Two and a half months, the citizens of the United Kingdom voted in a referendum to leave the European Union, and after forty-three years left the umbrella of EU membership. Written a new page of history, immediately after the referendum began speculating about possible scenarios and the consequences that bring Brexit A week before the referendum on the Stock Exchange there were no obvious signs that Britain will leave the European family – the pound has strengthened. In the case of the release, which it did, provided the decline of the pound by 15 to 20 percent and raised the question – that this country could be the next, and how will this affect the financial turbulence in the euro. The pound has depreciated by 9 percent, which is not recorded since 1985, and the euro has declined by 3 percent. The expected reaction would be greater demand for the Swiss franc, the dollar, and the yen, but the problem is that the financial markets the Swiss franc has less than a euro.
Swiss National Bank said it intervened in the market since the franc was under pressure after the decision of the UK to leave the European Union. In a brief statement, the Central Bank indicated that it had intervened in the monetary market in order to stabilize the situation and will remain active. Impacts of the British referendum are limited and secondary. The immediate effects of the current decline in the value of the pound and the euro against the dollar. However, the possible growth of the Swiss franc if this decision of the British cause a domino effect in the other EU Member States. If some other countries consider the calling of a referendum that would lead to further instability in the EU, additional weakening of the euro, and thus strengthening Swiss franc.
When it comes to the global economy, experts believe that the US dollar remains the safest haven. The price of oil was almost $ 50 a barrel and that is recovery, which is traditionally recorded in the summer. Markets are again beginning to feel a plethora of deals and the highest pressure the mining sector since the fall of the price of copper. On the London market, since the beginning of the week, the price of a barrel has slid 3.3 percent, while the US crude was down 0.6 percent to 44.49 dollars, while since the beginning of the week, losing 3.2 percent. It should not expect a dramatic crisis, although it is uncertain when Britain will start negotiations on leaving the EU. This process will have long-term effects and carries with it a certain amount of uncertainty. Prime Minister Theresa May has announced that Britain will not invoke Article 50 of the Lisbon Treaty and launch the procedure for leaving the EU until the end of the year. The problem that Britain should fight in the upcoming period is more frequent attacks on foreigners after Brexit. British police reported more than six thousand attacks, mainly against Muslims and Eastern Europeans, and this issue of controlling immigration was one of the main arguments of those who advocated leaving the EU.
A number of contracts for the purchase of British companies, as well as on their takeover of foreign companies, declined in the second quarter. This suggests that companies are postponing plans for expansion of business operations Brexit, according to official data. A number of contracts awarded on acquisitions, including British-British companies and British and foreign companies, fell to 87 in the second quarter to 190 in the first three months of this year. This is the lowest number of transactions since the first quarter of 2010 started tracking the data.In the period April-June were only 20 cases in which the company bought the British, which is significantly lower than the 52 in the first quarter and at least since the beginning of 2013. Contract number of mergers and acquisitions between British companies plunged to 47 with 95.Podaci showed that the value of the contract which dropped significantly in the second quarter to 14 billion pounds ($ 18.70 billion) from 69 billion pounds in the first quarter.
Frankfurt’s DAX 30 index was up 0.5 percent to 10,724.70 points, the Paris KAK 40 by 0.3 percent to 4555.61 points, Euro Stoxx 50 by 0.3 percent to 3,088.01 points, while the only London’s FTSE 100 fell 0.4 percent to 6855.58 points, as the pound strengthened due to abating concerns about economic consequences Brexit. At the start of trading in the US stock indexes rose, so half an hour from the start of trading, the Dow Jones industrial average rose 0.1 percent, broader S & P 500 in the same percentage, while the tech-rich Nasdaq 0.3 percent. In foreign exchange, the euro rose to 1.12 dollars from 1.1140 dollars a pound to 1.3440 dollars from 1.3320 dollars, while the dollar fell to 102.30 yen from 103.40 yen. In Asia, Tokyo’s Nikkei index rose 0.3 percent, Shanghai’s 0.6 percent and Hong Kong with the same percentage.
Chinese Premier Xi Jinping said British Prime Minister Theresa May, he is open to reaching a bilateral trade agreement with that country. It said a British official told reporters after the end of a summit of the Group 20.On said that they want to explore opportunities to strengthen our trade and economic relations and that China is open to a bilateral trade agreement with the United Kingdom. China will remain patient until its government is making efforts to take a position with regard to the decision of its predecessor.
Prime Minister May has postponed a decision on whether to support the project of building a nuclear plant in Hinckley Point are partially financed by the Chinese. Chinese President admitted that the new government will take some time before a decision on certain agreements advocated by the previous government. President Si is said to have the patience to wait for a decision on these issues.