Britain exits EU
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bye.
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http://www.straitstimes.com/world/europe/brexit-referendum-official-results-show-britain-voted-to-leave-eu
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Brace yourself. A recession is coming.
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Brit leaving. 99.5% voted. 51.8% to leave.
Pound dropping against all major.
Here comes the ripple... and it's only the beginning...
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http://www.bbc.com/news/uk-politics-eu-referendum-36614643
Yay, HIP HIP HOORAY, Congratulations, U K ! Smart move !
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Sure pound drops as expected, may likely be temporary ! ENGLAND is fit, strong to be on their own. Prevention is better than cure. Look at tbe mess in France and Brussel . . . . . . .
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I think end of the day scotland damn sian...
Back then cannot go independance because they wanted to be a part of EU. and now Brit leave EU
, they are forced to follow.think Brit gotta settle their domestic affair before it can start the road to be stable...
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.
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who else to leave EU next?
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Most likely France... They have been trying to do so with no avail...
However, they will see the full effect when the rest of EU attempts to bully Brit with the trade agreements.The other countries will make it hard for british so that other countries that want to leave will consider.
However, when emotion reach a limit, people will not think rationally.
But if I wanna state my opinion, no matter how bad the idea is for British to leave EU. I do support the notion that they should leave...
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Crashing pound draws queues at #Singapore money changers http://bit.ly/28Sp8nh
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Sinking pound creates opportunities and challenges across Singapore
SINGAPORE: Money changers across the country ran out of pounds as investors, students, and holiday-makers sought to cash on a weak sterling on Friday (June 24).
The pound, which has fallen 11 per cent against the Singapore dollar so far this year on Brexit fears, crashed to a multi-year low of around S$1.80 when it became clear those fears would become reality.
When Channel NewsAsia visited Change Alley at Raffles Place, money changers including Raffles Money Change, China Money Exchange, Mohamed Thahir Exchange, and City Money Changer had run out of sterling by 3pm on Friday.
It was a similar story elsewhere in the Bugis area, according to 25-year-old Tan Yenfang, who is starting a masters degree programme in the UK this September. “I went to five money changers around my workplace and they all said there's no stock,” she said.
Others, like Ms Chew Hui-Yan, second year student in University College London, said her parents managed to buy pounds via the bank. “My parents bought 10,000 pounds once they heard the pound was falling. I have another friend whose mum was also changing money as the pound fell," said Ms Chew.
Beyond a potential short-term buy opportunity, the weak pound creates new dynamics for people travelling to, working in, and doing business with the UK.
COMPANIES & MARKETS
Singapore companies with significant investments in the UK include property developers City Developments and Ho Bee, and transport group ComfortDelGro. According to Mr Gabriel Yap, executive chairman at investment firm GCP Global, the sliding pound would mean currency losses for these Singapore firms.
“I think the impact mainly will be in the translation losses from earnings for those that have invested in the UK. These firms invested in assets in the UK when the pound was significantly pricier,” he said.
“Their earnings translated back to Sing dollars this coming year will be significantly affected. The uncertainty of that will also wreck havoc on their share prices.”
Still, CDL struck a positive note, saying that the company continues to have confidence in the long-term fundamentals of the UK economy and its strategy of targeting predominantly UK nationals for its residential developments. It added that it has a strategy to deal with exchange rate uncertainties: "The Group manages its foreign exchange exposure by a policy of a matching receipts and payments, and asset purchases and borrowings in each individual country, so as to create a natural hedge".
Describing the situation as “unchartered waters”, Singapore International Chamber of Commerce chief executive Victor Mills said he expects volatility in the global markets to continue until clarity of the UK’s exit terms are known. This a matter which could easily stretch out over the next two years at least.
“I think the result of the referendum will be mainly negative for the UK in the mid to long term. The issue of membership of the European Union was hijacked by the immigration debate which, as we all know, is an emotive issue everywhere and usually for all the wrong reasons,” he added.
TOURISM
Travel agency Chan Brothers said that should the pound continue to weaken against the Sing, already-strong demand for travel to the UK “looks set to continue”.
“The British pound has been falling steadily against the Singapore dollar since August 2015. This is definitely a boon for travel,” said Ms Jane Chang, its head of marketing communications, adding that the agency has so far seen a 30 percent year-on-year growth in demand for travel to the UK.
Travel booking companies Wego.com and TripZilla.com said they saw the developments as a positive for UK-bound Singapore travellers, but a negative for Singapore’s tourism market in the short run.
