Brexit News Archive: 15 Jul 2016

Capitalism Has Entered A New Era-And Historic Returns Are Gone Forever - Janus Capital

Capitalism Has Entered A New Era-And Historic Returns Are Gone Forever by John Mauldin, Mauldin Economics We live in interesting times. We continue to see repercussions from Brexit. The other major players-in Europe, China, and Japan-seem to be in a [...]
Value Walk   |   Fri, 15 Jul 2016 21:55:48

Going upwards

Food, clothing and electrical items are likely to rise in price as a result of Brexit - but bills may not go up until next year
BBC   |   Fri, 15 Jul 2016 21:19:02

Italians reopen rebounding junk market

Two Italian companies confounded expectations and reopened the European high-yield market last week, as an rally overrode concerns over Brexit and even a domestic banking crisis.
IFR   |   Fri, 15 Jul 2016 20:00:00

Already Shaky, U.S. Profits Shudder After Vote

Britain’s vote to leave the European Union bolstered the dollar, which could hurt the earning of American companies that make most of their sales abroad.
PAUL J. LIM / NY Times   |   Fri, 15 Jul 2016 19:33:21

These Are The 10 Corporate Bond With The Most Negative Yields In The World

Earlier today Germany's 10Y Bund crossed back into positive yield territory for the first time since Brexit, after touching as low as -0.20% earlier in the week... ... but that, oddly, does not mean that corporate bunds have to follow. In fact, as Goldman finds, negative corporate bond yields may ...
Zero Hedge   |   Fri, 15 Jul 2016 19:30:00

What to Make of May's Cabinet

Lenin once observed that in some decades nothing happens, and in some weeks, decades happen. That is the position in which Brexit Britain finds itself today.
The American Interest   |   Fri, 15 Jul 2016 19:08:27

Investors flood back into US equities

Low bond yields and company earnings help S&P 500 add $1.4tn since post-Brexit low
FT   |   Fri, 15 Jul 2016 19:04:54

Procrastinating on July 15, 2016

**Over at [Equitable Must-Reads:** * **Barry Ritholtz**: [Ha-Joon Chang: Economics Is For * **Szolt Darvas**: [Brexit Vote Boosts Case for Inclusive * **Aaron Carroll**: [So What Did the Medicaid Expansion Actually * **Izabella Kaminska**: [Why the World Needs ---- **Should Reads:** * **Frederick Solt**: [The...
Grasping Reality   |   Fri, 15 Jul 2016 18:38:09

The Women Who Are Cleaning Up

Britain gets a female prime minister, so now politics is like housework?
JULIA BAIRD / NY Times   |   Fri, 15 Jul 2016 18:10:59

Summer shocks hit tour groups and airlines

Terror attacks and Brexit jolt tourism industry as travellers abandon plans for trips
FT   |   Fri, 15 Jul 2016 17:38:36

The Republican Hydra

The rise of Donald Trump and the shock of Brexit has sent a message to many professional commentators that globalization requires more economic protection at home. The Washington Post columnist Fareed Zakaria called such an approach "open and armed." Today, the Republican writers Ross Douthat and Reihan Salam call their ...
Derek Thompson / The Atlantic   |   Fri, 15 Jul 2016 16:33:00

Contributing Op-Ed Writer: The Women Who Are Cleaning Up

Britain gets a female prime minister, so now politics is like housework?
JULIA BAIRD / NY Times   |   Fri, 15 Jul 2016 16:32:01

BAML: Bear Capitulation!

Mark the date 7/11/2016 in your historical calendar. This was the day bears threw up their hands and capitulated, Bank of America Merrill Lynch notes in a July 14 report. But will it hold into the US presidential election? Brexit? [...]
Value Walk   |   Fri, 15 Jul 2016 16:21:37

Hedge Funds Return Positive Performance In H1 2016; CTAs Stay Strong, UK Funds Suffer

Hedge Funds Return Positive Performance In H1 2016 by Preqin All leading strategies posted positive performance through the first half of 2016, with macro and credit strategies recording the highest returns The Preqin All-Strategies Hedge Fund benchmark reveals that hedge [...]
Value Walk   |   Fri, 15 Jul 2016 15:54:16

Daily Digest 7/15 - Good News Friday: Paying Farmers To Go Organic, Are Walkers Smarter Than Drivers?

