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  • 07.07.16

What Brexit is affecting this week: Chocolate prices, bank jobs, and more

The first signs of Brexit’s direct impact on people’s lives is beginning to show just two weeks after the United Kingdom’s vote to leave the European Union:

• The pound hit a new 31-year low yesterday against the dollar of $1.27. The pound had been $1.50 against the dollar before Brexit. Analysts are saying that the pound could reach parity with the dollar by next year, reports Reuters.

• France has now overtaken Britain as the world’s fifth largest economy, says Reuters.

• £18 billion of U.K. property funds have been frozen due to too many investors trying to take their money out of seven property funds, reports Reuters. There was a run on the funds because of the expected slowdown in the property sector in the U.K. The freeze means investors will not be able to withdrawal from the funds for the indefinite future.

• Are you British? Do you like chocolate? The cost of your Snickers is about to go up.

• JPMorgan Chase & Co. CEO Jamie Dimon says he will relocate thousands of jobs from the U.K. to continental Europe should Brexit hurt banks, says Bloomberg.

USA Today has a nice piece on how some companies say Brexit will affect them.

• The United Nations has now said Brexit could depress seafood trade in the short and long terms, reports the Financial Times.

• Lenovo, the world’s largest computer maker says the prices of its computers will get more expensive in the U.K. due to the falling pound, reports Bloomberg.

• Dell, OnePlus, and other electronics makers are also rising the prices of their devices in the U.K. by as much as 10%, says the BBC.

• Heads of the U.K. technology sector say a Brexit vote is disastrous for the local tech industry, reports the Guardian.

Recode also says tech and media companies may abandon London in wake of Brexit.

• Over 75% of Politico‘s Economic Caucus of political and industry insiders says Brexit will result in major economic slowdown for the U.K. with one saying Britain scored “an astonishingly avoidable own goal.”

• Brexit will hurt NATO’s ability to provide peace and stability in Europe and elsewhere, reports Politico.

• After seeing what’s happened to the U.K. economy in only two weeks after the Brexit vote, support for staying in the EU has surged in other countries.

[Photo: Bill Smith]MG