The Brexit vote to “Leave” will continue to be headline news in the foreseeable future. Reverberations are being felt politically, economically and socially. The decision is causing many businesses to wonder what the ramifications may mean for them.
Dun & Bradstreet (D&B) has been actively covering this emerging situation and offering guidance from its unique B2B vantage point. Not only is D&B the world’s largest provider of global information on over 250 million business, it also maintains a team of country risk analysts and economic experts who prepare reports that compare economic, political and commercial conditions globally. Here’s D&B’s most recent commentary on the Brexit situation:
- Caution is the prevailing prediction. Although it is too early to assess the full impact of the decision, companies doing business with the UK should brace themselves for an open-ended period of uncertainty.
- The uncertainty surrounding the UK’s future relations with the EU (its most important trading partner) has led D&B to downgrade the UK’s country risk rating from DB2a previously (on a par with the US) to DB2c, with a ‘deteriorating’ outlook (indicating that further downward revisions are possible in the weeks and months ahead.)
What does this mean for the United States?
- Spike in Volatility: The immediate effect, already evident, is a spike in volatility in US markets, as uncertainty remains elevated.
- Appreciation of the Dollar: In the near term, the US dollar will appreciate measurably as global investors flock to safe haven currencies, like the dollar and the yen. This will make US exports more costly for foreigners and imports cheaper, acting as a headwind to growth.
- New Opportunities: Longer term, patterns in global trade and investment flows will change as the UK begins the process of actual exit from the EU. Global growth is likely to slow during the transition, a negative for the US economy. There will also be new opportunities for the US to expand trade and forge new alliances, which will require a well-calibrated policy response from the government.
- Federal Reserve Caution: The US Federal Reserve will turn more cautious in the wake of the market volatility and refrain from making any changes to the policy interest rate until they feel confident that markets have calmed and stabilized to be able to absorb any policy change. Dollar strength will keep a lid on US domestic inflation, keeping inflation below the Fed’s target longer.
Free D&B Businesss Credit Reports Valued at $5,000
In response to Britain's vote, D&B will provide, at no cost, business credit reports to U.S. companies looking to navigate their risk and make intelligent business decisions during this time of uncertainty.
Starting today, D&B will provide to Business Solutions customers in the United States without a current D&B risk solution:
- Access to D&B Credit ReporterTM through July 31, 2016 at no charge.
- Access up to $5,000 worth of complete D&B business credit reports on companies in the U.S., Canada and U.K.
- 12 months of email alert notifications about detected changes to the business credit files of the companies being monitored.
- No credit card or other financial information will be collected.
- This is a one-time offer that is not renewable.
D&B’s credit reports and alerts will help you assess creditworthiness, monitor financial stability and evaluate overall viability of the companies with which you do business. These data solutions are derived from D&B's database of 250 million business records, which is updated more than five million of times each day. Credit reports include available D&B scores and ratings, payment history and information about financial health and risk of bankruptcy. In addition, the reports, where available, will identify potential issues like declining financial stability, changes in available cash on hand and public filings including bankruptcies. Monitoring these files can help a company take early action on high-risk accounts to potentially avoid exposure to unnecessary risk.
To take advantage of this offer, please call your preferred Ingram Micro Partner, or contact Ingram Micro Cloud: (800) 705-7057; option 5 or email firstname.lastname@example.org.
D&B partners with Ingram Micro and Microsoft to offer the Business Solutions Excel app in Office 365, giving unique access to quality B2B information from the world’s largest database of over 250 million business. D&B turns data into insight that will help you connect to your most valuable customers, prospects and suppliers.