The International Monetary Fund warned Tuesday there are few indications international trade imbalances are narrowing, a trend that could raise trade tensions and lower economic growth.

In its annual External Sector Report, the IMF also said almost half of the world’s current-account balances are excessive and that current-account surpluses and deficits are increasingly concentrated in developed countries.

Excessive current-account balances mean they cannot be defended by a country’s fundamentals, such as unemployment and supply and demand, and its ideal economic policies.

The current account documents a country’s transactions with the rest of the world over a defined period of time.

The annual IMF report gauges the trade position and exchange rates of the world’s largest economies. Tuesday’s report was based on data and IMF staff projections as of June 22.

The report said China’s current account surplus grew slightly last year to 1.7-percent of its gross domestic product. The IMF also included China on the list of countries with excessive balances. Germany, South Korea, the Netherlands, Sweden and Singapore are also listed.

Countries with excessive current account deficits, those that borrow too much money, included the U.S., Britain, Argentina and Turkey, the report said.

The IMF said big trade surpluses in Germany and China, coupled with the large U.S. trade deficit, could worsen trade conflicts that are engulfing much of the world.

“Large and sustained excess external imbalances in the world’s key economies — amid policy actions detrimental to external balances — pose risk to global stability,” the report said.

U.S. President Donald Trump’s tax cuts and increased U.S. government spending are contributing to an increase in borrowing rates, a stronger U.S. dollar and a ballooning U.S. current-account deficit, according to the report.

In addition to potentially exacerbating trade tensions, the report said the trends could weaken emerging markets by causing interest rates to increase faster than expected.
…

U.S. President Donald Trump’s family business has outlined its 150-million-pound ($196 million) investment plan for the second phase of development of its golf course north of Aberdeen in Scotland.

The Trump Organization’s proposals submitted to Aberdeenshire Council include 50 cottages, a sports center and equestrian facilities at the Menie estate near Balmedie. The first phase of development included a championship golf course, clubhouse and hotel.

The controversial development, which was first approved in 2008, has been accused of failing to deliver on promises of investment and jobs.

But the Trump company says the next phase will support nearly 2,000 jobs during construction, and some 300 permanent jobs.

Eric Trump, who leads the business with his brother Donald Jr, says “the timing is now right for us.”

 
…

U.S. President Donald Trump’s family business has outlined its 150-million-pound ($196 million) investment plan for the second phase of development of its golf course north of Aberdeen in Scotland.

The Trump Organization’s proposals submitted to Aberdeenshire Council include 50 cottages, a sports center and equestrian facilities at the Menie estate near Balmedie. The first phase of development included a championship golf course, clubhouse and hotel.

The controversial development, which was first approved in 2008, has been accused of failing to deliver on promises of investment and jobs.

But the Trump company says the next phase will support nearly 2,000 jobs during construction, and some 300 permanent jobs.

Eric Trump, who leads the business with his brother Donald Jr, says “the timing is now right for us.”

 
…

Checking out a speedboat, a fighter jet and a giant industrial magnet parked on the White House driveway, President Donald Trump showcased an array of “Made in America” products Monday as his administration pushes back aggressively against critics who say his punishing tariffs on imported goods threaten to harm the U.S. economy.

Trump’s event with a smorgasbord of American goods came at the start of a week in which trade discussions are expected to dominate, including talks with European officials and a trip to Illinois in which the president is planning to visit a community helped along by his steel tariffs.

Trump has vowed to force international trading partners to bend to his will as he seeks to renegotiate a series of trade deals he has long argued hurt American workers. But as he deepens the U.S. involvement in trade fights, it raises questions on whether American consumers will feel the pain of retaliatory tariffs — and whether the president will incur a political price for his nationalistic trade policies in the 2018 midterm elections.

“Our leaders in Washington did nothing, they did nothing. They let our factories leave, they let our people lose their jobs,” Trump said at the White House. “That’s not free trade, that’s fool’s trade, that’s stupid trade and we don’t do that kind of trade anymore.”

