Brexit is not Brexit?

Much to the surprise of legal experts, the government and, presumably, to those who voted to leave the European Union, Brexit is now once again in doubt. The High Court has declared that the Government cannot trigger Article 50 without a parliamentary vote. The Government will appeal, of course, but sterling is already higher on … Continue reading “Brexit is not Brexit?”

Now is not the time for knee-jerk reactions

Much has happened since the referendum. Politicians have come, gone, not gone and we have a new Prime Minister. Markets have whipsawed. All of this has led to a whiff of panic. It is time for a bit of calm and for politicians to chart a safe course for the country.   Some have made … Continue reading “Now is not the time for knee-jerk reactions”

Flash UK PMI signals post-referendum slump

Private survey data suggest the UK economy has slumped since the result of the EU referendum was announced, increasing the chances of an interest rate cut in August. Markit has released a one-off set of surveys of its purchasing managers’ indices (PMIs), which suggest that both the manufacturing and the services sectors are now contracting … Continue reading “Flash UK PMI signals post-referendum slump”

What does Brexit mean for trade?

The fallout from the United Kingdom’s vote on European Union membership, in which the ‘Leave’ campaign won a narrow victory, will have a wide range of repercussions that are difficult to assess in terms of scope, duration and size. The initial impact of this result has been global, and uncertainty remains a part of the … Continue reading “What does Brexit mean for trade?”

Investors shocked by referendum result

  June 2016 is set to go down in history as one of the more eventful months in recent memory. In the much-discussed referendum over the UK’s future within the EU, a narrow majority of Britons voted by 52% to 48% in favour of quitting Europe. Financial markets were rocked by the news: share prices … Continue reading “Investors shocked by referendum result”

Brexit – a shock for markets, or a crisis?

Investors have been seriously wrong-footed by the result of the EU referendum. But the shock of City traders this morning is nothing compared with the stunned response of the people who thought they ran the country. The economic and political questions raised by this vote will not be answered for years, possibly decades. But the … Continue reading “Brexit – a shock for markets, or a crisis?”

Stagflation looms after UK’s EU referendum

The UK choosing to leave the EU comes as a major shock for investors and uncertainty will remain high for some time. In the near-term, the UK is likely to experience a stagflationary period of lower growth but higher inflation. After months of uncertainty and market volatility, the UK is projected to have voted to … Continue reading “Stagflation looms after UK’s EU referendum”

Risk-off sentiment prevails as the market reaction quickly prices in uncertainty

The UK’s vote to leave the EU has resulted in a significant pullback in markets but investors should not over react to today’s volatility. Non-domestically focused equities may prove the best way to navigate the market uncertainty. There are so many issues and permutations to be considered in the event of today’s Brexit vote, it’s … Continue reading “Risk-off sentiment prevails as the market reaction quickly prices in uncertainty”

EU referendum: our thoughts as the UK decides to leave

Following the UK’s historic decision to leave the European Union (EU), we share some initial views from our economic and investment teams as to what this result may now mean for markets and investment strategy.   Nick Mustoe,Chief Investment Officer, Invesco Perpetual After months of anticipation, UK voters have decided – in an historic move … Continue reading “EU referendum: our thoughts as the UK decides to leave”

UK VOTE: OUT OF EUROPE

The UK’s momentous decision to leave the EU brings long-lasting political and economic consequences. We expect European leaders to focus on fending off domestic populist movements emboldened by the British exit and on preventing the entire EU edifice from falling apart. This points to a tough negotiating stance toward the UK and less focus on … Continue reading “UK VOTE: OUT OF EUROPE”

Prospect of higher US rates drives down Treasury bond yield

As the referendum over the UK’s future membership of the European Union (EU) drew closer, credit ratings agency Fitch warned that, if the UK were to leave the EU, a Brexit would “weigh on the economies of other EU countries and increase political risks”. In particular, a Brexit would cut the UK’s contribution to the … Continue reading “Prospect of higher US rates drives down Treasury bond yield”

Weak sterling undermined UK dividends in Q1

Speculation over the EU referendum continued to absorb the limelight during May, and investors and companies became increasingly nervous about the potential impact of a Brexit. The FTSE 100 Index fell by 0.2%, while the FTSE Small Cap Index climbed by 0.2%; meanwhile, the FTSE 250 Index posted a monthly gain of 2.3%. The relatively … Continue reading “Weak sterling undermined UK dividends in Q1”

Brexit debate and US monetary policy dominates in May

As June’s referendum on the UK’s future membership of the European Union (EU) drew closer, the tone of the Brexit debate became increasingly ill-tempered in May. During the month, various influential organisations – including the Bank of England (BoE), the International Monetary Fund (IMF) and the Confederation of British Industry (CBI) – contributed to the … Continue reading “Brexit debate and US monetary policy dominates in May”