Are Walkers Smarter Than Drivers? NASA's Solar System program is just about the greatest thing ever Brexit Means You Might Be Able to Afford a Scottish Castle (or Two) Sticking germy fingers in your mouth may give you the upper hand on health Israel's Wildlife Hospital opens first-ever blood bank ...
Chris Martenson   |   Fri, 15 Jul 2016 15:18:47

Puns Join "-gate," "-gasm" & In Baker's Dozen Of Abused Suffixes

Before every scandal became a "gate," there was Watergate. Before every event that lasts longer than it should was labeled a "thon," there was Marathon. Now the headlines about Britain's decision to leave the European Union have resulted in a spate of puns. In fact, the term Brexit itself isn't ...
Consumerist   |   Fri, 15 Jul 2016 15:00:25

Here We Go Again

My, how quickly the narrative changes. Just one week ago, global interest rates were at record lows as Brexit and looming bank failures dominated the headlines. And now today? Everything is "great"! The US economy is "booming" and European banks are "stable". Yeah, well, whatever. Let's see what next week ...
TF Metals Report   |   Fri, 15 Jul 2016 14:35:12

UK firms in the frame for overseas acquirers, says Liberum

The current environment, post Brexit, is ripe for foreign firms to come in and snap up or merge with UK companies, reckons Liberum, which has outlined to investors potential targets. The first half for what's called 'inbound M&A' for the UK has been fairly slow, notes analyst Sebastian Jory, but ...
Proactive Investors   |   Fri, 15 Jul 2016 13:44:00

J.P. Morgan Posts Strong Results as Trading Picks Up

J.P. Morgan Chase & Co. posted quarterly results, tamping down fears the U.K.'s Brexit vote would wreak havoc on banks globally and pointing to underlying strength in the U.S. economy and consumer.
WSJ   |   Fri, 15 Jul 2016 12:50:39

Mining equities show that markets are rational, even if politicians aren't

Time for a quick roll call: Anglo American (LON:AAL), up 15% to 810p since the Brexit vote on June 23rd, Glencore (LON:GLEN) up 17% to 181.9p, RIO Tinto (LON:RIO) up 15% to 2,457p, BHP Billiton (LON:BLT) up 12% to 984p and Antofagasta (LON:ANTO) up 9% to 481p. And over the ...
Proactive Investors   |   Fri, 15 Jul 2016 11:38:00

Cabinet in Numbers: Just 6 Brexiters

Guido has been crunching the numbers for May's new Cabinet. There are only six Brexiters, the same number as in Cameron's last Cabinet. There are only eight female members, one more than previously, hardly a march of the women. Most of the key Cameron and Osborne allies have gone though ...
Guy Fawkes' blog   |   Fri, 15 Jul 2016 10:51:54

Stock Market Surging on News of International Investment

The stock market took a hit after Brexit, but this week the Dow and S&P 500 hit new highs.
Andrew Soergel / U.S. News   |   Fri, 15 Jul 2016 10:00:00

Datawatch: UK satisfaction with government

Satisfaction with how Britain's government was running the country started rising in spring 2013, but declined over the past year. After the Brexit poll it reached its lowest level since David Cameron became premier six years ago. Read more
FT Data   |   Fri, 15 Jul 2016 09:12:13

Theory Of Overnight Manipulation Of Stock Market Is Flat Wrong

There was an article in Business Insider yesterday talking about a theory of overnight manipulation of the stock market via the use of futures, after the Brexit low. However, data below show that this theory fails empirical verification. It is ... Continue reading → Theory Of Overnight Manipulation Of Stock ...
Price Action Lab   |   Fri, 15 Jul 2016 08:16:06

"Voters Deserve Responsible Nationalism Not Reflex Globalism" by Lawrence H. Summers

It is clear after the Brexit vote and Donald Trump's victory in the Republican presidential primaries that voters are revolting against the relatively open economic policies that have been the norm in the US and Britain since the second world war. Populist opposition to international integration is on the rise ...
Social Europe Journal   |   Fri, 15 Jul 2016 08:00:43

In the papers: TalkTalk, Burberry, Experian, Tata Steel

The Times Brexit blow to family finances will be significant, says Bank: House prices and family finances are under threat from a slowdown in the economy after Brexit, the Bank of England warned as it prepared for an interest rate cut in three weeks' time. 'Spoofing' trader jailed for three ...
Proactive Investors   |   Fri, 15 Jul 2016 07:48:00

USD/CNY: Consolidation in a tight range - MUFG

Derek Halpenny, European Head of GMR at MUFG, notes that the risk appetite returned this week and most USD/EM Asia have already returned to pre-Brexit
Sandeep Kanihama / FX Street   |   Fri, 15 Jul 2016 07:26:27

Editorial: Keeping NATO Relevant and United

Amid Russia’s aggressive tactics and Britain’s Brexit vote, the alliance serves as a regional anchor and a reassurance to Eastern European nations.
THE EDITORIAL BOARD / NY Times   |   Fri, 15 Jul 2016 07:23:18

