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You can find the current article at its original source at https://www.theguardian.com/business/live/2018/jul/05/tata-motors-jaguar-land-rover-brexit-mark-carney-car-sales-business-live
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| UK car sales fall, as Jaguar Land Rover issues hard Brexit warning - business live | UK car sales fall, as Jaguar Land Rover issues hard Brexit warning - business live |
| (35 minutes later) | |
| Away from the UK’s Brexit problems.... we have some solid economic data from America. | |
| US service sector companies have posted their strongest growth in four months, thanks to a pick-up in sales and new orders. | |
| That matches yesterday’s solid UK service sector data - which also showed growth at a four-month high. | |
| Service industries in U.S. expand at fastest pace in four months https://t.co/Qro5wnVJFu pic.twitter.com/8uWwiOhNyC | |
| Some of Germany’s most powerful businesses have warned that Brexit uncertainty is putting them off investing in the UK. | Some of Germany’s most powerful businesses have warned that Brexit uncertainty is putting them off investing in the UK. |
| Our colleague Lisa O’Carroll reports: | Our colleague Lisa O’Carroll reports: |
| Germany Industry UK, which represents 100 companies, including BMW, Mercedes-Benz, Lufthansa, the train and bus operator Arriva and the steel producer ThyssenKrupp, said it needed “certainty and clarity about the way forward sooner rather than later”. | Germany Industry UK, which represents 100 companies, including BMW, Mercedes-Benz, Lufthansa, the train and bus operator Arriva and the steel producer ThyssenKrupp, said it needed “certainty and clarity about the way forward sooner rather than later”. |
| Bernd Atenstaedt, the chairman and chief executive of GIUK, said it was frustrating for his member businesses because they still did not know what a post-Brexit Britain would look like two years after the referendum. | Bernd Atenstaedt, the chairman and chief executive of GIUK, said it was frustrating for his member businesses because they still did not know what a post-Brexit Britain would look like two years after the referendum. |
| “There is some reluctance from German business to invest in the UK with projects on hold because of the uncertainty about the future and with only nine months left before the UK leaves the EU, time is running out,” he said. | “There is some reluctance from German business to invest in the UK with projects on hold because of the uncertainty about the future and with only nine months left before the UK leaves the EU, time is running out,” he said. |
| JP Morgan isn’t waiting to the British cabinet to agree what kind of Brexit it wants. | JP Morgan isn’t waiting to the British cabinet to agree what kind of Brexit it wants. |
| According to Reuters, the investment bank has begun the process of moving staff from the City to continental Europe. A small first wave of employees will lead the way in the coming months. | According to Reuters, the investment bank has begun the process of moving staff from the City to continental Europe. A small first wave of employees will lead the way in the coming months. |
| Here’s the story: | Here’s the story: |
| JPMorgan Chase & Co has asked “several dozen” employees to lead a first wave of relocations from the UK to continental Europe by early next year, as it pushes the button on plans to protect its business post-Brexit, according to a memo sent to staff on Thursday and seen by Reuters. | JPMorgan Chase & Co has asked “several dozen” employees to lead a first wave of relocations from the UK to continental Europe by early next year, as it pushes the button on plans to protect its business post-Brexit, according to a memo sent to staff on Thursday and seen by Reuters. |
| The memo, the first Brexit-related mass communication to JPMorgan’s 16,000-strong UK workforce this year, highlights the organisational and strategic challenges facing global banks as they prepare for Britain’s exit from the European Union. | The memo, the first Brexit-related mass communication to JPMorgan’s 16,000-strong UK workforce this year, highlights the organisational and strategic challenges facing global banks as they prepare for Britain’s exit from the European Union. |
| It comes a day before Prime Minister Theresa May is due to host crunch talks with ministers at her country residence Chequers on how she wants to shape Britain’s future trading relationship with the soon-to-be 27-member club. | It comes a day before Prime Minister Theresa May is due to host crunch talks with ministers at her country residence Chequers on how she wants to shape Britain’s future trading relationship with the soon-to-be 27-member club. |
| Signed by Daniel Pinto, chief executive of JPMorgan’s Corporate & Investment Bank and Mary Erdoes, chief executive of the bank’s Asset & Wealth Management division, the email also outlined JPMorgan’s plans to beef up its presence in several other EU cities including Paris, Madrid and Milan. | Signed by Daniel Pinto, chief executive of JPMorgan’s Corporate & Investment Bank and Mary Erdoes, chief executive of the bank’s Asset & Wealth Management division, the email also outlined JPMorgan’s plans to beef up its presence in several other EU cities including Paris, Madrid and Milan. |
