BREXIT Fears are way way over-hyped. Proof is look at CIA Factbook 2014. Great Britain's total GDP is $2.95 Trillion 6th largest in world BUT 7th largest would be State of CALIFORNIA at $2.35 Trillion. Now subtract out GDP of Scotland and N. Ireland that both voted overwhelmingly to STAY in EU -- they both will leave the UK (Britain) if British Parliament ever passes law to leave the EU. Britain without Scotland and N Ireland has LESS GDP THAN CALIFORNIA folks. So its like the State of Texas or Florida pulling out of some trade deal. Who cares. Plus see article on CNBC even if England ever should pull out of the EU, they still will make separate Trade Treaties with the EU, just as Norway and Switzerland have. So the Brexit thing is way over-blown.
Even though USA and UK have been allies in wars, does not mean our economies are allied together. Rather England's economy was allied with the Common Market / EU since the 1970s (and USA products were discriminated against with high tariffs in the EU). Brexit is bad for the City of London Financial District in particular. MANY BIG BRITISH BANKS WILL LOSE LOTS OF BUSINESS FROM BREXIT IN INTERNATIONAL FINANCE. BUT their loss is NEW YORK's and OTHER FINANCIAL CENTERS' GAIN. USA will gain from Brexit. USA also GAINS because Brexit caused lower interest rates, which takes the Fed Reserves planned rate rises off the table for perhaps balance of 2016.
Lower Rates for USA home-buyers...etc., and more International Finance Business coming to New York and USA on account of Brexit = GREAT NEWS FOR USA.
1. The lost business of London Financial Center and lost earnings of British Banks, a lot will come to New York's Finan. Center and NY's Banks.
2. Britain's slower growth causing Lower Interest Rates worldwide, takes the US Fed. Reserve's "rate hike" off the table, maybe for all of 2016.
3. USA never got preferential tariffs in the Common Market / EU anyway. So is not losing anything.
AS THE SMOKE CLEARS, IT WILL BE CLEAR USA IS BETTER OFF.
Common Sense. Its also good for USA, as the lower world-wide interest rates from lower British growth going forward = NO US FED RATE INCREASES (the US $ has already gone up enough).
Because China has announced its cutting out about 1/12th of its Steel Making Capacity. Cutting 7.5% and having 2 of the biggest Steel Cos. in China MERGE and consolidate and reduce capacity. SOURCE: Bloomberg News.
This Brexit thing while good for the lower class workers of England (means no more poor 3rd Worlders flooding in, knocking down pay at the low end, and means lower Sterling Pound Exchange rate, helps factories in England export more)..... ITS HORRIBLE FOR U.K. BIG BANKS AS THEY WON'T BE ABLE TO COMPETE IN MOST INTERNATIONAL BANKING ANYMORE. HOWEVER London's going down as Intern. Banking Center means Frankfurt Germany and New York USA will go up. ITS GOOD FOR JPM.
Read last night's Bloomberg News from China. FURTHER NEWS today came out the 2 biggest Steel Cos. in China, are being merged and capacity reduced, at the Chinese Govt's urging. Wuhan Steel was name of one.
Overnight on Bloomberg News, its reported China has agreed to shutter about 1/8th of its Metals and Coal Capacity. 2 of the largest Steel makers in China are being merged and capacity reduced. News actually said 7.5% reduction in capacity.
As US Treas. Secy. just said: "NO FINANCIAL CRISIS IS DEVELOPING". And he's speaking later at a Bretton Woods conference in Europe. All that happened by Brexit is the British need not let in their EU Quota share of Mideast Muslim War Refugees from Iraq and Syria (via Turkey pushing those poor muslims into Europe). And the British lose the ability to travel and work visa-free in European countries as well. The British still have their own Currency the GBPound, and still honor all their Pound Sovereign Debts. THere's no Defaults going on here. And fact the GBP has floated down 10% only makes Britain's exports do better in a lot of the world and to account for fact Britain will no longer be in the EU (Common Market it used to be called for Tariff free trade with Europe).
OK, but its ONLY Political Change, very little real Economic change. England keeps its Currency, and continues to honor all its Sovereign Debts. Its not at all like the Greece Thing from 2 years ago. All it really changes is that Britain soon need not take its EU-Quota of Mideast Muslim War Refugees (opportunistic welfare collecting migrants Turkey is pushing into Europe).
See Bloomberg News 6/26 article just before mid-night. Discussing reasons the Chinese Stock Market is up, and announcing China Cutting Steel and Coal Production by 7.5%
This will bring Supply and Demand back into balance in many of the metals markets such as Steel, helping prices long-term.
China's Stock Market is UP overnight, on News Bloomberg is reporting the steel and Metals stocks are up, as China has announced it will cut 1/8th of Metals and Coal Capacity in CHINA. This is great news for Metals and Mining and even Energy Shares. They are going up in China overnight, over-coming Brexit Fears.
Chinese stock markets are up overnight, as Steel and Metals stocks get big boost from Plan to Cut Capacity thru-out China, by government.
Brexit fears are mostly HYPE. Who knows if Parliament in the UK will even vote to exit the EU. The referendum was non-binding and is not law. And even if they do exit the EU, they were not even using the EU currency nor have any debts to the EU Central Bank (England kept its own central bank and currency). So its a lot of nonsense for the world economy. CHINA HOWEVER AGREEING TO CUT 1/8th CAPACITY IN METALS AND COAL HOWEVER IS A HUGE REAL FACT. China is world's biggest producer and consumer of such... and mostly exports steel....etc. This will help boost prices long-term.
Bloomberg Business News just before midnight 6/26/16, reports CHINA HAS ANNOUNCED IT IS CUTTING 1/8th Capacity in Metals and Coal Production. News reports 7.5% of mills will be closed. China is an outsized producer and consumer in the world of steel, copper...etc. This will boost prices long-term or at minimum bring supply and demand back into balance. This is great news for metals and materials producers in USA such as FCX, ASK, X....etc.
China stocks are up today, despite the Brexit Gloom from Europe. Main reason a Bloomberg article just before midnight 6/26/16, is China has announced they will close 7.5% of Coal and Steel Capacity. That's about 1/8th of the country's capacity to be shuttered. This will give a boost to Steel Prices long-term.
Your thoughts? By the way, when will British Parliament actually vote to do Brexit and will they do it (the Referendum was non-binding vote, not the Law in the UK), now that its become clear that Scotland prefers to stay in the EU and will exit the UK (Great Britain) if the UK votes to exit the EU. What British Parliament is going to vote to leave the EU if it means the end of the UK? Even the Queen has her castle in Scotland.