What seemed impossible some months ago came true: UK has voted to leave the European Union by 51,9 % against 48,1%. World financial markets sank with sterling suffering its biggest fall since 1985 by 10 percent against the dollar leaving the world’s 5th largest economy as well as the European efforts to forge unity completely hit. David Cameron will step down after Brexit vote.
Natixis AM Global | Everyone seems to agree that a Brexit either will create market volatility or already is creating volatility, or both. That’s hardly the news. I think it’s perhaps more interesting to consider the type of volatility created; that is, one with a very uncertain path of interconnected events.
A good dozen Spanish small and midcap listed companies have presented their projects to big institutional investors on different days in New York and Chicago. The event was organised by Spain’s Bolsas y Mercados Espanoles (BME), broker JB Capital Markets and its US partner Auerbach Grayson.
The challenge for German judges was to determine if the OMT can be seen as monetary financing of governments or not, banned in EU treaties or not. The Constitutional Court in Karlsruhe has ruled on Tuesday the ECB’s 2012 bond-buying plan is legal. Ifo President Clemens Fuest has, however, has critisised the OMT ruling. “That is a shame because it is obvious that the OMT programme primarily pursues the fiscal goal of preserving highly indebted states’ access to credit”.
AXA IM | No changes to our asset allocation: Given the prevailing uncertainty we confirm our prudent strategy with an underweight in equities but reiterate our positive view on credit. We also repeat our recommendation to hedge the risk of a possible Brexit
UBS | German 10yr bond yields have turned negative and some European corporates are effectively “being paid to borrow”. What are the implications for European equities? Although there has been a deepening of Global growth fears in recent weeks, economic surprise indicators and PMIs have not collapsed.
In April 2014, a new law was passed in France, the Florange Law, creating a new power game: the vote of long-term shareholders (two years) automatically accounted for double. Although the Elysium maintained it was about attracting long-term investments and keeping French companies French, the Executive Director of ANSA – the National Association of Joint-Stock Companies – insists that the Florange Law creates obstacles to doing business and criticises the fact it is obligatory.
James Alexander via Historinhas | It is reported that 90% of UK economists are in favour of the UK remaining in the EU. They have carefully considered the costs and benefits of the UK leaving and mostly decided the economic loss is great, up to 8% of RGDP by 2030 – or around 0.5% per year for the next 14 years.
UBS | Economic data points to stabilization, but manufacturing and private investment weakened further. FAI growth’s disappointing slide to 7.5%y/y was mostly dragged down by a high base, weaker property investment, and sharper weakening of manufacturing.
via Macropolis | In a quote some attribute to ancient Greek dramatist Aeschylus, the truth is said to be the first casualty of war. Perhaps the same can be said in times of economic crisis, which some have likened to a state of war. Certainly, one could safely say that accuracy has taken a severe battering during the Greek crisis. And, if accuracy is compromised then it is quite likely the truth will also be mangled.