| Last year JP Morgan also bought an office block in Dublin, which could help it reshape its operations after Brexit. | Last year JP Morgan also bought an office block in Dublin, which could help it reshape its operations after Brexit. |
| Theresa May’s spokesman insists the PM is listerning to British businesses about Brexit. | Theresa May’s spokesman insists the PM is listerning to British businesses about Brexit. |
| He told reporters in Westminster: | He told reporters in Westminster: |
| “The PM has been very clear that we take the views of business seriously and we also know the importance of providing certainty as we leave the EU,” the spokesman told reporters. | “The PM has been very clear that we take the views of business seriously and we also know the importance of providing certainty as we leave the EU,” the spokesman told reporters. |
| We are looking forward to providing further details in the white paper.” | We are looking forward to providing further details in the white paper.” |
| That white paper will outline the government’s preferred customs arrangement with the EU. It should be published after tomorrow’s crunch cabinet meeting at the PM’s country residence, Chequers. | That white paper will outline the government’s preferred customs arrangement with the EU. It should be published after tomorrow’s crunch cabinet meeting at the PM’s country residence, Chequers. |
| May isn’t short of views from British businesses either. | May isn’t short of views from British businesses either. |
| Jaguar Land Rover is only the latest in a string of firms to go public with their concerns. Other anxious groups include: | Jaguar Land Rover is only the latest in a string of firms to go public with their concerns. Other anxious groups include: |
| Airbus, which is threatening to move aircraft wing production out of Britain | Airbus, which is threatening to move aircraft wing production out of Britain |
| BMW, which says it could close UK plants if it can’t import components from the EU quickly and reliably after Brexit | BMW, which says it could close UK plants if it can’t import components from the EU quickly and reliably after Brexit |
| The Professional and Business Services Council, which warned the PM that lawyers, accountants, surveyors et al need mutual recognition of qualifications, regulations and legal judgements | The Professional and Business Services Council, which warned the PM that lawyers, accountants, surveyors et al need mutual recognition of qualifications, regulations and legal judgements |
| The British Chambers of Commerce, which pointed out that virtually no progress has been made on the issues worrying businesses | The British Chambers of Commerce, which pointed out that virtually no progress has been made on the issues worrying businesses |
| Former business minister and Liberal Democrat leader Vince Cable has weighed in on Jaguar Land Rover. | Former business minister and Liberal Democrat leader Vince Cable has weighed in on Jaguar Land Rover. |
| He says JLR isn’t messing about and urges the Conservatives to treat business with more respect. | He says JLR isn’t messing about and urges the Conservatives to treat business with more respect. |
| “When I was in government I worked very closely with Jaguar Land Rover. It took some considerable effort to get JLR committed to the UK. | “When I was in government I worked very closely with Jaguar Land Rover. It took some considerable effort to get JLR committed to the UK. |
| “I got to know Ralf Speth well enough to know that he’s not bluffing when he says JLR’s position is a hard Brexit would make the company’s position in the UK untenable. | “I got to know Ralf Speth well enough to know that he’s not bluffing when he says JLR’s position is a hard Brexit would make the company’s position in the UK untenable. |
| “The Conservatives should listen. But there’s no evidence that they are willing to treat major employers with anything other than complete contempt.” | “The Conservatives should listen. But there’s no evidence that they are willing to treat major employers with anything other than complete contempt.” |
| Jim Pickard of the FT has heard that Speth is feeling more and more “distressed” about the impact Brexit will have on his company. | Jim Pickard of the FT has heard that Speth is feeling more and more “distressed” about the impact Brexit will have on his company. |
| the JLR chief executive is usually an "upbeat" character by all accounts but colleagues say he is sounding increasingly distressed, this doesn't sound like a man who is bluffing | the JLR chief executive is usually an "upbeat" character by all accounts but colleagues say he is sounding increasingly distressed, this doesn't sound like a man who is bluffing |
| Ouch. Labour MP Alison McGovern has roasted Owen Paterson for his claim that a hard Brexit would be good for JLR. | Ouch. Labour MP Alison McGovern has roasted Owen Paterson for his claim that a hard Brexit would be good for JLR. |
