EU referendum: Moody's cut UK's credit outlook to 'negative'

[Surya Gayatri]

Source: BBC News

The UK has had its credit rating outlook downgraded to "negative" by the ratings agency Moody's after the country voted to leave the EU.

Moody's said the result would herald "a prolonged period of uncertainty".



Meanwhile, PM David Cameron is under pressure to speed up "divorce" talks with the EU after Brussels said exit negotiations should start immediately.

EU head Jean-Claude Juncker said it was "not an amicable divorce", but it was "not a tight love affair anyway".

Moody's said the referendum result would have "negative implications for the country's medium-term growth outlook", and it lowered the UK's long term issuer and debt ratings to "negative" from "stable".

It added: "In Moody's view, the negative effect from lower economic growth will outweigh the fiscal savings from the UK no longer having to contribute to the EU budget."

It also said the UK had one of the largest budget deficits among advanced economies.

Read more: http://www.bbc.com/news/uk-politics-eu-referendum-36626201

---

And, the carnage continues. Already the Brexit ringleaders have recanted on two major promises.

No monies "saved" because of Brexit will be re-allocated to the NHS (the figure of £350m a day was bruited about and used in "LEAVE" campaign billboards).

There will likely be NO appreciable reduction in immigration in the foreseeable future, in spite of Brexit leaders' pre-vote promises.

British voters were sold a crock of shit and they willingly bought it.

"...the negative effect from lower economic growth will outweigh the fiscal savings from the UK no longer having to contribute to the EU budget."

Says it all really.

[msongs]

1. yep Moody's buddies will do everything they can to make sure bad things happen, the

corporate screwing of britain is underway

[Surya Gayatri]

3. I'd rather say they screwed themselves royally. A decades-long

campaign of Euro-vilification and a shameless power play of bigoted lies and half truths has led them over the cliff.

[BlueMTexpat]

5. +1!

I weep for them.

[Surya Gayatri]

6. Me, too, Blue. We euro-zoners and EU citizens are looking on

in fear and trepidation at the cross-channel antics.

Their ill-judged decision will affect 500m+ other hapless people.

[BlueMTexpat]

8. As your neighbor (neighbour?)

in non-EU, non-Eurozone Switzerland that has bi-lateral arrangements with the EU that it has worked out over many, many years and never in an antagonistic manner (although in an embarrassed one after some recent referenda here), I was horrified that the UK would so callously toss away the best of both worlds.

The UK was (is still, for the moment) an EU member, but was neither part of the Eurozone, nor part of Schengen (Switzerland is part of Schengen and the RW here has been livid about that!). They don't have either the problems related to the EZ or Schengen AND TOO MANY SIMPLY DID NOT REALIZE HOW FORTUNATE THAT THEY WERE. They are getting ALL the bennies but few of the problems.

Now they will get NONE of the bennies. Their economy will be on its own - good luck with that! And the immigrants who want to make it to the UK will STILL get there - in fact, there will be less willingness on the part of EU officials to restrict them from leaving the Continent.

I blame voter stupidity, but mostly their media and their politicians who outright LIED to them. The older ones who voted FOR Brexit seem to think that the UK is still the seat of the British Empire. They are in for a VERY rude awakening.

But the 48% of those who voted to Remain have been thoroughly disenfranchised.

The only silver lining - and it is a bitter one: the UK RWers will no longer be able to use the EU as a scapegoat for their own terrible policies that have helped to keep UK income inequality on a par with that in the US.

[Surya Gayatri]

12. Excellent analysis from a European perspective.

So spot on:

"TOO MANY SIMPLY DID NOT REALIZE HOW FORTUNATE THAT THEY WERE. They are getting ALL the bennies but few of the problems."

Then there's this:

"And the immigrants who want to make it to the UK will STILL get there - in fact, there will be less willingness on the part of EU officials to restrict them from leaving the Continent."

And, this, too:

"...the UK RWers will no longer be able to use the EU as a scapegoat for their own terrible policies that have helped to keep UK income inequality on a par with that in the US."

My Brit friends are just gutted. They want to come and live in France, but don't know if it will be possible now.

