The incoming President, Donald Trump, told the Brexiteer Michael Gove he would come up with a UK-US trade deal that was « good for both sides ».
The man who styled himself « Mr Brexit » praised the vote in an interview for The Times .
His belief that Britain is « doing great » is in marked contrast to the warning of current President, Barack Obama, that Brexit would put the country « at the back of the queue » for trade deals.
But while Brexiteers may be chuffed to have a friend in the White House, the markets think somewhat differently.
Over the past few days, reports emerged that the Prime Minister, Theresa May, is to outline plans for a « hard Brexit » with no guaranteed access to the single market in a speech on Tuesday.
The pound slipped to its lowest level against the dollar in three months , below $1.20, before creeping up slightly on Monday.
Nigel Green, founder and chief executive of the financial planners deVere Group, said on Friday: « A hard Brexit can be expected to significantly change the financial landscape. As such, people should start preparing for the shifting environment sooner rather than later. »
It’s hard to know the exact economic impact of Brexit, because Brexit – officially leaving the EU – hasn’t happened yet. Brexiteers like Gove have attacked « experts » who they claim are simply talking down the economy. It is true that because of the slump in sterling, Britain’s most international companies in the FTSE 100 are thriving.
But the more that the government is forced to explain what it is hoping for, the better sense traders have of whether it will involve staying in the single market. And it seems that whatever the President-Elect says, they’re not buying it.
After watching Donald Trump’s inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama’s address from 2009?
Both thanked the previous President, with Trump calling the Obamas « magnificent », and pledged to reform Washington, but the comparison ended there.
Here is what each of them said:
On American jobs
Obama:
The state of our economy calls for action, bold and swift. And we will act, not only to create new jobs, but to lay a new foundation for growth. We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together. We’ll restore science to its rightful place, and wield technology’s wonders to raise health care’s quality and lower its cost. We will harness the sun and the winds and the soil to fuel our cars and run our factories. And we will transform our schools and colleges and universities to meet the demands of a new age. Trump:
For many decades we’ve enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.
One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.
Obama had a plan for growth. Trump just blames the rest of the world…
On global warming Obama:
With old friends and former foes, we’ll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet. Trump:
The climate change section of the White House website has just gone offline pic.twitter.com/oD27nImsPq
— Alex Bath (@Alex_SkyNews) January 20, 2017
On the Middle East: Obama:
To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society’s ills on the West, know that your people will judge you on what you can build, not what you destroy. Trump:
We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.
On “greatness” Obama:
In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned. Trump:
America will start winning again, winning like never before.
On trade Obama:
This is the journey we continue today. We remain the most prosperous, powerful nation on Earth. Our workers are no less productive than when this crisis began. Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year. Our capacity remains undiminished. Trump:
We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.
Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.
