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Does Brexit matter anymore?  

The UK’s decision to leave the European Union in 2016 has been the driving, and dividing, force in British politics ever since the referendum campaign.

It seeded the turmoil inside the Conservative Party, which led to five different prime ministers taking over in Number 10.

The public grew tired of all the delay and argument in parliament and handed Boris Johnson his “stonking” victory at the last general thanks to his promise to “Get Brexit Done”.

That was one thing Mr Johnson did deliver, but it continued to bedevil his party as Rishi Sunak found out when he had to deliver the Windsor declaration under threat from Washington DC.

Every Conservative prime minister since David Cameron has posed as a committed leaver, vowing to deliver the will of the people as reflected in the 52% to 48% vote to leave.

They must be wondering why they bothered. In opinion polls, Brexit does not feature in the top 10 issues of concern to voters.

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Clear majorities – 75% and upwards – think Brexit has damaged the economy.

And, as COVID and the cost of living came to dominate the agenda, the Conservatives have been consistently trailing Labour by some 20 points or so for more than a year.

Given he now looks as if he is going to be the next prime minister – and given he was a Remainer who initially wanted there to be a second referendum to reverse the result – some of the Labour leader’s allies are wondering why Sir Keir Starmer is so reluctant to talk about closer relations with the European Union.

As this year draws to a close, politicians and other occupants of the Westminster bubble are drawing up their annual audits of how things stand with extra enthusiasm because a general election must take place at some point in the next 13 months.

At the Resolution Foundation conference in the QEII Centre, there were guffaws when the Labour leader was asked why he has been writing about “the possibilities of Brexit”.

Boris Johnson had success with his 'Get Brexit Done' message
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Boris Johnson had success with his ‘Get Brexit Done’ message. Pic: AP

There was another striking moment at another meeting just off Parliament Square: UK In A Changing Europe’s annual report on the “state of public opinion”. Participants in public meetings are usually very cautious about making firm predictions.

Yet when I asked a panel comprising the author of the 2019 Conservative manifesto, a Labour candidate at the next election and two leading political academics what they thought the outcome of the general election would be, all four of them predicted a majority Labour government – without hesitation or deviation.

They were speaking days before the latest Tory bust-up and cabinet resignation over immigration policy, which is unlikely to have give the Conservative Party a boost.

Some on the Labour frontbench are more enthusiastic about Europe than others.

David Lammy, the shadow foreign secretary, says that closer ties with the EU are his “number one priority” and does not wholly discard the dream of rejoining one day.

That is a long way off.

Sir Keir has muttered that he would like to “rewrite” a better trade agreement after 2025 – but he has also ruled out the UK re-entering either the customs union or the single market.

Both would be prerequisites for EU membership, as well as the principal triggers of economic benefit, according to financial experts.

Labour is well aware that the single market would mean freedom of movement of EU citizens in and out of the UK. Leave campaigners played up the immigration issue, which continues to be a major concern of the electorate, even though the record levels of migration since the referendum have been by people from outside the EU.

Those arguing for a more positive stance from Sir Keir point out that an overwhelming majority of those who intend to vote Labour are in favour of closer relations with the EU.

Indeed, it would encourage 34% to vote Labour. Another third, 38%, say it would have no impact on their voting intentions.

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The catch is that most of those either pro or indifferent are going to vote Labour anyway. More detailed examination of polling carried out for UK In A Changing Europe explains why Sir Keir is unlikely to make renegotiating closer ties with the EU a major part his election campaign.

To secure a comfortable majority, Labour needs to appeal beyond its core supporters – winning over some of those who voted Tory in 2019, including those who switched to Boris Johnson in the so-called “Red Wall”: less affluent, pro-Brexit constituencies in the Midlands and North of England.

Some 39% of those who voted for Brexit in 2016 and Conservative in 2019 say they would be less likely to switch to Labour if it reopened the question of EU membership, compared to a mere 14% who would be attracted. They would be put off even though they have soured on voting Leave.

Startling new findings that a narrow majority of Leave voters, 52%, now say the economy is worse off because of Brexit and that a clear majority of them, 58%, say they would vote Remain in another referendum.

Mr Sunak and the Conservatives are trying to keep their 2019 voters by branding Sir Keir an EU lover.

Sir Keir is advocating more cooperation with the EU on illegal migration across the channel. At PMQs, Mr Sunak claimed that would mean accepting “100,000” coming in from the EU.

