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
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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
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