Trump noted that he would be meeting Wednesday with European officials, including European Commission President Jean-Claude Juncker. The U.S. and European allies have been at odds over the president’s tariffs on steel imports and are meeting as the dispute threatens to spread to the lucrative automobile business. “Maybe we can work something out,” he said.

On Thursday, the president will visit Granite City, Illinois, the home of a U.S. Steel Corp. mill that has reopened after he imposed tariffs on steel imports.

On the South Lawn, the president walked among a number of products manufactured across the nation, including a Lockheed Martin F-35 aircraft from Maryland, a Ford F-150 pickup truck from Michigan, a Newmar recreational vehicle from Indiana and a Ranger speedboat from Arkansas.

National security

Trump has already put taxes on imported steel and aluminum, saying they pose a threat to U.S. national security, an argument that enrages staunch U.S. allies such as the European Union and Canada.

He’s threatening to use the national security justification again to slap tariffs on imported cars, trucks and auto parts, potentially targeting imports that last year totaled $335 billion.

And he’s already imposed tariffs on $34 billion in Chinese imports in a separate dispute over Beijing’s high-tech industrial policies. He has threatened to ratchet that up past $500 billion.

“He likes tariffs,” said William Reinsch, a former U.S. trade official under President Bill Clinton now at the Center for Strategic and International Studies. “His preferred remedy is always tariffs, whether it makes any sense or not.”

“It’s a policy of victimization: ‘Other people have been taking advantage of the United States for years. … Now they have to pay,”‘ Reinsch said, echoing the president’s argument.

Trade analysts say the United States has not pursued such aggressive trade policies in decades.

“I can’t think of another time when you had as many battles and, particularly, as many battles with no resolution in sight,” said Edward Alden, senior fellow at the Council on Foreign Relations.

Trade war

In 1971, President Richard Nixon imposed a broad 10 percent import tax for four months to pressure Japan and European countries to drive up the value of their currencies. The idea: provide relief to American exporters, who were being put at a price disadvantage by a strong dollar.

In 1930, the U.S. raised tariffs dramatically to protect American industry, encouraging other countries to do the same in a global trade war that made the Great Depression worse.

Economists said the tariffs that Trump has imposed so far — and the resulting retaliation — are unlikely to do much economic damage. But things could escalate rapidly.

“If you look at what’s teed up, particularly with China and with the auto tariffs, pretty soon you are talking about some pretty large numbers. Those will do some real damage,” Alden said.

Oxford Economics has calculated that a full-blown U.S.-China trade war — in which each country taxes all the other’s imports — would shave 1 percent off the U.S. economy and wipe out 700,000 jobs in the United States by 2020.

The Peterson Institute for International Economics has estimated that a trade war over autos could cost up to 1.2 million American jobs.

Critics said Trump’s aggressive approach makes it tough for other countries to offer concessions, lest they be seen by their own people as caving in to bullying.

“The Trump administration has not left an easy path to walk away from the fights they’ve created,” Alden said.
…

Checking out a speedboat, a fighter jet and a giant industrial magnet parked on the White House driveway, President Donald Trump showcased an array of “Made in America” products Monday as his administration pushes back aggressively against critics who say his punishing tariffs on imported goods threaten to harm the U.S. economy.

Trump’s event with a smorgasbord of American goods came at the start of a week in which trade discussions are expected to dominate, including talks with European officials and a trip to Illinois in which the president is planning to visit a community helped along by his steel tariffs.

Trump has vowed to force international trading partners to bend to his will as he seeks to renegotiate a series of trade deals he has long argued hurt American workers. But as he deepens the U.S. involvement in trade fights, it raises questions on whether American consumers will feel the pain of retaliatory tariffs — and whether the president will incur a political price for his nationalistic trade policies in the 2018 midterm elections.

