Economist Roubini Warns of Significant Damage to Economy After ‘Brexit’

London (Jun 21)  Warnings about the possible impact of a "Brexit" are coming thick and fast today. With just two days to go until Britain goes to the polls to decide its future in the European Union so-called Dr Doom has warned that there could be a large currency fall and a "sudden stop of capital" if the U.K. votes to leave the EU.

In a series of tweets economist Nouriel Roubini today said a "'Brexit' would cause significant damage to the U.K. economy" and that the country was better off in the EU.

"'Brexit' could stall the U.K. economy and tip it into a recession as the shock to business and consumer confidence could be severe," he wrote.

Roubini, known as Dr Doom for his surly outlook on the global economy, predicted the financial crisis.

In another tweet he said, "The U.K. - having large twin current account and fiscal deficits - may risk a sharp currency fall and a sudden stop of capital following 'Brexit'."

The pound today has climbed to its highest level since the EU vote date was set. It was recently at $1.4783. The pound surged yesterday after the "remain" camp seemed to have taken a lead.

However, conflicting polls released today have increased uncertainty in the markets today. A YouGov poll for the Times put "leave" at 44%, remain at 42% and undecided at 9%. Meanwhile, an ORB poll for the Telegraph put "remain" at 53%, "leave" at 46% and undecided at 2%.

And another poll by the National Centre for Social Research gave "remain" a six percentage point lead, with "remain" at 53% and "leave" at 47%.

Bookmaker Labrokes put the probability of a "Brexit" at 24%.

The FTSE 100 in London was recently at 6,186.72, down 0.29%, after gaining more than 3%. In Frankfurt, the Dax was flirting with positive territory and was recently up 0.04% at 9,966.18 and the Cac 40 was up 0.2% at 4.349.36 in Paris.

S&P futures were up 0.35% in mid-morning trading.

Soccer star David Beckham today endorsed a "remain" vote. In a statement on the "remain" campaign's Facebook page Beckham, who played much of his career at Manchester United, wrote that the team was more successful due to the skills of European teammates.

"We live in a vibrant and connected world where together as people we are strong and their children should be facing the problems of the world together and not alone," Beckham wrote. "For these reasons I am voting to 'remain'."

Beckham played for the LA Galaxy from 2007 to 2012.

Source: TheStreet