Kipper Williams on Burberry

Fashion house puts Leeds factory opening on hold amid economic uncertainty after Brexit vote Continue reading...
Kipper Williams / Guardian   |   Fri, 15 Jul 2016 07:20:29

FT Opening Quote: Carney holds fire

BOE rates unchanged and European banks count the costs of Brexit. FT Opening Quote , with commentary by Lex Editor Robert Armstrong , is your early Square Mile briefing. You can sign up for the full newsletter here. Continue reading: FT Opening Quote: Carney holds fire
FT Alphaville   |   Fri, 15 Jul 2016 07:12:32

"Brexit: A Crisis Long In The Making" by Desmond Cohen

What is surprising about the result of the referendum is that so many of us were surprised - astonished may be closer to the truth. If we had thought a bit more deeply about the state of Britain and placed the referendum within a framework of the country's policy history ...
Social Europe Journal   |   Fri, 15 Jul 2016 07:00:41

EUR/USD: US short-term yields may drift higher, pointing to a slight bearish bias - MUFG

Derek Halpenny, European Head of GMR at MUFG, suggests that with global equity markets now above levels that immediately preceded the UK Brexit vote t
Sandeep Kanihama / FX Street   |   Fri, 15 Jul 2016 06:47:26

How choosing not to study the far-right sanitizes the political debate

As the excavation of whether individual characteristics, location, or values explain the Leave vote drills ever deeper, it is striking that Brexit appears to have come as a surprise. Based on an ethnographic study of English Defence League activism, Hilary Pilkington argues that it is not enough to blame polling ...
British Politics and Policy at LSE   |   Fri, 15 Jul 2016 06:00:49

Further reading

Elsewhere on Friday, - Aswath Damodaran: Tesla is a story stock, it's just not clear what the story is. - Cameron's failure was austerity . - Everything you need to know about Theresa May's Brexit nightmare in five ten or so minutes. Continue reading: Further reading
FT Alphaville   |   Fri, 15 Jul 2016 05:14:34

National interest, Labour style

When the Opposition leader extended a hand of cooperation to the government to help handle the unfolding post-Brexit world, he did so aware of dormant and unutilised expertise within his party's ranks that once helped Malta successfully navigate the financial storm that peaked between 2008 and 2011. Simon Busuttil cited ...
Times of Malta   |   Fri, 15 Jul 2016 04:31:08

It's not all doom and gloom on the job front

A 19% increase in professionals thinking about next career steps.
Here Is The City   |   Fri, 15 Jul 2016 04:03:16

Keeping NATO Relevant and United

Amid Russia’s aggressive tactics and Britain’s Brexit vote, the alliance serves as a regional anchor and a reassurance to Eastern European nations.
THE EDITORIAL BOARD / NY Times   |   Fri, 15 Jul 2016 04:00:00

Theresa's Tories Will Be Just Fine

Matt Purple Politics, Europe The new prime minister should have plenty of job security. After Brexit, it seemed British politics was lapsing into a cheesy thriller flick-the sort with the late-story plot twist that sees the most unlikely character betray the protagonist. "Ah-ha!" says the spindly, disheveled, calcium-deficient techie who's ...
National Interest   |   Fri, 15 Jul 2016 03:15:00

Boris Johnson Enters International Spotlight

Whether as newspaper columnist, London's mayor or pro-Brexit campaigner, U.K.'s new foreign secretary has provoked strong reactions from foreign officials.
WSJ   |   Fri, 15 Jul 2016 01:28:34

J.P. Morgan Posts Strong Results as Trading Picks Up

J.P. Morgan Chase & Co. posted quarterly results, tamping down fears the U.K.'s Brexit vote would wreak havoc on banks globally and pointing to underlying strength in the U.S. economy and consumer.
WSJ   |   Thu, 14 Jul 2016 23:37:30

Boris Johnson's Appointment Met With Distrust, Amusement

The new British foreign secretary is disliked by some for backing Brexit.
Curt Mills / U.S. News   |   Thu, 14 Jul 2016 20:06:35

Brtexit Breaking Badly?

