While UK equities have somewhat fallen out of favour since the Brexit referendum in 2016, the outlook for the asset class could improve thanks to a range of shifts in the macroeconomic environment.
The first of these is a potential "reset" of relations with the European Union, with the UK-EU summit today (19 May) expected to result in agreements deepening economic ties. One such agreement is a defence and security pact, which would enable the numerous UK defence contractors to participate in European procurement initiatives and access the EU's rearmament fund. Other potential deals could include easing mobility between the two blocs through a youth visa scheme, as well as the removal of checks on food and drink exported to the EU. This summit, as well as other potential agree...
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