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Britain'S Departure From Europe Is Bound To Have An Impact On Global Capital Markets.

2016/6/27 14:10:00 43

BritainEuropeThe MarketLuxury

 Burberry

On June 24th, after months of heated debate, the British people made the final choice whether to stay in the European Union: the referendum turned out to be "off Europe".

There have been numerous analyses before.

Britain off Europe

Inevitable global capital

market

Impact.

From the perspective of business operation, many British businesses and foreign businesses have expressed their objections to "Britain off Europe", including Britain.

Luxury goods

Brand Burberry, famous record company Beggars, Germany many automobile enterprises and so on.

This reporter has learned that earlier reports have suggested that Britain will have a negative impact on the global fashion industry. The most direct impact is that the weakness of the pound will increase the cost of clothing retailing.

No, the British luxury brand Burberry has been "impatient" before the referendum, and this time the results have come out, and the Burberry are afraid to be disappointed.

It is understood that Burberry in a previous letter to employees pointed out that the United Kingdom (Brexit) will have a negative impact on the company.

Although it did not explicitly guide the internal staff's voting intentions, it said that if Britain stays inside the EU, Burberry will have a better development in the future.

It believes that staying in the EU is of great significance to the import and export business of the UK. Within the EU, British companies can better expand their business and get better protection of their basic rights and interests.

It is reported that most of Burberry's products are manufactured in Italy, and 65% of the cost of sales is settled in euros. If the British pound is devalued from Europe, then the raw material procurement and production costs of Burberry will increase significantly.

So in February of this year, Burberry CEO Christopher Bailey and board chairman John Peace jointly signed a proposal to support Britain's stay in the EU with 195 other British entrepreneurs.

 Burberry

Similarly, the Tata Steel UK group, the largest British Steel Company, and the Beggars group, a famous British music label, also sent messages to employees that Britain would bring "unnecessary economic consequences" to the enterprises after it was disconnected from Europe.

In addition, for other European Union enterprises, Britain's departure from Europe is also a major event affecting their business.

For example, the German Automobile Industry Association warned that if the United Kingdom withdrew from the EU, it might lead to trade disputes between the EU and the UK, which would be a serious setback for the automotive industry, when the German auto industry would consider moving its production base in the UK.

Then, will China, which is half a century away from the United Kingdom, suffer from the influence of "Britain off Europe" at the expense level?

According to reporters, Nomura Securities recently released a report that the United Kingdom off Europe will trigger the pound down 10%-15%.

Roughly estimated, 1 pounds is now equivalent to 9.7 yuan. Assuming that the pound remains unchanged after the depreciation of the pound, the RMB needed for the exchange of 1 pounds will be reduced by nearly 1.5 yuan, and the exchange rate of 10 thousand pounds can save 15000 yuan.

Therefore, for Chinese consumers, the first thing to think about is that the weaker pound will reduce the cost of tourism to the UK, and make shopping more affordable (including physical stores shopping and online shopping).

It is not hard to imagine that the British Sea tribe family is also afraid to be happy to "chop, chop".

Insiders pointed out that if the pound depreciated, it would be good for traveling and shopping in Britain, and the purchase of the same commodity in the UK would cost less RMB.

"As for Hai Tao, it is more affordable for individuals to buy goods on local shopping websites through pit companies.

However, because of the more complex channels and pricing conditions, the e-commerce platform has a direct impact on geometry and is hard to predict.

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