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Soros: Brexit risks 'Black Friday'

Tuesday, June 21, 2016 - 01:49

George Soros, the billionaire who earned fame by betting against the pound in 1992, says that a British vote on Thursday to leave the European Union will trigger a bigger and more disruptive sterling devaluation than the fall on Black Wednesday. As Sonia Legg reports, many big companies are also warning about the impact of a vote to leave the EU.

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Two days to go and the heavyweights are weighing into the Brexit debate. Billionaire George Soros - who made a fortune betting against the pound in 1992 - says a vote to leave the EU would be more disruptive than Black Wednesday Sterling - he says - could fall 20 percent. (SOUNDBITE) (English) GLOBAL FINANCIAL ECONOMIST, COMMERZBANK, PETER DIXON, SAYING: "Over the course of the last 45 years or something, the biggest single move in the sterling dollar rate did occur in September 1992 and it was the order of 4.1 percent. So anything bigger than a 4 percent move will certainly be on a par, maybe slightly bigger than Black Wednesday." He's not alone - Vodafone's CEO sees huge disadvantages from being outside the new digital single market. And French firms BNP Paribas and technology group Safran are urging Britain to stay put. Even Hungary's Prime Minister Viktor Orban has taken out a personally signed ad in a British newspaper declaring his country proud to have the UK in the bloc. (SOUNDBITE) (English) GLOBAL FINANCIAL ECONOMIST, COMMERZBANK, PETER DIXON, SAYING: "Perhaps is going to be a little bit too little too late as it were to really have a meaningful impact upon the referendum but it's quite obvious that if you start to distort the relationships with your biggest consumer market businesses are going to suffer and of course ultimately employees will suffer as a result." Nissan's already taking legal action against leave campaigners after its logo was displayed in one of their leaflets. The Japanese car maker with a factory in England said it "grossly misrepresented" their widely circulated position. Toyota and Unilever have complained too about their inclusion in the leaflet - both favour Britain staying put. Latest polls and surveys aren't offering many answers though. Opinion is so divided the outcome is too close to call.

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Soros: Brexit risks 'Black Friday'

Tuesday, June 21, 2016 - 01:49