China predicted the consequences of Brexit in the next 5-10 years

The result of the referendum on the British exit from the EU affect markets in the next 5 — 10 years, Reuters reports with reference to the Minister of Finance of China Lou Zivaja.

Jiwei, during the annual meeting of the Asian infrastructure investment Bank said that the market reaction is difficult to predict, but to describe the current response as “hasty” and “excessive”, urging “calm down and look at the situation objectively”.

He stressed that the decision on Brexit “will cast a shadow on the global economy”, and “consequences and negative effects will emerge in the next 5 — 10 years.”

A referendum on the question of exit and the EU was held on 23 June. By the end the supporters of Brexit won with 51.9 per cent (17.4 million people). Opponents of the achieved results in 48.1% (16,14 million). The turnout was 71.9%.

In Brussels after the decision of the people of the UK called the authorities as soon as possible to start the implementation of the decision on withdrawal from the EU. Prime Minister David Cameron has announced his resignation. He explained the decision by saying that he considers the correct preservation of Britain in the EU.

June 24, chief strategist and head of the analytical Department of the Julius Baer Christian Gattiker predicted three waves of volatility in connection with Brexit. In his opinion, the first has already started and is expressed in the active hedging of risks, in particular in the sphere of currency transactions. She will be in on Tuesday and will probably keep some trading days next week.

The second wave will be associated with a chain reaction and attempt to find answers to the questions will be whether the British exit from the EU end. “Watch it will be on the changes in spreads, bond yields of peripheral European States in the coming days. If they will rise, the market is preparing for the collapse of the European Union”, — he explained. The third wave will reflect a reaction beyond the initial comments of European politicians and mitigating interventions of Central banks, and will continue for weeks or even months, said Gattiker.

Interviewed by Reuters, representatives of major European businesses have expressed concern that the victory of the supporters of Brexit means the beginning of a “period of uncertainty”.

About the long period of uncertainty stated in the review and Moody’s. “Immediate market reaction has shown itself in a sharp depreciation of the pound and the fall in world stock markets. Increased uncertainty about the course of negotiations about the new agreement between the UK and the EU are likely to reduce the flow of investment and the level of consumer and business confidence in the UK, which will affect the growth prospects of the country,” explained Moody’s analyst Colleen Ellis.

Agency Standard&Poor’s, meanwhile, said he believes the rating of great Britain at level AAA is now unjustified.