October 5, 2018— On March 29, 2019, the UK officially leaves the EU, 33 months after the June 23, 2016 referendum. Fortunately, the referendum triggered a depreciation of pound sterling that has boosted the international competitiveness of UK goods exporters (Figure 1). Moreover, since the referendum, UK firms have been assiduously preparing for post-Brexit challenges, even
July 13, 2018—The unresolved issue of Brexit—the UK’s exit from the European Union (EU)—continues to present ongoing uncertainty for the UK and broader European equities. Markets have already priced in much of this uncertainty. If the UK fails to conclude an agreement with the EU on post-Brexit arrangements, we believe equities will be negatively repriced. If the U.K.
June 29, 2018—During 2Q 2018, it appears that China equity and currency risks have risen against the background of a somewhat softer local economy. A Chinese state think tank caused a stir by briefly posting online a report warning policymakers that they should take actions to preclude a “financial panic.” The facts are as follows: The