Understanding Britain's Brexit Battle

ABC News' Llama Hasan and Rebecca Jarvis weigh in on Britain's Brexit battle and how leaving the EU would affect the global economy.
11:21 | 06/23/16

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Transcript for Understanding Britain's Brexit Battle
Every call it a sign from London is gonna explain a little bit about what this all mean and why it matters so much today a lot so much for joining us. Good morning to you and Maggie will Alter I'll do my best it is Decision Day. For the brits as they vote in a non mom reference in a hotly contested and DP divisive. Referendum. For months we've seen politicians travel up and down the country. Trying to make the case for why. The Britain should stay. In the European Union old wrecks it which is of course. A play on the wise person an exit so let's look at that cases. Say to stay. In the European Union growth that was headed by the British prime minister David Cameron himself. He believes that by staying in the U that's a big boost Fabrice an economic he. It's easier because there is free trade is the single market. Because if the flow of immigrants it is easier not helped economic growth. As well as intelligence sharing so fighting terrorism so that's what he believes in all obviously all the people who believes that its version should stay. And they're European Union not the argument for them so that the people. Who want abraxis to want to leave the European Union while they argue the opposite. At they all big baby news in national identity and sovereignty they want to take control. Of the country that is one of that slogans because they believe it. The flow of immigrants into this country's actually. Well Britain doesn't know it's identity anymore they say person. Is using its culture since as you can imagine he's ought to bury. Good opposite arguments that have deeply divided this country if you look at the polls. I think it being so close it is so as to thwart the will just have to wait and see putting of course has. Opened and will continue until 10 PM local time we are expecting. Results probity. By morning our time tomorrow so by the time you wake up you will definitely know whether or not person is in the EU. Well we know it's still early there but what is even hearing from people on the ground leading up to the as one citing more vocal. Yeah well I I sent you the the pole would be really really close and distant. Give you an idea what it's like today and times of the weather which might happen or it might. In some way affect that it's Hannah. Overnight we school apocalyptic. Thunderstorms in this country. Some people saying well is this can affect that ton out it mice. But just judging by no means is as this is not a scientific poll but by just by touching the numbers that have been time out box fall. It's and it looks like holly the time that we understand that the younger. Generation. One to remain more so than the older generation I think. Across the district's in this country that applies quite laws. Columbus stay with us as we continue to talk about this I do want to bring in our colleague Rebecca Jarvis Hayes joining us live. From her office right here in New York you because we're talking a lot about the inner connectedness of the countries across the EU but this is about. A lot more than just countries and Europe is not right Rebecca. Absolutely so this is really about the global economy right out the big ripple effects that you would likely see. If a bright exit were to take place if the brits voted. To leave the European Union would initially be felt in the stock market you very likely see a dramatic sell off and some people might be looking at the stock market today scratching their heads saying but wait a minute we heard that the brakes it was coming up in that this was bad for stocks. Will today this morning the stock market is actually climbing and that's attributed to release two big things. First off. There are a number of people on Wall Street who think even though this is a very close call that this vote is buried very close. They believe that ultimately Britain will vote remain in the European Union there's a second part this. And that is that a number traders are right now climbing what's called a wall or. They are robbery that if they don't put their money into the stock market when they don't chase the fact that. The market is rallying right out and collect as much right now that they can in the markets that there's pretty dramatic career risk there because a number hedge funds rate now. Arguing terror they've had to hear yourself bar and being need to beat whatever the market doesn't the end of the year that's telling investors who put their money. It's a hedge funds. View those hedge if you put your money with the hedge fund and you're paying them to invest your money smartly you expect them to beat the returns of the overall stock market so what's happening today is that all of these hedge funds are saying. If we get this wrong if for some reason the vote is to remain and we got that rocket we didn't invest as a accordingly. Then we could miss out on me upside. So that's what you're seeing this morning. But beyond that these dizzy theory global. World economy and car what's going on -- the breaks it vote part of what's even happening here in the United States with our election vote part of that rise that you've seen from candidates like Bernie Sanders and Donald Trump here in the United States is because of that question of globalization. And because of that question of cheap labor around the world and the fact that you have a number of people were back filling positions. In a number of places where it used to be the locals who had a job and now you're seeing somebody else on the job at cheap labor. Rebecca can just to see