If we vote for Brexit what happens

setmefree2

A WEAKER POUND

If the United Kingdom were to leave the EU, it is likely that the pound would weaken - at least in the short term. This would be beneficial for UK investors holding overseas investments, as they would benefit from currency gains.
A weaker pound would also make UK exports relatively more attractive for overseas consumers. However, this would be a negative for UK consumers, making imports more expensive, reducing domestic demand, and consequently causing problems for businesses with a strong UK customer base.

INTEREST RATE INCREASE

Mark Carney has stated that the Bank of England would raise interest rates in the UK if we were to leave the EU, as investors would demand greater compensation for a perceived increase in, causing consumers to pay more to service debt.
With household debt at record levels, rate rises would be sorely felt and again, have the likely consequence of reducing domestic demand.

UK EQUITIES

Small and mid-cap equities would feel the impact of a Brexit most acutely, as they are generally less diversified in terms of revenue exposure. Big-cap companies will remain buoyant due to generally possessing a wider reach of revenue generation across a broader range of jurisdictions.
However, while small and mid caps are due to feel some immediate turbulence, once the market has settled, they should benefit from a reduction of regulation, and could actually increase their profit margins in the medium to long term.
No matter the outcome - which is still too close to call - the fact that a Brexit is even on the cards is causing additional volatility, and already causing investors to demand a risk premium for UK assets.
With instability the only certainty over the next few months before a potential June referendum, investors would be advised to brace themselves and diversify their portfolios, both across asset classes and also jurisdictions.

http://www.moneyobserver.com/opinion/what-are-economic-considerations-brexit

kabayiri

Most voters couldn't give a sausage about the impact on sterling. Brutal but true.

The independence referendum is almost seen as a referendum on migration. I think that is misplaced but understandable; there isn't a day go by without a migrant crisis making the front page news in some form.

setmefree2

angrypirate wrote: »

Setmefree - do you ever say anything or just regurgitate pro-EU headlines / articles?

The OP asked if there is a Brexit what happens?

I'm guessing they weren't interested in my humble opinion of what happens.......

Feel free to post your own links to examples of what happens after Brexit.

Generali

Tromking wrote: »

Generali.
Was moving yourself and your family to Australia an example of you being "pro Eu" ?

It had nothing to do with the decision one way or the other.

Does your remaining in the UK demonstrate your feelings about the EU?

BarleyGB

setmefree2 wrote: »

http://www.theguardian.com/business/2016/feb/04/brexit--slash-sterling-20-warns-goldman-sachs

Goldman Sachs, a company with probably the most to lose from the EU failing. The same company who waved the green light to Greece joining.

CLAPTON

setmefree2 wrote: »

http://www.moneyobserver.com/opinion/what-are-economic-considerations-brexit

one is inclined to note Carney has made numerous statements about interest rates : some would note they they have not accorded with the actuality

.string.

kabayiri wrote: »

Essentially then it comes down to a question of trust.

Do we trust this or future UK governments to defend what people perceive to be important national issues.

Do we trust the EU to act in the interests of UK in what we perceive is a balanced fashion.

The contents of the deal are just proposals by the way. They could undergo scrutiny from EU officials for a period of 18 months. They are neither fixed or guaranteed...
...does this remind anybody of a certain 'Vow' from the Scottish indy ref?

Yes they are proposals because they are not yet agreed by the Council, but if approved they are the principles which will govern the implementation, the details of which will, of course, be mulled over.

Tromking

Generali wrote: »

It had nothing to do with the decision one way or the other.

Does your remaining in the UK demonstrate your feelings about the EU?

At least I and my family have some 'skin in the game'.

angrypirate

setmefree2 wrote: »

The OP asked if there is a Brexit what happens?

I'm guessing they weren't interested in my humble opinion of what happens.......

Feel free to post your own links to examples of what happens after Brexit.

Ok, heres a couple Ive read from Dan Hannan

http://www.telegraph.co.uk/news/politics/11644904/A-vision-of-Britain-outside-the-EU-confident-successful-and-free.html

http://www.telegraph.co.uk/news/worldnews/europe/eu/11984843/Lets-dump-the-EU-and-rekindle-our-love-affair-with-India.html

Generali

Tromking wrote: »

At least I and my family have some 'skin in the game'.

I answered the question, will you?