German Industry Employment Falls to Lowest Level in a Decade 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
Europe EV Demand Surges as Fuel Prices Rise Amid Iran Conflict 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
US Stock Futures Jump on Reports of Preliminary US-Iran Peace Deal Despite Fed’s Hawkish Outlook 
Trump Questions USMCA Renewal as Trade Talks Continue 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
US Stock Futures Slip After Wall Street Rally Fueled by US-Iran Deal and Chipmaker Surge 
Oil Prices Drop as U.S.-Iran Peace Deal Eases Supply Concerns 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets 
Trump and Iran Sign Framework Peace Deal in France Amid Ongoing Middle East Tensions 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
ASX Proposes New Share Dilution Limits for Public Takeovers 
Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
Gold Prices Slide as Hawkish Fed and Strong Dollar Weigh on Bullion 
Yen Near 40-Year Lows Despite BOJ Rate Hike, Markets Brace for Possible Intervention 
The UK vote to withdraw from the European Union (EU) and our subsequent downgrade of the UK sovereign rating to 'AA'/Negative Outlook is unlikely to have any immediate impact on the 'AAA' ratings of EU-related Supranationals, the EU, the European Investment Bank and the European Investment Fund, Fitch Ratings says.
However, given the overall uncertainty surrounding the withdrawal of the UK from the EU, and the resulting increased political risks in the EU, Fitch will closely monitor any material evidence of weakening political support by member states to the EU in the coming months.
In the near term, Fitch does not expect any impact on the rating of the European Investment Bank (EIB), which is driven by its intrinsic features rather than by shareholder support. As mentioned in Fitch's special report dated 16 May 2016 ("'Brexit' Would Raise Downside Risks to EU Sovereigns"), the UK's share of the EIB's paid-in capital is 16.1%.
Fitch does not expect a unilateral and sudden withdrawal of the UK's capital from the EIB. Article 50 of the Lisbon Treaty governing the process of a country leaving the EU indicates that there would be a two-year timeframe for negotiations with the withdrawing country, subject to potential extension by the European Council in agreement with the country concerned.
The European Investment Fund's (EIF) rating is based primarily on strong support from its key shareholder, the EIB (61.2% of capital). Consequently, a negative rating action on the EIB would likely lead to a negative rating action for the EIF (affirmed on 22 June 2016). As indicated above, we do not envisage a negative rating action on the EIB as a direct result of the UK exit vote.
The exit vote in the UK referendum does not have immediate implications for the ratings of the EU and Euratom. The UK is not included in the group of 'AAA'-rated member states (MS) whose additional contributions would be needed to cover the EU's debt service if needed; for example, if a borrowing country defaulted on a loan granted by the EU. However, Fitch believes that the UK's vote could have longer-term negative implications for the EU's creditworthiness if it results in a weakening of support for the EU by other highly rated MS.
