Blogs

The Far Reaching Affect of Brexit

brexit.lockelord.com
July 18, 2016

The U.K.’s vote to leave the European Union has buffeted companies in Britain and beyond. With some warning of earnings hits, headquarters moves, or cost cuts linked to the referendum, while others have put deals on hold. A few have reported possible benefits, too.

  • Deal activity: because of uncertainty over the U.K.’s future access to the EU’s single market and labour, Brexit clouds prospects for company M&As.
  • Employment: Several companies have discussed job cuts in the U.K. without confirming plans. Others say they’ll hold off on future investments, at least for now.
  • Headquarters moves: several companies have warned of possible moves, none has done so yet.
  • Prices and profits: the uncertainty over Brexit hurt consumer and business confidence ahead of the vote. A weak pound is prompting import-dependent companies to raise prices.
  • Success: potential winners from Brexit are cashing in on a weaker pound, at its lowest levels since 1985.

RELATED NEWS & EVENTS