Brexit Effects: A lengthy list!

A lengthy list of the side-effects of Brexit (mostly economic):

  • Overnight, the pound plummeted to its lowest levels since 1985 – falling by nearly 10%.
  • The stock markets were also affected, as the FTSE 100 index fell by 8% before recovering to a 3.15% drop. The FTSE 250 fared worse, falling by 8% by the following afternoon.
  • The construction sector was hit, with shares in Bovis Homes falling by 20%.
  • Prime Minister David Cameron announced that he will be stepping down as soon as a replacement is found.

  • The SNP began to call for a second independence referendum for Scotland, as the country had overwhelmingly voted to remain within in the EU.
  • Senior scientists reacted in dismay, as the referendum result threatened the £1 Billion funding that the European Union gives them for research.
  • The bidding process for Tata Steel’s British operations was threatened, as it became clear that several bidders were close to abandoning talks with the owner.
  • Share trading for Barclays bank and RBS were suspended, as Barclays dropped by 10.3% and RBS dropped by 15%.
  • Credit ratings agency Moody’s announced that the United Kingdom’s credit rating outlook had been cut to “negative”. The agency stated that the Brexit referendum result had created “a prolonged period of uncertainty.”
  • EU leaders poured cold water on the idea that the UK could close its borders to “free movement” while also retaining access to the single market.
  • Fishermen that campaigned to leave the EU are told that fishing quotas “may not even grow after Britain’s withdrawal from the EU.”
  • Labour MPs submit vote of no confidence in leader Jeremy Corbyn.
  • Despite voting to leave, Cornwall sought assurances that the £60 million funding (avg) it received from the EU will be not be threatened.
  • Prime Minister David Cameron warns that Britain cannot guarantee that Wales will continue to receive the same level of funding that it did from the European Union. Wales as a whole had voted to leave the EU.

  • The Independent reports that the construction sector is heading for a “brick wall” as a number of infrastructure investments had been suspended in light of the result.
  • It is reported that the Brexit result caused a worldwide loss of nearly $2 trillion dollars.
  • Sterling continued to falter, as the pound dropped to a 31-year low.
  • Property funds halt trading as the Bank of England warned that risks to the financial system had started to “crystallise”.
  • The boss of Lush Fresh Handmade Cosmetics tells members of the press that his company will move production of goods from Poole to Germany in the wake of the EU referendum.
  • A number of UK scientists are dropped from EU projects because of fears over post-Brexit funding.
  • It is reported that Greater Manchester is set to lose out on £320 million in EU funding.
  • Fashion brand Burberry announce that they have put their new Leeds factory “on pause”.
  • There is a large rise in the number of British people applying for passports in other EU countries.
  • Uncertainty about the future and the fall in Sterling results in the Lowcost Travelgroup going into administration.
  • Data from IHS Markit’s Purchasing Managers’ Index shows that the Brexit referendum result has led to a “dramatic deterioration” in economic activity, as manufacturing and service sectors saw a decline in output.
  • The IMF revises the UK’s growth in 2017 from 2.2% to 1.3%.
  • Ryanair announce that will cut back on UK flights in favour of EU routes.
  • Motor company Rolls Royce suffers a £2 Billion writedown as a result of the fall in Sterling.
  • Irish Taoiseach  Enda Kenny tells the European Union that it needs to to prepare for prospect of Northern Ireland joining with the Republic of Ireland.
  • 3,800 jobs are put in jeopardy when motor company Ford announces that it may close factories in Dagenham and Bridgend – two towns that voted Leave.
  • John Montagu, 11th Earl of Sandwich, raises doubts about whether British farmers will continue to receive the same level of funding that they had been receiving from the EU.
  • A purchasing manufacturers index compiled by Markit/Cips shows that the UK service sector has shrank at its fastest pace since the 2008 financial crisis.
  • A report from the the Recruitment and Employment Confederation (REC) shows that the number of permanent jobs being advertised by recruitment firms has fallen at its fastest pace since the financial crisis.
  • Berlin Senator for Economics, Technology and Research, Cornelia Yzer, tells members of the press that a number of startup firms in London have approached her about relocating to Berlin.
  • Emails show how UK physicists are dropped from EU projects because of post-Brexit concerns.
  • An Ipsos Mori poll shows that 27% of people from countries outside of the UK are less likely to purchase British goods as a result of the referendum.
  • Fears are raised about the uncertainty of Nissan’s plant in Sunderland – a town that voted Leave. The motor company employs 6,700 people and sells most of its products to mainland Europe.
  • Halifax announce that house prices have fallen by 1% since the Brexit vote.
  • The Bank of England is forced to cut interest rates to a record low of 0.25%
  • The climate change subsidy is slashed by the government just days after the Brexit vote.
  • It is announced that Britain has an outstanding bill of $25 Billion, which it must pay before leaving the EU.
  • Goldman Sachs warns that it may restructure its British operations after Brexit.
  • The number of people in Northern Ireland applying for Irish passports rises by 60+% in July.
  • The head of Renault-Nissan, Carlos Ghosn, states that a decision on whether to invest in the country has been put on hold.
  • Citi analysts state that pension liabilities have hit a record high of £813 billion.
  • Some of Britain’s biggest food producers warn that Brexit could herald an end to British fruit and veg sales, as foreign workers who pick the produce will no longer be able to come to the United Kingdom.
  • The National Institute of Economic and Social Research (NIESR) warns that Britain faces a 50/50 chance of recession.
  • In July 2016, UK construction shrank at its fastest pace since 2009, according to Markit/Cips data.
  • A report from the EEF, a manufacturing lobby group, and accountancy firm BDO shows that confidence among manufacturers has slumped since the results of the referendum.

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