Wilbur Ross on Brexit: Will be most expensive divorce in history

WL Ross Chairman Wilbur Ross on the impact of Britain leaving the European Union on the markets.

Wilbur Ross: Brexit is the Most Expensive Divorce in History

The United Kingdom’s decision to leave the European Union is expected to have an impact on global investments.

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In an interview with FOX Business Network’s Mornings With Maria, WL Ross & Co. chairman and Strategy Officer Wilbur Ross disagreed with the notion that the U.K.’s decision to leave the EU will threaten his investment strategy.

“The financials, which is our main exposure in the U.K., are mostly down about 20% or more and they have already been fairly weak for quite a while. So I think, adding on another 20% decline to what had happened before, over discounts the problem,” Ross said to host Maria Bartiromo.

Ross says the market’s large decline is probably an overreaction while stock volatility remains as confusion within the markets continues.

Stocks around the world plummeted in overnight trading as the global financial market struggled to identify what the Brexit result means for the slow-growing world economy. According to Ross, the U.K. should have remained as part of the EU as uncertainty surrounds the new leadership’s strategy moving forward.

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“I think this will go down as the most expensive divorce in history between the U.K. and Europe. It’s going to be very complicated for them [U.K.] to negotiate with the same bureaucrats in Brussels whom they just thumb their nose.”

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The U.K.-EU trading arrangement is a central economic battleground of the referendum campaign and any imbalance may cause a recession, according to Ross.

“In every single year, in the last five, the EU has been the largest single find direct investment source for England. Whether that will continue, it’s somewhat questionable,” he said.

From an investment viewpoint, the Brexit "No" vote is an opportunity for investors who believe growth opportunities are greater overseas than domestically. Ross believes the financial banks won’t be hurt as severely as the markets seem to be thinking.

“In a strange way, to the degree the pound stays low, that will make it a more attractive place for people to operate because it will stage their international competitiveness,” Ross said.

Ross said the U.K. economy is a vibrant economy and its strength is demonstrated in the financial and service sectors. 

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