Oh Britain. You’ve never been the most sensible about keeping your empire intact, but this whole Brexit vote is a damn shocker, and to what end?
For those who have been off the grid for the last few hours, British citizens voted to leave the European Union because too many polaks on building sites, or something.
Whatever the reason (*cough*xenphobia*cough*), the British pound tumbled like a drunken sailor doing parkour overnight on Asian markets, hitting its lowest point in 33 years, which is just about the exact thing the ‘Remain’ campaign were warning of.
Standard and Poor’s chief ratings officer told the Financial Times: “We think that a AAA-rating is untenable under the circumstances.”
Companies in Britain will now have to figure out what they do with EU employees. Producers of products once destined for Italy, Spain, the Ukraine, Germany, Switzerland, Poland.. will now have to figure out what tariffs they might have to start paying to maintain sales.
So long Ibiza summers. Hello returning pensioners. Goodbye EU-origin home owners and hello real estate uncertainty as they sell up to move home.
The free market for Made in Britain products just got about 80% smaller, while those making things in Europe will now have to figure out what a plunging UK pound will do to prices of the things coming back the other way.
The EU economy, at the same time, just shed about 18% of its worth.
One bright spot: Gold. That’s up to $1360 because anyone with cash in the pound, or the euro, or the South African rand for that matter, is dumping it.
Where else is that money going to hide?
Prime Minister David Cameron is due to speak shortly, as I write this, and while many are saying he’ll call for calm and hard work, others are suggesting he’s getting set to resign, before he’s pushed. Cameron called the referendum, setting the leave point at 50.01% (rather than the 66% or so many serious referendums have to hit to change national policy) and then campaigning against it. With the xenophobics in his party now feeling their jubblies growing, he’s got no chance to stay aboard.
Even less so if Scotland and Ireland do as they’re currently threatening, and leave the UK to remain in Europe.
Congrats, fellas. You lost two unions in one hit.
Now leadership in the Netherlands is talking about having their own referendum. #Nethxit?
What’s likely to happen when markets open?
From the Telegraph:
It’s business as usual at the London Stock Exchange, which will open as normal at 8am this morning. The FTSE 100, which rallied to 6,338.1 on the belief that the UK would vote to remain in the UK, is expected to drop by 8.8pc, or by some 560 points. The fall would be the third worst in history if stocks ended the day down as sharply.
Be ready when the Canadian markets open – there may be some early carnage.
UPDATE: David Cameron has resigned. So at least one good thing came from #Brexit.
— Chris Parry