“As a destination, Singapore welcomes a large number of UK travellers and serves as a gateway to the rest of Asia. There may be a slight drop in UK visitors initially,” said Mr Ross Veitch, CEO and co-founder of Wego.com.
“We expect there will be a overall drop in inbound tourists from the UK due to weakness in pound and uncertain economic impact of the Brexit. The UK makes up almost 30 per cent of Singapore's inbound travellers from EU, so we would certainly feel some impact,” said Ms Winnie Tan, CEO, TripZilla.com.
Ms Tan was a shade more circumspect about the numbers of Singaporean tourists looking to take advantage of the cheaper pound.
“We do not expect the number of bookings to skyrocket overnight. Again, drawing comparison to what happened when the Australian dollar fell below parity versus the Sing recently, it will take a while for travellers to react and travel bookings to pour in.”
PROPERTY
As the dust settles on the Referendum result, and officials start to negotiate the exit plan, there will be uncertainty over the next two years, said Mr Ku Swee Yong, the CEO of property agency Century 21 Singapore. This could hurt London’s appeal to international property investors and absentee landlords.
“The uncertainty could result in corporate considerations, like to shore up cash by downsizing the workforce. This could hit those in trading-related activities, in commodities. And this will affect rents, especially in London,” said Mr Ku.
“With the decision to exit the European Union, for existing Asian property owners, the fall in the pound will impact the repatriation of any income returns, as well as the gains on any disposal,” said Mr Nicholas Holt, head of research for Asia Pacific at Knight Frank.
“Although there is likely to be more volatility in the market, ultimately most investors are looking to the long term – so will continue to hold their assets, in the hope that any short-term instability will eventually subside when more clarity of the UK’s role in Europe is determined."
Meanwhile, Colliers International said the UK’s economic fundamentals remained unchanged despite Brexit.
We consider buying opportunities "ripe" for Asian investors, said Mr Richard Levene, Director, International Properties, Colliers International. “This also creates an excellent opportunity for our international buyers to benefit from currency gains as the pound strengthens over time.”
WORKING PROFESSIONALS
The exchange rate implications would also be felt on salaried professionals working in Singapore and the UK. Architect Leanne Taylor, 27, who earns in Sing dollars, has mixed feelings.
The British national, who has been working in Singapore for more than two years, said Brexit has led her to reconsider plans to move back home.
“On one hand, maybe it's a good time to go back and buy a house. On the other, architects like me will not be able to access the EU market and tender for work, and that’ll mean fiercer competition for local work,” she said.
“If I were still in the UK, I wouldn't be too happy. On a US dollar basis, income would have dropped 5 to 10 per cent and taxes are still sky high, at 30 to 40 per cent,” said a Singaporean banker who declined to be named. He recently relocated home after two years in London.
“Some of my colleagues, especially those who have invested in real estate, are reeling from the sterling plunge. The property market is relatively more illiquid, with more transaction costs,” said the 29-year-old.
As for London-based Singaporean Edna Goh, 29, she is less concerned about the dollars and cents of it all.
The finance professional, who has lived in London for the last seven years said: “To me, it's not about the money. It's about how London is becoming less tolerant to immigrants. It's very upsetting given that London is London because of the EU.”
- CNA/ll
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Brexit vote a 'turning point': PM Lee
SINGAPORE: Britain's vote to leave the European Union (EU) is a turning point, Prime Minister Lee Hsien Loong said on Friday (Jun 24), after the UK voted in a referendum to leave the EU.
The decision reflects the anxiety of the British population over immigration, their resentment at having to negotiate with and accommodate European partners, and their desire to assert British identity and sovereignty, Mr Lee stated."Other developed countries also face similar challenges as Britain. We all live in a globalised, interdependent world. The desire to disengage, to be less constrained by one’s partners, to be free to do things entirely as one chooses, is entirely understandable. And yet in reality for many countries disengaging and turning inwards will likely lead to less security, less prosperity, and a dimmer future."It is too early to tell, but we need to watch developments carefully. Nobody can foresee all the consequences of the Brexit," Mr Lee wrote on Facebook. He noted that the next few years will be uncertain ones for Britain and Europe. "What new arrangements will be made? Will this hurt investor confidence more broadly, and the global economy? How will Britain’s leaving affect the rest of the EU? How will this affect us, living in Asia but part of the same globalised world?"Mr Lee added: "Singapore will continue to cultivate our ties with Britain, which is a long standing friend and partner. We hope in time the uncertainty will diminish, and we will make the best of the new reality."We wish Britain well. I wish David Cameron well too, who has been a good friend of Singapore and has announced his intention to resign as PM."Meanwhile, Minister for Culture, Community and Youth Grace Fu said that there will be market turmoil ahead, which will affect Singapore."The effects on the real economy will come quickly and last for years as investors and businesses work through the possible ramification," said Ms Fu. "UK will have to deal with a messy situation that will cast a dark shadow on the global economy. Brace for gloomier outlook.""Singapore thrives in a market with free trade and movement of goods and funds," she added in a reply to a comment from a member of the public. "If this signals a more nationalistic and protectionist world, it will not be good for us."National Development Minister Lawrence Wong agreed that the result of the vote will have implications for Singapore.
