Vasu Menon, a Senior Investment Strategist for OCBC Bank, said he didn’t “see a light at the end of the tunnel” in the upcoming Brexit negotiations.
Brexit talks are set to begin shortly after the June 8 General Election and Mr Menon stressed the European’s are “playing hardball”.
Speaking to CNBC, Mr Menon warned relations look frosty between the Prime Minister and other European leaders following a strained G7 summit in Italy last week.
Mr Menon said: “I don’t see light at the end of the tunnel. The European’s are playing hardball.
Vasu Menon said the UK will have to concede on immigration if it wants to avoid Brexit problems
“They want the British to pay if they want to exit and the British are saying ‘look we are not going to pay’.
“You can see the body language between Theresa May and the European leaders when they met at the G7 and other international forums have not exactly been very positive.
“It is not going to be an easy negotiation. It is going to be a tough one.”
I think the British will have to concede quite a bit in terms of immigration
Mr Menon highlighted the importance of the single market and claimed the UK will be forced to concede on immigration if it wants to maintain access post-Brexit.
He said: “I don’t see the European’s giving access to the single market just like that.
“I think the British will have to concede quite a bit in terms of immigration and other issues and it’s going to be a difficult one.
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“I think that if they are not able to access the single market you could see a fairly significant impact on the British economy down the road.”
Speaking to Jeremy Paxman, the Prime Minister reiterated that she would be a “difficult woman” to seal the best possible deal with the European Union.
Mrs May said: “I'm not prepared to sign up to a bad deal to the UK. We're in there to get the best deal for the United Kingdom.
Theresa May reiterated that she was prepared to walk away from the EU without a deal
“I’m optimistic because I think the European Union will want to continue their relationship with us. We'll be negotiating hard.”
When asked if the British Government were doing enough to secure trade deals outside of the EU, Mr Menon admitted: “not enough”.
He said: “The British Government will be very busy with the negotiations, this is something that is new to them.
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“They virtually had to assemble a team of negotiators they don’t have a lot of expertise in this area.
“I now think a lot of resources are being committed to negotiations, at the same time on the side you see them trying to strike some trade deals.
“They are still trying to get some concessions out of the Europeans. But the Europeans are not making it easy and I think it’s going to be a very tricky and difficult negotiation process going forward.”