Nissan, the U.K.’s biggest carmaker, also said it will increase investment in its north east England plant and add 7,000 autoworkers, diminishing fears that the Brexit vote would drive away foreign investors.
“In the short term this is a relief for the euro skeptic and hard-core pro-Brexit camp,” Carsten Nickel, deputy director of research at Teneo Intelligence in Brussels, told Bloomberg. That “could pose additional risks, in my view, for the medium- to longer-term because the more emboldened this constituency feels, the more dangerous this gets for the outlook.”
However, there are still questions over how leaders can amicable separate the U.K. from the European Union without a large fallout.
“This is a really long, drawn-out process and we’ve just seen the early start of it,” former Bank of England policy maker Danny Blanchflower told Bloomberg. “The suspicion is there’ll be more slowing to come – we’re in a fairly benign world with perhaps a tsunami coming.”
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iShares Currency Hedged MSCI United Kingdom ETF (NYSEArca: EWU)