Corporate America has sounded the alarm over mounting Brexit risks

Corporate America has sounded the alarm over mounting Brexit risks, beefing up warnings to investors as boardrooms worry that a disorderly departure threatens international business. With less than seven weeks to go before the UK is due to leave the EU, several S&P 500 groups have for the first time put Wall Street on formal notice of the dangers posed by a no-deal Brexit. In its “risk factors” published on Friday, defence contractor Lockheed Martin said a persistently depressed sterling after Brexit could “negatively impact the ability of the UK government to afford our products”… US-listed companies are required to catalogue in annual filings with the Securities and Exchange Commission the “most significant risks” facing them, and include “material changes” in quarterly updates. A wide range of potential risks is typically listed, from terrorist attacks to epidemics… Several have warned about Brexit in previous filings. However, lawyers who advise some of America’s biggest companies said the extra information and stronger language in the latest batch… showed executives were taking Brexit risks increasingly seriously… Google parent Alphabet, while not spelling out the possibility of no deal, said it “may be unable to effectively manage” post-Brexit volatility in foreign exchange.
Alistair Gray and James Fontanella-Khan