POLITICS

England's World Cup 2014 Failure Could Hurt The UK Economy

20/06/2014 10:57 BST | Updated 20/06/2014 11:59 BST
Richard Heathcote via Getty Images
SAO PAULO, BRAZIL - JUNE 19: A dejected Wayne Rooney of England walks on after losing to Uruguay 2-1 during the 2014 FIFA World Cup Brazil Group D match between Uruguay and England at Arena de Sao Paulo on June 19, 2014 in Sao Paulo, Brazil. (Photo by Richard Heathcote/Getty Images)

England's World Cup team are not the only ones to feel down after Uruguay stormed to a 2-1 victory on Thursday night, as the markets felt the impact of Britons' fraying enthusiasm for the tournament.

With England facing the prospect of the first World Cup group exit since 1958, fears are mounting that being kicked out early could be bad news for pub companies, advertisers, sportswear brands and bookies.

Meanwhile, workplaces are set to see their productivity plummet as one in 10 workers, equating to 3.5 million Brits, are thinking of taking a sick day due to England losing to the south Americans, according to betting chain Ladbrokes.

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World Cup broadcaster ITV's share price had a shaky start when trading opened on Friday morning, crashing after an initial rise, and then returning to a level of 173p a share, before starting to dip again.

Meanwhile it could be a quiet day in some English workplaces. A survey by betting chain Ladbrokes found that one in 10 workers was contemplating taking a sick day if England lost its World Cup game against Uruguay. With England now facing a near-impossible task of reaching the last 16, there may well be many fans still hiding under duvets.

Pubs are especially reliant on England doing well, having specially been allowed to open late for the games. Punch Taverns, the largest pub operator in Britain, saw its share price dip to 9.5p a share, before rising to just below its opening price.

wayne rooney england world cup

Punch Taverns' share price today

Back in 2010, when England crashed out in the second round of the World Cup, the main pub companies saw their shares dip by 8% on average after three days of trading. In 2010, when England were knocked out in the second round, shares across the main operators had plunged almost eight per cent on average, after three days of trading.

The share price impact has been smaller after previous competitions as England got through further stages of the World Cup. In 2006, pub companies' share prices dipped by an average of 0.4%, and in 2002, 2.2%.

Uruguay V England: World Cup 2014