As the US endures its divisive Presidential election, British companies are navigating the impact of its contentious referendum - and some of Brexit's biggest corporate supporters look to be changing their tune.
Hedge fund manager Crispin Odey - perhaps the single largest financial victor from the June 23 vote - has warned that Britain will likely fall into recession while Wetherspoon's (JDWPY) Chairman Tim Martin, another vocal Leave supporter, has warned the pub chain's supplier deals have become harder to negotiate due to uncertainty over tariff-free trade with Europe.
Both Odey and Martin were staunch supporters of the campaign to leave the European Union and argued that an independent Britain would be better for business.
However, in a letter Odey Asset Management clients that was revealed late Tuesday, Odey himself wrote that U.K. markets could fall as much as 80% as a result of the Brexit vote.
Britain's blue chip benchmark FTSE 100 index hit a record high in October and was still hovering within reach of the 7,000 mark amid a wider selloff.
"These times are getting interesting. The FTSE 100 share index is now up 30% over five years, whilst earnings have fallen 80%," he wrote. According to Thomson Reuters data, London's benchmark index is currently trading at 15.8 times forward earnings.
To get it 13 times earnings - close to the index's long-term average - stocks need to decline by 80% and profits can't fall any further than they have, Odey argued.
"What the U.K. is promising is rising wages, recession, inflation and falling profits. Not exactly the prize that ticket holders in the FTSE and the gilt market have paid up for," he wrote.