OT - England crashes out of their Group . . . the EU that is.

Submitted by M-Dog on

England, along with the rest of the UK, have voted to leave the EU.  Nobody thought they would do it, but they have.

Stock market's going for a ride boys.

Lot's of coverage on www.BBC.com

Interesting day to be an England fan at the Euros, no?

 

xtramelanin

June 24th, 2016 at 6:14 AM ^

here is a picture of it/them: 

 

 

 

 

 

 

 

 

 

at the end of the day, it's a blip for most of us.  hope it works out for them. 

Thee Message B…

June 24th, 2016 at 1:46 PM ^

Like two hundred thousand lost manufacturing jobs in Michigan was a blip? Like tax cuts for the rich was a blip? 

This will be more than a blip.

It's also a testament to the boundless hatred, bigotry, provincialism, ego, and ignorance of voters in ANY country.

In reply to by Thee Message B…

M-Dog

June 25th, 2016 at 7:46 AM ^

But calling them names like "haters, bigots, and ignorant" was part of what made them throw the collective middle finger at the elites and know-it-all scolds, and vote to blow it all up.

They have legit concerns that they felt were being ignored, all while being called names at the same time.

Spoiler Alert:  The same thing is true over here with Trump and Sanders voters.

 

HimJarbaugh

June 24th, 2016 at 8:40 AM ^

Everything trades together. U.S. companies with largely domestic sales will not be as affected and in fact will be better off due to the stronger dollar. Big exporters to EU countries and/or the UK will see lower earnings from the depreciation of the Euro vs. the dollar.

Overall, the uncertainty of the future of the EU and the overall global economy will affect all markets.

bluesalt

June 24th, 2016 at 9:13 AM ^

There's naturally going to be some spillover to other economies from the recession they just voted for themselves. And there is also concern this will be the first of many votes to leave the EU, which would cause a continental-wide recession and lowered long-term economic potential, which will definitely affect the global economy.

The next few days will likely lead to some overselling. It's certainly a bad day to buy. But I wouldn't expect a quick snap back to market levels prior to the Brexit.

NYWolverine

June 24th, 2016 at 12:09 PM ^

Maybe NY should exit the US next and join with the UK to form a miniature capital markets hegemon. The New York Kingdom. #NYExit

Just for the mental gymnastics: do any of our 50 have an economic incentive to leave the US and form an economic alliance elsewhere (or go it alone)? I mean, a revolutionary and civil war was fought over this sort of thing in America; Britain does it over tea and crumpets. 

Seems to me if you decide to form a union, it shouldn't be an "at your convenience" sort of thing. 

trueblueintexas

June 24th, 2016 at 12:16 PM ^

The economy of California alone is in the top 10 or 15 globally. Of course, it's primarily driven by imports and exports so if California broke off and the U.S. decided they didn't want to trade with "The Republic of California", they would quickly drop to being nothing. Of course, we would probably lose out on some wine, movies and THANK GOODNESS HARBAUGH GOT OUT OF SAN FRANCISCO!!!!

Njia

June 24th, 2016 at 7:10 AM ^

"Uncertainty."

Investors despise uncertainty as a general principle. By voting to separate from the EU, the future of the UK, the EU, and most of the rest of the global economic, political, (and perhaps, social) systems face an uncertain future. Whether it is for the better or worse is a matter of debate, and will play out for decades. 

Go long on frozen concentrated orange juice.

M-Dog

June 24th, 2016 at 7:20 AM ^

Short answer:  the markets hate uncertainty.

Long answer:  this does several bad things from a global markets perspective:

- It makes the economic future of the UK uncertain as it loses its free trade status within the EU bloc.  Invertors are pulling their money out of the Pound, a traditional safe-haven currency in uncertain times.  The Pound is now down to its lowest level against the dollar since 1985

- It makes the future of the entire EU uncertain.  Beyond the UK leaving, their are big concerns about contagion: the want-to-leave disease spreads to other countries in the EU.  Already the opposition party leaders in France, Italy, and the Netherlands have indicated that they want to have their own referendums on leaving the EU.  Like the Pound, the Euro currency has been driven down sharply by this uncertainty.

- As the UK and EU economies pull back and their currencies decline, it hurts Asian exporters like China and Japan.

- Finally, the remaining safe-haven currencies like the Dollar and the Yen are driven up to very high levels by the flight to safety from the Pound and the EU.  This makes exports from those countries more expensive and hurts their economies. 

It's all inter-connected, and none of it is happy right now.

lmgoblue1

June 24th, 2016 at 7:17 AM ^

The concern is that other EU countries will not have free trade agreements with them anymore. So that could impact economies. But there is a 2-year implementation schedule before those agreements expire, so this is just the panic phase. London is also a world financial center so this fallout is NOT unexpected. A great buying opportunity as the market drops for a bit.

LSAClassOf2000

June 24th, 2016 at 6:34 AM ^

Well, it is already precipitating some interesting events - Sinn Fean now wants that up-and-down vote on Irish Reuinification that they probably would not have asked for without this occuring. They just gave Scotland a reason to actually want to have their independence from the UK for good too as Scotland voted about 70-30 to stay, I think. 

The French national elections this coming April got REALLY interesting now as this might be a big, looming issue this time around. The markets are in for a ride for a while too as the pound is already the lowest it has been in 30 years and that's only a couple hours into the trading day in Europe. 

Could be an interesting summer. 

M-Dog

June 24th, 2016 at 7:18 AM ^

Scotland recently voted in a referendum to stay in the UK because it kept them in the EU.  They were not guaranteed admission into the EU if they became independent.

Now ironically, they are out of the EU because of Brexit.

Scotland voted yesterday 70% to 30% to stay in the EU.  Look for them to hold another referendum to leave the UK so they can become independent and join the EU.  They will do it this time.  And the EU will take them, if for no other reason than spite.  

The UK will be down to England and Wales when it's all said and done, and Wales has always been iffy.

 

Gentleman Squirrels

June 24th, 2016 at 8:44 AM ^

Black and yellow is the flag of Saint David who is the patron saint of Wales. Even though Wales has been in the UK for a while, they haven't included them in the Union Jack as was done with Ireland and Scotland. If Scotland leaves, then there's space for Wales' flag to be included. There's another option that would basically look the same as it is now except black instead of blue. Looks depressing in my opinion.

Flag of Saint David: