Brexit and Trump Are the Top Worries for European ExecutivesBy
UBS survey shows Brexit could see firms cut U.K. capacity
Poll of 1,200 companies was conducted July 14 to Aug.31
Brexit and Donald Trump are the two biggest political risks, according to European companies surveyed by UBS.
Describing 2017 as an “exceptional accumulation of political event risk,” UBS asked corporates what they’re most worried about and what they might do in response. On Brexit, 43 percent of euro-area companies expect to cut U.K. capacity “strongly” as a result of the country leaving the EU. Worryingly, 15 percent said they’d pull out all their capacity, up from 10 percent in the first quarter.
“The responses to questions relating to Brexit, and its potential impact on eurozone companies’ investment plans, demonstrate and intensify the concerns we have expressed in the past about the detrimental impact the U.K.’s exit from the EU may have on private sector investment” - UBS.
Political developments in various European countries appear less of a concern in the survey, though it was conducted before the latest escalation in the Spanish region of Catalonia.