Six years to the day after the 1500 v 200 EDL counter demo and the fine welcoming city of Norwich has another small demo, Norwich Against Fascists! Counter demonstration! “There are many many more of us than you” was being chanted by 750 anti-racists and Remainers (mostly) and 50Unity UK pro-Leave Brexiteers shouting back the same and “More of us voted Leave than you” and “you lost”!
The atmosphere was mostly good-natured, carnival-like with drums, whistles, chanting, occasional discussion and the odd rant. One masked protester was led away, possibly anarchist/anti-Fa, certainly a scarf covering their face but there was no violence.
The police, some 30-40 or so, created a thin blue, well hi-vis yellow line, to keep the sides apart, sadly also blocking the dialogue, the lack of which has left us in Brexit impasse land. Initially, kept to opposing pavements, and allowing the traffic to pass, the police eventually surrendered to the sheer size of the counter-protest and even re-drew the line in the centre of St Peter’s Street.
After an hour, they also mostly gave-in to allowing people to cross the street and engage with each other. At times, it was clear some of the police were struggling to keep their serious and professional faces on given the number of humorous moments.
Even the police giggled when Lab Cllr Jess Barnard started playing Benny Hill over the megaphone! Rather ironically, similar chants were echoed on each side of the street:
“Whose streets, our streets”, “No to racism, No to Nazis, no to fascism” “You’re the racists”, “No, you’re the racists!”
Towards the end, it was almost comical as the Remainers remained and the Leavers left, leaving perhaps a dozen Brexiteers facing still hundreds of anti-racists. The larger crowd refusing to depart until their counter-demo had fully seen off the other side. Police remained on site waiting for one side to completely depart but were frustrated when the larger crowd decided to cross the street and swamp the “drain the swamp” protesters. A few of the latter repaid the gesture and also switched sides leading to hilarity and confusion.
At the close, some 2-3 hours later, several protesters shook hands after dialogue, others persisted in their polarised positions.
The Unity UK Leave contingent tried to convince me that their side of the street was more diverse than the Remainers/anti-racists, but that was hard to accept seeing as how they were 99.9% white, and 75% older people, some dressed in 1950s fashion, a time they perhaps wanted to send Britain back to.
I had conversations with perhaps half-a-dozen of the pro-Brexiteers including a passionate but polite chap called Joe, an older woman whom we both agreed were opposed to Theresa May, and several others willing to dialogue. Nothing will change without conversation, communication and, probably, compromise about our beliefs.
* Alleged roots in Ancient Sparta, Plato, and Rome
* Totalitarian belief in the State, order and its Ruler
* Ultranationalism, monolithic unity, racial purity (esp. anti-Semitism, anti-immigration) and ableist idealism
* Ironically, Italian and German fascism both grew out of national socialism but opposed international socialism and communism yet share common antipathy towards liberalism, capitalism, and the individual instead favouring the Party and the State
* Militant strength, masculinity, patriotic rebirth and revolution
* Authoritarian pseudo-democracy, cultic hero worship, national power (Maurice Barrès)
Both sides were a bit confused by the use of the word fascist, both calling each other it. The word really defines those who are totalitarian, anti-democratic and ultranationalist. Along with Nazis – despite the odd mocking salute, it’s a word that didn’t really describe anyone there. One of the Leavers complained about being called a “Nazi” saying “I have an Indian wife”.
Poignant, as it was, across from the city’s War Memorial, the day before armistice day, when we remember standing up to aggression, conquest, fascism, hate, imperialistic ultranationalism, and ultimately, cultural xenophobia in two world wars.
We need to stop fighting and start uniting, build better and common futures, that was why the EU was born, for peace and prosperity, and to end wars.
