Lloyds Banking Share Discussion Threads

[minerve 2] 19/12/2020 11:31

mm2

I have had more respect from Indians, Polish, Romanians than I ever get from the British - in this country.

You should find out what foreigners generally think of us abroad in their countries.

And you have the cheek to say they don't respect our hospitality??

What about England football fans FFS!

[scruff1] 19/12/2020 11:28

You are jumping to conclusions there UT. She?? More likely gender fluid ffs.

[maxk] 19/12/2020 11:25

Remainiacs had better skip this one...




Three lessons from Covid we can apply to Brexit

We have just been through a year of economic disruption - but we can use what we have learned to navigate a bumpy Brexit


19 December 2020 • 9:40am
Matthew Lynn





There will be massive disruption to the way every business operates. Supply chains will be thrown into chaos. And there will be shortages while new systems are put in place. In less than two weeks from today the UK may well have ended its transitional arrangements with the European Union and switched to trading on World Trade Organisation rules.

Businesses and trade experts are warning that it will amount to one of the biggest shocks the British economy has ever witnessed. Already the Government is talking about emergency loans and subsidies to help companies through what may be a very difficult few months.

But hold on. We have just come through a year of massive economic disruption. Supply chains have been shaken up, and every company has had to change the way it operates in one way or another at lightning speed. In fact, there are lessons we can learn from the Covid-19 crisis for a no-deal Brexit, or indeed a ‘skinny deal’ that only adds very marginally to WTO terms. So, what are they?

We will need to distinguish between companies in short-term trouble and complete zombies; we will have to make sure every support scheme comes with an exit plan; and perhaps most of all we should trust the free market to adapt, as it always does, even if on the surface everything appears to be going haywire. In reality, the UK can bounce back very quickly from no-deal – but we will recover more quickly if we keep those lessons in mind.

After four years of fraught negotiations we still don’t know if Britain and the EU will be able to agree a trade deal.

Fishing rights remain a sticking point, so do level-playing field rules, and the mechanism for resolving disputes. The EU is not offering much of any value, and asking for a lot in return, but shows no desire to soften its terms, so the UK may well end up walking away.


If so, from Jan 1 there will inevitably be tariffs and quotas between Britain and the rest of the continent, as well as plenty of less visible barriers to trade such as paperwork and customs checks that allow petty bureaucrats to disrupt trade flows that used to run smoothly.

We can debate how much difference that will make. It seems unlikely that the fevered predictions of an apocalypse summoned up by Remainers will come to pass: we probably won’t be reduced to scavenging for root vegetables as food supplies dry up, nor will planes drop from the sky, nor hospitals run out of medicine.

Even so, there will inevitably be some disruption. Lorries will back up. Goods may have to be sourced from new locations. Forms will have to be filled in. The Government is quite rightly looking at different ways it can help businesses muddle their way through that.

One point is important to keep in mind, however. We have just been through a year of extraordinary economic disruption as Covid-19 locked down the country and wave after wave of support was offered to companies. We should learn the lessons from that. Like what? Here are three we could start with.

First, don’t prop up zombies. Some companies will be hit hard by no-deal but will adapt to the changes, or find new markets, and recover with some help. Many others won’t notice that anything has happened at all. A few, unfortunately, may be finished (food exporters to the EU for example). We need to work out which is which.

We should focus our help on the companies that can pull through with some targeted assistance. But we should also make sure we don’t create even more zombie companies just about kept alive with state support but with no real future.


Next, plan an exit. As with Covid support, we need to make sure that any subsidies and soft loans are not indefinite. At least, unlike the virus, we know that a no-deal Brexit is a one-off event: fortunately there won’t be a second or third wave to worry about.

It is very easy for a company to get hooked on government help, and with every month that passes it becomes harder and harder to withdraw it, especially if jobs might be lost in the process. Any support offered should last for no more than a year, and that should be made clear from the start.

Finally, trust the market. Over the last year, the economy has suffered terrible damage from the Covid-19 crisis. But it has also adapted. Companies have found ways to co-ordinate staff who are working from home; services have moved online; and workspaces have been socially distanced to make them safer.

The same will be true of Brexit. Sure, there will be some pain. Change is never easy. But a free and open market is remarkably good at working what needs to change and how. It often appears chaotic on the surface, but it is important to block out that noise, and recognise that underneath it is figuring out how to respond. Just let it work, and everything will be okay.


We got some things right and some things wrong in our response to Covid-19. That is pretty much what you would expect. No one deals with an unprecedented emergency perfectly. Yet the one lesson we have surely learned from 2020 is that the economy is remarkably resilient. It can cope with shocks.

