‘Brexit’ could send shock waves across u.s. and global economy – the washington post gas x strips ingredients


International policymakers are ramping up their warnings of the dangers of a British exit – popularly known as Brexit — from the political and economic alliance that has united Europe for the past four decades. Voters in Britain will decide whether to leave or remain in the European Union in a referendum on Thursday, but financial market volatility has already spiked as polls show a growing desire to abandon the partnership.

The decision carries hefty consequences for American businesses, which employ more than a million people in Britain. The United States is the largest origin electricity login single investor in Britain, and many firms consider it the gateway to free trade with the 28 nations that make up the E.U. A Brexit would jeopardize their access to those markets, potentially reducing revenue and forcing some firms to consider relocating their European operations electricity 1 unit how many watts elsewhere. That has put corporate America onto the front lines of the campaign to keep the union together, with several of Wall Street’s biggest names donating substantial sums to the effort.

The International Monetary Fund on Friday issued one of the most dire forecasts to date, calling the impact of Britain’s departure from the European Union negative and substantial. The fund predicted that a Brexit could reduce economic growth by up to 5.6 percent over the next three years in its worst-case scenario. The gloomy outlook is driven by an expected sharp decline in the pound and severe disruptions in trade as the nation is forced to renegotiate deals with countries across the continent, potentially on worse terms.

Those concerns were echoed by policymakers around the world last week. The Bank of England called the referendum the largest immediate risk facing U.K. financial markets, and possibly also global financial markets. Finland’s finance minister dubbed Brexit a Lehman Brothers moment, referring to the collapse of the U.S. investment bank during the depths of the financial crisis in 2008. And in Washington, Federal Reserve Board Chair Janet L. Yellen said gas stoichiometry calculator the threat of a Brexit factored into its decision to remain cautious and keep its benchmark interest rate unchanged last week.

Financial markets are already starting to feel the tremors. Britain’s currency has fluctuated wildly, while London’s major stock index plunged nearly 6 percent in less than two weeks and flirted with its lowest level in four months. Skittish investors piled into the safe haven of government debt, and high demand pushed yields on the 10-year German bond into negative territory last week for the first time in history. In the United States, yields on comparable Treasury notes dropped to near-record lows not seen since 2012.

The challenges are coming at an already weak moment for Europe’s economy — and the world’s. Europe is still recovering from the series of financial crises that have been roiling countries such as Greece and Italy along with others across the continent. Waves of refugees from the Middle East are spurring political and cultural unrest. And there gas prices in texas 2015 are worries about the strength of the economies of Europe’s major trading partners, including China and the United States gas what i smoke.

While financial markets would bear the brunt of the immediate impact of a Brexit, the referendum raises deeper questions for businesses on both sides of the Atlantic. If Britain votes to leave, it would spend at least two years working out the terms of its departure, with all signs pointing to an acrimonious negotiation. Britain would also need to procure trade agreements with countries around the world, including the United States, a process that could take years. Businesses say the protracted debate would leave them stuck in limbo.

The heavy-equipment giant Caterpillar exemplifies the dilemma facing American businesses in Britain and the potential ripple effects of the referendum. The company manufactures heavy machinery and is headquartered in Peoria, Ill. More than 55 years ago, it opened its first facility in Britain, and now Caterpillar has 9,000 employees and 16 plants there making equipment, such as backhoe loaders and mini hydraulic excavators.

Much of that production is exported throughout Europe and other parts of the world, eased electricity research centre by the E.U.’s open market and standing trade agreements. A Brexit would undermine an economic alliance that the company has called fundamental to its business: Roughly a quarter of Caterpillar’s sales and revenue comes from its European business and the more limited operations in Africa and the Middle East.

Brexit backers, however, say the E.U. creates burdensome regulations that have hurt British innovation and competitiveness. Last month, a group of 250 business leaders signed a letter supporting an exit, and the head of one of Britain’s largest business groups resigned his post after receiving fierce criticism for appearing to sympathize with the leave campaign.

Still, many Brexit supporters are not executives but employees. A recent YouGov survey showed that leaving the union was popular among older, conservative, blue-collar laborers — many of whom live in Peterborough, where Caterpillar runs a plant manufacturing diesel engines. In April, British Prime Minister David Cameron visited the factory to address skepticism over the benefits of the European alliance.

Other big U.S. businesses have thrown their weight behind the effort to stay in the union, as well. Ford’s U.K. division sent a letter to its gas definition 14,000 employees emphasizing the importance of maintaining stability and preventing gas constant in atm disruptions in trade. Wall Street’s biggest banks, including Citigroup, Goldman Sachs, J.P. Morgan and Morgan Stanley, reportedly have donated hundreds of thousands of dollars to Britain Stronger in Europe, the leading campaign to remain. A survey by BritishAmerican Business found that 70 percent of its members thought a Brexit would damage their operations or future investments.

Because the products she buys are largely priced in U.S. dollars, Britain’s weakened currency has shaved 20,000 to 30,000 pounds from her bottom line in a single month. Meanwhile, Spang had hoped to distribute throughout Europe, taking advantage of a single E.U. regulatory process for the approval of medical devices marketed to its 500 million residents. But if a Brexit becomes a reality, she could lose easy access to those potential customers — and so would her U.S. suppliers.