I voted Remain and I still feel more European than British, a global citizen, part of the forward thinking age of inclusion, diversity, and multiculturalism. I try to take the best human parts of globalisation from its worst capitalist components. BBC Look East interviewed me today about Brexit to go out on the evening news tonight, unlike the poor BBC coverage of the 100,000 march in London last week, at least local news are covering people’s views about Article 50 and concerns for their fellow Europeans living locally who feeling like political pawns, now entering 2 years of uncertainty for their families and jobs.
A new politics
As Britain triggers Article 50, Leave & Remain are the new dividing lines tearing up the old political party Left & Right rule book. Nationalism (good and bad), and broader consensus politics that is pro-internationalism, pro-migrants, more concerned about others than self, believing in the need for a rainbow coalition rather than party first electioneering. Being pro-EU has become a new political movement, just as UKIP was anti-EU. When Tory old guarders like Michael Heseltine are on the same side as Labour and LibDem remainers, you know something has shifted.
Article 50 “the biggest sacrifice of British sovereignty and self-interest that I can remember…losing control over the conditions in which British companies trade and operate in our biggest market…all the stuff about gaining sovereignty, putting ourselves in charge, will be exposed for the hypocrisy that it was…” – Michael Heseltine
Norwich, which voted 56% Remain and feels like more because of its welcoming attitude to foreign nationals who quickly feel at home here, is also home to Archant newspapers and their New European newspaper launch. A paper for the 48%, for those anti-Brexit, anti-Trump, anti-Le Pen and the direction some politics are going.
The resistance to change, not only from Remainers not wanting to seemingly go backwards, is evident in the unexpected 52% who voted Leave, who had many reasons for their decision. Among them, legal sovereignty, immigration, and yes some xenophobic racism, but perhaps for many a preference for traditional Britain, without too much further integration of diverse peoples, cultures, languages and the changing landscape that comes with it. The Remain campaign emphasised economics in their failed “Project Fear” advertising and yet just 2% of Leavers cited economics as the reason for their vote. Vote Leave had its own issues around false advertising – we’re still waiting for that mythical £350m a week for the soon to be lacking EU workers NHS. Both Leave and Remain campaigns were riddled with lies, damned lies, and statistics that led to project fear of immigrants v project fear of economic loss.
“We’re going to build a stronger, fairer Britain” – Theresa May
Fairer to whom, Britain first? Stronger for whom, against those who are already weak?
I remain worried about the narrative of “Britain First, make Britain Great again” which echoes Trumpism, and its anti-migrant, xenophobic language, building walls not bridges, pulling up the drawbridge and retreating to an island mentality, pre-WWII, pre-globalisation’s understanding of this internet and fast travel age.
I remain concerned about the new dividing lines, of Leave and Remain, instead of a unity that was continentally broader than our small sceptred isle. We are now fighting among ourselves to keep the Kingdom United. Scotland has every right to leave, as we have voted to leave the EU. I’d rather Scotland stayed, I’d rather the UK stayed within the EU, but I’ll support Scotland’s right to leave, does that make me a hypocrite, perhaps, it certainly makes Theresa May one for pushing through Brexit but blocking and delaying #IndyRef2.
“We are one great union of peoples and nations” – Theresa May
At a recent ComRes polls Brexit Britain data event it was revealed that of those that thought the following were negative factors for ill in society, the majority were Leave voters:
When 70-80% of the people who essentially oppose diversity and equality, and the modern global movement and communication age, are Leave voters, you can see why age, education and tradition factors were so prominent in voting intention.
Once in a lifetime decision
Age, education and rural versus urban dwellers, were the demographics most prominent in those that voted Leave. Take the vote again in even 5-10 years and the majority would probably vote Remain. Sadly, Article 50 is a once in a generation vote, although nothing is stopping us from applying to rejoin in the future, it would never be the great economic deal we once had.
As much as World War One and Two, were drawn up along divided national lines, the European Union provided the opposite. A unity of nations bringing prosperity and preserving peace from once warring nations. Indeed, Winston Churchill had called for a “United States of Europe” although did not see Britain as a part of it. The Council of Europe (1949) in turn led to the European Coal and Steel Community (1952) and to the Treaty of Rome forming the European Economic Community (1957).
