Majority of Brexiters would swap free movement for EU market access

Agencies
July 17, 2017

Jul 17: The majority of Brexit supporters would be happy to swap European free movement for single market access, according to two studies which suggest ways for Britain to pull back from the brink in the upcoming negotiations.Brexiters

Amid calls for the government to loosen its opposition to free movement in order to protect the economy when Britain leaves the EU, the research shows compromise would result in far less popular backlash than is assumed. Campaigners opposing hard Brexit claim it also vindicates their new slogan “no Brexit is better than a bad Brexit”.

In a poll conducted by YouGov three weeks after the general election, 1,600 adults were asked how important they thought it was to reduce immigration from the EU.

Framed as an isolated issue, the study confirmed that public opinion is still deeply divided a year on from the Brexit referendum: 72% of leave voters rated immigration either as very important or the most important issue in the talks, and 74% of remain voters said the opposite, ranking it less important or not important at all.

When asked to consider free movement as a trade-off for single market access – a principle described last week as “indivisible” by EU’s chief Brexit negotiator Michel Barnier – British voters appear far more pragmatic and united.

Leave voters would be evenly split if the government tried to keep full access to the single market in exchange for allowing a version of free movement that limited welfare benefits for new arrivals. Across the country as a whole, twice as many voters would be satisfied with this option than not, even though it goes no further than the deal struck by David Cameron before the referendum.

But support for a trade-off soars when voters are offered the option of other limitations on free movement that are used by some countries in the single market. Asked to consider a system where EU migrants were sent home if they did not find work, 55% of leave voters said they would be satisfied with this, versus only 25% who would be unhappy. There was only slightly less support for an “emergency brake” option to control surges in immigration.

Best For Britain, a pressure group opposed to hard Brexit that commissioned the research, said it proved it was wrong to assume that the referendum result meant Britain wished to ban free movement whatever the cost.

“Our polling shows that a huge majority of people across the country support freedom of movement if they too can keep their own rights to live, work and study abroad,” said its chief executive, Eloise Todd. “The picture is much more nuanced than the government has portrayed, with clear support for some limitations on freedom of movement that are already within the government’s control.”

The reputation of opinion polling has suffered since the surprises of the referendum and June’s general election, but YouGov’s conclusion is supported by other methods of assessing the public mood.

A separate study by researchers at King’s College London, the Rand thinktank and Cambridge University used a technique called “stated preference discrete choice experiments” to ask people to weight different priorities.

It found very little appetite for the government’s “no deal is better than a bad deal” approach to the talks, and voters much keener to compromise.

“Our research is one of the most rigorous assessments to date of what the public wants from Brexit, and it clearly shows that the British people do not wish to head over a cliff edge and leave the EU on World Trade Organisation rules – they want a proper deal,” said Jonathan Grant, the professor of public policy at King’s College London. “The British public are sophisticated enough to understand that they can’t ‘have their cake and eat it’, and will need to make and accept compromises to reach a deal.”

The team found that supposed red lines on immigration and leaving the European court of justice were far less important to voters than the government.

“While our results do show a desire to control movement of people to some extent, we find that this stems from a concern about managing demand for public services, rather than from wanting to limit freedom of movement per se,” wrote the team led by Charlene Rohr of Rand.

“Our analysis indicated that, on average, respondents would prefer a future relationship in which the UK is able to make and interpret all laws itself, but this was considered less important than maintaining free trade or being able to negotiate new trade deals independently.”

The new picture of public opinion comes as polls show overall support for Brexit dipping sharply as talks deteriorate, leading some campaigners to argue that the government must now invert its “no deal is better than a bad deal” slogan.

“It’s increasingly clear that no Brexit is better than a bad Brexit: no one voted to become poorer or have their rights reduced,” said Todd. “The government has committed to delivering the ‘exact same benefits’ out of Brexit for the UK and its people – that means guaranteeing citizens’ rights as they stand, and right now the government is failing on that measure by its own standards.”

