Brexit wins, Pound tumbles: early 911 values ?

[e72phil]

So Britain leaves the EU and the Pound tumbles. Latest rate I saw was A$1.00= GBP 0.55.

So how does that affect the early 911 values ? Poms have less cash now to buy Aussie cars.

Will be interesting to see how this all pans out. Lucky I didnt ship both my UK delivered cars there last week and also lucky I bought a lot of USD yesterday. Could have bought more at 0.7649 early this morning and made a killing by this afternoon.

Fun and games. Cant wait to talk to some mates in the UK when they wake up soon.

[HughH]

The implications of this for markets, economies and society generally over there including Europe are worrying. It is a case of the emotional arguments (including protectionism, race, immigration etc) overwhelming the rational economic / financial ones. We will now see how much hurt that causes the world as a whole and UK in particular. The first big test will be the financial services area where everything relies on legal contracts and trust. Both of those look like they may have been torn up over this within the broader financial services area given that "contracts" will be the first casualty in this and they are the lifeblood of the bank to bank market.

[Fishcop]

The UK won't fix its "problems" by pulling out of the EU. And I suspect the Northern Ireland border won't be the only European border on the islands... I reckon there'll be one at the Scot/England border too...

[HughH]

No they will make them worse, and there is now a real chance of the U.K. Being broken up with both Scotland and northern Ireland looking for an exit from UK

[Fishcop]

I edited whilst you were typing Hugh A return to the old Brittany perhaps?

[npvpositive]

We will see. Of course, the vote doesn't mean Britain has left the EU. The government has to formally invoke Article 50, then there is a 2 year negotiating period to set the new rules between Britain and Europe.

The optimist says that things might end up not changing much. Eg, Britain agrees to generally follow European standards (for example, car safety, food safety, etc) in exchange for open access to the EU market.

Immigration will be the sticking point. Hard for the UK government to negotiate open borders with Europe when the population has just voted against them!

[HughH]

True Nick, on Article 50 and the other legal steps. That will take some time. However I can't see any government overturning the "will of the people" although stranger things have happened. The bigger issue is that this is likely to lead to more fragmentation of the population and populist responses (that arguably this was supposed to nip in the bud) in the UK and probably in Europe as well. Also I am not sure that even agreeing to abiding to EU standards will open markets to UK companies - Switzerland and Denmark can only access the European markets by allowing free movement of labour into their countries (ie immigration) which seemed to be one of the most important emotional issues in the UK behind the exist campaign

[Merv]

Interesting Hugh. I agree emotion about immigration has overwhelmed the economic factors. In reality the UK has been colonised by its former colonies for almost a century, with some degree of justice. The recent immigration was a turning point only. I wonder what happens to all those Brits with investment properties and residences in Spain, France, Portugal and Italy? And I see Scotland is now dragged into an exit despite their voting for remaining. Could also break up the UK

[Terminator]

I know I am buying on todays stock market

[HughH]

Merv maybe the Scots will be rebuilding Hadrian's wall from their side

[Fishcop]

Boris and Trump... There's a combo.

[e72phil]

Whoops, what did I start ?

[1st]

I'm more contrarian and hypothesize that the UK will become a stronger powerhouse as it is now apart from the EU's woes, has it's own currency and is a center of both wealth and financial trade.

[Bremith]

I bet there's a couple of million red faced "remain" Brits who didn't bother to vote because (like the bookies) they didn't think there was much chance of a Brexit. Oops. Unbelievable.

[Merv]

Brilliant image John. Very good Hugh. The Scots will want to leave the UK and of all things the Irish may be united for once