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Business circles doubt Brexit legitimacy

CCTV.com

07-04-2016 17:06 BJT

The UK market is fearing an exodus of international companies after the Brexit vote. There's a wait and see mood in British business circles. We show you what the crucial factors are for companies as they make their decisions to leave or remain in the UK.

Business people in the UK showed support for the anti-Brexit demonstration over the weekend.

A business club's chairman points out the technical flaw in the referendum. Stephen Perry says the vote's turnout rate fell short of 75 percent, and that there were only 4 percent more leave votes than remain votes. He said those facts reduce the legitimacy of the outcome.

HSBC and Barclays have announced that they will keep their European business units in the UK to guard London's position as a global financial hub. But other companies are not bound to do so. 

The immediately shock on companies is clear. Analysts expect a slew of Brexit induced profit warnings this week on the FTSE 100, the UK's benchmark stock index.

Financial firms might face a higher regulatory burden in the EU when their rights for selling financial services expire.

But some others argue that the possible dip in FDI from the EU would pave the way for Britain to expand trade relations with the rest of the world to help mitigate risks from excessive reliance on one trading partner. 

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