| | | Can Boris Johnson Untangle the Brexit Web? | | In an overwhelming victory, Boris Johnson was confirmed as the United Kingdom prime minister this week, succeeding Theresa May. He is the original advocate for the U.K.'s withdrawal from the European Union and his "take back control" slogan successfully swayed Brexit supporters during the 2016 referendum. | | Johnson is controversial. His popularity comes from his eloquent, pro-British speeches, combined with his down-to-earth appearance and famous scruffy hair. He is entertaining, speaks with intellectual wit, and is also known to quote Greek classics in casual discussions. His fearless optimism often persuades people things can happen, even if he gets his facts wrong. | | His weakness is that he is no economist. Whether innocently or not, he has cited many false claims to argue a point, a practice that hurt his career as a journalist. His optimism and conviction occasionally defy reality, such as the economic consequences in the U.K. of higher tariffs on exports should a no-deal Brexit occur. While advocating that the E.U. was threatening British identity by imposing stiff budgetary commitments and regulations, he failed to mention its benefits, including free capital and trade. In 2016, Johnson falsely claimed that Britain sends £350 million weekly to the EU, where the real number was closer to £280 million per week. He was almost prosecuted for making such false statements. | | Watch the video | | If we can help you with any Foreign Exchange needs, please email foreignexchange@cnb.com or call (800) 447‑4133. | | Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos! | | | | | | | Follow City National Bank on social media: | | | | | | Non-deposit investment products: | | • | Are not FDIC insured, | | • | Are not deposits or other obligations of City National Bank and are not guaranteed by City National Bank, and | | • | Are subject to investment risks, including possible loss of the principal invested. | | | | | This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. City National Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting. | | | | | | |
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