"Beyond the initial market turbulence, this historic move is likely to have far-reaching and longer-term implications on global growth, trade and integration. So while Brexit may not be uppermost on our minds, the decision taken today will have bearing on us," Mr Wong said.Defence Minister Ng Eng Hen said Singapore has lessons to learn from the vote."For me, the most important lesson is that change is inevitable and that when it comes, it is the solidarity of a nation’s people with each other and their leaders that will pull them through," said Dr Ng."Tomorrow will be a different world for UK people, and only unity and common purpose will lead them through safely and for a better future. Disunity and lack of strong leadership will blight their future, however they voted in the referendum," the Defence Minister added.Ambassador-at-Large Bilahari Kausikan also weighed in on the Brexit vote.“It isn’t often you see a country commit suicide before your eyes,” said Mr Bilahari to Channel NewsAsia.
“We are also witnessing the tragically irrational consequences of western democracy. The UK is only an example of the dysfunctionality of a system taken to extremes," he added.In a Facebook post, Ambassador-at-Large Tommy Koh said Mr Cameron had "messed up big time by holding an unnecessary referendum".
"The result is a tragedy for the UK and for the EU. It is a victory for populism over rationality. It is a victory for fear over hope. It will probably lead to the secession of Scotland from the UK," he wrote.
"The global wave of populism which is sweeping the world is a danger to Democracy and to democratic institutions. Let us hope that it will not invade Singapore," he added.- CNA/av -
JUST IN: US respects #Brexit vote; Britain and EU will remain its "indispensable partners", says @POTUS
-- @ChannelNewsAsia
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US stocks dive on Brexit; Dow plunges over 500 points
NEW YORK: The Dow plunged more than 500 points in opening trade Friday (Jun 24) after Britain's surprise vote to exit the European Union sent international stock markets sharply lower.About five minutes into trade, the Dow Jones Industrial Average stood at 17,500.74, down 510 points, or 2.8 per cent.The broad-based S&P 500 fell 2.7 per cent to 2,055.42, while the tech-rich Nasdaq Composite Index dropped 3.5 per cent to 4,737.79.- AFP/nc -
germany exiting?
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#Brexit: 6 latest questions (un)answered http://bit.ly/28XGkI7
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Actually there are too much speculations in the market, when UK has not even officially exited the EU yet.
People who are trying to make millions of dollars by shorting the market are actually the ones ruining and crashing the market for events that have not even happen yet, not BREXIT itself.
No one knows what exactly will happen to UK after BREXIT. Ask you, do you really know what will really happen to UK 1 year down the road if no one plays the speculation game, and instead have a wait and see approach?
