Eq: Dev ex-US


We have stayed away from covering too much of the in-fighting currently going on in Britain over Brexit and how to proceed in negotiating with the EU. However, something potentially very troubling came out this weekend that could weigh on global markets—there may be another Scottish referendum in the near future. Scotland has been furious over Britain wanting to leave the EU (Scotland is heavily pro-EU), and it has complained that London has not listened to its questions and concerns about Brexit. Therefore, the country is mulling over planning a new referendum on UK membership, and UK PM May has reportedly said it was okay so long as it occurred after the UK leaves the EU.

FINSUM: British political logic is confounding to outsiders, so it is hard to say how this may play out. However, we suspect Scotland will not want to wait until after the UK leaves the EU to have its referendum.

Source: Bloomberg


Keen Europe watchers will remember that a few months ago the UK’s Supreme Court ruled that parliament would need to vote to trigger a Brexit from the EU. However, the most important ruling—the government’s appeal of the decision—was announced today, with the Supreme Court upholding the decision (8 to 3) that parliament must vote before Brexit can be started. Ironically, the vote made the Pound fall, as traders view it as no impediment to Brexit as parliament seems likely to vote in favor of it. The important part of the ruling was that the Court said Northern Irish and Scottish legislatures will not have a chance to vote on the measure, which clears PM May’s timeframe.

FINSUM: Brexit appears as though it will likely be triggered in March.

Source: Bloomberg


For those of you who might not have noticed—and one could easily be forgiven for it—Britain’s largest stock index, the FTSE 100, is about to mark its best run in 33 years. It is poised to gain 11 days in a row. On the surface this seems like a headscratcher considering all the bad news and gloom surrounding the country’s Brexit from the EU. However, stock investors there love the devaluation of Sterling, which boosts earnings and makes British goods more affordable for overseas buyers. Take AstraZeneca for instance, the company’s largest drug maker, which has seen its shares rise in 16 of the last 20 sessions.

FINSUM: This shows that a currency fall can overcome almost any obstacle in the minds of stock investors.

Source: Financial Times

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