Brexit Bulletin: ‘Change is coming’

Follow Us Get the newsletter What's happening? Brexit is giving truckers and shoppers some nasty surprises, but Nissan seems happy. Businesses face a post-Brexit double whammy of new border formalities and the need to obtain a negative coronavirus test to enter France. That's left more than half of firms that move goods from the European Union to the U.K. facing delays since the start of the year. As Joe Mayes and I report, some vehicles are simply driving home empty. The result: less efficient and more expensive trade. Some unlucky truckers who braved the journey to the continent found themselves stuck for hours in Kent, southeast England, waiting for transit documents that are essential for crossing the Channel in time. The problem is that while the forms aren't new, the majority of exports never needed them before, so a key U.K. government customs system is overwhelmed. The holdups have knocked the U.K. economy, which was already crippled by a third national coronavirus lockdown shutting down services. As David Goodman reports, output fell this month at the fastest rate since May, suggesting another sharp downturn looms. Consumer confidence also fell and retail sales came in weaker than expected. All that after U.K. fell into its deepest recession in three centuries during 2020. Consumers haven't escaped the confusion. European retailers have blamed Brexit for delivery delays and the extra fees some shoppers are being asked to pay. Some brands are even considering burning the goods because it's cheaper than returning them. The financial sector is also being warned to expect disruption. Mairead McGuinness, the European commissioner for financial services, told Bloomberg TV Friday, that any deal for the industry remains a distant prospect. "Change is coming," she said, adding that the realities of Brexit have "come home to roost". One firm bullish on Brexit is Nissan. Its Sunderland factory manufactures a niche battery for electric vehicles so it won't have to import them from Asia. That means Nissan can steer clear of the tariffs it might have faced for breaking complex rules of origin introduced by the U.K.-EU trade deal. It's not so long ago Nissan warned over the future of the Sunderland plant if the U.K. left the EU without a deal. Now it seems Nissan's U.K. operation is being powered by Brexit. — Lizzy Burden Beyond Brexit More vaccinations, more stimulus, more sanity: A guide to 2021 Here are 50 companies to watch in 2021 How cults like QAnon respond to embarrassing failures A billionaire has angered Switzerland by getting an early Covid shot The Kremlin misread Alexey Navalny's desire to keep fighting Global spending on clean technology hit half a trillion dollars in 2020 Click here for the latest on the global coronavirus vaccine rollout. Sign up here for our coronavirus newsletter, and subscribe to our podcast. Watch Bloomberg Quicktake, our new streaming news service with a global view and an informed take. Paid Post If you can keep your head when all about you are losing theirs. Trade now Your capital is at risk 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. IG Want to keep up with Brexit? You can follow us @Brexit on Twitter, and listen to Bloomberg Westminster every weekday. Share the Brexit Bulletin: Colleagues, friends and family can sign up here. For full EU coverage, try the Brussels Edition. Like getting the Brexit Bulletin? Subscribe to Bloomberg.com for unlimited access to trusted, data-driven journalism and gain expert analysis from exclusive subscriber-only newsletters. You received this message because you are subscribed to Bloomberg's Brexit Bulletin newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022