How can investors position against a no-deal Brexit?

Simon Brazier of Investec

Simon Brazier of Investec

Boris Johnson's arrival at Number 10 has done little to enhance UK investor confidence; he has wasted no time setting a collision course with the EU over his no-deal strategy, and members on the other side of the House of Commons.

The current level of sterling weakness suggests the market is putting a significant probability on the UK crashing out of the EU this Halloween without a withdrawal agreement. As such, the UK looks precariously positioned. The single most-worrying Brexit outcome for UK stockmarkets With the savings ratio and UK unemployment levels at historic lows, there is little room for the UK consumer to absorb any shock from a no-deal Brexit. This is an important consideration, given the consumer has helped to drive economic growth since the 2016 referendum in a period when business investm...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on UK

The fall in sales volumes over the month was because of food stores, which fell by 1.6%.

UK retail sales slip in May as consumer confidence falls to lowest on record

Shoppers cut back on food spending

clock 24 June 2022 • 2 min read
"UK is at a crossroads"

Average global funds hold a third less in the UK than before Brexit

Brexit risks still an issue for managers

clock 23 June 2022 • 4 min read
The UK Infrastructure Bank just surpassed its one year anniversary

UK Infrastructure Bank to move away from investing through fund managers - reports

Chief executive has come under pressure

Elliot Gulliver-Needham
clock 23 June 2022 • 2 min read