Brexit Poses Major Economic Challenges for UK and Eurozone

Brexit

Brexit
Image: ft.com

Aegis Capital Corp. is a New York-based financial services firm that provides a host of institutional and family office clients with dedicated investment support. Capabilities range from retail sales to global equity syndicates, with transactions underpinned by RBC Correspondent Services’ multiple execution platforms. The Aegis Capital Corp. team maintains a strong focus on current market conditions and the macro-level events that influence them.

One such notable event in Europe was a popular referendum vote in June 2106 by UK citizens in favor of “Brexit,” or a departure from the European Union. A shock to the financial system, the vote had a tumultuous impact on major markets, with stock markets roiling. In a flight to safety, the pound fell to decade lows, while the Japanese yen and US Treasury notes gained strength.

Despite these immediate effects, economists predict that the most profound impact will be felt further down the road, as the UK unwinds its complex membership in an organization that encompasses all aspects of trade and worker flow among EU member countries. In particular, the UK, which relies on financial services for much of its trade surplus, will have a more difficult time providing essential banking services to clients across the continent. At the same time, the Eurozone will face large-scale structural challenges that may put the continued existence of the EU in question.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s