Welcome to your weekly round-up of the top business news. This week it’s all about Brexit and tariffs. Airbus has said that if the UK can’t come up with a transition deal for Brexit, the manufacturer may have to leave the UK. The Bank of England is to be given new powers in preparation for Brexit. Trump has announced new tariffs on China and EU tariffs on the US have come into force. Also in the news, Debenhams has issued another profit warning.
Airbus has said that it could leave the UK in the case of a ‘no-deal’ Brexit. The plane manufacturer has said that if the UK leaves both the single market and customs union without some sort of transition deal, there would be “severe disruption and interruption of UK production” and it would have to “reconsider its investments in the UK”. Airbus employs around 14,000 people across the UK.
The chancellor has announced new powers for the Bank of England in preparation for Brexit. Philip Hammond said that the bank will be allowed to lend an extra £500bn to the economy without permission from the Treasury. The move is designed to strengthen the UK’s financial system before leaving the EU.
Trump is preparing more tariffs on $200bn in Chinese imports following the recent tariffs on $50bn in Chinese goods. These tariffs are in retaliation to intellectual property theft. In a statement, Trump said: “These tariffs will go into effect if China refuses to change its practices”. He has been accused of “blackmail” by China.
The EU has introduced tariffs on the US in retaliation to the tariffs on steel and aluminium imports introduced by Trump. The tariffs are on €2.8bn in US goods including whiskey, orange juice and motorcycles.
Debenhams has issued its third profit warning of the year and says that annual pre-tax profits will come in £10m-£15m lower than expected. CEO Sergio Bucher spoke about “exceptionally difficult times in UK retail”.
