Indiana companies that do business overseas are keeping an eye on the United Kingdom as voters decide whether to leave the European Union. Indiana University Kelley School of Business Associate Professor of Finance Cathrine Bonser-Neal says she expects volatility in U.S. markets if voters decide to leave. She says many U.S. companies are calling for Britain to stay in the E.U., saying the move would result in a stronger trading partner.
Bonser-Neal says polls ahead of today’s vote have been very close. She says supporters of leaving believe the United Kingdom needs more autonomy on issues including immigration and trade. However, she believes global markets are moving in ways to suggest that investors believe voters will choose to remain in the European Union.
IPFW continuing lecturer in political science Craig Ortsey says Indiana businesses have a lot at stake, saying, "anything that harms (the EU’s) economic growth would hurt these companies’ bottom lines too."
More than 46 million voters have registered for the referendum. Polls close at 5:00 Eastern. The official announcement of the result is expected overnight.
Bonser-Neal says leaving the European Union could jeopardize London’s standing as a global financial center.