| McGovern points out that tariffs aren’t the only worry. Non-tariff barriers (such as ‘rules of origin’ restrictions, or time-consuming border checks) could hit sales and gum up supply chains. | McGovern points out that tariffs aren’t the only worry. Non-tariff barriers (such as ‘rules of origin’ restrictions, or time-consuming border checks) could hit sales and gum up supply chains. |
| McGovern says: | McGovern says: |
| “It is quite stunning that Owen Paterson thinks himself better placed to comment on Jaguar Land Rover’s future than their own CEO. Perhaps even more striking is his obvious total ignorance of the just-in-time supply chains which make the car industry profitable, and the fact that it is not tariffs, but non-tariff barriers which would be the major obstacle to manufacturers in a no-deal Brexit. | “It is quite stunning that Owen Paterson thinks himself better placed to comment on Jaguar Land Rover’s future than their own CEO. Perhaps even more striking is his obvious total ignorance of the just-in-time supply chains which make the car industry profitable, and the fact that it is not tariffs, but non-tariff barriers which would be the major obstacle to manufacturers in a no-deal Brexit. |
| People in manufacturing towns across Merseyside, the North and the Midlands know all too well what it feels like when Tories show they just don’t care about our communities and our families’ livelihoods, and they will not stand for it. To protect jobs in the manufacturing industry, the only feasible solution is to stay in the Single Market and the Customs Union.” | People in manufacturing towns across Merseyside, the North and the Midlands know all too well what it feels like when Tories show they just don’t care about our communities and our families’ livelihoods, and they will not stand for it. To protect jobs in the manufacturing industry, the only feasible solution is to stay in the Single Market and the Customs Union.” |
| McGovern’s Wirral South constituency includes the Vauxhall car plant at Ellesmere Port, and is also close to JLR’s Halewood plant. | McGovern’s Wirral South constituency includes the Vauxhall car plant at Ellesmere Port, and is also close to JLR’s Halewood plant. |
| Labour MP Jack Dromey fears that jobs could be lost at Jaguar Land Rover’s Castle Bromwich plant, in his Birmingham Erdington constituency. | Labour MP Jack Dromey fears that jobs could be lost at Jaguar Land Rover’s Castle Bromwich plant, in his Birmingham Erdington constituency. |
| Dromey says there is “profound and growing concern” about the impact of Brexit on Erdington, and the wider UK economy. | Dromey says there is “profound and growing concern” about the impact of Brexit on Erdington, and the wider UK economy. |
| He points out that manufacturers rely on seamless movement of parts to and from Europe, which would be threatened by non-tariff barriers in a hard Brexit. | He points out that manufacturers rely on seamless movement of parts to and from Europe, which would be threatened by non-tariff barriers in a hard Brexit. |
| The nature of the automotive industry and ‘just in time’ arrangements mean that without frictionless trade with our closest trading partners, businesses cannot function and trade properly. Thousands of lorries go backwards and forwards every week to and from the continent. | The nature of the automotive industry and ‘just in time’ arrangements mean that without frictionless trade with our closest trading partners, businesses cannot function and trade properly. Thousands of lorries go backwards and forwards every week to and from the continent. |
| Dromey adds that JLR adds billions of value to the UK economy each year, and is a vital employer. | Dromey adds that JLR adds billions of value to the UK economy each year, and is a vital employer. |
| We cannot allow the will of the hard-right Brexiteers to drive the UK down a deeply damaging road which would be disastrous for British business and British workers. | We cannot allow the will of the hard-right Brexiteers to drive the UK down a deeply damaging road which would be disastrous for British business and British workers. |
| “In one of the poorest constituencies in the country, the Jaguar plant has transformed the lives of thousands of workers. It would be tragic to see those opportunities snatched away from the thousands still out of work.” | “In one of the poorest constituencies in the country, the Jaguar plant has transformed the lives of thousands of workers. It would be tragic to see those opportunities snatched away from the thousands still out of work.” |
| Stephen Phipson, chief executive of EEF, the manufacturers’ organisation, is urging ministers to heed JLR’s concerns about a hard Brexit. | Stephen Phipson, chief executive of EEF, the manufacturers’ organisation, is urging ministers to heed JLR’s concerns about a hard Brexit. |
| Phipson points out that jobs are also at risk at the many small companies who supply parts to the company. | Phipson points out that jobs are also at risk at the many small companies who supply parts to the company. |