“Our leaders in Washington did nothing, they did nothing. They let our factories leave, they let our people lose their jobs,” Trump said at the White House. “That’s not free trade, that’s fool’s trade, that’s stupid trade and we don’t do that kind of trade anymore.”

Trump noted that he would be meeting Wednesday with European officials, including European Commission President Jean-Claude Juncker. The U.S. and European allies have been at odds over the president’s tariffs on steel imports and are meeting as the dispute threatens to spread to the lucrative automobile business. “Maybe we can work something out,” he said.

On Thursday, the president will visit Granite City, Illinois, the home of a U.S. Steel Corp. mill that has reopened after he imposed tariffs on steel imports.

On the South Lawn, the president walked among a number of products manufactured across the nation, including a Lockheed Martin F-35 aircraft from Maryland, a Ford F-150 pickup truck from Michigan, a Newmar recreational vehicle from Indiana and a Ranger speedboat from Arkansas.

National security

Trump has already put taxes on imported steel and aluminum, saying they pose a threat to U.S. national security, an argument that enrages staunch U.S. allies such as the European Union and Canada.

He’s threatening to use the national security justification again to slap tariffs on imported cars, trucks and auto parts, potentially targeting imports that last year totaled $335 billion.

And he’s already imposed tariffs on $34 billion in Chinese imports in a separate dispute over Beijing’s high-tech industrial policies. He has threatened to ratchet that up past $500 billion.

“He likes tariffs,” said William Reinsch, a former U.S. trade official under President Bill Clinton now at the Center for Strategic and International Studies. “His preferred remedy is always tariffs, whether it makes any sense or not.”

“It’s a policy of victimization: ‘Other people have been taking advantage of the United States for years. … Now they have to pay,”‘ Reinsch said, echoing the president’s argument.

Trade analysts say the United States has not pursued such aggressive trade policies in decades.

“I can’t think of another time when you had as many battles and, particularly, as many battles with no resolution in sight,” said Edward Alden, senior fellow at the Council on Foreign Relations.

Trade war

In 1971, President Richard Nixon imposed a broad 10 percent import tax for four months to pressure Japan and European countries to drive up the value of their currencies. The idea: provide relief to American exporters, who were being put at a price disadvantage by a strong dollar.

In 1930, the U.S. raised tariffs dramatically to protect American industry, encouraging other countries to do the same in a global trade war that made the Great Depression worse.

Economists said the tariffs that Trump has imposed so far — and the resulting retaliation — are unlikely to do much economic damage. But things could escalate rapidly.

“If you look at what’s teed up, particularly with China and with the auto tariffs, pretty soon you are talking about some pretty large numbers. Those will do some real damage,” Alden said.

Oxford Economics has calculated that a full-blown U.S.-China trade war — in which each country taxes all the other’s imports — would shave 1 percent off the U.S. economy and wipe out 700,000 jobs in the United States by 2020.

The Peterson Institute for International Economics has estimated that a trade war over autos could cost up to 1.2 million American jobs.

Critics said Trump’s aggressive approach makes it tough for other countries to offer concessions, lest they be seen by their own people as caving in to bullying.

“The Trump administration has not left an easy path to walk away from the fights they’ve created,” Alden said.
…

International investors are looking to Tuesday’s meeting of the Turkish central bank as a critical test of whether the bank can remain independent of President Recep Tayyip Erdogan, his increasing powers, and what some criticize as his Islamist agenda.

The Turkish currency has fallen sharply as concerns mount on whether he will impose unorthodox economic policies on the bank.

Erdogan, who has called for Islamic banks to make up a quarter of the country’s banking sector, strongly opposes interest rates and has described them as “the mother and father of all evil.” The president rejects economic orthodoxy that increasing rates reduces inflation.

Investors are looking to the Turkish central bank meeting to hike rates to rein in rampant inflation, currently running at over 15 percent — among the highest in the developed world.

