Deutsche Bank Chief Economist: A No Deal Brexit Is Not The End Of The World

WATCH: Deutsche Bank Chief Economist Says Unconstrained No Deal Britain's Economy "Will Do Well" [VIDEO] pic.twitter.com/E3lUyVu1ue

— Euro Guido (@EuroGuido) September 2, 2019

Matt Snape, The Commentator: Deutsche Bank are correct: A no-deal Brexit is nothing to fear

Matt Snape agrees with the chief economist of Deutsche Bank that a No Deal Brexit is not the end of the world.

With the possibility of a no-deal Brexit fast becoming a reality, the mainstream media are doing everything in their power to warn people about how this will impact upon their lives. The BBC have produced numerous reports about how Brexit will disrupt rubbish collection and more.

The biggest fear commentators have is how a no-deal Brexit will impact upon the economy. Reuters UK reports that Britain’s banks face a hit of up to 25 percent to their earnings if Britain crashes out of the EU without a deal. An economic slowdown, and the likelihood of interest rates and borrowers defaulting on their loans, would hit earnings per share by between 15 to 25 percent, analysts at Citigroup warned in a research note. This has caused Business Secretary Andrea Leadsom to urge banks to continue lending after October 31st.

However, Deutsche Bank, which is facing its own problems in Germany after a failed merger with Commerzbank and the German economy on the verge of a recession in general, does not seem to fear the prospect of no-deal. Their Chief Economist, David Folkers-Landau, appeared on Bloomberg and told them:

‘A no-deal Brexit is not the end of the world.’

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WNU Editor: The Bloomberg video with David Folkers-Landau is here .... No-Deal Brexit `Not the End of the World' for U.K.: Deutsche Bank (Bloomberg). As to what is my take. The Deutch Bank chief economist is correct. It may be tough in the beginning, but the U.K. will survive and IMHO will be better off within five to ten years.