The world map has to be re-sketched with new rules of trade and commerce across Europe, which is/was one of the largest marketplaces. Britain has chosen, by a generous margin, to leave the European Union (#BREXIT), and this has set in motion an unmatchable impulsive tune that threatens turmoil and impending crisis—for Britain, for Europe and for the global economy.
Top tweets say
“Brexit’ shockwaves continue to ripple through eurozone markets”
“Insurance sector hit hard by Brexit”
“Europe can no longer do as before”
“'Brexit' vote sends local stock market in the red”
No country has ever left the European Union in past and hence this is the first time Article 50 is triggered to test. Famous Dutch cartoonist JOS COLLIGNON views BREXIT through his cartoon tweeted by Nicoline Tamsma president of EuroHealthNet.
“British stocks have plunged into their biggest crash since the 2008 financial crisis”.
The first implication of #Brexit is swollen pressure on the eurozone’s vulnerable market that already is skeptical about the durability of the euro. Now #BREXIT has paved a path that could lead to the loosening of the hyped European project. The British stocks might have plunged for now but the back and forth flow of the pendulum will bring the pound back to where it began the year. But investors may need a lot of patience and an awful lot of luck to come through that experience in one piece.
Exports to the UK might face a price shock, and the risk of more to come, along with a threat to growth in the market they are selling to. If the sterling’s fall is maintained they will either have to try to hike their prices in the UK, or cut their earnings. Imports from the UK to other parts especially Ireland, meanwhile, should fall in price if sterling’s decline is maintained. But investors may need a lot of patience and an awful lot of luck to come through that experience in one piece.
With BREXIT’s turbulence is already felt severely on the world economic Richter scale, there is significant uncertainty that exists when it comes to looking at what would be the future of the healthcare sector in the UK and Europe. #BREXIT is a major risk to the M&A, private equity and high-yield markets including the healthcare industry. #BREXIT for now is not favorable news in terms of foreign direct investment in the UK, which would certainly result in minimized M&A activity. Over the time, however, we can speculate that the markets will breathe a sigh and get on with business.
In a nutshell, Brexit will impact the regulatory scenario including intellectual property rights, research and development, and market access. Pharmaceuticals and medical device markets are the biggest portfolios for any country and the same is true in the UK. The European Medicines Agency (EMA), which is headquartered in the UK, might have immediate disruption of the regulation of existing medicines. Pharma and medical device companies may decide to disregard the UK when assessing the commercial potential of drugs due to the much higher market access hurdles. They may just start considering the UK as a separate isolated country. At this moment, it is difficult to envisage any positives for the UK pharmaceutical and medtech industry after #BREXIT.
One more important game changer could be the fact that, once free of its EU obligations, the UK might also choose to rescind onerous parts of the MIFID (II) AND MIFIR, which might in turn affect trading avenues. It may also not be very wrong to speculate that the UK will continue to require some level of access to the EU’s Single Market either as part of their brand new affiliation with the EU (post #BREXIT) or because the new UK government might judge it as important for UK businesses. Any of the ways of gaining access to the EU’s Single Market in financial services would necessitate the new UK establishment to be regarded as equivalent to the rest of the EU. If not it might prevent UK trade from offering their services in EU markets.
Time will answer many questions and confirm the many speculations that this blog presents. The UK definitely has in their minds an exclusive “British way out”.