Options for a softer Brexit

Efta membership Perhaps the most radical, but obvious, solution to Britain’s Brexit wobble would be to seek some form of membership of the European Free Trade Association, which the UK was in between 1960 and 1972. First designed as a stepping stone toward EU membership, this prosperous club comprising Norway, Iceland, Switzerland and Liechtenstein could serve the same role this time in reverse – at least until Britain was clearer on its final destination. At a bare minimum it could give the UK access to an internal market of four nearby economies, as well as a host of existing global trade deals. Joining just Efta would require freedom of movement but only among its four, relatively small, members.

“It could provide an elegant and relatively swift solution to some of the challenges facing the UK in securing post-Brexit trade agreements with non-EU partners,” concludes a new London School of Economics research. “The combination of continuity and flexibility could prove very valuable as the UK navigates the numerous uncertainties of the Brexit process”

Far more contentious would be using Efta to access the European Economic Area (EEA) and the wider single market of the EU, as Norway does. This is the option that gives Brexiters nightmares as it involves accepting EU rules on freedom of movement, regulation and payments, with little corresponding influence. But if this is the price of single market access either way, Efta at least provides a framework.

A customs union A less onerous alternative to the EEA might be to seek more limited access to European goods markets by striking a new customs deal with the EU, as Turkey has done. Not to be confused with the EU’s own internal customs union, which is reserved for members, this would guarantee the tariff-free frictionless trade sought by Tories and Labour, but (possibly) without all the burdens of full single market participation.

A customs union would undoubtedly come with a cost, especially in terms of Britain’s freedom to strike new international trade deals. However, recent Treasury research suggests the benefits of continued access for manufacturing supply chains far outweigh the unproven allure of far-flung new export markets. Proponents of this approach also point out that Liam Fox’s international trade department might still be able to seek new deals in the service sector instead, where Britain’s economic future looks brighter.

Associate status It is far from clear that either the Norway or Turkish models would automatically be on offer to post-Brexit Britain, but even more wishful thinking is apparent in another idea proposed by some Tories. They would like to see Britain seek associate membership of key regulatory agencies, such as Euratom and the European Medicines Agency, as a way to soften the blow of leaving the EU sector by sector.

At the very least this is likely to involve abandoning Theresa May’s opposition to the jurisdiction of the European court of justice. Ongoing associate membership would also come at a financial cost that would swell the size of Britain’s giant divorce bill. But the cost of replicating decades of accumulated bureaucracy from scratch without any international cooperation may well prove even higher.

No Brexit Vince Cable and Tony Blair have both recently predicted that Brexit may yet be abandoned entirely. As far-fetched as this might seem now, if Britain chooses the softer Brexit routes above, then it would have to accept most of the political compromises of EU membership anyway. A few years of pressing our face to the glass like Norway may be just what it takes to change Britain’s mind.

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News Network
May 7,2020

United Nations, May 7: An average of 80,000 COVID-19 cases were reported each day in April to the World Health Organization, the top UN health agency has said, noting that South Asian nations like India and Bangladesh are seeing a spike in the infections while the numbers are declining in regions such as Western Europe.

WHO Director-General Tedros Adhanom Ghebreyesus said on Wednesday that countries must also be able to manage any risk of the disease being imported into their territories, and communities should be fully educated to adjust to what will be a "new norm".

He said as the countries press forward in the common fight against COVID-19, they should also lay the groundwork for resilient health systems globally.

"More than 3.5 million cases of COVID-19 and almost 250,000 deaths have now been reported to the WHO. Since the beginning of April, an average of around 80,000 new cases have been reported to the WHO every day," Ghebreyesus said in Geneva yesterday.

Asserting that the virus cases were not just numbers, he said: "every single case is a mother, a father, a son, a daughter, a brother, sister or friend".

He said while the numbers are declining in Western Europe, more cases are being reported every day from Eastern Europe, Africa, South-East Asia, the Eastern Mediterranean and the Americas. Even within regions and within countries, there are divergent trends, the agency added.

While some countries are reporting an increase in COVID-19 cases over time, many have seen caseloads rise because they have ramped up testing, the WHO official said.

