What Does This Mean In Real Terms

[sp1814]

I know that we are now getting our sovereignty back and our borders are going to be nice and secure and we might get our first truly blonde PM since Maggie Thatcher, but what impact will our credit rating do to us - the man and woman in the street?

https://www.theguardian.com/business/live/2016/jun/27/pound-shares-markets-brexit-crisis-osborne-lew-business-live

I'm assuming that this will be a temporary blip until the markets stabilise, and we're only a few days into this - but is there any reason to be concerned?

The bit about tax revenues rings alarm bells for me.

[ToraToraTora]

our credit rating will not be affected.

[ToraToraTora]

let's see that's the Guardian you are quoting there......mmmm!

[bazwillrun]

just like last time when moodys tried to shaft us...nothing

[EDDIE51]

London is the prime center for European financial transactions. It makes us a huge amount of foreign exchange some estimates say up to 40% of our total 'export' income. Once we are out of the EU we can not continue to be the 'Euro' financial center. Though we are outside the Euro we are in the Euro trading zone and more 'Euro' business is traded in London than in all the rest of the EU added together! Once out of the EU we can not possibly continue to trade for the EU. It would be like the EU trade being carried out in India ! or New Zealand.
HSBC has already announced that it will be moving its entire EU operation center to Paris!with the loss of 1,000 high paid jobs! The rest will follow!
I think we will get a deal on manufacturing trade / physical import and export but not on financial trading.

[naomi24]

//is there any reason to be concerned? //

No.

[New Judge]

No European "single market" for financial services exists. The only stumbling block is the "passporting" of euro transactions carried out in London. A solution will be found to this which will be beneficial to both London and the EU.

[sandyRoe]

What if the Germans want to show that leaving doesn't come without costs?

[jourdain2]

No need for any real concern as long as everyone keeps their heads and the poor losers do not succeed in talking the country down. Any blips will then be just that - blips and things will calm down.

[EDDIE51]

TTT ''our credit rating will not be affected''
In case you have not seen the news it already HAS been affected we have lost our AAA rating which has dropped us out of the leaders table of world trading.

[jourdain2]

Further to the HSBC comment - they are only considering moving 1% of their staff to Paris and they will probably be the French ones who currently live in London. I don't se 'passporting' as a problem, most banks have a branch in each of the European nations, which is all required. It's easy enough for any of the others to open a small European branch wherever needed to satisfy the requirements.

[Playbill]

We can always go to the IMF for help.

[ladybirder]

Mervyn King seems to be talking a lot of sense to me. I'd rather go with his unflappable, pragmatic view of things than some of the rubbish I'm reading.
https://www.theguardian.com/business/2016/jun/27/mervyn-king-brexit-treasury-claim-backfired-osborne

[EDDIE51]

New Judge if you really believe the Germans , who have been desperate to grab London's 'euro transactions' market for Frankfurt for years will allow this opportunity to pass you really do have 'rose tinted glasses' on!

[EDDIE51]

jourdain sorry, but your comment at 22.44 really shows how little you understand about international finance. There are only 3 centers that have the resources do this in the entire EU, London ,Paris and Frankfurt. You don't do this from 'bank branches' it needs a stock exchange and huge specialist companies who do nothing else.

[naomi24]

In real terms it means that the people of this country have made a courageous decision which necessarily and not unexpectedly has resulted in some temporary uncertainty. Don't panic. It will pass. Enough with the hysteria!

[jourdain2]

I gleaned my answer from the Telegraph business pages - you only need to have a presence in a European country. Are with the Telegraph, not me. The people writing there seem to know their business and as I am no expert I tend to believe them.

[jourdain2]

^^^ 'argue with them, not me'.

[sp1814]

So I assume there are other credit rating agencies? There can't just be one, right?

The reason I'm asking these questions is that no-one (Leave or Remain) seems to have a clue as to a) our exit strategy, timescales or...or anything.

This is what financial markets don't like - uncertainty.

Do we have to rely on Dave to sort this out?

Not being funny, but that's like having a Finance Director of a company who's just resigned, doing the annual accounts. His mind is on his holiday in Tenerife, and beach shorts.

(Okay...probably not Tenerife).

[tonyav]

Read what Martin Lewis say's.

http://www.msn.com/en-gb/money/news/martin-lewis-shares-his-most-important-advice-after-shock-brexit-vote/ar-AAhFwif?li=BBoPMmp

[naomi24]

SP, if you think //that no-one (Leave or Remain) seems to have a clue as to a) our exit strategy, timescales or...or anything// why do you expect anyone here to answer the question?

You seem to have forgotten to list (b) and any subsequent questions you may have been pondering. I can only advise patience.