All times UAE
10am
Berenberg Bank: "The sovereign has spoken. The UK has voted with a majority of roughly 52 per cent to 48 per cent to leave the European Union. The UK and Europe enter a new age of elevated risks.
"Future historians may cite today's vote as the beginning of the end of the UK as we know it. The risk has risen that the country may ultimately lose Scotland and Northern Ireland.
""The UK had outperformed all other major economies in the western world in terms of per capita GDP growth since joining the European Economic Community in 1972. It will now likely end up poorer, more isolated and somewhat at the mercy of a big neighbour over whose affairs it has now forsaken all influence.
"On the European continent, we have to brace ourselves for serious ripple effects. The UK vote to leave pushes the EU into a serious identity crisis. This will embolden all those who call for copycat referenda on EU or euro membership. Our best guess remains that no other country will follow suit and leave the EU in the near future. However, the risks now loom much larger than before. Following the result, we expect the UK to file for divorce from the EU shortly.
"Of course, the City of London will remain a great international centre for financial and other services. But it looks likely to lose some part of its business as it turns from an 'onshore' to an 'offshore' financial centre for Europe. The Brexit decision comes as somewhat of a shock to markets, which had largely priced out the risk earlier this week. However, it is not a black swan. The world as we know it does not end with a Brexit. It just became a more risky place last night."
http://ift.tt/28V0kwj
3Novices Europe
No comments:
Post a Comment