how the markets already being affected by just the upcoming exit vote. But what about sort of regular common everyday Americans how will they be affected by whether or not for and stay in a span. Well it's more likely going to be a longer term process because ultimately what happens if if Britain votes today. That they are going to be leaving the year. The biggest thing that will be impacted in terms of the economics will be to treat agreements there are. Tons of free trade agreements between Britain and the European Union and here in the United States. We use Britain as our entree airport all Intel all of Europe and there are a number of US companies. Have employees that are big east. In Britain for example. Caterpillar. Has wilder based here in the US in Peoria Illinois. They hate have a 9000 employees Ray Allen Britain's board also has employees and Britain which is why both companies have really been urging their British employees to vote. On behalf of staying remaining in the European Union so in short term you probably will see at most in your 401K. You probably will see most in your retirement savings account because there will be dramatic uncertainty. And that. The market hates uncertainty. But in the longer run the question becomes about the goods and services that we trade. With Britain and with the rest of the European Union don't take about two years to renegotiate all of these tree deals which means. It will leave companies like caterpillar like for it like a number of banks here in this country it will leave them in limbo and that's a sizeable part of their business and that could ultimately. As a ripple effect. Become a question of shops. A mom I'm not to get to take on this now because Rebecca raises a really interesting point. About sort of the cultural. Idea as an elements at forcing this vote and end. Making it almost a dead heat at this moment I'm curious what you've seen because you've lived in London for a while you've covered stories across Europe. What's been happening there that you think has changed this that cultural shift. Moving it from you know country back in 1975 when they considered whether or not to leave strongly voted in support of staying and now it's basically a tie there are a lot more people saying we're better off on our own so. What critics see it happening there that you think. Fad that idea. It's a very good question and it's it's it and it's a question it's actually quite difficult onset that I've been here for more than that he is I've never seen anything like this to be honest with you. My class I was telling you when we fuss on talking about this topic. Out for months we have seen politicians really go head to head about this. Topic that they've been both boats like the so passionate about it but acting rightly said the vote in 1975. Was pretty clear. Britain wanted the to be caught at the EU for many reasons of course. Many of them stemming from economic benefits unit. Trade agreements that Rebecca was talking about the ease of trade. Capital goods it's 88 Britain decides to leave the European Union while bots going to stop when that's going to be. Let's put it this way it will be difficult. Two to go for woodland forwards. I was Britain has been cooperating hand and carrying out trade agreements and trade full stop people people like. Richard Branson who are coming out saying Britain looks to remain because of the economic benefits as well as caught industries in this country which. Benefits so much from being in the European Union now if there is abraxis this sort of uncharted territory this on science and team would. Courts in which political ramifications for the British prime minister David Cameron what happens to him but also is we're back with thing. Financial ramifications as well. A lot of what's interesting about what you're saying it's comparing hey cultural shift from seven. Acts and Alan you mention that the topic that young people are when the driving forces behind us and so. Do you think any and its related to sort of our current world situation again we're coming up and in Europe at a huge problem with youth unemployment rate now. Is that something that's playing into young people's mind that as they approached vote and I. Linked it to be honest with you I think young people see the benefits. Staying in the European Union the ease of travel for example. One of the principles of being a member of the EU is at this. The ease of travel so you don't need a visa for example to go and live in another country in vice Abbas Al BC. People from all the European countries can come and work from sorry come and watch in this country in which. As I was working to idea helps economic growth which is what's promise to David Cameron was saying that was one of the main reasons. He was arguing to stay in the European Union so I think. The youth in this country see the benefits. Staying wallet than leaving the European Union. On cited TNT and meeting the EU what what happened to economic growth through the job site. And it in this country I think that is why there are on the slide the majority of them anyway on the slide staying in the European Union. That's fascinating stuff we're gonna watch it all unfold. Right here to thank you so much to both of you ABC's llama has signed. And Rebecca Jarvis joining us from London and New York respectively you could of course follow all the reporting. At abcnews.com. And on worldly tonight leader in the day eating things that really interesting innings forget sometimes how connected the world as to what. Happening right out the vote is gonna impact us and Mara it's it's really really cool to see stay with us as we follow that story.

This transcript has been automatically generated and may not be 100% accurate.

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