“If the central bank cannot find the opportunity to hike, then the markets will take it very negatively,” economist Inan Demir of Nomura Securities said. “If it can hike then the market will see this as the first market-friendly action by the new administration.”

Investors’ concerns saw the Turkish lira plunge about 30 percent since the start of the year. Adding to the unease is Erdogan’s move to assume sweeping executive powers after last month’s presidential elections.

During his campaign, Erdogan pledged to take greater control over the economy, including the independent central bank. The appointment of his son-in-law, Berat Albayrak, as Turkey’s finance minister has further raised international investor concerns.

In the past, Albayrak voiced support for Erdogan’s stance on interest rates. The new cabinet announced earlier this month saw the removal of Mehmet Simsek and Naci Agbal, who investors saw as strong advocates of orthodox economic policies.

Uncertainty over the outcome of Tuesday’s central bank meeting is fueling investors’ fears that Ankara could adopt radical new measures to prevent capital from leaving the country.

“Investors are starting to ask if capital controls will be imposed,” Demir said. “If there is no monetary policy to counter the lira depreciation by the central bank, then investors will start to assume worst case scenario, the capital control scenario.”

“Such a fear,” he continued, “will mean an acceleration of capital outflows out of the country, which would bring capital inflows to the fore, so there is the risk of a self-fulfilling prophecy.”

Analysts warn capital controls would be tantamount to economic suicide, killing Turkey’s credit rating and thus its ability to borrow the $5 billion a month it needs to cover the shortfall of its current account deficit, or the difference between what it imports and exports.

In the past few days, Albayrak has sought to ease investor concerns by stating support for the central bank.

“We aim for an effective central bank. The central bank sees and builds the fiscal life in a correct way. Turkey will never again be this attractive for foreign investors,” he said Sunday.

Albayrak, accompanied by internationally respected economic experts, met Monday with his counterparts from countries at the G20 meeting of finance ministers in Buenos Aires, where he underscored his message that Turkey remains market-friendly.

Erdogan has also refrained from visibly advocating his opposition to interest rates, a move seen as helping investor sentiment. But analysts warn actions, not words, will determine how financial markets will ultimately react towards Turkey.

If the central bank does hike rates it could enhance Albayrak’s reputation among international investors, some analysts say.

“He can correct his own image going forward,” said Demir.

On the other hand, with Turkish interest rates already among the highest in the developed world at over 17 percent, a further hike will likely bring problems.

“[Turkish] private banks are already not adding to their loans because they realize at these rates, repaying will be very difficult,” political analyst Atilla Yesilada of Global Source Partners said. “That is going to hit economic growth.”

Both Turkish consumers and companies are already heavily indebted and economists predict a severe economic slowdown — if not a recession — by the end of the year.

Analysts warn even if the bank were to raise interest rates Tuesday and Erdogan were to abandon his unorthodox economic policies, investors would be looking for Ankara to do more to rein in public spending and avert a dramatic slide.

“The problem now is discretionary spending on mega projects, welfare projects which are simply not bearable, this needs to be corrected,” Yesilada said.
…

International investors are looking to Tuesday’s meeting of the Turkish central bank as a critical test of whether the bank can remain independent of President Recep Tayyip Erdogan, his increasing powers, and what some criticize as his Islamist agenda.

The Turkish currency has fallen sharply as concerns mount on whether he will impose unorthodox economic policies on the bank.

Erdogan, who has called for Islamic banks to make up a quarter of the country’s banking sector, strongly opposes interest rates and has described them as “the mother and father of all evil.” The president rejects economic orthodoxy that increasing rates reduces inflation.

Investors are looking to the Turkish central bank meeting to hike rates to rein in rampant inflation, currently running at over 15 percent — among the highest in the developed world.

“If the central bank cannot find the opportunity to hike, then the markets will take it very negatively,” economist Inan Demir of Nomura Securities said. “If it can hike then the market will see this as the first market-friendly action by the new administration.”

