In a referendum on 23 June, 52% of the British voting population decides that the United Kingdom should leave the European Union. The historical vote sends shockwaves through financial markets world-wide. Broader economic consequences for the UK will unfold in coming years. The immediate impacts hit in particular British financial institutions as well as housing and travel companies as a weak Pound is expected to leave British consumers holding back on spending. EasyJet is one of the first to announce a profit warning, as it expects its revenue in the second half of the financial year to fall by a “mid single-digit percentage”. It starts a formal process to move its headquarters to continental Europe. Foreign investment banks take steps to move staff from London to other European financial centres. The Brexit vote also impacts current merges & acquisitions.
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