Britain&#39;s shock decision to leave the European Union will not be as damaging to developing Asian&nbsp;economies as feared, the World Bank said on Wednesday as it increased its growth forecast for the region this year.&nbsp;Countries in the Mekong region led by Myanmar are projected to expand at the fastest pace in the next three years, the bank said in an updated report on East Asia and the Pacific, though Thailand was projected to be a laggard.

World Bank chief Asia economist Sudhir Shetty said the upgrade for the regional economy came after the group noticed positive early results from the June 23 vote by Britain to leave the EU.&nbsp;&quot;That has translated also into relative stability in terms of exchange rates and in terms of capital flows, so that has been helpful for this region,&quot; he told Asia-based journalists in a video conference from Washington.

Global markets went into freefall immediately after the vote as dealers feared a recession in Britain that could hit the global economy. But since then, world markets have rallied and Britain&#39;s economy is picking up.&nbsp;Shetty said based on the bank&#39;s initial analysis &quot;the bottom line right now is that there&#39;s likely to be very little impact of Brexit&quot; over the short term, as the region is &quot;not very connected&quot; to Britain in terms of trade and financial links.

The region&#39;s developing economies will grow 5.8 per cent this year, the Washington-based institution said, up 0.1 percentage point from its forecast made in April. It also tipped 5.7 per cent growth in 2017 and 2018.

The bank, however, warned a hike in US interest rates, widely expected in December, and a potential sharp slowdown in China could impact its forecast.

Myanmar, which has embraced democracy following decades of military rule, will grow 7.8 per cent this year, 8.4 per cent in 2017 and 8.3 per cent in 2018.&nbsp;Once isolated Myanmar has rapidly transformed itself into one of the world&#39;s fastest growing economies since its once brutal junta handed power to a reformist government in 2010, sparking the lifting of most international sanctions and a flood of foreign investment.

The impoverished nation has boasted average growth rates above eight per cent the past five years.&nbsp;However, while the World Bank report noted stronger-than-expected growth in Thailand during the first half of 2016 it added that &quot;a broad-based and self-sustaining recovery has yet to take hold.&quot; It projected 3.1 per cent expansion for 2016, up from 2.8 per cent last year.

Thailand&#39;s economy has struggled with years of political instability since the military seised power in 2014.

(AFP)

Countries in the Mekong region led by Myanmar are projected to expand at the fastest pace in the next three years, the bank said

Britain's shock decision to leave the European Union will not be as damaging to developing Asian economies as feared, the World Bank said on Wednesday as it increased its growth forecast for the region this year. Countries in the Mekong region led by Myanmar are projected to expand at the fastest pace in the next three years, the bank said in an updated report on East Asia and the Pacific, though Thailand was projected to be a laggard. World Bank chief Asia economist Sudhir Shetty said the upgrade for the regional economy came after the group noticed positive early results from the June 23 vote by Britain to leave the EU. "That has translated also into relative stability in terms of exchange rates and in terms of capital flows, so that has been helpful for this region," he told Asia-based journalists in a video conference from Washington. Global markets went into freefall immediately after the vote as dealers feared a recession in Britain that could hit the global economy. But since then, world markets have rallied and Britain's economy is picking up. Shetty said based on the bank's initial analysis "the bottom line right now is that there's likely to be very little impact of Brexit" over the short term, as the region is "not very connected" to Britain in terms of trade and financial links. The region's developing economies will grow 5.8 per cent this year, the Washington-based institution said, up 0.1 percentage point from its forecast made in April. It also tipped 5.7 per cent growth in 2017 and 2018. The bank, however, warned a hike in US interest rates, widely expected in December, and a potential sharp slowdown in China could impact its forecast. Myanmar, which has embraced democracy following decades of military rule, will grow 7.8 per cent this year, 8.4 per cent in 2017 and 8.3 per cent in 2018. Once isolated Myanmar has rapidly transformed itself into one of the world's fastest growing economies since its once brutal junta handed power to a reformist government in 2010, sparking the lifting of most international sanctions and a flood of foreign investment. The impoverished nation has boasted average growth rates above eight per cent the past five years. However, while the World Bank report noted stronger-than-expected growth in Thailand during the first half of 2016 it added that "a broad-based and self-sustaining recovery has yet to take hold." It projected 3.1 per cent expansion for 2016, up from 2.8 per cent last year. Thailand's economy has struggled with years of political instability since the military seised power in 2014. (AFP)

World Bank predicts Brexit won't impact developing Asian economies as feared

Brexit has apparently pushed the anxiety button in London as the British capital fears investors and bankers could flee the city after the nationwide vote arguably threatened its coveted reputation as a global financial hub. 
 
Some 60 percent of Londoners voted to stay in the EU in Thursday&#39;s historic referendum but the rest of the country cast their ballots overwhelmingly to leave.&nbsp; 
 
&#39;A fifth of all global banking activity takes place in London&#39;&nbsp; 
The capital&#39;s 8.6 million residents, whose GDP is about the same as that of oil-rich Norway, are anxious about the impact on the city&#39;s economy. The fear is that London will no longer be able to claim to serve as the gateway for US and Asian businesses into Europe&#39;s vast single market. 
 
