‘Division will reign supreme’: Funds industry on the quashed Brexit deal
By Jessica Tasman-Jones, 16 Jan 19
MPs vote 432 to 202 against Theresa May’s deal
David Roberts, co-manager, Liontrust Strategic Bond
“Immediately post PM May’s defeat last night, sterling fell and UK equity futures dropped. Soon after though, markets surged higher. Global investors now believe the chances of a ‘hard’ (in their mind) economically damaging Brexit have receded, expecting UK and Euro politicians to compromise on ‘plan B’. Markets, perhaps unlike voters, are ruled by the head, not the heart and again are stating that compromise, that working together, can bring benefits to all.
“Of course, as further proof of that, recent days have seen positive market returns based on an easing of tensions between China and the US. There is still a long way to go, but hopes of a mutually beneficial solution are growing. Perhaps something for May, Corbyn and dare I say Farage to think about?
“Perhaps we are remembering – a small share of a big pie is better than a large share of no pie?”
Tags: Brexit | Politics | Sterling | Theresa May