But you have to trust it, and let it adapt, and work out where help is most needed, and what you need to let go of. If you do, the economy will bounce back very quickly, whether it is from a virus, or breaking up with a major trading partner.

[crazi] 19/12/2020 11:13

Banks will be looking at starting to charge customers for their services to compensate for low interest rates and possible negative rates.

A recent report showed that Banks would make more on charges even with negative rates implemented than status quo low interest rates.

Also the central bank would also have to pay Banks (seemingly their idea) to manage Covid funds on their behalf.

And as they would all do it - they don't lose customers...

[poikka] 19/12/2020 10:46

Minnie (quoting) - ""The EU is not perfect..."

Examples, dear boy, when you have a moment, eh?

Still struggling with that one, Minnie?

[scruff1] 19/12/2020 10:44

suehannah
Until you are waiting for them to be identified maybe you could be totting up how many females or white males you can spot waiting on in any of your local asian restaurants

[poikka] 19/12/2020 10:42

Looks as if the big sticking point is fish, and it's described as being very difficult to agree on.

I read that the UK is willing to give EU fishing boats same rights as they have now for another 3 years - that's pretty generous - but that's not good enough for Brussels.

Well if there's no deal, then they get sod-all. Ok, they say, then we'll slap tariffs on 'your' fish. Well that won't be a problem as they'll just have to pay more or go without. No doubt there'd be a lot of argy-bargy in the English Channel and North Sea.

Behind the scenes, both sides are calculating how much they can give without causing major discontent, but truly it seems as if the UK has a good card to play here.

[xxxxxy] 19/12/2020 10:35

BREXIT FACTS4EU.ORG SUMMARYJust how important are UK goods exports to the EU, as a percentage of GDP?Goods exports to the EU represent only 7.7% of UK GDPEU could stop all buying and the economic impact would still be less than Covid (-9.7% to Sept)Share of UK goods exports going to EU has dropped by a quarter since 2006UK now sells nearly a third more goods and services to rest of the world than it does to EU

[xxxxxy] 19/12/2020 10:32

The thing is about the EU use of the word.. Deadline.. It doesn't mean what it says in the EUSSR. It is meaningless in the EUSSR.And that is why cannot ever ever trust the EUSSR for language, meanings or deals. Words in the EUSSR is as like language of Animal Farm. Orwellian language. Never never trust dealing with EUSSR.So. Has to be.No DealWTOLiberty

[xxxxxy] 19/12/2020 10:27

Peter Barnes19 Dec 2020 10:14AMNobody likes uncertainty, especially business.Deadlines are just that... 'Deadlines', otherwise they become meaningless.The awful eu nightmare project cannot afford concession.The eu are losing their second largest financial contributor.As painful as it may be, the United Kingdom MUST disassociate itself with the eu 'completely'. One does not get partially divorced.The German auto industry will suffer many thousands of job losses.The United Kingdom will fare well outside of the shackles of the eu.Our leaving will have a 'contagion effect', others will follow in time.It's the beginning of the end for the eu. No more bloated expenses, pensions and luxury Limousines paid for on the backs of hard working Europeans.We must not conflate Europe with the eu... They are two different things...1LikeReplyRoger Thrush19 Dec 2020 10:23AMThe EU has undermined the term "deadline" originally meaning a set time when if not met results in collapse, a "drop dead date".An "EU deadline" in contrast is no such thing and is a term of self-contradiction.

[utrickytrees] 19/12/2020 10:20

I'm thinking now Alphorn & i think your petty point scoring by insinuating that with out the EU the UK will turn it's back on employment rights in a bid to beat the EU in a battle of the fuking mattresses. Exactly what point are you trying to make? how will employment rights benefit illegal immigrants who cant speak english?

[mikemichael2] 19/12/2020 10:17

suehannah1, maybe I'm wrong, could be Choir boy gangs!!!

[alphorn] 19/12/2020 09:51

Ut - think before you post.

[investtofly] 19/12/2020 09:39

Should have Capped Furlough Payments at MINIMUM SALARY then this would be less likely to happen and less problems in the future that the poorest have to pay the price for....

[alphorn] 19/12/2020 09:37

mm2 - appalling; no wonder workers rights are not on the agenda. Nor, protection of IP.

[stewart64] 19/12/2020 09:36

Really hoping that Brexit is resolved one way or the other come Sunday...but deadlines come and deadlines go but talks go on forever...crippling UK plc. Thank you politicians with your stupid games, you really are a disgrace the lot of you.

[investtofly] 19/12/2020 09:34

Just wait and see who's behind it then........

[suehannah1] 19/12/2020 09:31

Mike Michael that is an appalling assumption to make. Until these furlough fraudsters are identified and brought to book, you cannot assume they are all of any particular ethnic background.