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Business

Brexit sinks U.S. export, travel stocks

Opening sequence

Opening sequence

Business

Brexit sinks U.S. export, travel stocks

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COMING UP:Brexit sinks U.S. export, travel stocks

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Transcript

00:00:01
>> Britain files for divorce from the European Union and American exporters feel the pain. I'm Reuters reporter Conway Higgins in New York. With the British pound and the euro in freefall the U.S. dollar is seeing its biggest one day gain since 2008. Sounds like a good thing, right?
00:00:18
Nope. Not if you're an exporter because a stronger dollar means that it will be harder for U.S. exporters to compete, like the makers of big ticket items. Think jet planes. Boeing is at the top of the losers list for the Dow. A stronger dollar means that its main rival, Airbus, which is headquartered in France, can make airplanes at a cheaper price undercutting Boeing.
00:00:42
Same situation with car companies, auto companies like General Motors and Ford. It's not just companies that move hardware over seas. It's companies that move people around the globe. Travel companies like American Airlines, Priceline, Carnival Cruise lines all falling on fear a stronger dollar will convince European holidaymakers to stay closer to home than travel to the US.
00:01:06
And the other sector among the losers of the day? Tech. Why? Businesses facing an uncertain future are likely to cut back on online advertising spending. That means revenues for companies like Facebook, Google's Alphabet, Twitter, are in jeopardy. And shares of America's biggest tech exporter, Apple, are down as well.
00:01:28
Apple is expected to debut a new iPhone in the fall and thanks to a surge in the dollar, the price of that iPhone just got a whole lot more expensive in the UK and across Europe.