STREAMING NOW: Watch Now

Rolls-Royce is stockpiling parts as Brexit chaos threatens 'national crisis'

Businesses are sending a clear message to UK politicians: Stop messing around.Companies and industry ...

Posted: Dec 13, 2018 10:24 AM
Updated: Dec 13, 2018 10:24 AM

Businesses are sending a clear message to UK politicians: Stop messing around.

Companies and industry groups in Britain issued strident warnings against further political turmoil Wednesday after a challenge to Prime Minister Theresa May's leadership underscored the strength of opposition in her own party to her government's plan for Brexit.

Continents and regions

Europe

Northern Europe

United Kingdom

Brexit

European Union

Government organizations - Intl

Government and public administration

Politics

Political Figures - Intl

Theresa May

Business, economy and trade

Economic conditions

Economic crisis

Economic decline

Economy and economic indicators

Companies

Rolls-Royce Motor Cars Ltd

Underscoring the high stakes for business, a major UK manufacturing firm confirmed it has activated contingency plans. Airplane engine maker Rolls-Royce (RYCEY) said that it has begun stockpiling parts to help minimize the damage from a disorderly Brexit.

There are only 107 days to go before Britain is scheduled to leave the European Union, but parliament remains deeply divided on how to break with Britain's biggest trading partner.

May survived a confidence vote on Wednesday. But the divorce deal she negotiated with the European Union still faces long odds in parliament after more than a third of her party rebelled in the vote.

"The utter dismay amongst businesses watching events in Westminster cannot be exaggerated," Adam Marshall, director general of the British Chambers of Commerce, said in a statement.

"Our firms are worried, investors around the world are baffled and disappointed, and markets are showing serious strain as this political saga goes on and on," he added.

Companies across the country have already taken steps to prepare for Brexit.

Big banks including Deutsche Bank (DB), Goldman Sachs (GS) and Citi (C) have moved parts of their business out of the United Kingdom.

Panasonic (PCRFY) said in August that it would move its European headquarters to Amsterdam. Other firms have opened offices in the European Union to ensure they can continue to do business.

And German engineering group Schaeffler (SCFLF) said it was going to close two plants in the United Kingdom because of the uncertainty.

Fears over 'no deal'

The most worrying scenario for business is one where Britain crashes out of the European Union without a deal, leading to new trade barriers.

Aerospace giant Airbus (EADSY) has said it could be forced to quit the country if there's no deal on EU trading arrangements. Carmakers such as Nissan (NSANY), BMW (BMWYY) and Jaguar Land Rover are also heavily exposed.

Mike Cherry, chairman of the Federation of Small Businesses, said that confidence among the group's members has fallen to its lowest level since the financial crisis.

"We don't know what economic environment we'll be operating within in only 100 days' time ... that makes planning ahead impossible," he said, adding that firms are "crying out for some certainty about the future."

Economic consequences

The deepening confusion over Brexit comes at a terrible time for the British economy.

Data from the Office for National Statistics show the UK economy grew just 0.1% in October compared to the previous month. Industrial production fell 0.6% and manufacturing slumped 0.9%.

Trading conditions are likely to worsen when Britain leaves the European Union on March 29.

The UK government's own analysis shows the economy will take a hit from any kind of Brexit. Crashing out without a deal would sink the UK economy into recession.

"Investment plans have been paused for two and a half years," said Dave Spicer, dean of the Business School at the University of Salford. "Unless a deal is agreed quickly, the country risks sliding towards a national crisis."

Huntsville
Clear
71° wxIcon
Hi: 86° Lo: 69°
Feels Like: 71°
Florence
Clear
74° wxIcon
Hi: 90° Lo: 71°
Feels Like: 74°
Fayetteville
Few Clouds
72° wxIcon
Hi: 87° Lo: 69°
Feels Like: 72°
Decatur
Clear
71° wxIcon
Hi: 86° Lo: 68°
Feels Like: 71°
Scottsboro
Overcast
68° wxIcon
Hi: 87° Lo: 69°
Feels Like: 68°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 18474

Reported Deaths: 651
CountyConfirmedDeaths
Mobile2283118
Jefferson1882103
Montgomery180243
Tuscaloosa81616
Marshall7059
Franklin5768
Lee55234
Shelby52220
Tallapoosa43166
Butler41618
Walker3782
Elmore3739
Chambers35826
Madison3444
Morgan2971
Baldwin2929
Unassigned2922
Dallas2823
Etowah26112
DeKalb2563
Lowndes25512
Autauga2395
Coffee2381
Sumter2267
Houston2235
Bullock2136
Pike2080
Colbert1872
Hale1789
Russell1770
Barbour1751
Marengo1746
Lauderdale1672
Calhoun1653
Choctaw15310
Wilcox1527
Cullman1501
Clarke1482
St. Clair1311
Randolph1287
Marion12411
Dale1230
Pickens1215
Talladega1175
Limestone1080
Chilton1041
Greene954
Winston910
Macon864
Jackson833
Henry812
Covington811
Crenshaw783
Bibb761
Escambia743
Washington726
Blount631
Lawrence510
Monroe442
Geneva430
Perry420
Conecuh411
Coosa401
Cherokee383
Clay282
Lamar260
Fayette160
Cleburne151

Tennessee Coronavirus Cases

Confirmed Cases: 24342

Reported Deaths: 381
CountyConfirmedDeaths
Davidson532364
Shelby5313117
Trousdale13964
Rutherford127827
Sumner91345
Hamilton91016
Lake7650
Bledsoe6091
Williamson56711
Robertson5114
Putnam5075
Tipton4553
Wilson4308
Out of TN4264
Knox4105
Bedford2954
Montgomery2773
Rhea2140
Hardeman2020
Madison1752
Unassigned1610
Macon1573
Bradley1571
Loudon1540
McMinn14314
Cheatham1340
Fayette1212
Cumberland1181
Dickson1160
Maury1020
Blount933
Sevier902
Washington750
Coffee740
Monroe662
Wayne640
Gibson621
Sullivan602
Lauderdale591
Hickman580
Dyer550
Franklin541
Greene522
Unicoi490
Hamblen432
Marion421
Anderson411
Obion403
DeKalb400
Smith361
Hawkins352
White340
Overton320
Lawrence320
Haywood322
Marshall321
Grundy311
Henry310
Cannon310
Jefferson280
Lincoln280
Carroll281
Meigs270
Weakley260
Warren260
Perry230
Cocke210
Sequatchie190
Jackson190
Carter191
Hardin182
Polk180
Campbell181
Morgan170
Crockett162
Johnson160
Roane160
McNairy150
Humphreys151
Henderson150
Stewart130
Fentress120
Giles120
Scott120
Claiborne120
Chester120
Grainger110
Houston80
Clay80
Benton71
Union50
Decatur50
Moore40
Van Buren40
Pickett30
Lewis30
Hancock10

 

 

Community Events