Investors’ concerns saw the Turkish lira plunge about 30 percent since the start of the year. Adding to the unease is Erdogan’s move to assume sweeping executive powers after last month’s presidential elections.

During his campaign, Erdogan pledged to take greater control over the economy, including the independent central bank. The appointment of his son-in-law, Berat Albayrak, as Turkey’s finance minister has further raised international investor concerns.

In the past, Albayrak voiced support for Erdogan’s stance on interest rates. The new cabinet announced earlier this month saw the removal of Mehmet Simsek and Naci Agbal, who investors saw as strong advocates of orthodox economic policies.

Uncertainty over the outcome of Tuesday’s central bank meeting is fueling investors’ fears that Ankara could adopt radical new measures to prevent capital from leaving the country.

“Investors are starting to ask if capital controls will be imposed,” Demir said. “If there is no monetary policy to counter the lira depreciation by the central bank, then investors will start to assume worst case scenario, the capital control scenario.”

“Such a fear,” he continued, “will mean an acceleration of capital outflows out of the country, which would bring capital inflows to the fore, so there is the risk of a self-fulfilling prophecy.”

Analysts warn capital controls would be tantamount to economic suicide, killing Turkey’s credit rating and thus its ability to borrow the $5 billion a month it needs to cover the shortfall of its current account deficit, or the difference between what it imports and exports.

In the past few days, Albayrak has sought to ease investor concerns by stating support for the central bank.

“We aim for an effective central bank. The central bank sees and builds the fiscal life in a correct way. Turkey will never again be this attractive for foreign investors,” he said Sunday.

Albayrak, accompanied by internationally respected economic experts, met Monday with his counterparts from countries at the G20 meeting of finance ministers in Buenos Aires, where he underscored his message that Turkey remains market-friendly.

Erdogan has also refrained from visibly advocating his opposition to interest rates, a move seen as helping investor sentiment. But analysts warn actions, not words, will determine how financial markets will ultimately react towards Turkey.

If the central bank does hike rates it could enhance Albayrak’s reputation among international investors, some analysts say.

“He can correct his own image going forward,” said Demir.

On the other hand, with Turkish interest rates already among the highest in the developed world at over 17 percent, a further hike will likely bring problems.

“[Turkish] private banks are already not adding to their loans because they realize at these rates, repaying will be very difficult,” political analyst Atilla Yesilada of Global Source Partners said. “That is going to hit economic growth.”

Both Turkish consumers and companies are already heavily indebted and economists predict a severe economic slowdown — if not a recession — by the end of the year.

Analysts warn even if the bank were to raise interest rates Tuesday and Erdogan were to abandon his unorthodox economic policies, investors would be looking for Ankara to do more to rein in public spending and avert a dramatic slide.

“The problem now is discretionary spending on mega projects, welfare projects which are simply not bearable, this needs to be corrected,” Yesilada said.
…

“Heightened trade and geopolitical tensions” are putting global economic growth at risk, G-20 finance ministers said after two days of meetings in Buenos Aires on Sunday.

In their final communique, the Group of 20 ministers stressed the need to “step up dialogue and actions to mitigate risks and enhance confidence.”

The ministers, representing industrial and emerging-market nations, described the overall world economic growth as “robust,” but expressed concerns over what they call the increased risks of the “short and medium term.”

They did not mention the United States by name in their closing statement. But some decried President Donald Trump’s tough trade rhetoric and tariffs on Chinese and European imports.

European Union finance chief Pierre Moscovici urged the U.S. to act like allies, not foes. French finance minister Bruno Le Marie accused Trump of creating a “survival of the fittest” trade mentality and called on Washington to “de-escalate.”

Trump has imposed tariffs on imports of European steel (25 percent) and aluminum (10 percent) while also slapping billions of dollars in tariffs on Chinese goods and threatening more.

