|WHAT'S NEXT FOR BUSINESS AFTER 'BREXIT'?|
Aruba, August 19, 2016 - Scarecrows depicting David Cameron, left, the former prime minister of Britain, and Boris Johnson, the foreign secretary, are displayed during the Scarecrow Festival in Britain on July 31.CreditDarren Staples/Reuters
In the run-up to Britain’s vote to leave the European Union, the two sides of the referendum debate had diametrically opposing views of the economics. Was voting for “Brexit” casting a ballot in favor of recession, or a vote for financial freedom?
More than a month on, little is clear. Britain’s trading relationship with the European Union will probably be in limbo for years. Companies are reassessing their long-term investments in Britain. And no one is sure what will happen to the Europeans working in the country.
Here is how the “Brexit” vote has shaped business so far:
1. Financial Ripples
The last price of the FTSE as of Friday.
The FTSE has gone up about 8 percent since its close price just before the referendum vote on June 24.
The impacts of the “Brexit” vote have been felt most sharply in the markets.
The pound has plummeted, and is now more than 10 percent lower against the dollar compared with a year ago. Mutual funds dependent on the country’s property sector have felt the strain — real estate funds run by Aviva Investors, Standard Life and M&G Investments, among others, shut their doors as panicked customers sought to withdraw their cash en masse.
Stocks, however, have been more resilient. After falling sharply in the wake of the referendum, Britain’s benchmark share index is now comfortably above its close on June 23, the day of the vote.
2. The New Art of the Deal
The price of the pound in dollars, rounded as of Friday.
The British pound has dropped 12 percent since it was valued at $1.47 just before the vote to leave the European Union.
The steep fall in the pound has changed merger calculations for companies around the world.
Read more at: http://www.nytimes.com/interactive/2016/business/international/brexit-latest-fallout-tracker.html?ref=international&_r=1