I’m pragmatic about the future and still believe that at an individual, local, and national level we can speak positively to the benefits of European and international freedom of movement, exchange of ideas, culture, education and the arts.
Business will always find a way to make the best of it, we’re a nation of entrepreneurs and shopkeepers (as Napoleon or Adam Smith once said), my concern is for the people, the students, partners, migrants, artists, and the leavers – ironically, many of whom may be the worse off for Brexit.
Osborne & Carney try to stabilise markets … and fail, at first
As George Osborne, David Cameron, Boris Johnson, and the Bank of England’s Mark Carney rush to reassure the financial markets – the Pound, the FTSE, and the UK’s sovereign credit rating all dive. Sterling has been battered and remains at a 31-year low, the FTSE 250 has witnessed in as many days two of its top-five one-day losses, and S&P have trashed our credit outlook by two-notches, increasing borrowing for the Government and businesses. A second BoE reassurance on Tuesday 5 July caused the FTSE 250 and Pound to dive further.
Former Governor of the Bank of England, Mervyn King essentially said “Keep Calm, Don’t Panic”:
“Markets move up, markets move down. We don’t yet know where they will find their level…What we need is a bit of calm now, there’s no reason for any of us to panic.”
Was this just a two-day shock? We haven’t seen all out financial Armageddon, but just what are we getting, and for how long?
As of Tuesday 28 June morning, adventurous investors were buying into the flatlined market and the FTSE 100 was up 2% and FTSE 250 up 3.3%, although within the hour the gains had fallen back to 2.6-2.8% – still 11% down since the Referendum. At the close it was 3.5% up, restoring a quarter of its Brexit losses. To quote the Financial Times, Markets Live blog:
“It’s still a bloody mess, even if markets have steadied.” FT, 11am Tuesday 28 June
In the first hour of Tuesday’s trading the Pound was up just 1%, barely 1.5c higher after its 18c fall, but by 10.30am had lost half that gain already, only to regain it after lunch and lost most of it by 5pm. There has been no recovery against the € Euro.
By Wednesday 29 June midday, the FTSE 100 had recovered all of its losses, whilst the FTSE 250 remained 10% down.
It could be, too, that the market is recovering on the news that nothing will happen in the short term, that Brexit reality is delayed, and won’t kick-in properly till after Article 50 is actioned and up to 2 years later Exit terms agreed and then years worth, but some counts 5-10 years, of negotiating new trading terms with the EU and some 50 agreements with the rest of the world that were based on our membership of and access to the European Single Market.
Thursday 30 June saw previous day gains restore the FTSE 100 to parity and by the close it was 2% above 23 June’s high. Whilst the more British based companies index, the FTSE 250, remains 7% down despite two more days of gains. It has gained 8.5% or 1300pts up on 14,967 since its low point on Monday. The Pound:Dollar exchange rate added 2%, lost 1% overnight, then made it back by lunch but after Mark Carney said financial easing might be required and Boris Johnson ruled himself out of the Conservative leadership, the Pound lost all the week’s gains, falling another 1.5% and remains 12% down.
In a Radio 4 interview early this week, George Osborne repeated his claim that Brexit “would make Britain poorer” and lead to “an economic downturn”.
Mark Carney had been accused of breaching the Bank of England‘s (BoE) independence by commenting quite forcefully pre-Referendum that Brexit might trigger recession. So, for him to say we are “resilient” now, is a little “flip-flop” but he did say that in the long term growth would be slower and the Bank could only “mitigate” against negative effects rather than resolve them. Mitigation includes the possible injection of £250bn.
The £ Pound on Monday did not rally against the $ Dollar, instead, it continued its slide to around $1.31, nearly 13% off its 2016 peak to which it had risen on the short term belief that the UK would Remain. Instead, it has settled at its lowest level for 31 years, despite a 1% recovery on Tuesday morning. A week later, and by Wed 6 July Sterling dropped as low as $1.28 and is now hovering at $1.29, a 15% devaluation.