&quot;Some firms that saw&nbsp;London&nbsp;as a platform for serving the integrated EU market will relocate at least part of their headquarters&#39; functions to other cities within the EU,&quot; said Greg Clark of the Brookings Institution. 
 
A first bank, US giant JP Morgan which employs around 16,000 staff in the United Kingdom, said Friday that it &quot;may need to make changes to our European legal entity structure and the location of some roles&quot;. 
 
It gave no figures, but chairman and chief executive Jamie Dimon previously said that up to 4,000 jobs could move out of the UK. 
 
According to ratings agency Standard and Poor&#39;s, a fifth of all global banking activity takes place in London.&nbsp;Speculations are rife that a haemorrhaging of bankers would hit the city. 
 
It may be also be underlined that the financial sector provides one in three jobs, or some 1.25 million. &nbsp;Services overall represent 85 percent of jobs, having completely supplanted manufacturing which historically was the driving force of the capital. 
 
&quot;Although we will be outside the EU, it is crucial that we remain part of the single market,&quot; pro-EU&nbsp;London&nbsp;Mayor Sadiq Khan said Friday. 
 
&quot;It is crucial that&nbsp;London&nbsp;has a voice at the table during those renegotiations,&quot; added the Labour mayor, who took over in May from Conservative Boris Johnson, who went on to spearhead the &quot;Leave&quot; camp. 
 
A petition for&nbsp;London&nbsp;to have independence from the United Kingdom and make an application to join the EU started partly as a stunt. 
 
But it highlighted deep concerns and had by Saturday evening garnered more than 150,000 signatures for a so-called &quot;Lexit&rdquo;.&nbsp; 
 
&#39;Net job losses may not be high&#39;&nbsp; 
Despite these&nbsp;fears, Clark of the Brookings Institution said that in the end &quot;the total number of net job losses in&nbsp;London&nbsp;may not be high, as corporations will re-organise rather than leave&quot;. 
 
&quot;London&nbsp;will remain a good location to service global markets,&quot; he added. 
 
The city, whose GDP grew by 3.3 percent last year against 2.3 percent for the whole country, remains well-placed: it speaks English, the international language of business, as well as being cosmopolitan and culturally rich. 
 
London&#39;s successful hosting of the 2012 Olympics, which saw huge investment notably in transport infrastructure, burnished its reputation as a global capital. 
 
Real estate on frontline 
If well-paid bankers and other expatriates flee London for Frankfurt, Paris or Dublin, a whole swathe of the economy which depends on higher spending power will suffer, from luxury real estate agencies to select private schools. 
 
The first sector to pay the price might be bricks and mortar. 
 
&quot;In our view the decision to leave the EU will be most keenly felt in the&nbsp;Londonhousing market which is fully valued and already facing headwinds,&quot; said real estate specialists Hometrack. 
 
&quot;History shows that external shocks have led to falls in turnover by as much as 20 percent,&quot; it added. 
 
That kind of slump could put downward pressure on prices, actually good news finally for many prospective buyers and renters in a city where homes have become increasingly unaffordable, and where prices have been rising by 13 percent a year. 
 
Seeking silver linings, Clark also points out another potential advantage. 
 
&quot;London&nbsp;will also present a diversification opportunity for investors who want to hedge against the EU,&quot; for example if another euro currency crisis hits, &quot;but be part of Europe&#39;s growth story&quot;, he said. 
 
&quot;London&nbsp;may even garner a &#39;first (EU) leaver&#39; advantage. The British pound has always served as a currency hedge for the euro, and this function may even strengthen it,&quot; he said.&nbsp; 
 
(AFP)&nbsp; 
&nbsp;

The fear is that?London?will no longer be able to claim to serve as the gateway for US and Asian businesses into Europe's vast single market

