|
|
With less than seven weeks to go before the UK is due to leave the EU, several S&P 500 groups have for the first time put Wall Street on formal notice of the risks should London and Brussels fail to reach a divorce deal.
In its “risk factors” published on Friday, defence contractor Lockheed Martin said a persistently depressed sterling after Brexit could “negatively impact the ability of the UK government to afford our products”.
McCormick, the Maryland food group behind French’s yellow mustard, said no deal would lead to additional border inspections and “likely” result in an “increased cost of goods imported into and exported from the UK”.
Expedia, the online travel company, noted “uncertainty as to the manner and timing of the withdrawal”. “Depending upon the outcome, we may have a material and adverse impact to our business.” [...]
Even US companies with limited UK operations have added Brexit to their risk factors because of the threat of global economic disruption.
“US multinationals identify Brexit as one of their highest risks at the moment, even if their business has only a marginal exposure to the UK and the EU,” said Frank Aquila, a partner at Sullivan & Cromwell. [...]
Full article on Financial Times (subscription required)