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originally posted by: OtherSideOfTheCoin
If this comes out as a leave then its going to cause global economic chaos.
The British are Leaving! The British are Leaving!
Given this backdrop, we believe it would be unwise to try to draw deep conclusions as a result of the vote in the UK. Nonetheless, we do believe that this is more of a political event that will likely increase volatility in the markets for the foreseeable future while less of an economic event that could truly dampen global business prospects.
Most estimates show that the UK represents just 3 – 3.5% of global Gross Domestic Product (GDP). While approximately 14% of the UK’s economy is accounted for through exports to Europe, we do not believe either of these data points is material enough to be damaged by the recent vote. Additionally, it has been widely reported that it’s a two-year process to leave the European Union so there is still much to be decided and negotiated before any real implications are known and understood.
For the US economy, the impact shouldn’t be material either as the UK accounts for only 4% of US exports. Thus any change in the UK economy as a result of the vote to leave would likely not meaningfully change company outlooks. More interesting is the potential impact within Europe itself as we have witnessed periods of great concern in the past over sovereign debt issues. Yet the global economic impact from such concerns has been relatively minor.
originally posted by: OtherSideOfTheCoin
So the Financial times is reported that the UK could be about to lose its AAA rating.