| “This clearly underlines the reality being faced by the manufacturing sector. This is not just an issue for big companies, however, but those SMEs who are also heavily exposed in the major supply chains and, as yet, are unable to know what scenario they are planning for. | “This clearly underlines the reality being faced by the manufacturing sector. This is not just an issue for big companies, however, but those SMEs who are also heavily exposed in the major supply chains and, as yet, are unable to know what scenario they are planning for. |
| Time is now running out to secure the frictionless and tariff free relationship we need with the EU if there are not to be serious consequences right across UK industry.” | Time is now running out to secure the frictionless and tariff free relationship we need with the EU if there are not to be serious consequences right across UK industry.” |
| Labour MP Maria Eagle fears that Jaguar Land Rover’s Halewood car plant, in her Garston and Halewood constituency, is at risk from a hard Brexit. | Labour MP Maria Eagle fears that Jaguar Land Rover’s Halewood car plant, in her Garston and Halewood constituency, is at risk from a hard Brexit. |
| Eagle says: | Eagle says: |
| “Such a move would mean the end of JLR’s Halewood plant, the end of car manufacturing in South Liverpool and the needless destruction of thousands of the best private sector jobs in Liverpool.” | “Such a move would mean the end of JLR’s Halewood plant, the end of car manufacturing in South Liverpool and the needless destruction of thousands of the best private sector jobs in Liverpool.” |
| “I am shocked but not surprised at this stark yet realistic warning from JLR chief executive Prof Ralph Speth about the appalling effects of the extreme Tory hard Brexit supported by half the Cabinet & a hardline cabal of Brexit extremists” | “I am shocked but not surprised at this stark yet realistic warning from JLR chief executive Prof Ralph Speth about the appalling effects of the extreme Tory hard Brexit supported by half the Cabinet & a hardline cabal of Brexit extremists” |
| Nissan, which employs around 7,000 people at its Sunderland car plant, says: | Nissan, which employs around 7,000 people at its Sunderland car plant, says: |
| “Nissan continues to work with the UK government to ensure the company’s long-term success and investment in the UK” | “Nissan continues to work with the UK government to ensure the company’s long-term success and investment in the UK” |
| Getting back to Jaguar Land Rover.... and Owen Paterson’s claim that Brexit is a super opportunity for carmakers is getting short shrift: | Getting back to Jaguar Land Rover.... and Owen Paterson’s claim that Brexit is a super opportunity for carmakers is getting short shrift: |
| Just asked a spokesperson for one trade body if they'd be responding to Owen Paterson's comments on the opportunities for UK auto firms (such as Jaguar Land Rover) after Brexit. "We're not going to dignify those comments with a response because they're not worth anything." | Just asked a spokesperson for one trade body if they'd be responding to Owen Paterson's comments on the opportunities for UK auto firms (such as Jaguar Land Rover) after Brexit. "We're not going to dignify those comments with a response because they're not worth anything." |
| The sooner we accept that Owen Paterson & Jacob Rees Mogg know much more about running Jaguar Land Rover than the bloke who runs Jaguar Land Rover, the better for all concerned. https://t.co/kdrkOxzd8h | The sooner we accept that Owen Paterson & Jacob Rees Mogg know much more about running Jaguar Land Rover than the bloke who runs Jaguar Land Rover, the better for all concerned. https://t.co/kdrkOxzd8h |
| @graemewearden If Owen Paterson thinks JLR are wrong to worry about a hard Brexit, maybe JLR should appoint him as their CEO. He clearly knows the global motor business better than their current CEO and team. | @graemewearden If Owen Paterson thinks JLR are wrong to worry about a hard Brexit, maybe JLR should appoint him as their CEO. He clearly knows the global motor business better than their current CEO and team. |
| It’s official: An England World Cup win would be good for the economy, according to the Bank of England governor. | It’s official: An England World Cup win would be good for the economy, according to the Bank of England governor. |
| Carney asked about the economic impact if England WIN the World Cup (he does have an FA Three Lions pin on his lapel). “It will be an unalloyed, unadulterated good. I’m going to get my waistcoat this afternoon” #ENG 🏴 | Carney asked about the economic impact if England WIN the World Cup (he does have an FA Three Lions pin on his lapel). “It will be an unalloyed, unadulterated good. I’m going to get my waistcoat this afternoon” #ENG 🏴 |
| Thanks to dapper manager Gareth Southgate’s success, retailers are already enjoying a ‘waistcoat bounce’. | Thanks to dapper manager Gareth Southgate’s success, retailers are already enjoying a ‘waistcoat bounce’. |
| This chart from Mark Carney’s speech shows just how damaging the Bank believes a trade war could be: | This chart from Mark Carney’s speech shows just how damaging the Bank believes a trade war could be: |
| Mark Carney appears to be getting into the World Cup spirit: | Mark Carney appears to be getting into the World Cup spirit: |
