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Briferendum Series: Abe joins Brexit warner bands

Japanese Prime Minister Shinzo Abe has been the latest to warn on Brexit, during his visit to six European nations including UK. Speaking by the side of UK Prime Minister David Cameron at 10 Downing Street Mr. Abe has warned that Japan’s investment in UK could decline in the vent of Brexit.

“A vote to leave would make the UK a less attractive destination for Japanese investment”, Abe said.

Japan has £38 billion investments in UK and has plans to build nuclear power stations. Mr. Abe has been touring Europe in support for joint fiscal intervention to promote growth and to discuss over how to prevent an aggressive China, especially in South China Sea.

However, for his agendas, UK would be difficult ally, since it is looking for a better relationship with China. It has been competing with other nations such as Singapore, Hong Kong to become biggest Yuan trading hub outside China.

Recent weakness in British data (Manufacturing PMI pointed to contraction of the sector in April for first time in years) has been attributed to Brexit fear.

Pro-Brexit campaigners however has dismissed intervention from the likes of Shinzo Abe, Barrack Obama as infringement into UK’s domestic issue.

After last week's sump, Pound  is top performer to start this week. Pound is up 0.3% against Dollar and more than 1% against Yen. Currently trading at 1.446 against Dollar.

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