Sep 25, 2018

Next is first among retailers in facing up to Brexit

Goods from non-EU countries not covered by GSP or a free trade deal, such as China, will continue to attract the same average 11.8 per cent tariff - so no change on another 31 per cent of stock. Goods from the EU and Turkey would be liable to whatever duty the UK levies post-Brexit - but that is only 10 per cent of stock, so Next estimates a £15m increase at most. Goods from countries that have existing free trade deals with the EU might not be covered by new UK deals in time - but, at 3 per cent of stock, the risk is only £5m. That makes total additional duty of £20m - or 0.5 per cent on the price of a pair of socks. Not all are successful: studies by regulators show that 74 per cent to 89 per cent of traders, on all firms' platforms, lose money on CFDs. But, if it is any consolation, it seems CMC Markets' managers and shareholders are not much better at it. On Monday, the former had to issue a profit warning, having failed to predict that "Rangebound markets" and regulators' stricter rules would cause a 20 per cent fall in annual revenue, not the 10-15 per cent they had allowed for.

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