Revolutions that are not driven by at least a surface appreciation for liberty, including in the economic sphere, can lead to unhappy consequences. Tyler Cowen reports on the new British Prime Minister and Brexit: The Economic Policies of Theresa May Also in The Sun on Sunday, May argued that outside ...
Economic Policy Journal   |   Thu, 14 Jul 2016 19:28:00

Boeing: A Series Of Turbulent Times - Part 3

This part of the series looks at how Brexit would put Boeing in testing times
Bidness Etc, Contributor / Forbes   |   Thu, 14 Jul 2016 18:05:00

USD Weaker Ahead of US Retail Sales and Inflation Data

Strong consumer spending is needed for US growth The market's reaction to the monetary policy decision to hold rates unchanged signals a return of fundamental data influencing currency pricing. The U.S. non farm payrolls (NFP) release was still deep in the fog of the Brexit aftermath to make an impact. ...
OANDA   |   Thu, 14 Jul 2016 17:42:47

FTSE falls after UK rates hold surprise

London stocks succumbed to selling pressure and ended Thursday lower, after investors were spooked by the Bank of England's decision not to cut interest rates. The central bank, already holding rates at a 300-year low of 0.5% since 2009, decided that more data was necessary post-Brexit to assess whether a ...
Proactive Investors   |   Thu, 14 Jul 2016 16:57:00

Lockhart advises patience on rates

Lockhart explained his view on Brexit and why it's not a "Lehman moment" within the global economy.
CNBC   |   Thu, 14 Jul 2016 16:55:00

The 3 Charts That No UK Property Fund Manager Wants You To See

Things just went from worst to worst-er in Britain's property market. Having detailed the numerous 'dominoes' that have begun to fall, and most recently the start of forced real asset liquidations, the hard data from Britain's Royal Institute of Chartered Surveyors suggests Brexit just killed the British housing market. Having ...
Zero Hedge   |   Thu, 14 Jul 2016 16:48:17

Why Theresa May will be tough for Nicola Sturgeon to deal with

On the day Theresa May took up residence at 10 Downing Street, the Scottish first minister Nicola Sturgeon had a message for her: The incoming PM has said to her party that 'Brexit means Brexit' - but she must not forget that Scotland voted to stay in the EU, and ...
Alexander Smith, Senior Leverhulme Research Fellow and Assistant Professor in Sociology, University of Warwick / The Conversation   |   Thu, 14 Jul 2016 16:44:21

BAML: Excess Demand For Risk

With an excess demand for risk in the air and stocks continuing to climb a Brexit wall of worry higher, Bank of America Merrill Lynch (in a note titled "Excess demand for risk") has a relative value trade it thinks [...]
Value Walk   |   Thu, 14 Jul 2016 16:33:17

Unholy Trinity

Aside from the strong desire to discuss something other than Brexit, a topic we have covered in several recent blog posts, part of the reason for singling out Italy is
Alpha Now   |   Thu, 14 Jul 2016 16:19:25

Podcast Episode #7: Playing Defense Against Black Swans

Episode #7: Playing Defense Against Black Swans Guest: Episode #7 has no guest, but is co-hosted by Meb's co-worker, Jeff Remsburg. Date: 7/7/16 Run-Time: 30:10 Topics: With Brexit rattling the markets recently, it's a good time to revisit the discussion of "black swans" (not that Brexit was a black swan, ...
World Beta   |   Thu, 14 Jul 2016 16:14:19

This Bundless world...

One of the little-remarked consequences of the Brexit vote in the UK is that the subsequent generalised tightening of sovereign yields across the eurozone means that even less euro-core government paper qualifies for Draghi's QE programme. There are dangers in the ECB ignoring this looming problem. Here's a cheat sheet ...
FT Alphaville   |   Thu, 14 Jul 2016 16:01:00

Market legend Art Cashin says a 'conspiracy theory' is going around that explains the latest stock rally

Look around the economic landscape and it's not easy to find bad news. Brexit fears, another possible quarter of bad earnings, sliding oil prices, record lows for bond yields, and so on. And yet, the stock market has eclipsed its all-time highs for both the S&P 500 and the Dow ...
Business Insider   |   Thu, 14 Jul 2016 15:47:49

Silver - Gold's Powerful Bull-Market Ally

Silver - Gold's Powerful Bull-Market Ally by GoldCo In 2016, we've seen gold flourish as a safe haven for investors fleeing stock market uncertainty, global debt and deflation and the anxiety-induced currency fluctuations kindled by Brexit. All told, the shiny [...]
Value Walk   |   Thu, 14 Jul 2016 15:41:30

Don't Just Do Something, Stand There

My latest post for Alpha Baskets looks at the round trip caused by Brexit and knowing when doing nothing is the best course of action. From the post; With that building block of understanding, the things that most people do then will hopefully help numerically at the margin to improve ...
Random Roger   |   Thu, 14 Jul 2016 15:29:53

Theresa May reshuffle: what is behind the PM's top appointments?

