Britain and Switzerland to sign post-Brexit trade agreement

In this file photo taken on January 21, 2019 A pedestrian walks pas a placard reading "People's Vote" as Brexit activists demonstrate outside of the Houses of Parliament in central London, while Britain's Prime Minister Theresa May makes a statement to the House of Commons on changes to her Brexit withdrawal agreement. (AFP file)
Updated 11 February 2019

Britain and Switzerland to sign post-Brexit trade agreement

  • The accord will protect a trade relationship worth $41.41 billion
  • Britain has reached an impasse in its last-minute renegotiation of an exit deal that it agreed with the EU last year

LONDON: Britain and Switzerland will sign an agreement on Monday to continue trading on preferential terms after Brexit, the British trade department said, protecting a trade relationship worth 32 billion pounds ($41.41 billion).
The formal signing of the deal, on which agreement had previously been announced, is one of only handful of concrete steps Britain has made toward ensuring that all the trade deals it currently benefits from as an EU member will continue after it leaves the bloc next month.
“Not only will this help to support jobs throughout the UK but it will also be a solid foundation for us to build an even stronger trading relationship with Switzerland as we leave the EU,” International Trade minister Liam Fox said in a statement.
The deal reflects Switzerland’s “mind the gap” strategy of ensuring seamless trade ties with Britain, regardless of whether London is able to strike and approve a formal exit agreement with Brussels by March 29, the date it is scheduled to leave.
Britain has reached an impasse in its last-minute renegotiation of an exit deal that it agreed with the EU last year but that was overwhelmingly rejected by the British parliament in January.
The government said last month it expects Britain will have most of the agreements it needs to replicate existing trade deals between the EU and third countries ready by the end of March.
A similar continuity agreement has been announced with Israel, and ‘mutual recognition’ deals have been agreed with Australia and New Zealand.
But the head of the Confederation of British Industry, Carolyn Fairbairn, said on Sunday the “unfolding nightmare” of Britain’s exit meant that major trade partners like Japan and South Korea were reluctant to sign deals until they knew the exact shape of future EU-Britain ties.
“It will be the decisions that businesses take about jobs and investment — and they will reduce them — so you have less potential to trade globally, that will mean less investment in the future and that will mean fewer jobs in the future,” she told Sky News.


Struggling WeWork mulls bailout deals with SoftBank, JP Morgan

Updated 14 October 2019

Struggling WeWork mulls bailout deals with SoftBank, JP Morgan

TOKYO: Under-pressure start-up WeWork is considering two huge bailout plans including a cash injection that could see Japanese investment titan SoftBank take control of the firm, according to reports.
The office-sharing giant had been on course for a massive initial public offering until last month when questions began to be asked over its governance and profit outlook.
The firm’s valuation plunged from $47 billion in January to less than $20 billion in September and the listing plans have been dropped, while co-founder Adam Neumann stepped down as chief executive.
With New York-based parent company We Co. not expected to push for the IPO this year, the cash-strapped firm is looking for a financial lifeline.
The Wall Street Journal, New York Times and Bloomberg News cited unnamed sources close to the talks as saying SoftBank — the US firm’s biggest shareholder — had drawn up a proposal that gives it full control of WeWork.
The move would dilute the voting power of Neumann, who remains as chairman of the company he started in 2010 and also currently maintains control a majority of voting shares.
They also reported that WeWork is looking at a deal with Wall Street giant JP Morgan to raise $5 billion in debt, with the Times saying directors of We would be meeting as soon as Monday afternoon to discuss that.
“WeWork has retained a major Wall Street financial institution to arrange financing,” the Journal reported a company spokesman as saying.
“Approximately 60 financing sources have signed confidentiality agreements and are meeting with the company’s management and its bankers over the course of this past week and this coming week.”
The New York-based startup that launched in 2010 has touted itself as revolutionizing commercial real estate by offering shared, flexible workspace arrangements, and has operations in 111 cities in 29 countries.
However, the company, which lost $1.9 billion last year, has faced skepticism over its ability to make money, especially if the global economy slows significantly.