Each week, we bring you a roundup of some of the biggest stories making headlines in the business world.
Here are five things, which are naturally centred around Brexit, that happened that you should know about:
Brexit has resulted in extreme market volatility and fear of a global recession while the future of European integration is questioned. Total losses of $3 trillion means Brexit has resulted in greater market value destruction than in any prior two-day period.
According to one of Goldman’s top economists, Jan Hatzius, the British economy is expected to enter a minor recession by 2017 following the triumphant “Leave” vote. Goldman believes key risks to the global economy include terms of trade, corporate investment and tightening financial conditions.
Gold has increased more than 25% just this past year simultaneously making gains of 5% on Friday after the Brexit decision. Gold is known to gain during times of market discrepancy such as in 2011 during heavy conflict in the US Congress over America’s credit rating.
The Canadian-based company is now proceeding with legal action seeking more than $15 billion as a result of loss of business over the US government’s rejection of the Keystone XL Pipeline. TransCanada has filed for arbitration arguing that the U.S. did not fulfill their commitment to protect Canadian investors.
Rating agencies Standard & Poor’s and Fitch Ratings have downgraded Britain’s credit rating following last week’s vote to exit the European Union. The agencies believe that the referendum result will create more uncertainty and instability within the UK economy.