Sterling is predicted to fall further to around $1.15-$1.25, a 20-25% devaluation. This could add 15-20p to a gallon/3-5p a litre to the price of petrol within the month, as oil is priced in Dollars. There could be an 8% rise in food and drink prices imported from Europe since at €1.17 the Pound is 23% off its Euro peak and nearly 9% down since Thursday.
Global Stocks and UK Shares
Some $2.5 trillion was wiped off global markets in hours after the Referendum result – between 100-400 years worth of the nobody-can-agree-on-the-actual-figure of UK contributions to the European Union. Seeing £100bn wiped off leading FTSE companies in 2 days is way more than the £350m a week (less than £10bn/year after rebates) supposed EU savings, i.e., equivalent to more than a decade’s worth of EU contributions. So no new money for the NHS then!
Stock markets in the poor-performing economies of Europe, e.g., Greece, Italy and Spain, tumbled 12-15% on Friday, other world markets fell 3-8%.
Italy announced a €40bn rescue of its banks after they lost a third of their value post-Brexit vote, despite a 5% bounceback they remain over 25% down since Thursday, June 23.
FTSE 250 as UK Financial Indicator
A far better indicator than the FTSE 100, which has ‘only’ seen 2-3% daily falls since Brexit and a 2% recovery on Tuesday, is the FTSE 250. It is made up of more mid-size predominantly British companies with 50-70% UK-based trade – the powerhouse of employment in the UK. Some 75% of Small and Medium Enterprises (SMEs) voted Remain.
The FTSE 250 has lost over 14% since Thursday’s vote, reaching 7% late-afternoon, continuing its near-8% slide last Friday when, at its worst, it dropped 14% in hours – its “worst drop ever”. It’s nearly 20% off its peak due to Brexit uncertainty over the last few months, its worst crash since 1987. During the 2008 crash, over a number of months, it lost nearly half its value leading to lay-offs. recession and austerity.
As to the financial market reaction not being as bad as 2008, that is not yet evident. The FTSE 100 is insulated by its international makeup but the FTSE 250 is more British. Back in October 2008’s crash it suffered a one-day fall of around 6.5% amounting to nearly 40% over 3-4 months. After the Referendum, it’s lost 8% and 7% across 2 days. It’s fourth and fifth biggest one-day falls ever from Sep/Oct 2008 have been eclipsed by Brexit day 1 and day 2, so far. This is the worst FTSE 250 crash since 1987, although Brexit days 3 and 4 are looking brighter, having recovered over a third of the losses, yet it remains 10% down, despite 1.9% gains Wednesday morning. A week later and by Wed 6 July, the FTSE 250 was down again drifting towards an 11% loss, eradicating any intervening recovery,
The FTSE 350 lost £140bn in a day, recovered, lost it all again by 4.30pm Monday but has now recovered 5% from its 7% loss.
Banks (domestic and foreign) in Britain have been told by EU members France and Netherlands that they will not be able to use the European financial ‘single passport’ access to unhindered trading resulting in additional banking costs and a reduced incentive for US and Asian banks to be based in the UK – Dublin, Frankfurt and Paris, are suddenly more attractive and expected to gain financial jobs from the City of London. Barclays and Royal Bank of Scotland (RBS) have lost 35% in value since Thursday and had their shares temporarily suspended on Monday. On Tuesday there was around a 5% recovery.
Whilst many 99%-ers on the Left might celebrate another banking collapse, those businesses that employ millions depend upon a stable lending banking system to finance their growth and pay wages.
The costs of imported raw materials, food, wine, petrol etc could rise 10% because of the Pound’s fall alone. If British businesses selling at home want to keep prices the same, they will have to cut back office costs and jobs instead. Yes, we will recover, but book a “one-way ticket”, to quote George Osborne, for more austerity, unemployment and inflation pain first.
