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Brexit shock - France 'overtakes UK as world’s fifth largest economy' after pound plunges
express ^ | June 24, 2016 | Tom Batchelor

Posted on 06/24/2016 2:36:50 PM PDT by Berlin_Freeper

FRANCE has overtaken the UK as the world’s fifth largest economy after the pound plunged to a 31-year low, with the vote to leave the EU reverberating across the world's financial markets.

In news that will be welcomed in Paris' financial sector, economists say Britain has dropped into sixth place in the wake of a vote for Brexit.

The development will ring alarm bells in the City, coming after ratings agency Standard and Poor's warned it would likely downgrade the country's triple A rating.

(Excerpt) Read more at express.co.uk ...


TOPICS: United Kingdom
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To: Berlin_Freeper

Talk about a non-story!


21 posted on 06/24/2016 2:49:44 PM PDT by aquila48
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To: agere_contra

If “leave” sentiment takes hold, it will be the Euro taking a beating. They’re crowing now because it has to look bad for Great Britain to leave, otherwise others will follow.


22 posted on 06/24/2016 2:51:09 PM PDT by RegulatorCountry
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To: Blood of Tyrants

But, if the downturn continues, demand drops, then the producers of the raw materials will have to take that into consideration. The raw material producers still have to sell their products if they want to make money and stay in business. Just saying.


23 posted on 06/24/2016 2:51:14 PM PDT by Parmy (II don't know how to past the images.)
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To: Berlin_Freeper

Still will be trying to catch up to California.


24 posted on 06/24/2016 2:52:08 PM PDT by SkyDancer ("They Say That Nobody's Perfect But Yet Here I Am")
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To: RegulatorCountry

During trade negotiations, the EU is going to put the screws to the UK.


25 posted on 06/24/2016 2:53:37 PM PDT by Timpanagos1
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To: Berlin_Freeper

This is all a big pantload.

First off, most of these so called negative effects, markets etc are going to go back. This is all temporary.

France now has a larger economy? Is it producing more goods and services than last week? Hell no. Is the UK producing fewer? Nope. This is all relative currency valuation. And the real irony? Everyone has been deliberately debasing their currency in a race to the bottom. According to current dogma, a weaker pound should be wonderful. But because it is happening via Brexit, oh no, the sky is falling.


26 posted on 06/24/2016 2:53:56 PM PDT by ChildOfThe60s (If you can remember the 60s, you weren't really there....)
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To: Timpanagos1

If the Pound Sterling remains low, that will counter a fair amount of any attempted EU penalties.


27 posted on 06/24/2016 2:55:29 PM PDT by RegulatorCountry
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To: Parmy

You can only reduce the price of your product so much and still stay in business.


28 posted on 06/24/2016 2:56:36 PM PDT by Blood of Tyrants (Socialism is always just one or a thousand or a million more murders away from utopia.)
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To: Blood of Tyrants

Well, it remains to be seen what the outcome of this will be.


29 posted on 06/24/2016 2:57:55 PM PDT by Parmy (II don't know how to past the images.)
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To: miss marmelstein

It is shear hysteria and speculation.


30 posted on 06/24/2016 2:58:21 PM PDT by Blood of Tyrants (Socialism is always just one or a thousand or a million more murders away from utopia.)
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To: Timpanagos1

The German BDI (Federation of Industry) are already crying out for a free trade agreement to be instituted with the UK.

They sell stuff to us, you see. We have a trade deficit with them. We have a void that anyone who makes cars and bikes (India, China, S Korea etc) can fill - but Germany can’t so easily find another well-off customer.

We hold the whip-hand. The only way we get a bad deal is if the Conservative party messes up.


31 posted on 06/24/2016 2:59:36 PM PDT by agere_contra (Hamas has dug miles of tunnels - but no bomb-shelters.)
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To: RegulatorCountry

The U.K. needs the E.U. more the E.U. needs the UK.


32 posted on 06/24/2016 3:02:34 PM PDT by Timpanagos1
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To: Timpanagos1

Other way around. We are a huge customer. If they lose us behind a tariff wall of their own devising, then their manufacturers will crash and burn.

Markus Kerber of the German BDI has already acknowledged this, though perhaps not in such colorful language.


33 posted on 06/24/2016 3:05:35 PM PDT by agere_contra (Hamas has dug miles of tunnels - but no bomb-shelters.)
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To: Parmy

Yes. It will help their exports and tourism, to name a few. Other countries are trying to devalue their currency and Britain did it in one night!
Trump pointed out the benefit of the devalued currency and I saw Hillary tweet mocking him about it. She’s the moron, but people following her that don’t understand monetary policy will agree with her.


34 posted on 06/24/2016 3:15:54 PM PDT by Rusty0604
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To: Berlin_Freeper

The sky is falling, the sky is falling.


35 posted on 06/24/2016 3:16:00 PM PDT by VRW Conspirator (American Jobs for American Workers.)
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To: E. Pluribus Unum

Yep.


36 posted on 06/24/2016 3:28:16 PM PDT by Rusty0604
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To: ChildOfThe60s

Bingo! I just made a similar post.


37 posted on 06/24/2016 3:29:27 PM PDT by Rusty0604
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To: Berlin_Freeper

The absurdity of that statement should be obvious. What they mean, is that by the current exchange rate for the pound, in comparison with the Euro/Dollar/Yen/Swiss Franc/ etc the blah blah.

Obviously the British economy didn’t lose value overnight. Pure stupidity.


38 posted on 06/24/2016 3:32:29 PM PDT by I want the USA back (Jihadi-hating CRUSADER. Like it or STFU.)
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To: Timpanagos1
The U.K. needs the E.U. more the E.U. needs the UK.

They have a trade deficit but there's not a huge difference between exports vs imports. Their top export markets are not completely dominated by EU nations. Neither are their top importers. They will likely suffer increased inflation in the near term, but exports will increase due to more favorable currency exchange. The primary source of legitimate worry appears to center upon London and finance.

39 posted on 06/24/2016 3:35:54 PM PDT by RegulatorCountry
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To: Berlin_Freeper

“In news that will be welcomed in Paris’ financial sector, economists say Britain has dropped into sixth place in the wake of a vote for Brexit.”

That kind of logic has always puzzled me. There was a vote and somehow wealth that was in England disappeared in a matter of hours. It also indicates that it could return in a matter of hours if it merely depends on someone’s state of mind.

You would think that wealth is attached to goods and services, production capacity, consumer purchasing power, mineral stores, intellectual capital, etc.


40 posted on 06/24/2016 3:37:17 PM PDT by odawg
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