“If we’ve a no-deal Brexit … definitely the U.Okay. financial system and the EU financial system might be in recession, and I feel the remainder of the worldwide financial system might be not too far behind. So I feel that’ll be an actual drawback as nicely,” he mentioned.
Indicators of slower development in a number of main European economies are already threatening international locations globally, famous Frederic Neumann, managing director and co-head of Asian economics analysis at HSBC. If Brexit pushes Europe right into a recession, rising economies — notably these in Asia — may get hit by way of two channels, he mentioned.
For one, “Europe would disappear as an enormous driver of demand for exports,” Neumann informed CNBC’s “Capital Connection” on Tuesday.
Secondly, a weaker Europe would result in a rally within the U.S. greenback as buyers search safer investments, he mentioned. “A stronger greenback isn’t good for (rising markets),” Neumann added.