"We've also seen in Europe and Western Europe a fundamental decrease in the number of cases, but we have seen an associated increase in the number of cases reported in places like the Russian Federation. Southeast, the Western Pacific areas are relatively on the downward trend like Korea and others, but then we do see in South Asia, in places like Bangladesh, in India, some trends towards increase.

"So it's very difficult to say that any particular region is improving or (not improving). There are individual countries within each region that are having difficulties getting on top of this disease and I am particularly concerned about those countries that have (an) ongoing humanitarian crisis," WHO's Executive Director Michael Ryan said.

The death toll due to COVID-19 in India rose to 1,783 while the number of cases climbed to 52,952 on Thursday, registering an increase of 89 deaths and 3,561 cases in the last 24 hours, the Union Health Ministry said.

The number of active COVID-19 cases stood at 35,902 while 15,266 people have recovered, it said.

Noting that while seeing an increase in the number of cases is not good in terms of transmission, WHO's Emerging Diseases and Zoonoses Unit head Maria Van Kerkhove said: "but I don't want to equate that with something (being) wrong".

"I want to equate that with countries are working very hard to increase their ability to find the virus, to find people with the virus, to have testing in place to identify who has COVID-19, and putting into place what they need to do to care for those patients," Kerkhove said.

With more countries considering easing restrictions implemented to curb the spread of the coronavirus, the WHO has again reminded the authorities of the need to maintain vigilance.

"The risk of returning to lockdown remains very real if countries do not manage the transition extremely carefully, and in a phased approach," Ghebreyesus said.

He urged countries to consider the UN agency's six criteria for lifting stay-at-home measures.

That advice includes ensuring surveillance is strong, cases are declining and transmission is controlled. Health systems also must be able to detect, isolate, test and treat cases, and to trace all contacts.

Additionally, the risk of outbreak in settings such as health facilities and nursing homes needs to be minimised, while schools, workplaces and other public locations should have preventive measures in place.

"The COVID-19 pandemic will eventually recede, but there can be no going back to business as usual. We cannot continue to rush to fund panic but let preparedness go by the wayside," he said.

He said the crisis has highlighted the importance of strong national health systems as the foundation of global health security: not only against pandemics but also against the multitude of health threats that people across the world face every day.

"If we learn anything from COVID-19, it must be that investing in health now will save lives later," Ghebreyesus said.

While the world currently spends around USD 7.5 trillion on health annually, the WHO believes the best investments are in promoting health and preventing disease.

"Prevention is not only better than cure, it's cheaper, and the smartest thing to do," he said.

The deadly coronavirus, which originated from the Chinese city of Wuhan in December last year, has infected over 3.7 million people and killed 263,831 people globally, according to a tally by Johns Hopkins University.

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News Network
June 25,2020

Jun 25: Tencent Holdings Ltd.'s $40 billion surge this week and the recent ascent of Pinduoduo Inc. have reshuffled the ranking of China's richest people.

The country's largest game developer has surpassed Alibaba Group Holding Ltd. as Asia's most-valuable company, with its shares rising above HK$500 in intraday trading Wednesday for the first time. Pinduoduo, a Groupon-like shopping app also known as PDD, has more than doubled this year.

The rallies have propelled the wealth of their founders, with an added twist: Tencent's Pony Ma, worth $50 billion, has surpassed Jack Ma's $48 billion fortune, becoming China's richest person. And Colin Huang of PDD, whose net worth stands at $43 billion, has squeezed real estate mogul Hui Ka Yan of China Evergrande Group out of the top three earlier this year, according to the Bloomberg Billionaires Index.

The coronavirus pandemic has accelerated the digitization of the workplace and changed consumers' habits, boosting shares of many internet companies. Now tech tycoons are dominating the ranks of China's richest people. They occupy four of the top five spots: Ding Lei of Tencent peer NetEase Inc. follows China Evergrande's Hui.

‘Perform Strongly'

Tencent has come a long way since hitting a low in 2018, when China froze the approval process for new games. Since then, the stock has almost doubled, and last month the tech giant reported a 26 per cent jump in first-quarter revenue.

