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Brexit bruises airlines and housing market

Monday, June 27, 2016 - 01:36

European travel group TUI expects a fall in profits after Britain voted to leave the EU. The decision has also affected easyJet and the UK housing market, as Laura Frykberg reports.

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Britons may have voted to leave the EU, but they want to keep visiting it. At least that's what European travel group TUI predicts. But the dive in the pound is likely to affect its profit it says. So too does easyJet.. The low-cost airline says its third-quarter revenue is likely to drop. Its shares fell more than 16 percent on the news.. According to one economist the sector does have a saviour though, And that's air travel outside the UK. (SOUNDBITE) (English) IHS GLOBAL INSIGHT, DIRECTOR OF SOVEREIGN RISK, JAN RANDOLPH, SAYING: "On the airlines front, well I think that will continue to be supported by demand elsewhere, I think it is one of the lesser affected sectors so far." Another industry to take a hit is housing. Home builders Taylor Wimpey down as much as 11 percent. Shares in British estate agency Foxton dropped by twice as much. Company investment in the UK is also in limbo. (SOUNDBITE) (English) IHS GLOBAL INSIGHT, DIRECTOR OF SOVEREIGN RISK, JAN RANDOLPH, SAYING: "If UK regulations, investment and trade are no longer covered by the EU, then that creates huge uncertainty, and makes it difficult for investors to - when they're weighing up different investment locations - adds a certain amount of risk and uncertainty for the UK as an investment destination." China is one of those. It says companies there are now likely to wait and see.

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Brexit bruises airlines and housing market

Monday, June 27, 2016 - 01:36