[muriel_volestrangler]

15. And, talking of lying politicians - another Leaver walks back a fundamental part of the campaign

Free movement of Labour may not end - Brexit MEP

After Nigel Farage’s admission on Friday morning that the official Leave campaign claim that it could spend money recouped from Europe on the NHS was “a mistake”, Hannan told the BBC that Brexit would not necessarily end free movement of Labour. Newsnight presenter Evan Davis was a bit taken aback, given the core immigration message of the leave campaign:

Hannan later professed surprise at the reaction but was greeted with similar scepticism by ITV News’ Europe editor, James Mates:

Daniel Hannan
A lot of Remainers are now raging at me because I *don't* want to cut immigration sharply. There really is no pleasing some people.

James Mates
@DanHannanMEP I suspect they may be raging at you cos yr Leave campaign clearly said it did. Was there a false prospectus being offered?
8:44 PM - 24 Jun 2016

http://www.theguardian.com/politics/live/2016/jun/25/brexit-live-emergency-meetings-eu-uk-leave-vote?page=with:block-576e2c76e4b0be24d34f6017#block-576e2c76e4b0be24d34f6017

It looks more and more like the Tory Leavers, like Hannan, are aiming at just getting rid of worker regulations and human rights guarantees that come from the EU.

[BlueMTexpat]

16. Yes, indeed, it does.

How dare anyone bring up human rights and/or regulations designed to protect people!

The Leavers are all too representative of those who want to do away with federal government in the US.

[Johnyawl]

24. I think the primary target is the NHS

Once Scotland and Northern Ireland exit the UK, England and Wales will be subjected to an austerity program that will rival what Greece has been put through, and will only be 'saved' by dismantling the NHS. The reason they will do nothing about immigration is they will use immigrants to undermine support for the NHS the same way the republicans have used immigrants to undermine support for our social safety net.

[muriel_volestrangler]

25. That's extremely likely for Hannan

He has a long history of calling for the NHS to be dismantled - just search DU for 'Hannan' and 'NHS' and you'll find stories, over several years.

[yardwork]

27. That's what the right wingers always want. Less regulation.

They're very consistent and simple-minded, really. They trick people into voting against their own interests so that corporations can plunder, steal, poison the world, and abuse their employees in the name of "freedom" from government regulation.

Oh, and steal the people's money. Defund the NHS. Privatize social security. Etc.

[ReRe]

14. Agree!

Isn't Moody's the one that down-graded us when the Republicans shut down Congress a few years ago?

[Iliyah]

2. Many GB voters are thinking twice about their votes and realize they were lied too.

Oh well.

[Surya Gayatri]

4. Yeah, only now, 24 hours after the fact, Google is inundated with

"What is the EU?" searches. The world needs delivering from an ignorant, ill-informed and willingly-manipulated electorate.

Curses on Rupert Murdoch and his manipulative media empire. May he be condemned to read his papers' spurious copy for eternity.

[Iliyah]

7. Murdoch's empire newpaper/radio/tv bullshit trash comes close to

WW1 - WW2 mentality status. Ya think the world would have learned from it's past.

[tblue37]

19. Also like the way Hearst drove the Spanish-American War with sensationalism and lies. nt

[Feeling the Bern]

17. No Buyer's Remorse, UK

Suck it up and deal with the blowback. It won't be pretty.

[Cha]

9. Thank you, Surya!

[Surya Gayatri]

10. Pleasure.

[Cha]

11. ..

[TubbersUK]

13. K & R

[sulphurdunn]

18. Who is poised to benefit from this?

I'm having a difficult time believing the powers that be in Britain would have permitted a vote on something this big if the outcome could derail their financial interests

[suffragette]

23. Boris Johnson and those who back him

If he can hammer and slide his way into PM.

He'll stop at nothing to win.

https://m.

[GoneOffShore]

20. Glug, glug, glug.

The sound of 2008 all over again.

[ProudToBeBlueInRhody]

21. You broke it, you own it!

Just like when Amuuuuurrrikka installed the baggers and reaped their idiocy.

[Surya Gayatri]

22. They're only beginning to wake up to this reality.

"Voter remorse" is trending.

[enid602]

28. or

or, You Brexit, You Bought It.

[Agony]

26. Fuck Moody's - corrupt bastards along with

Fitch and S&P

pull their license to operate and bankrupt the fuckers

[Surya Gayatri]

29. Sounds feasible and so reasonable. Or, why not blow up their headquarters? [sarc]