The U.K. Is 'Shooting Themselves In The Foot And It Is Going To Get Ugly'
The British pound experienced a nasty flash crash Thursday evening and failed to recover all of its losses on Friday. On Monday, the currency was trading lower by nearly 0.50 percent, as Brexit concerns aren't fading away.
According to Bloomberg, the U.K.'s Prime Minister Theresa May is visiting Denmark and the Netherlands today to build an "understanding" for the government's Brexit position ahead of an EU summit in Brussels later this month.
May recently offered a timeline for the country's withdrawal from the European Union and expects the official process to begin around March of next year and last around two years.
May and the government needs to reach a collective agreement with all remaining members of the EU. So far, governments from France and Germany are hinting they are prepared to make the negotiations as difficult and even painful for the U.K. Even the European Central Bank's President Mario Draghi warned there will be economic consequences for leaving the union.
Nouriel Roubini, the famed economist who earned the nickname "Dr. Doom," was quoted by Bloomberg as saying the U.K. is "is really shooting themselves in the foot and it is going to get ugly."
Roubini further suggested that the U.K.'s economy will "stagnate" at one percent growth for the next five years.
Roubini's doom outlook is consistent with a Morgan Stanley report, which argued there is a 70 percent likelihood the U.K. will lose access to the EU as a single market.
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