by Anthony Rivieccio, MBA, PFA
Boy, what a last three weeks it has been for the world’s financial markets and the US economy.
Three weeks ago, Great Britain, the second most powerful nation of the 22 nation European Union, said, “They are leaving the EU.”
Bang! The world markets go down. Britain’s pound sterling takes a dramatic fall. You would not know it here in America, as our economy has already recouped the losses following the dramatic announcement that ‘Brexit’ won.
So, the US dollar got a lot stronger; the British pound got smashed — losing 4 percent of its value on the currency market.
That means, it is cheaper for purchasers of British goods and services: food, clothing, leisure goods and services. And movie houses?
AMC Entertainment Holdings Inc.’s $1.2 billion purchase of Odeon and UCI Cinemas Group extends the movie-theater empire into Europe.
The acquisition of London-based Odeon & UCI widens the lead as the world’s No. 1 operator of movie screens.
The purchase of Odeon, which operates screens from Britain to Spain and Germany, marks the first billion-dollar sale of a U.K. asset since the Brexit (Britain Exit) vote. A sale that lets Terra Firma Capital Partners Ltd. exit from the business after a number of unsuccessful divestment attempts dating back to 2011.
The June 23 Brexit vote has caused the pound to drop against the U.S. dollar, making British assets cheaper for overseas investors. AMC, in a statement, cited Brexit for the breakthrough in its three-year negotiations toward a deal.
Once the deal was formally announced the stock of AMC that day went up 7 percent.
Simply, it was $13 million or 11% cheaper .
England’s banking, homemaking, retailers , steel, energy and automobile companies could be at serious risk — from American companies.
So Hooray for Independence! God save the Queen! Before the Americans or the Chinese get her for cheap.
Anthony Rivieccio is the founder & the CEO of The Financial Advisors Group, celebrating its 20th year as afee-only financial planning firm specializing in solving financial problems. Anthony, a recognized financial expert since 1986, has been featured by many national and local media including: KlipingersPersonal Finance, The New York Post, News12 The Bronx, Bloomberg News Radio, Bronxnet, The Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News and The Bronx Chronicle.
For financial assistance or a FREE Investment Consultation. Anthony can be reached at (347) 575 5045.