“Tencent's online games segment will probably perform strongly through the Covid-19 pandemic, and most of its other businesses are relatively unscathed,” said Vey-Sern Ling, a Bloomberg Intelligence analyst.

That has been a boon for Pony Ma, 48, who owns a 7 per cent stake in the company and pocketed about $757 million from selling some 14.6 million of his Tencent shares this year, data complied by Bloomberg show.

The native of China's southern Guangdong province studied computer science at Shenzhen University and was a software developer at a supplier of telecom services and products before co-founding Tencent with four others in the late 1990s. At the time, the company focused on instant-messaging services.

It has been a long comeback for Pony Ma. He overtook real estate tycoon Wang Jianlin as China's second-richest person in 2013 and topped Baidu Inc.'s Robin Li as the wealthiest in early 2014. Later that year, Alibaba went public in the U.S., catapulting Jack Ma's fortune.

Bloomberg Intelligence's Ling notes, however, that Tencent's jump this year has lagged behind some internet peers, especially those in e-commerce, games and online entertainment. Just consider: Tencent shares have climbed 31 per cent in 2020, while PDD's American depositary receipts have more than doubled. Alibaba, meanwhile, has advanced just 6.9 per cent.

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Agencies
April 20,2020

Hong Kong, Apr 20: Oil prices collapsed to more than two-decade lows Monday as traders grow concerned that storage facilities are reaching their limits, while equities were mixed, with some support coming from signs that the coronavirus may have peaked in Europe and the United States.

US crude benchmark West Texas Intermediate briefly plunged almost 20 percent to below 15 -- its lowest since 1999 -- as stockpiles continue to build owing to a crash in demand caused by the COVID-19 pandemic.

Analysts said this month's agreement between top producers to slash output by 10 million barrels a day was having little impact on the oil crisis because of lockdowns and travel restrictions that are keeping billions of people at home.

WTI was hit particularly hard as its main US storage facilities in Cushing, Oklahoma, were filling up.

ANZ said "crude oil prices remained under pressure, as projections of weaker demand weigh on sentiment".

"Despite the OPEC+ alliance agreeing to an unprecedented cut in output, the physical market is awash with oil," it said, referring to the Organization of the Petroleum Exporting Countries and non-OPEC partners.

And AxiCorp's Stephen Innes added: "It's a dump at all cost as no one... wants delivery of oil, with Cushing storage facilities filling by the minute.

"It hasn't taken long for the market to recognise that the OPEC+ deal will not, in its present form, be enough to balance oil markets." Stock traders were in slightly more buoyant mood as governments start to consider how and when to ease lockdowns that have crippled the global economy.

Italy, Spain, France and Britain reported drops in daily death tolls and slowing infection rates.

"We are scoring points against the epidemic," said Prime Minister Edouard Philippe, while insisting "we are not out of the health crisis yet".

Meanwhile, in the US, Andrew Cuomo, governor of badly hit New York state, said the disease was "on the descent", though he cautioned it was "no time to get cocky".

Mounting evidence suggests that the lockdowns and social distancing are slowing the spread of the virus.

That has intensified planning in many countries to begin loosening curbs on movement and easing the crushing pressure on national economies.

Adding to the sense of hope was a report indicating promising research on a drug to treat coronavirus.

Hong Kong, Shanghai and Seoul were each up 0.1 percent, while Wellington added 0.4 percent.

However, Tokyo went into the break 0.9 percent lower, while Sydney and Manila dropped one percent apiece. There were also losses in Taipei, Singapore and Jakarta.

"The longer investors have to contemplate future economic issues while they wait for more countries to be on the downward slope of the pandemic curve, the more scope there is of risk assets pricing in a difficult future," Chris Iggo, of AXA Investment Managers UK, said.

Investors are keeping an eye on Washington, where Congress and the White House are working towards a 450 billion economic relief plan for small business to add to the trillions already pledged to support the economy.

Big-name companies including IBM, Netflix and Coca-Cola are due to deliver their earnings reports.

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