House prices may fall in the short term according to Savills but so will affordability, mortgages, and lending criteria stress tests may rise. International buyers may take advantage of a cheaper Pound to buy here, whilst locals are priced out of the mid-market. House builders have seen significant share price falls and the FTSE triggered its ‘circuit-breaker’ to suspend trading in all house builders temporarily. For instance, Taylor Wimpey fell 16% (40% since Thursday), Persimmon 17.4% (38% in 2 days) and Barratt Developments fell almost 20.7% (38.4% in 2 days), Bovis Homes 33% in 2 day etc. In addition, with the credit rating trashing they will find it harder to fund new building developments, further intensifying our domestic housing crisis.
Radio 4’s You and Yours is reporting people seeing immediate 5% drops in house sale prices due to Brexit – ‘Brexundering’.
We could eventually see a quadruple-whammy of wage restraint, credit crunch, inflation and interest rate rises, affecting house buyers and stifling the pressured renting sector too.
It has been reported that particularly those living abroad may lose UK annual increases with inflation to their pensions, but also those at home might lose the “triple lock” guarantee. Pension funds held privately on the stock market will obviously go up and down with the fortunes of the FTSE, currently down. Of course, Leave leader, Boris Johnson said pensions would be unaffected, he also said the NHS would get £350m a week and that among many pseudo-promises has already been pulled.
Credit Rating and Economic Outlook
After the Brexit vote, Moody’s changed the UK credit outlook to “negative” from stable. Fitch see it likewise and downgraded it to AA negative. Today, Standard & Poor (S&P) have followed suit and downgraded our last remaining Triple-A national credit rating two-notches from AAA to AA:
“In the nationwide referendum on the U.K.’s membership of the European Union (EU), the majority of the electorate voted to leave the EU. In our opinion, this outcome is a seminal event, and will lead to a less predictable, stable, and effective policy framework in the U.K. … The vote for “remain” in Scotland and Northern Ireland also creates wider constitutional issues for the country as a whole. Consequently, we are lowering our long-term sovereign credit ratings on the U.K. by two notches to ‘AA’ from ‘AAA’.” – S&P
“Fitch has revised down its forecast for real GDP growth to 1.6% in 2016 (from 1.9%), 0.9% in 2017 and 0.9% in 2018 (both from 2.0% respectively), leaving the level of real GDP a cumulative 2.3% lower in 2018 than in its prior ‘Remain’ base case.” – Fitch
“S&P maintained its negative outlook on the UK, which means there is a one-in-three chance of another downgrade in the next two years. The UK is now deemed less credit worthy than the US and EU by S&P, and the decsion marks its exit from an elite club of countries such as Switzerland and Australia that stil have a AAA rating.” – Daily Telegraph
A survey of 1,000 directors at the weekend reveals that roughly 20% are expecting to issue redundancies, over 20% are freezing recruitment, and 20% considering moving some operations to Europe.
Worst Economic Crisis since WWII
A former Organisation for Economic Cooperation and Development (OECD) economist has warned that the UK faces its worst economic crisis since the Second World War. It is certainly on track to challenge 2008’s banking crisis and 1987’s Black Monday crashes which saw £63bn wiped out. Other crises include the 1974 General Election which saw one-day losses of 7.1%. Back in 1929 the Dow Jones witnessed a 22.5% drop in a single day.
Always Look on the Bright Side …
Yes, we will weather it, and in the long term it may make little difference, but the short-medium term is going to be harder. We still have to pay into the EU budget, but will begin to be shut out of meetings and decisions, we will still have freedom of movement and migration for EU citizens for at least 2 years, if not beyond if we follow the likely Norway or Swiss models. It is highly unlikely the EU will allow us the Canadian model, indeed Angela Merkel said today that the UK would have to accept freedom of movement. The EU do not want to encourage other exits. Many are trying to find legal ways to vote out of the Referendum result.