00:09 GMT30 October 2020
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    Britain Says 'Cheerio' to EU (463)

    After the Brexit referendum, the British currency saw a dramatic drop that cost global stock markets roughly 2 trillion dollars, reaching its lowest level in 31 years now. But despite all the panic, some argue this could be a wonderful opportunity for the British economy.

    In an interview with Radio Sputnik, market analyst and best-selling financial author Patrick L. Young explains why the country's financial position has, contrary to popular opinion, improved.

    "The re-pricing of British currency is actually fantastic news for UK exporters," Young says. "Britain essentially produces goods cheaper than the rest of the European Union, so therefore [the exporters] are in the wonderful position to have a bonanza, financially."

    Young notes that the current crisis didn't actually inflict any damage to the stock markets.

    "If we take a look at the London stock market at the moment, it is barely where it was a week ago. In fact, on Friday, it closed the week up, compared to where it was a week before," he says.

    "This isn't the ‘meltdown' the people were telling us about."

    Young admits that the British market is extremely volatile now and will take time to settle down "because lots of people in America, Canada and other countries did not really believe there would be a Brexit vote."

    But it's "nothing whatsoever like a real market crisis."

    When markets do eventually settle down and people realize there are new trading opportunities, the new trade partners will flock to Britain to conduct business.

    According to Young, Britain is now in position to fundamentally change its trade relationships to its own benefit, as cheaper currency allows domestic producers to conduct foreign trade on more favorable conditions and repel imported EU goods from the domestic market.

    "That's great news for Britain, but it's actually terribly bad news for continental Europe, because European goods have suddenly become more expensive," he says.

    He adds that roughly $10 billion worth of goods were exported from the EU to Britain every month. Now that these goods have become more expensive, British people will likely turn to domestic products. 

    "Britain trades with the EU in a very concentrated fashion, to the point it's ridiculous," he says, pointing out that British trade with Belgium alone is more than Brazil, Russia, and China combined. And Britain can earn larger profits if it changes this status quo now.

    There are lots of nations to trade with outside the EU, he says.

    The British Commonwealth countries, which includes India, Australia, and Canada, could become new priorities for British exporters, as they provide a much bigger number of customers.

    "The whole terms of trade that is done in Britain is going to change fundamentally, and it's a great opportunity for every nation in the world, including, of course, Russia."

    Britain Says 'Cheerio' to EU (463)


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    European Union, economy, domestic production, Trade, currency devaluation, pound, Brexit, Patrick L. Young, United Kingdom
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