Trustnet Magazine Issue 21 September 2016 | Page 26

IN THE BACK Markets have calmed down since the shock referendum result, but John Blowers is uneasy about what is in store for the UK once it triggers Article 50 S O, HERE WE ARE. The dust has settled. The sun continues to rise in the morning and the stock market has rallied hard since we voted to leave Europe on that fateful day in June. Investor portfolios are looking good, so there should be no reason to worry unduly. But I’m feeling uneasy. The basic situation is that we are now sailing into the unknown and when we finally trigger Article 50 and start the process of unpicking ourselves 24 from the EU, our “national confidence” is going to tumble. The recent G20 meeting showed the strength of feeling from other countries, notably the US and China, that they are unimpressed with the destabilising effect Brexit has had at a critical time for the world economy. Japan reckons that its major investors in the UK economy will seek to relocate inside the European Union if we do not negotiate free access to the single market. The EU says it is unlikely that we can maintain this and wants to send out a message to other European countries that they can’t leave and still enjoy the trade benefits. Only Australia seems to be chirpy about our economic prospects. It seems our special relationships aren’t that special any more. In my very humble opinion, I think Britain is in for a pretty hard landing once the reality of Brexit sets in and the process of leaving actually starts. Couple this with other factors such as the tightening of immigration policy, which will