Published: Sat, June 18, 2016
World | By Carl Welch

Brexit Could Seriously Effect US Economy, US Warns Against It


GettyOne week to go: Will Britain vote to LEAVE the EU?EU referendum: What do the polls say?

Prime Minister David Cameron is campaigning for the U.K.to remain in the European Union, but many members of his Conservative Party have taken the opposite view.

European stocks rebounded strongly in early deals Friday, with traders saying the murder of a pro-European MP in Britain had boosted the country's chance of staying in the EU.

London's FTSE 100 share index fell 1.1 percent to 5,899, before recovering somewhat to end the day 0.27 percent lower at 5,950.

"This is people adjusting positions because they don't know what's going to happen", said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in NY.

It said a choice for "Leave" would favour "a pinched nationalism" and "marginalisation", adding: "A vote to withdraw would be irrevocable, a grievous blow to the post-1945 liberal world order".

Unilever, Airbus and GE have accused the UK's Vote Leave EU referendum campaign of "deliberately" attempting to "mislead" voters by using their names, trademarks and logos.

The latest June figures were also filtered by those actually registered to vote, and weighted according to a voter's educational background, Ipsos MORI said.

Oil, which has been a major driver of the sharp swings in global markets this year, also helped shift the mood as it rose for the first time in seven sessions. Bank of England officials led by Governor Mark Carney left policy unchanged Thursday and said a vote for a Brexit may damage the country's economy and trigger further weakness in the currency.

"Liquidity is very thin and there is not a lot going on there, but by the looks of things it means sterling/dollar will rise to around $1.5150 if there is a "Remain" vote and drop to $1.3350 if there is a vote to leave", said one trader at a North American bank in London.

The free movement of European Union citizens into Britain, which Out campaigners have cited as the most serious problem with European Union membership, has eclipsed concerns about the negative economic impact from Brexit, which In campaigners regard as their top argument, according to the poll. Some 70 per cent think it is a falsehood.

Mr Gates, who founded Microsoft and the Bill and Melinda Gates Foundation - a philanthropic organisation - also said Britain's European Union membership and access to the single market played a role in the decision to place the company's research facilities in Cambridge.

Despite dozens of investment banks, think tanks, and political organisations predicting that Brexit will destroy the markets and hinder economic growth, Julian Jessop of Capital Economics says in a new research note that the impact of the United Kingdom severing ties with the 28-nation bloc is likely to be a "damp squib".

Page said the Out campaign had made an end to unlimited European Union immigration its main plank over the past month, eclipsing the In campaign's warnings about the economic consequences of a Brexit.

"To the Leave campaign you'd say: 'keep doing what you are doing because it's working'".

Another poll by Survation put "Leave" ahead by 52-48, excluding undecided voters.

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