Whatever happens with Brexit, it's the damage up to now

The United Kingdom vote to leave the European Union has already had a high cost, regardless of what is happening with Brexit. Some of the damage is tangible, such as jobs, investments and capital; of others, less, as international influence and talent.

The new defeat of Prime Minister Theresa May in Parliament on 12 March leaves the United Kingdom with the need to delay Brexit. However, the EU must accept, and Brussels officials have warned that there will be more renegotiations.

Meanwhile, the country is still threatened with economic suffering. The political deadlock remains as entrenched, even after the Parliament also voted to avoid leaving the EU without agreement.

This is a summary of the most affected areas to date.

The vote to leave the EU in June 2016 cost the UK about 800 million pounds (1 billion USD) a week, or about 2% of its total economic output, said last month Gertjan Vlieghe of the Bank. L & # 39; England

According to the Lloyds Banking Group, business optimism is at its lowest level in seven years and companies have recorded the longest continuous decline in their investments since the financial crisis a decade ago. The entire investment will not be recovered, even if the exit process goes smoothly, warns the central bank.

The pound has dropped more than 10% against the euro since the UK decided to leave the EU. This has resulted in an increase in the cost of imported goods and services, an increase in inflation and an erosion of consumer purchasing power. At the same time, UK exporters have not been able to take advantage of the weaker pound to increase their market share.

Money and jobs leave London as the world's largest financial companies reorganize their European activities to protect their businesses.

According to people who are familiar with the subject, five of the largest banks wishing to provide their services in the European Union are transferring 750 000 million euros (857 000 million euros) of badets to Frankfurt. They had to move capital in order to get continental approval to continue providing services across the block.

Although fewer bankers than originally planned left London, there are movements. The largest banks in the world have announced plans to transfer several thousand employees in cities such as Paris, Dublin and Madrid. It is likely that these staff movements are irreversible, according to TheCityUK, a lobbying group.

According to the National Bureau of Statistics, the net migration of the European Union to Britain has fallen to its lowest level in a decade.

This concerns the hotel industry, agriculture, construction and the national health service, which face a shortage of labor and who traditionally depend on the workers of the country. EU.

The dynamic job market in the UK is showing signs of concern for Brexit and the number of people placed in permanent jobs has declined in January, for the first time since the 2016 vote to leave the UK. EU.

Then there is higher education. Many are concerned about the impact on international student enrollment, intercultural exchange and learning programs within the EU. The Heriot-Watt University of Edinburgh partly blamed the layoffs at Brexit in 2017, while the University of Manchester also raised the uncertainty surrounding the departure of Britain when He announced the need to reduce costs.

The Brexit cools the UK housing market. Realtors say prices fell in the four months to January, so the Royal Institution of Chartered Surveyors' price index hit its lowest level since 2012. Inquiries, sales and new instructions also declined in January. , according to RICS.

Declining demand for properties has affected home builders, while the weakness of the pound has increased the cost of imported materials and the supply of labor in the sector could be affected by a reduction of immigration.

The Brexit is a perfect storm for car manufacturers.

With the imminent prospect of possible tariffs and supply bottlenecks, and already struggling with the decline in diesel sales and the switch to electric cars, Jaguar Land Rover Automotive Plc has announced the removal of 4,500 jobs, mainly the United Kingdom. Nissan Motor Co. has canceled its plans to build the X-Trail sports car in Sunderland, in northeastern England, and Honda Motor Co. has announced the closure of its only British plant in 2021.

The uncertainty of Brexit has also hurt investment. Expenditures of automakers on projects such as the modernization of machinery and factories have fallen to the lowest since the financial crisis of 2018, according to the Society of Motor Manufacturers.

Communication means

Advertising-dependent media companies, such as ITV Plc, the UK's largest free commercial television network, have suffered because companies have reduced their marketing budgets to preserve their profit margins. Flag of trust between UK companies, and also under the threat of Netflix and Amazon, ITV shares have fallen by 40% compared to the Brexit vote.

Newspapers like The Guardian and the Brexit pro Daily Express they also feel the effects, as the industry accumulates newsprint and ink to protect itself from interruptions of Brexit.

International media companies such as Discovery Inc have moved to Europe to continue broadcasting channels across the EU.

Importers had to spend money on storage and additional facilities to build up reserves for Brexit, worried about possible interruptions in the entry of goods. They are also investing in building new IT systems to manage trade and hiring customs consultants.

Exporters, such as UK meat companies, are starting to see their orders canceled because foreign buyers do not want to risk increasing their costs due to new tariffs or delays at ports.

Pharmaceutical products

The transfer of the European Medicines Agency to Amsterdam has undermined the importance of Britain and has raised concerns about possible delays in the approval of medicines. The agency was in London for 22 years.

The EMA, which oversees the medicines of some 500 million people, has also stopped working for the UK drug regulator because it does not know whether the two organizations will continue to work after Brexit.

Pharmaceutical companies have spent money to expand their testing facilities in the EU and maintain their marketing capacity throughout the country. The industry argues that this money could have been used to develop new treatments.

Farmers have reduced the size of sheep flocks and postponed the purchase of equipment due to the possibility of export tariffs on a Brexit without agreement that would hinder trade. They also store the essentials, such as fertilizer and fuel.

The uncertainty surrounding the pound and the economy has exacerbated the declining role of the pound sterling in global credit markets. Foreign non-financial companies sold only 7 billion pounds of banknotes last year, less than half of the amount issued in 2017, according to data compiled by Bloomberg.

Book-denominated corporate bond sales also experienced their longest drought for nearly two decades at the end of 2018, as borrowers moved away from a market shaken by uncertainty. Brexit. The cost of subordinated bond insurance for major UK banks has also increased in recent months.

Britain's position as a privileged European center for international trade has been hit hard. Japanese companies Sony Corp. and Panasonic Corp., the insurer Chubb Ltd. and the TransferWise exchange company are among the companies that have moved their headquarters to the EU or created new subsidiaries.