| Mark Carney appears to be sporting an England football badge. pic.twitter.com/haiwXTtPj1 | Mark Carney appears to be sporting an England football badge. pic.twitter.com/haiwXTtPj1 |
| Mark Carney has also used his speech in Newcastle to warn on America’s trade tariffs. Richard Partington reports: | Mark Carney has also used his speech in Newcastle to warn on America’s trade tariffs. Richard Partington reports: |
| Donald Trump has received yet another warning over the threat to the global economy from his mounting trade disputes around the world - this time from the governor of the Bank of England. | Donald Trump has received yet another warning over the threat to the global economy from his mounting trade disputes around the world - this time from the governor of the Bank of England. |
| Speaking in Newcastle, Mark Carney said the president’s growing use of trade tariffs were already having an effect on the world economy by causing a slowdown in exports and for manufacturing. | Speaking in Newcastle, Mark Carney said the president’s growing use of trade tariffs were already having an effect on the world economy by causing a slowdown in exports and for manufacturing. |
| But he warned the situation could get much worse. Should the US raise import tariffs by a further 10% on all of its trading partners, that could knock as much as 2.5% off American growth and 1% off global output.It’s a conservative estimate, because this would be through the direct impact on trade channels alone. Things could get worse still should companies put investments on hold amid the political turmoil. It could also lead to higher borrowing costs, he says. | But he warned the situation could get much worse. Should the US raise import tariffs by a further 10% on all of its trading partners, that could knock as much as 2.5% off American growth and 1% off global output.It’s a conservative estimate, because this would be through the direct impact on trade channels alone. Things could get worse still should companies put investments on hold amid the political turmoil. It could also lead to higher borrowing costs, he says. |
| Mark Carney, governor of the Bank of England, is speaking in Newcastle, where he says he is more confident now that the slowdown in the UK economy in the first quarter - when growth was just 0.2% - was temporary because of the disruption caused by bad weather. | Mark Carney, governor of the Bank of England, is speaking in Newcastle, where he says he is more confident now that the slowdown in the UK economy in the first quarter - when growth was just 0.2% - was temporary because of the disruption caused by bad weather. |
| Investors reaction immediately, reading the comments as the latest signal from the Bank that interest rates will rise in August. | Investors reaction immediately, reading the comments as the latest signal from the Bank that interest rates will rise in August. |
| The pound is currently up 0.1% at $1.3247, having hit an intraday day high of $1.3262. | The pound is currently up 0.1% at $1.3247, having hit an intraday day high of $1.3262. |
| Speaking at the Northern Powerhouse Business Summit, he said: | Speaking at the Northern Powerhouse Business Summit, he said: |
| Domestically, the incoming data have given me greater confidence that the softness of UK activity in the first quarter was largely due to the weather, not the economic climate. | Domestically, the incoming data have given me greater confidence that the softness of UK activity in the first quarter was largely due to the weather, not the economic climate. |
| Rebecca Long Bailey, Labour’s shadow business secretary, said Jaguar Land Rover’s Brexit warning should be ringing alarm bells for Theresa May. | Rebecca Long Bailey, Labour’s shadow business secretary, said Jaguar Land Rover’s Brexit warning should be ringing alarm bells for Theresa May. |
| This stark warning from one of the jewels in the crown of British automotive manufacturing should be a klaxon call to Theresa May and her cabinet. They cannot continue to spar with each other and play ideological games whilst British jobs and industries are being pushed off the edge of a cliff. | This stark warning from one of the jewels in the crown of British automotive manufacturing should be a klaxon call to Theresa May and her cabinet. They cannot continue to spar with each other and play ideological games whilst British jobs and industries are being pushed off the edge of a cliff. |
| Uncertainty is already hurting investment and if the Government cannot provide urgent assurances to business on negotiating a deal that secures frictionless trade with the EU, our biggest export market, 40,000 jobs at Jaguar Land Rover and countless supply chain businesses could be lost in the blink of an eye, devastating our world leading automotive sector along with the communities that support them. | Uncertainty is already hurting investment and if the Government cannot provide urgent assurances to business on negotiating a deal that secures frictionless trade with the EU, our biggest export market, 40,000 jobs at Jaguar Land Rover and countless supply chain businesses could be lost in the blink of an eye, devastating our world leading automotive sector along with the communities that support them. |