Wainwright Marks Management - Brexit Could Impact US Economy

After three years of intense negotiations, strategizing and back and forth, Wainwright Marks Management say the chances of Britain departing from the European Union without a deal seem to be increasing.

Although a current leadership contest to decide who will replace former Prime Minister Theresa May placed Brexit on pause for a period, Wainwright Marks Management analysts say the race winner will have to focus on the issue as the October 31st departure deadline rapidly approaches.

The impact on the US economy will depend on what type of departure eventually materializes. A close relationship between the UK and the EU post Brexit will mean a better trading relationship.

Brexit supporters want the UK to establish strong trading relationships with countries outside of the European Union. These trade relationships are not possible while it remains within the bloc.

Apart from the EU which is the UK's biggest trading partner as a bloc, the US is the biggest trading partner. US President Donald Trump has promised a "phenomenal" trading deal with the UK post Brexit but analysts at Wainwright Marks Management remain skeptical about what this trade deal would entail.

Wainwright Marks Management analysts say a no deal Brexit may work in the US' favor as the UK may try to make up for the loss of strong trading ties with the EU by working towards a solid trading relationship with the US. However, a strong trade relationship or comprehensive trade deal would likely only provide a small boost to both economies.