Unlike the stalled Rwanda scheme, the Conservative government’s own increased cooperation with, and payments to, the French authorities do seem to have reduced numbers crossing the Channel.

Mr Sunak however insists this joint working is “not for reasons of sentimentality”. He frames it instead in competitive terms repeatedly pointing out that numbers crossing into Britain are “down by a third” this year, while migration into the EU across the Mediterranean is “up by 80%”.

British Prime Minister Rishi Sunak and Sir Keir Starmer at the state opening of parliament in 2023
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British Prime Minister Rishi Sunak and Sir Keir Starmer at the state opening of parliament in 2023

In a similar vein, the prime minister brandishes any economic statistics which compare the UK favourably to European performance and ignores contradictory indicators. None of this has endeared the UK to its former EU partners.

Mr Sunak has avoided or refused routine meetings with his EU counterparts. In Opposition, Labour has sought them eagerly and plans to establish routine contacts if it is in government after the general election.

Yet Sir Keir is determined that there will be no outbreak of euro-enthusiasm in his ranks.

Whatever the opinion polls say, or the experts predict, the Labour leadership really do not believe that they have the next election in the bag yet.

To stamp out complacency and to quite literally wipe smiles of faces, the shadow cabinet were treated to a compulsory gloomy PowerPoint presentation last week. It pointed out that the issues which determined the results of previous elections were often not even on the radar twelve months before the vote.

Brexit, that most polarizing of British political issues this century, has dropped out of sight. Between now and the election Sir Keir will resist Conservative goading grimly, determined to say as little as possible about Labour’s plans for Europe beyond occasionally bemoaning “the smouldering cinders of the bridges the Tories have burnt”.

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Chancellor to hold tariff crisis talks with top City executives

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Chancellor to hold tariff crisis talks with top City executives

Rachel Reeves will seek to gauge the unfolding impact of President Donald Trump’s tariffs blitz on Wednesday when she holds talks with some of the City’s top executives.

Sky News has learnt the chancellor will hold talks with bosses from companies including Hargreaves Lansdown, Legal & General, Lloyds Banking Group and M&G amid ongoing volatility in global financial markets.

Insiders said the talks had been convened to help frame the Treasury’s financial services growth and competitiveness strategy.

However, they acknowledged that the fallout from US tariffs, while not directly affecting most City employers, would feature prominently on Wednesday’s agenda.

“The chancellor will use this meeting to show leadership, building on her statement to the House earlier today, and reiterating that the government will act decisively to take the right decisions in our national interest and protect working people,” a Treasury insider said.

Ms Reeves would stress a commitment to working with international partners to reduce barriers to trade, while pursuing the best possible bilateral deal with the US, they added.

Charlie Nunn, the Lloyds boss; Antonio Simoes of L&G; and Dan Olley, Hargreaves Lansdown’s chief, will all attend the talks.

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It will be the latest in a string of meetings the chancellor has held in recent weeks in a bid to boost economic growth.

Her budget last October sparked a furious backlash from the business community, while last month’s spring statement raised fresh fears about the possibility of further tax rises later this year.

None of the companies invited to Wednesday’s meeting would comment when approached by Sky News.

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Crypto execs expect global banking push into Bitcoin by end of 2025

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Crypto execs expect global banking push into Bitcoin by end of 2025

Crypto execs expect global banking push into Bitcoin by end of 2025

Despite the ongoing market meltdown on US trade tariffs, executives at major cryptocurrency firms Messari and Sygnum are bullish on institutional Bitcoin adoption later in 2025.

Speaking on a panel at Paris Blockchain Week on April 8, Messari CEO Eric Turner and Sygnum Bank co-founder Thomas Eichenberger said they expect a significant shift in the banking sector’s involvement with crypto in the second half of the year.

According to the executives, the global banking push into Bitcoin (BTC) services has great potential to happen in the second half of 2025 as regulators embrace crypto, including stablecoins and crypto services by banks.

“I think we’re probably looking at a muted Q2, but I’m really excited for Q3 and Q4,” Messari’s Turner said during the panel discussion moderated by Cointelegraph CEO Yana Prikhodchenko, forecasting “really interesting” things coming to the crypto market in 2025.

Crypto adoption is not just about Trump

While some investors focus on the pro-crypto stance of US President Donald Trump, Turner emphasized that broader regulatory momentum is what matters most.

