Brexit Impact Growing Strong

June 7, 2016

By Thy

More Brexit heat is in the air as the three latest Brexit-related poll results have shown an increase in percentage of Brexit backers.

The pound fell to a three-week low after the news came out, making the conversations among the financial market participants become more intense and interesting to watch.

Brexit 2

With the signals from the financial crowd on the news and social media at Sentifi, you can easily see how Brexit has impacted a wide range of other related entities over the past month. Besides the United Kingdom, the European Union, the pound, the Bank of England and Londonwhich are directly related to the event and have been widely talked about on media, Sentifi is able to show you deeper insights of other Brexit-related entities that are most discussed by the financial community.

Brexit 3Ireland

Ireland is among the most exposed countries to Brexit in terms of exports, according to Fitch Ratings. Along with Malta, Belgium, the Netherlands, Cyprus and Luxembourg, its exports of goods and services to the U.K. account for at least 8% of its GDP. If a Brexit happens, the border between Northern Ireland and the Republic of Ireland will be the new EU frontier.  

Northern Ireland is seen as the most pro-EU region in the U.K. Chancellor George Osborne has recently warned that Northern Ireland would be severely hit in the event of Brexit. Leaving the EU would cost Northern Ireland 14,000 jobs and £1.3 billion reduction to the size of its economy by 2018.

United States

In relation to Brexit and the U.S., Donald Trump appears to be the most-discussed name as the presidential candidate endorses Brexit. The latest news revealed that Trump will visit the U.K. one day before the EU referendum takes place on June 23.

On the other hand, Janet Yellen has warned that a Brexit vote could have a significant impact on the market sentiment and investment, hitting the U.S economy. The U.S. Federal Reserves’s monetary meeting on June 14-15 may see a delay in the rate hike decision as the EU referendum outcome could be “a factor in favor of caution about raising rates,” according to Fed Board Governor Jerome Powell.

Germany

Brexit is also considered as a huge risk to the German economy if you look at the conversations the crowd is holding.

According to analysts, Germany will lose many things in case of a Brexit. A study by German research foundation Bertelsmann Stiftung found that Germany would see its GDP fall by 2% and would contribute an extra $2.8 billion per annum to the operating costs of the bloc.

In the political aspect, Germany would also have to suffer. “The departure of the U.K., a vital ally, would make it even harder to manage this fissiparous club. Brexit would leave the EU a less congenial place for many Germans, while also heightening resentment of Berlin’s power elsewhere on the continent,” said Charles Grant, director of the London-based pro-EU research organization the Center for European Reform. Germany might as well lose its colossal influence on the EU.

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