He has also accused China and the EU of keeping their interests rates and currencies low, damaging the U.S. dollar on the world market.

 
…

“Heightened trade and geopolitical tensions” are putting global economic growth at risk, G-20 finance ministers said after two days of meetings in Buenos Aires on Sunday.

In their final communique, the Group of 20 ministers stressed the need to “step up dialogue and actions to mitigate risks and enhance confidence.”

The ministers, representing industrial and emerging-market nations, described the overall world economic growth as “robust,” but expressed concerns over what they call the increased risks of the “short and medium term.”

They did not mention the United States by name in their closing statement. But some decried President Donald Trump’s tough trade rhetoric and tariffs on Chinese and European imports.

European Union finance chief Pierre Moscovici urged the U.S. to act like allies, not foes. French finance minister Bruno Le Marie accused Trump of creating a “survival of the fittest” trade mentality and called on Washington to “de-escalate.”

Trump has imposed tariffs on imports of European steel (25 percent) and aluminum (10 percent) while also slapping billions of dollars in tariffs on Chinese goods and threatening more.

He has also accused China and the EU of keeping their interests rates and currencies low, damaging the U.S. dollar on the world market.

 
…

Prime Minister Theresa May’s plans to leave the European Union are overwhelmingly opposed by the British public and more than a third of voters would support a new right-wing political party committed to quitting the bloc, according to a new poll.

May’s political vulnerability was exposed by the survey which found voters would prefer Boris Johnson, who quit as her foreign minister two weeks ago, to negotiate with the EU and lead the Conservative Party into the next election.

Only 16 percent of voters say May is handling the Brexit negotiations well, compared with 34 percent who say that Johnson would do a better job, according to the poll conducted by YouGov for The Sunday Times newspaper.

With a little more than eight months to go before Britain is due to leave the EU on March 29, 2019, May’s government, parliament, the public and businesses remain deeply divided over what form Brexit should take.

May’s plans to keep a close trading relationship with the EU on goods thrust her government into crisis this month and there is speculation she could face a leadership challenge after two of her most senior ministers, including Johnson, resigned in protest.

Only one in 10 voters would pick the government’s proposed Brexit plans if there were a second referendum, according to the poll. Almost half think it would be bad for Britain.

The new Brexit minister Dominic Raab said on Sunday the prime minister was still trying to persuade members of the cabinet that her strategy was the best way forward.

Raab also warned that Britain could refuse to pay a 39 billion pound ($51 billion) divorce bill to the EU if it does not get a trade deal – a threat used before by ministers.

No deal Brexit

Speaking to the BBC, Raab refused to deny reports the government is planning to stockpile food or use a section of motorway in England as a lorry park to deal with increased border checks if Britain leaves the EU without a deal.

Asked about a story in The Sun newspaper that the government was planning to stockpile processed food, Raab initially replied “no” and then added: “That kind of selective snippet that makes it into the media, to the extent that the public pay attention to it, I think is unhelpful.”

The possibility of leaving without a trade deal has increased with May facing rebellions from different factions in her party. She only narrowly won a series of votes on Brexit in parliament last week.

The Sunday Times poll found voters are increasingly polarized, with growing numbers of people alienated from the two main political parties.

Thirty-eight percent of people would vote for a new right-wing party that is committed to Brexit, while almost a quarter would support an explicitly far-right anti-immigrant, anti-Islam party, the poll found.

Brexit campaigner Nigel Farage and U.S. President Donald Trump’s former adviser Steve Bannon are in discussions about forming a new right-wing movement, according to The Sunday Times.

Half of voters would support remaining in the EU if there were a second referendum, the poll found, a level of support found in other surveys this year.

YouGov spoke to 1,668 adults in Britain on July 19 and 20, according to The Sunday Times, which did not provide other details about how the poll was conducted.
…

Prime Minister Theresa May’s plans to leave the European Union are overwhelmingly opposed by the British public and more than a third of voters would support a new right-wing political party committed to quitting the bloc, according to a new poll.

May’s political vulnerability was exposed by the survey which found voters would prefer Boris Johnson, who quit as her foreign minister two weeks ago, to negotiate with the EU and lead the Conservative Party into the next election.

Only 16 percent of voters say May is handling the Brexit negotiations well, compared with 34 percent who say that Johnson would do a better job, according to the poll conducted by YouGov for The Sunday Times newspaper.

With a little more than eight months to go before Britain is due to leave the EU on March 29, 2019, May’s government, parliament, the public and businesses remain deeply divided over what form Brexit should take.

May’s plans to keep a close trading relationship with the EU on goods thrust her government into crisis this month and there is speculation she could face a leadership challenge after two of her most senior ministers, including Johnson, resigned in protest.

Only one in 10 voters would pick the government’s proposed Brexit plans if there were a second referendum, according to the poll. Almost half think it would be bad for Britain.

The new Brexit minister Dominic Raab said on Sunday the prime minister was still trying to persuade members of the cabinet that her strategy was the best way forward.

Raab also warned that Britain could refuse to pay a 39 billion pound ($51 billion) divorce bill to the EU if it does not get a trade deal – a threat used before by ministers.

No deal Brexit

Speaking to the BBC, Raab refused to deny reports the government is planning to stockpile food or use a section of motorway in England as a lorry park to deal with increased border checks if Britain leaves the EU without a deal.

Asked about a story in The Sun newspaper that the government was planning to stockpile processed food, Raab initially replied “no” and then added: “That kind of selective snippet that makes it into the media, to the extent that the public pay attention to it, I think is unhelpful.”

The possibility of leaving without a trade deal has increased with May facing rebellions from different factions in her party. She only narrowly won a series of votes on Brexit in parliament last week.

The Sunday Times poll found voters are increasingly polarized, with growing numbers of people alienated from the two main political parties.

Thirty-eight percent of people would vote for a new right-wing party that is committed to Brexit, while almost a quarter would support an explicitly far-right anti-immigrant, anti-Islam party, the poll found.

Brexit campaigner Nigel Farage and U.S. President Donald Trump’s former adviser Steve Bannon are in discussions about forming a new right-wing movement, according to The Sunday Times.

Half of voters would support remaining in the EU if there were a second referendum, the poll found, a level of support found in other surveys this year.

YouGov spoke to 1,668 adults in Britain on July 19 and 20, according to The Sunday Times, which did not provide other details about how the poll was conducted.
…

Prime Minister Theresa May’s plans to leave the European Union are overwhelmingly opposed by the British public and more than a third of voters would support a new right-wing political party committed to quitting the bloc, according to a new poll.

May’s political vulnerability was exposed by the survey which found voters would prefer Boris Johnson, who quit as her foreign minister two weeks ago, to negotiate with the EU and lead the Conservative Party into the next election.

Only 16 percent of voters say May is handling the Brexit negotiations well, compared with 34 percent who say that Johnson would do a better job, according to the poll conducted by YouGov for The Sunday Times newspaper.

With a little more than eight months to go before Britain is due to leave the EU on March 29, 2019, May’s government, parliament, the public and businesses remain deeply divided over what form Brexit should take.

May’s plans to keep a close trading relationship with the EU on goods thrust her government into crisis this month and there is speculation she could face a leadership challenge after two of her most senior ministers, including Johnson, resigned in protest.

Only one in 10 voters would pick the government’s proposed Brexit plans if there were a second referendum, according to the poll. Almost half think it would be bad for Britain.

The new Brexit minister Dominic Raab said on Sunday the prime minister was still trying to persuade members of the cabinet that her strategy was the best way forward.

Raab also warned that Britain could refuse to pay a 39 billion pound ($51 billion) divorce bill to the EU if it does not get a trade deal – a threat used before by ministers.