“When you look at the potential of having market structure regulation in the US, stablecoin regulation, and just the fact that across the board, not just President Trump himself, but the SEC and all these regulatory industries are really embracing crypto,” Turner said.

Banks, Paris, Bitcoin Regulation, Policy

Paris Blockchain Week’s panel with Cointelegraph CEO Yana Prikhodchenko, Bancor co-founder Eyal Hertzog, Sygnum co-founder Thomas Eichenberger, Messari CEO Eric Turner, AWS fintech leader Alex Matsuo and Near chief operating officer Chris Donovan. Source: Cointelegraph

Sygnum co-founder Thomas Eichenberger said international banks with US branches are also poised to enter the market once the legal landscape becomes clearer:

“I think it’s a matter of fact that US banks are preparing to be able to offer crypto custody and at least crypto spot trading services anytime soon.”

“I think by then I would agree with you, Eric,” he continued, projecting a continued phase of market uncertainty until the US establishes a clear regulatory framework.

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Banks are no longer afraid of Bitcoin regulators

With the establishment of clear crypto rules for banks in the US, there will be a rush for crypto services by large international banks that are incorporated outside of the US but have a US-based presence, Eichenberger said.

“Some of them may have had their strategic plans in their cupboard to offer crypto-related services, but have been afraid that at some point they will be gone after by any of the  US regulatory authorities,” he said, adding:

“Now I think there’s no one to be afraid of anymore in terms of regulatory authorities worldwide. So I think many of the large international banks will launch this year.”

Magazine: Financial nihilism in crypto is over — It’s time to dream big again

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Trump tariff negotiations are ‘all about’ China deal — Raoul Pal

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Trump tariff negotiations are ‘all about’ China deal — Raoul Pal

Trump tariff negotiations are ‘all about’ China deal — Raoul Pal

Global trade tensions triggered by US President Donald Trump’s sweeping tariff measures may come to an end with a potential deal with China as investors remain concerned about escalation from both sides.

Trump’s April 2 announcement of reciprocal import tariffs sent shockwaves through global equity and crypto markets. The measures include a 10% baseline tariff on all imported goods, effective April 5, with higher levies — such as a 34% tariff on Chinese imports — set to begin on April 9.

However, the tariff negotiations may only be “posturing” for the US to reach an agreement with China, according to Raoul Pal, founder and CEO of Global Macro Investor.

“In the end, almost all the other tariff negotiations and rhetoric are all about getting China to agree a deal,” Pal wrote in an April 8 X post, adding:

“That is the big prize and both China and the US understand it and need it. Everything else is negotiation posturing. China needs a weaker $ and the US needs tariffs.”

Trump tariff negotiations are ‘all about’ China deal — Raoul Pal

Source: Raoul Pal

“Also, the US is trying to shut down China tariff arbitrage using other channels such as Mexico or Vietnam,” Pal said.

Related: Bitcoin price can hit $250K in 2025 if Fed shifts to QE: Arthur Hayes

China retaliates with new tariffs

Considering China’s latest retaliatory measures, a resolution remains unlikely in the short term.

In response to US tariffs, China imposed a 34% tariff on all US imports effective April 10, media outlet Xinhua News reported on April 4. China’s foreign ministry also vowed to “fight till the end” against Trump’s tariffs, which it called “bullying” by the world’s largest economy.

Trump tariff negotiations are ‘all about’ China deal — Raoul Pal

China overtakes the US in global trade. Source: Econovis

China overtook the US in 2012 to become the world’s largest trading nation by the total value of exports and imports, surpassing $4 trillion in goods trade that year, according to The Guardian.

Crypto markets watch trade outcome closely

As the trade dispute continues to evolve, analysts say a potential agreement between the two global superpowers could serve as a key catalyst for recovery in digital asset markets.

Crypto markets have a 70% chance to bottom by June 2025 before recovering, Nansen analysts predicted.

Related: Crypto market bottom likely by June despite tariff fears: Finance Redefined

Investor appetite for risk assets such as Bitcoin will depend on the global tariff responses from other countries, according to Nicolai Sondergaard, a research analyst at Nansen.

“We have reached somewhat of a local bottom in regard to tariffs and the impact on prices,” the analyst said during Cointelegraph’s Chainreaction live show on X, adding:

“Trump came out guns blazing, and we’ve mostly seen the worst from the US side, so we’ll see if other countries are willing to drop some of the tariffs because it’s very likely the US will do the same.”

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