#BrExit #NilSumGame

BrExit is the Social media pet name for United Kingdom Leaving European Union.

Without doubt, this exit will cause strong political impact, but many of them will be worried about markets and keep writing posts like this one.

Impact on Banking Industry in London.

It is unlikely that banks fully leave London, because of Euro Services Infrastructure. Although banks have to look into other ways to gain market access if their EU headquarters are in UK.

Passporting Rights

Exit means End of Passporting rights. These are the set of rights, under EU Financial Legislation that allows entities to set up branch in EU and to provide cross-border certain products and services in other EU states without separate licence in each state.

Now, Britain cannot influence Financial Regulation at European Level but it can negotiate some form of single market access. The scenario looks good, if they can negotiate with EU in such a way that European Capital markets are interconnected.

Short Term Effects

• Weakening of UK Trade, because of increase in Tariff.
• Drop in currency value( It has good and Bad).
• May result in Investment cut by Corporates.
• Downgrade of Credit Rating.

Long Term Benefits

• Country Attractiveness
• Foreign Direct Investment
• Less Regulation
• Control over Trade Policy.

I will end this with words said by Mr. Woodford- BrExit is a Nil Sum Game, whether it Stays or Leave.