And there is no full confirmation that UK will leave the EU yet. This referandum is not an official one. All the speculations are just creating fear and jitters in the whole market that cause it to crash, not the actual events that is happening after BREXIT. -
Brexit vote prompts fears over UK insurers' capital strength
LONDON (Reuters) - Market falls triggered by Britain's vote to leave the European Union will hit British insurers' capital, raising concerns over their ability to pay dividends or hand cash back to investors.New European capital Solvency II rules introduced in January require insurers to account for investment risk, and solvency models to be regularly updated.Life insurers in particular invest in bond markets to match their long-term pension liabilities, and have increasingly moved into corporate bond markets which offer higher returns.But confidence in UK corporate bonds is dipping and equity markets, in which insurers also invest, are weaker too."It is the market moves that are having the more significant impact. Solvency II models are sensitive to moves in credit spreads, equity markets, FX, interest rates, property prices and other markets," said Marcus Rivaldi, deputy head of analytics at specialist insurance investment manager Twelve Capital."The impact on the day-to-day operations of insurance companies in the UK should be relatively minimal," he said.Legal & General, which reassured investors earlier this year that it was not holding many junk energy bonds, was the worst performing FTSE 100 insurer on Monday.It has lost nearly 30 per cent of its value since Thursday's close and was trading at three-year lows at 166 pence at 1400 GMT.Legal & General's solvency ratio would drop to 158 per cent if there is a fall in interest rates after a Brexit vote, from 169 per cent reported at end-December, ratings agency Moody's estimated last month.Analysts at JP Morgan estimated L&G's solvency ratio currently at 150 per cent.A ratio of 100 per cent means insurers have enough capital to cover underwriting, investment and operational risks, but some analysts think life insurers should have a ratio of as much as 160 per cent, given their long-dated liabilities."If the volatility continues then we believe that Prudential , Legal & General and JRP would struggle on capital," JP Morgan said in a note.Prudential's shares have dropped nearly 20 percent since the vote, and mid-cap insurer JRP is down 35 percent.Legal & General also invests heavily in UK property, a sector that has taken the largest drubbing since the vote.Aviva, which fell as much as 30 per cent at one point on Friday to its lowest in nearly four years, said on Monday its capital position was resilient.Shares in Aviva, which has a target range for its solvency ratio of 150 to 180 per cent, rose briefly at the open, and analysts at Macquarie said the sell-off was overdone. But it quickly reversed and was down 7.4 per cent to 346.8 pence by 1405 GMT.Ratings agency Fitch warned on Friday that life insurers were at risk of downgrades if there was "sustained economic weakness leading to intensified competition and material deterioration in the market values of assets".However, some investors and analysts were more upbeat, saying the lower pound could be a boon for some insurers, boosting earnings from overseas operations. "In situations like this, there are often opportunities,"said Nick Martin, who runs an insurance fund for Polar Capital. -
Why I voted Leave - A Singaporean in the UK http://str.sg/4w6a
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Gone are the days of a great empire. sold off most of their tangible assests . perhaps , one day nothing will will be left .
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Originally posted by lce:
Gone are the days of a great empire. sold off most of their tangible assests . perhaps , one day nothing will will be left .
sounds like SG to me, now i think left sia.
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Originally posted by SMB145B:
germany exiting?
Won't. They are strong supporter of EU. Merkel actively in it.
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Originally posted by minx:
Won't. They are strong supporter of EU. Merkel actively in it.
maybe Grease?
since their econ screwed up
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Brexit not expected to have direct impact on Singapore: Observers
SINGAPORE: Britain's vote to leave the European Union (Brexit) is not expected to have a direct and immediate impact on Singapore's trade, according to observers.However, they noted that as economists trim their global growth and trade forecasts, Singapore - as a transshipment hub - is likely to see lower trade volumes.Singapore's exports to the UK amounted to S$1.6 billion in the first five months of this year, which puts UK as the Republic’s 22nd largest trading partner.Observers said trade relations with the EU could change, as the region loses a strong pro-free trade voice.Said Mr Simon Baptist, chief economist at the Economist Intelligence Unit: "In the global context, most countries in the EU are relatively pro-free trade, but of course there's a distribution within the EU and the UK are of the camp that was more pro-free trade and more pro-free market."The UK was their largest economy and one of the strongest proponents. There are other sort of free trading economies - such as Denmark, the Netherlands, some of the Eastern European countries like Slovakia - but of course they're much smaller than the UK.“If the UK ... exits the EU, it definitely will be the case that the pro-trade group will be a lot smaller and a lot weaker, and it will increase the importance of a country like France, which is less pro-free trade. And that's a problem for Germany, which has instincts on both sides and has been able to use the UK and France as a balancing point to maybe get the UK to do some of its dirty work and some of its hard negotiations.“Now it will lose that ally. So the EU would move to being a bit less pro-free trade without the UK as a member."RENEGOTIATING FREE TRADE AGREEMENTSGoing forward, the Singapore Business Federation (SBF) said the EU-Singapore Free Trade Agreement, which was agreed upon in 2012, could see further delays in ratification.As for bilateral arrangements with UK, the Ministry of Trade and Industry said in a recent statement that new trade agreements will have to be negotiated. Still, observers are optimistic that a better deal can be worked out."If we do have to renegotiate our free trade arrangement with the UK, we have a very good template to start, and I think we can even do better,” said Mr Ho Meng Kit, CEO of SBF. “I'm certain we can do better. Am I apprehensive that the UK itself would turn inward and isolationist? I don't think so. And therefore, we can get a good deal with the UK, maybe even a better deal than we can get with the EU."As a whole, the bloc of 28 economies is now one of Singapore's top three trading partners. Trade with the region amounted to S$90.5 billion for the whole of 2015, more than 10 per cent of Singapore’s total world trade numbers.- CNA/ek