Brexit has apparently pushed the anxiety button in London as the British capital fears investors and bankers could flee the city after the nationwide vote arguably threatened its coveted reputation as a global financial hub. Some 60 percent of Londoners voted to stay in the EU in Thursday's historic referendum but the rest of the country cast their ballots overwhelmingly to leave. 'A fifth of all global banking activity takes place in London' The capital's 8.6 million residents, whose GDP is about the same as that of oil-rich Norway, are anxious about the impact on the city's economy. The fear is that London will no longer be able to claim to serve as the gateway for US and Asian businesses into Europe's vast single market. "Some firms that saw London as a platform for serving the integrated EU market will relocate at least part of their headquarters' functions to other cities within the EU," said Greg Clark of the Brookings Institution. A first bank, US giant JP Morgan which employs around 16,000 staff in the United Kingdom, said Friday that it "may need to make changes to our European legal entity structure and the location of some roles". It gave no figures, but chairman and chief executive Jamie Dimon previously said that up to 4,000 jobs could move out of the UK. According to ratings agency Standard and Poor's, a fifth of all global banking activity takes place in London. Speculations are rife that a haemorrhaging of bankers would hit the city. It may be also be underlined that the financial sector provides one in three jobs, or some 1.25 million. Services overall represent 85 percent of jobs, having completely supplanted manufacturing which historically was the driving force of the capital. "Although we will be outside the EU, it is crucial that we remain part of the single market," pro-EU London Mayor Sadiq Khan said Friday. "It is crucial that London has a voice at the table during those renegotiations," added the Labour mayor, who took over in May from Conservative Boris Johnson, who went on to spearhead the "Leave" camp. A petition for London to have independence from the United Kingdom and make an application to join the EU started partly as a stunt. But it highlighted deep concerns and had by Saturday evening garnered more than 150,000 signatures for a so-called "Lexit”. 'Net job losses may not be high' Despite these fears, Clark of the Brookings Institution said that in the end "the total number of net job losses in London may not be high, as corporations will re-organise rather than leave". "London will remain a good location to service global markets," he added. The city, whose GDP grew by 3.3 percent last year against 2.3 percent for the whole country, remains well-placed: it speaks English, the international language of business, as well as being cosmopolitan and culturally rich. London's successful hosting of the 2012 Olympics, which saw huge investment notably in transport infrastructure, burnished its reputation as a global capital. Real estate on frontline If well-paid bankers and other expatriates flee London for Frankfurt, Paris or Dublin, a whole swathe of the economy which depends on higher spending power will suffer, from luxury real estate agencies to select private schools. The first sector to pay the price might be bricks and mortar. "In our view the decision to leave the EU will be most keenly felt in the Londonhousing market which is fully valued and already facing headwinds," said real estate specialists Hometrack. "History shows that external shocks have led to falls in turnover by as much as 20 percent," it added. That kind of slump could put downward pressure on prices, actually good news finally for many prospective buyers and renters in a city where homes have become increasingly unaffordable, and where prices have been rising by 13 percent a year. Seeking silver linings, Clark also points out another potential advantage. "London will also present a diversification opportunity for investors who want to hedge against the EU," for example if another euro currency crisis hits, "but be part of Europe's growth story", he said. "London may even garner a 'first (EU) leaver' advantage. The British pound has always served as a currency hedge for the euro, and this function may even strengthen it," he said. (AFP)

Brexit effect: Possible hemorrhaging of bankers may hit London's long-booming economy?

British support for leaving the European Union (EU) in a June 23 referendum has risen, giving the Out campaign a lead of two to four percentage points, according to opinion polls by Taylor Nelson Sofres (TNS), a market research and market information group, and YouGov, an international internet-based market research firm. 
 
A YouGov online poll of 3,495 people for ITV&#39;s Good Morning Britain showed 45 per cent would opt to leave the EU, while 41 per cent would opt to stay. Over 11 per cent of voters were undecided. The poll was carried out from June 1 to June 3. 
 
A TNS online poll of 1,213 people showed 43 per cent would vote to leave, 41 per cent would vote to stay and 16 per cent were undecided. The TNS poll was carried out from May 19 to May 23, &nbsp;but was adjusted for turnout. 
 
Sterling fell one per cent against the dollar to hit a three-week low today, while the cost of hedging against swings over the coming month traded at its highest since early 2009 on growing concerns over whether Britain will stay in the European Union. 
 
Against the dollar, sterling was one per cent lower at $1.4370, having fallen to $1.4352 GBP=D4 in early Asian trading, its lowest in three weeks. The euro was 0.75 per cent higher at 78.95 pence EURGBP=D4. 
 
Sterling fell sharply last Tuesday when both an online and a telephone poll for ICM showed a three-percentage-point lead for the &quot;Leave&quot; campaign.

A YouGov online poll of 3,495 people showed that 45 per cent would opt to leave the European Union, while 41 per cent would opt to stay

British support for leaving the European Union (EU) in a June 23 referendum has risen, giving the Out campaign a lead of two to four percentage points, according to opinion polls by Taylor Nelson Sofres (TNS), a market research and market information group, and YouGov, an international internet-based market research firm. A YouGov online poll of 3,495 people for ITV's Good Morning Britain showed 45 per cent would opt to leave the EU, while 41 per cent would opt to stay. Over 11 per cent of voters were undecided. The poll was carried out from June 1 to June 3. A TNS online poll of 1,213 people showed 43 per cent would vote to leave, 41 per cent would vote to stay and 16 per cent were undecided. The TNS poll was carried out from May 19 to May 23, but was adjusted for turnout. Sterling fell one per cent against the dollar to hit a three-week low today, while the cost of hedging against swings over the coming month traded at its highest since early 2009 on growing concerns over whether Britain will stay in the European Union. Against the dollar, sterling was one per cent lower at $1.4370, having fallen to $1.4352 GBP=D4 in early Asian trading, its lowest in three weeks. The euro was 0.75 per cent higher at 78.95 pence EURGBP=D4. Sterling fell sharply last Tuesday when both an online and a telephone poll for ICM showed a three-percentage-point lead for the "Leave" campaign.

TNS, YouGov polls give Brexit lead of 3 percentage points