and sterling's status as a reserve currency comes under pressure.
The UK is expected to borrow a total of £394 billion ($528.2bn) this year, equivalent to 19 per cent of GDP, which is the highest recorded level of borrowing in the country's peacetime history.
“Any reduction in the appetite of non-residents to finance this deficit, or to roll over the UK private sector's elevated stock of short-term external debt, would also weigh on the UK’s growth prospects,” S&P said.
While the EU's Brexit negotiator Michel Barnier said a new trade pact with Britain was still possible, the ongoing delays are “frustrating” and costing businesses, said Tony Danker, director general of the Chamber for British Industry.
He urged the government to make use of the time to avoid “the looming cliff edge” of January 1 by taking three steps to ensure companies were not confused by the chaos. The first must involve more detailed guidance on border checks, while the second must involve grace periods to allow businesses time to adjust.
“And third, prepare support for firms who will face the greatest challenges in the short run. Those in sectors and supply chains that are badly hit will face extinction through tariffs, red tape and extra costs. We need to ensure those firms survive to play a role in post-Brexit Britain,” he said.
Supply issues have become a common feature in recent weeks as some retailers stockpile goods ahead of the end of the transition period.
Last week, Honda was forced to halt production at its Swindon factory in England after problems at ports delayed the arrival of required car parts.
While the Japanese carmaker resumed production on Monday, many other businesses have also been affected, with Swedish furniture store Ikea apologising to customers after facing stock shortages due to port congestion.
Felixstowe, Britain's largest port, reported congestion in November due to a surge in demand caused by Brexit, Covid-19 and Christmas, however, the problem has now filtered to other UK ports as well, including Southampton and London Gateway.
"The confluence of Covid, seasonal trade and Brexit is placing understandable pressure on the UK port network,” said a spokesman for DP World, which owns Southampton port and London Gateway.
“Our teams at London Gateway and Southampton are working tirelessly to manage the additional traffic through our ports while maintaining our high customer service standards."
The “uncertainty” is making it harder for companies to prepare for January 1, according to the British Retail Consortium (BRC), with a no-deal set to increase prices thanks to new checks and red tape.
“Without a deal, the British public will face over £3bn in food tariffs and retailers would have no choice but to pass on some of these additional costs to their customers who would see higher prices filter though during 2021,” said Helen Dickinson, chief executive of the BRC.
The consortium also urge shoppers not to stockpile supplies or buy more food than they need. “Retailers are doing everything they can to prepare for all eventualities on January 1 – increasing the stock of tins, toilet rolls and other longer-life products so there will be sufficient supply of essential products. They have also been building new customs and VAT processes, working with suppliers to ease logistics, and more,” said Ms Dickinson.
During the first lockdown earlier this year, supermarkets were forced to place limits on essential items such as toilet roll after Britons resorted to panic buying.
“While no amount of preparation by retailers can entirely prevent disruption, there is no need for the public to buy more food than usual as the main impact will be on imported fresh produce, such as fresh fruit and vegetables, which cannot be stored for long periods by either retailers or consumers," said Ms Dickinson.
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Killing of Qassem Suleimani
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
More on animal trafficking
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
UAE currency: the story behind the money in your pockets
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
Zayed Sustainability Prize
Suggested picnic spots
Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
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UAE currency: the story behind the money in your pockets
Joe Root's Test record
Tests: 53; Innings: 98; Not outs: 11; Runs: 4,594; Best score: 254; Average: 52.80; 100s: 11; 50s: 27
A list of the animal rescue organisations in the UAE
The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
The specs
Price, base / as tested Dh135,000
Engine 1.6L turbo
Gearbox Six speed automatic with manual and sports mode
Power 165hp @ 6,000rpm
Torque 240Nm @ 1,400rpm 0-100kph: 9.2 seconds
Top speed 420 kph (governed)
Fuel economy, combined 35.2L / 100km (est)
UAE currency: the story behind the money in your pockets
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
88 Video's most popular rentals
Avengers 3: Infinity War: an American superhero film released in 2018 and based on the Marvel Comics story.
Sholay: a 1975 Indian action-adventure film. It follows the adventures of two criminals hired by police to catch a vagabond. The film was panned on release but is now considered a classic.
Lucifer: is a 2019 Malayalam-language action film. It dives into the gritty world of Kerala’s politics and has become one of the highest-grossing Malayalam films of all time.
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
So what is Spicy Chickenjoy?
Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
The Bio
Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”
Holiday destination: “I like Paris very much, it’s a city very close to my heart.”
Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”
Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”
MATCH INFO
Cricket World Cup League Two
Oman, UAE, Namibia
Al Amerat, Muscat
Results
Oman beat UAE by five wickets
UAE beat Namibia by eight runs
Namibia beat Oman by 52 runs
UAE beat Namibia by eight wickets
UAE v Oman - abandoned
Oman v Namibia - abandoned
Did you know?
Brunch has been around, is some form or another, for more than a century. The word was first mentioned in print in an 1895 edition of Hunter’s Weekly, after making the rounds among university students in Britain. The article, entitled Brunch: A Plea, argued the case for a later, more sociable weekend meal. “By eliminating the need to get up early on Sunday, brunch would make life brighter for Saturday night carousers. It would promote human happiness in other ways as well,” the piece read. “It is talk-compelling. It puts you in a good temper, it makes you satisfied with yourself and your fellow beings, it sweeps away the worries and cobwebs of the week.” More than 100 years later, author Guy Beringer’s words still ring true, especially in the UAE, where brunches are often used to mark special, sociable occasions.
