BREXIT: UNCERTAINITY
It was a Black
Friday as the capital market all over the world tumbled due to the big event of
Britain exiting out of the European Union(EU). It came as a surprise to
everyone and more than $2 trillion lost in the global market in just a day (The
market cap of Sensex is just below Rs. 1 trillion).
Lots of
information and expert sayings are already out there in the digital world
regarding the Brexit thing. There is a data I found surprising and hence the
link: http://www.barstoolsports.com/dmv/the-old-and-uneducated-of-great-britain-voted-to-leave-the-eu-last-night-brexit/
Brexit has
happened mainly because of the old and the uneducated ones. Here is the
financial connection of India with Europe and UK.
The impact
of Brexit on different sectors:
The impact
of Brexit is highly negative for United Kingdom, which is why the currency is
at 1985 lows, and if the fall continues the inflation can rise and hence, BoE
needs to take proper steps. Also its CAD is at 7% of its GDP. News also came
that after Britain exiting out of EU, some other nations also want to have an independence
referendum similar to Britain, namely Scotland, Ireland, Spain. This will have
serious negative impact if happens.
Whatever it
be, the outlook for India is quite stable now and it will not be a major
dampener for India.
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