No deal Brexit

Speaking to the BBC, Raab refused to deny reports the government is planning to stockpile food or use a section of motorway in England as a lorry park to deal with increased border checks if Britain leaves the EU without a deal.

Asked about a story in The Sun newspaper that the government was planning to stockpile processed food, Raab initially replied “no” and then added: “That kind of selective snippet that makes it into the media, to the extent that the public pay attention to it, I think is unhelpful.”

The possibility of leaving without a trade deal has increased with May facing rebellions from different factions in her party. She only narrowly won a series of votes on Brexit in parliament last week.

The Sunday Times poll found voters are increasingly polarized, with growing numbers of people alienated from the two main political parties.

Thirty-eight percent of people would vote for a new right-wing party that is committed to Brexit, while almost a quarter would support an explicitly far-right anti-immigrant, anti-Islam party, the poll found.

Brexit campaigner Nigel Farage and U.S. President Donald Trump’s former adviser Steve Bannon are in discussions about forming a new right-wing movement, according to The Sunday Times.

Half of voters would support remaining in the EU if there were a second referendum, the poll found, a level of support found in other surveys this year.

YouGov spoke to 1,668 adults in Britain on July 19 and 20, according to The Sunday Times, which did not provide other details about how the poll was conducted.
…

Prime Minister Theresa May’s plans to leave the European Union are overwhelmingly opposed by the British public and more than a third of voters would support a new right-wing political party committed to quitting the bloc, according to a new poll.

May’s political vulnerability was exposed by the survey which found voters would prefer Boris Johnson, who quit as her foreign minister two weeks ago, to negotiate with the EU and lead the Conservative Party into the next election.

Only 16 percent of voters say May is handling the Brexit negotiations well, compared with 34 percent who say that Johnson would do a better job, according to the poll conducted by YouGov for The Sunday Times newspaper.

With a little more than eight months to go before Britain is due to leave the EU on March 29, 2019, May’s government, parliament, the public and businesses remain deeply divided over what form Brexit should take.

May’s plans to keep a close trading relationship with the EU on goods thrust her government into crisis this month and there is speculation she could face a leadership challenge after two of her most senior ministers, including Johnson, resigned in protest.

Only one in 10 voters would pick the government’s proposed Brexit plans if there were a second referendum, according to the poll. Almost half think it would be bad for Britain.

The new Brexit minister Dominic Raab said on Sunday the prime minister was still trying to persuade members of the cabinet that her strategy was the best way forward.

Raab also warned that Britain could refuse to pay a 39 billion pound ($51 billion) divorce bill to the EU if it does not get a trade deal – a threat used before by ministers.

No deal Brexit

Speaking to the BBC, Raab refused to deny reports the government is planning to stockpile food or use a section of motorway in England as a lorry park to deal with increased border checks if Britain leaves the EU without a deal.

Asked about a story in The Sun newspaper that the government was planning to stockpile processed food, Raab initially replied “no” and then added: “That kind of selective snippet that makes it into the media, to the extent that the public pay attention to it, I think is unhelpful.”

The possibility of leaving without a trade deal has increased with May facing rebellions from different factions in her party. She only narrowly won a series of votes on Brexit in parliament last week.

The Sunday Times poll found voters are increasingly polarized, with growing numbers of people alienated from the two main political parties.

Thirty-eight percent of people would vote for a new right-wing party that is committed to Brexit, while almost a quarter would support an explicitly far-right anti-immigrant, anti-Islam party, the poll found.

Brexit campaigner Nigel Farage and U.S. President Donald Trump’s former adviser Steve Bannon are in discussions about forming a new right-wing movement, according to The Sunday Times.

Half of voters would support remaining in the EU if there were a second referendum, the poll found, a level of support found in other surveys this year.

YouGov spoke to 1,668 adults in Britain on July 19 and 20, according to The Sunday Times, which did not provide other details about how the poll was conducted.
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