CEO of deVere Group, one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients predicts that a growing number of UK and global investors will move their assets overseas as Britain stumbles towards an economic abyss, affirms the boss of one of the world’s largest independent financial advisory organisations.
The observation from Nigel Green, founder and chief executive of deVere Group, which has $12bn under advisement, comes as it was revealed that the UK economy shrank in the second quarter – the first time in seven years. Mr Green said that:
- “Sterling has taken another pounding after the UK’s economy was shown to have contracted in the second quarter, adding to the economic woes on top of no-deal Brexit concerns.
- “The pound has fallen more than 4.5 per cent against the dollar in July and August over fears Boris Johnson’s government is pushing the country towards a no-deal Brexit – which most economists think would be economically damaging.
- “Should the UK leave with no-deal, the pound is likely to remain weak for several years until the country and the EU readjusts.”
He continued: “There is growing speculation too that there will be a general election in the autumn and this will add to the uncertainty for the pound and Britain’s economy. And “The situation will get even more serious should a Jeremy Corbyn-led Labour government win that election. His high tax and low-profit policies and anti-business rhetoric would deliver a hammer blow to the already floundering economy.”
Mr Green went on to say: “Depressingly, Britain appears to be stumbling towards an economic abyss. UK and global investors are becoming increasingly nervous of this deteriorating situation. They will, inevitably and quite sensibly be looking to grow and safeguard their wealth by moving assets overseas through various established international financial solutions.” Not only that “The pace of this trend is likely to increase over the next few months as the geopolitical issues intensify.”
BUT there are reasons to be cheerful
In the Observer last weekend, columnist Will Hutton - complete pessimist about Brexit, wrote that “In the UK and the US, the political wind will soon change in favour of those demanding good government.” He continued, “Don’t despair. We may be living through an attempted rightwing revolution, but its foundations are rotten. There may be a counter-revolution, as there is after every revolution, and it will be built on much firmer ground. The charlatans may be in control in both Britain and the US, but their time is limited. Their programmes are self-defeating and destructive and they do not speak to the dynamic and increasingly ascendant forces in both our societies.”
He went on to predict that the impact of climate change would be the key driver in Europe, he claims that “The case for the EU will be as an agent for Europe-wide sustainability” which is where the real crisis is.
“Companies are finding their record on sustainability is under the microscope as never before. Whether public utilities or global multinationals in the fossil fuel or food businesses, no one escapes the new requirement to do business sustainably. This dynamic is driving the imperative to reshape capitalism around stakeholder principles.”
He concludes with this plea: “So don’t despair. The no-deal Brexiters do not have the force behind them, any more than does Trump. They are losers, on the wrong side of history. Better people will enter politics. Old parties will be rejuvenated: new ones take life. There will be a counter-revolution – it’s already in the making.’
CTMfile take: The problem is that both Green and Hutton are pretty accurate in their predictions. Just hope it does not take the UK too long to come up with a better form of government.
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