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    Sunday, May 12, 2024

    Calls for 2nd 'Brexit' referendum crash British website

    A teller counts ballot papers at the Titanic Exhibition Centre in Belfast, Northern Ireland, after polls closed in the EU referendum Thursday, June 23, 2016. (Liam McBurney/PA via AP)

    LONDON (AP) —  Tens of thousands want a do-over. 

    So many users are signing a petition for a re-run of Britain's referendum on European Union membership that they've crashed the House of Commons website hosting the document.

    The petition passed the 200,000 mark on Friday evening, with a map of the voting indicating that most activity was in London - where most boroughs backed the "remain" camp in the referendum.

    The House of Commons said it had seen "high volumes of simultaneous users on a single petition, significantly higher than on any previous occasion."

    A second referendum isn't in the cards for now, but experts say it isn't out of the question if those who back a British exit begin suffering from buyer's remorse.

    In other Brexit news: 

    -- Left-wing and anti-racism activists have held rallies to protest Britain's vote to leave the EU and send a message of welcome to migrants.

    Several hundred people rallied in a park in Whitechapel in east London, an area that has been home to successive generations of new immigrants to London. They held placards saying "No to racism" and "Refugees welcome here."

    A similar demonstration was held in the Scottish capital, Edinburgh.

    A group of the London marchers — some wearing masks and waving flares — moved on to protest near the offices of the Sun newspaper, which enthusiastically bashed the EU for years and urged its readers to vote to leave the bloc in Thursday's referendum.

    Immigration was a major issue in the referendum because the EU allows citizens of all 28 member states to live and work freely in the others. Some "remain" campaigners said the concerns about pressure on jobs and public services from immigration masked darker xenophobic views.

    -- Ratings agency Moody's has changed the U.K.'s sovereign rating from "stable" to "negative," reflecting what it said would be a drawn-out period of uncertainty about the future of the country.

    Moody's said in a note that the unpredictability of British decision-making factored into its move, as did the likelihood of lower economic growth which it said would outweigh any savings the U.K. might hope to get from savings coming from not having to contribute to the EU budget.

    "Over the longer term, should the U.K. not be able to secure a favorable alternative trade arrangement with the EU and other countries, the UK's growth prospects would be materially weaker than currently expected," the note said.

    -- The U.K.'s withdrawal from the European Union threatens to make the country less appealing as a hub for shipping products throughout Europe.

    Amazon.com Inc., for instance, currently uses the U.K. as a major distribution hub. Outsell analyst Michael Balsam says Amazon and other tech companies handling physical goods may re-evaluate their distribution channels if it becomes more difficult to ship across borders.

    Morningstar analyst R.J. Hottovy believes U.K. merchants who use Amazon as an online sales outlet are more likely than the company to be hurt by any cross-border delays.

    Amazon declined to comment. The Seattle company generates nearly one-third of its sales in Europe, where it operates in 16 countries.

    Supply chain specialist MWPVL says Amazon has about 10 distribution centers and 20 smaller centers that sort packages in the U.K. before they're sent to local post offices. That's a sliver of Amazon's nearly 300 distribution centers throughout the world.

    Beyond distribution hubs, some U.S. companies might move operations out of Britain altogether.

    Crawford del Prete, a longtime tech industry analyst with IDC, says banks and financial services companies are expected to make that move, and companies that sell computers and software to them are likely to follow to stay close to their customers.

    -- In recent years, the European Union has been taking a strong stance limiting how much personal information that U.S. internet companies such as Google and Facebook can collect from Europeans.

    Stricter rules will take effect in 2018. Outsell analyst Michael Balsam believes the U.K.'s exit from the EU could make the new rules more difficult to enforce, at least among Britons.

    But Jules Polonetsky, CEO of the industry-backed think tank Future of Privacy Forum, says the implications at this point are "completely unknowable."

    While Polonetsky says the U.K. will lose its moderating influence on online privacy in Europe, it's possible the U.K. would remain in the EU for the purposes of data protection through treaties and deals.

    Meanwhile, research firm Fssorrester says, uncertainty will impede companies' quest for insights based on personal data.

    -- Germany's foreign ministry is promising to keep working for a better Europe — but only after it's had a few drinks.

    The ministry posted on its Twitter account Friday evening: "We are off now to an Irish pub to get decently drunk. And from tomorrow on we will again work for a better #Europe! Promised! #EURef."

    Foreign Minister Frank-Walter Steinmeier is to meet five of his European Union counterparts in Berlin on Saturday after Britain voted to leave the 28-nation EU.

    -- The U.K.'s decision to leave the European Union will create more challenges for retailers, with analysts seeing luxury sellers taking the biggest hit.

    Hana Ben-Shabat, a partner at A.T. Kearney, says any increased trade barriers could lead to higher costs in Britain. Plus, if large banks move operations elsewhere in Europe, she said that "could impact sales of luxury goods significantly, since many luxury consumers are employed by this industry."

    In the U.S., stores like Tiffany and Macy's that draw a lot of British tourists to their flagship New York stores could be among those hurt. Foreign visitors account for 40 percent of Tiffany's flagship business, says Cowen and Co. At the main Macy's store, that figure is 5 percent.

    Global retailers like Wal-Mart and Hennes & Mauritz that have a large U.K. presence could be hurt by currency effects and the general uncertainty. Faith Hope Consolo, chairman of the retail group at Douglas Elliman Real Estate, believes Wal-Mart's Asda division will find tougher conditions but will manage because of its size.

    Steve Barr at PwC says that overall, any prolonged declines in the stock market could make shoppers wary about spending.

    The good news for U.S. shoppers? More European retailers may look to expand in the U.S. Consolo noted many messages from businesses looking to accelerate their growth in the U.S. "They're thinking, 'Where can I land to do the best for the company?"

    -- Restaurant companies with a significant presence in the U.K. and Europe could be hurt by currency effects as well as weakness in consumer confidence after Britain's vote to leave the European Union, according to an RBC Capital Markets analyst.

    David Palmer noted that the U.S. restaurant companies with the most exposure to the United Kingdom and Europe are McDonald's Corp., and to a lesser degree Yum Brands Inc. and Starbucks Corp.

    The pound plunged to its lowest level in more than 30 years on Friday after the vote.

    Starbucks has 850 stores in Britain, its largest market in Europe.

    Spokeswoman Linda Mills of Starbucks said it's too soon to say how the chain might be affected but Starbucks remains "fully committed to the U.K.," where it's pursuing significant growth plans.

    PepsiCo declined to comment. McDonald's and Yum did not respond to messages.

    Coca-Cola said in a statement it has a long history of adapting to political landscapes, and that this would be no different. The Atlanta company said its belief in its growth opportunity in Great Britain and the European Union remains unchanged.

    Vote Leave supporters celebrate as they walk through Parliament Square in London, Friday, June 24, 2016. Britain entered uncharted waters Friday after the country voted in a referendum to leave the European Union. (Anthony Devlin/PA via AP)
    Britain's Prime Minister David Cameron speaks outside 10 Downing St., London, as his wife Samantha looks on Friday, June 24, 2016. Cameron says he will resign by the time of party conference in the fall after Britain voted to leave the European Union after a bitterly divisive referendum campaign, according to tallies of official results Friday. (Lauren Hurley/PA via AP)
    Nigel Farage, the leader of the UK Independence Party, celebrates with his supporters in London, Friday, June 24, 2016. Britain voted to leave the European Union after a bitterly divisive referendum campaign, according to tallies of official results Friday. (Anthony Devlin/PA via AP)

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