Brexit Seen Axing $40 Billion From North America Company Profits
- Currency turmoil forecast to have record drag on results
- Lack of clarity on U.K.-EU relationship weighs on firms
A trader monitors financial data on computers screens at ETX Capital, a broker of contracts-for-difference, in London, U.K. on Thursday, June 23, 2016. The pound headed for its biggest-ever drop, leading a decline in U.K. assets, as early results in Britain's European Union referendum pointed to a potential victory for the 'Leave' campaign.
Photographer: Chris Ratcliffe/BloombergBrexit is still sending shock waves through the $5.3-trillion-a-day currency market -- and that’s bad news for multinational companies, according to FiREapps.
Earnings in North America will probably be cut by a record $35 billion to $40 billion in the second or third quarter as businesses gauge the impact of the U.K.’s vote to leave the European Union, said FiREapps, which makes software to help firms reduce the effect of foreign-exchange swings.