In exercising her power to choose her government ministers, the new British prime minister, Theresa May, has taken an important early step towards realising her three priorities: uniting her party, delivering withdrawal from the European Union (or Brexit), and governing "for everyone, not just the privileged few". Prime ministers must ...
Nicholas Allen, Reader in Politics, Royal Holloway / The Conversation   |   Thu, 14 Jul 2016 15:00:20

In Uncertain Times, Cash is King in Investing

Note: This article appears on the ETFtrends.com Strategist Channel By Chris Konstantinos The unexpected result of the Brexit vote in the UK on June 23 unleashed a litany of uncertainties into the global economy. While Friday's US payroll number (+287k headline) was strong enough to push US markets within sight ...
ETF Trends   |   Thu, 14 Jul 2016 14:50:29

Demandware Is 'Best Ecommerce Cloud Asset' For CRM: UBS

UBS analyst Brent Thill and his team have an update on Salesforce.com ( CRM ) in the wake of Brexit and the Demandware acquisition, which effectively closed earlier this week. Thill reiterated a Buy rating and $100 price target on the stock, writing that while Demandware was Salesforce's largest acquisition ...
Eric Savitz   |   Thu, 14 Jul 2016 14:46:48

Wexit: Time To Leave The World

We dodged the Grexit (Greece leaving the EU) but got the Brexit (Britain) instead. Now we're hearing about a possible Frexit (France). What next? And why does everyone want to leave? Cartoon by Shannon Wheeler.
Cartoon Of The Day, Contributor / Forbes   |   Thu, 14 Jul 2016 14:42:00

Are low interest rates doing more harm than good?

In the wake of Brexit the world is once again looking to central banks to jump-start the economy with more stimulus. But are low rates doing more harm than good? The post Are low interest rates doing more harm than good? appeared first on Macleans.ca .
Chris Sorensen / Macleans   |   Thu, 14 Jul 2016 14:24:28

JPM beats the Street

JPMorgan earnings beat the Street's estimates, so what might the impact of Brexit be for the bank, with Eric Wasserstrom, Guggenheim Securities.
CNBC   |   Thu, 14 Jul 2016 14:20:00

Markets rarely fail to surprise!

Markets rarely fail to surprise! It was deemed a cert we'd get an interest rate cut today but we didn't. I think that's right. It's too early. A few days after Brexit it was almost as if it had never happened. Indeed every time we looked at a chart at ...
Proactive Investors   |   Thu, 14 Jul 2016 14:16:00

How the House of Morgan Won Earnings

Considering the recent uncertainty and turbulence in the markets from the Brexit, JPMorgan impressed yet again with its most recent earnings report. Even the Fed thought so. JPM 247chrislange piggy bank
24/7 Wall St.   |   Thu, 14 Jul 2016 14:10:40

Italy's banking problem is serious but can be fixed

Following the UK vote to exit the European Union, the fragility of the Italian banking system has come into the spotlight. The Economist described it as a "potentially more dangerous financial menace" than Brexit. This characterization is massively overblown. The policy and political challenges associated with Italian banks are complex ...
Bruegel   |   Thu, 14 Jul 2016 14:04:15

Will High-End Real Estate Buyers Shift From London To The US?

High-End Real Estate Buyers Will Shift From London To The US by Mauldin Economics Brexit has a myriad of impacts on the global economy (read Mauldin Economics' special report on Brexit implications). One of them was a huge hit to [...]
Value Walk   |   Thu, 14 Jul 2016 13:58:05

U.K. interest rate cut is coming, just not now

The Bank of England surprises markets by keeping interest rates on hold but says it expects to act next month to tackle an economic slowdown triggered by the Brexit vote.
CNN   |   Thu, 14 Jul 2016 13:32:04

Delta Earnings Beat Views

Delta said it would reduce its U.S.-U.K. capacity on its winter schedule because of the economic uncertainty from Brexit, as the airline reported higher quarterly earnings.
WSJ   |   Thu, 14 Jul 2016 12:29:52

Leading Brexiteer warns on cutting immigration

Next CEO Lord Wolfson, a leading Brexiteer, tells Simon Jack the result shouldn't mean drastic falls in immigration.
BBC   |   Thu, 14 Jul 2016 12:13:38

U.K. interest rate cut is coming, just not now

The Bank of England surprises markets by keeping interest rates on hold but says it expects to act next month to tackle an economic slowdown triggered by the Brexit vote.
CNN   |   Thu, 14 Jul 2016 12:02:27

NZD: Potential for higher in the near term - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that the sharp rebound in global sentiment since the Brexit vote shock has boosted NZD to a one-ye
Sandeep Kanihama / FX Street   |   Thu, 14 Jul 2016 11:49:01

UK headed for recession: BlackRock's Fink

Brexit is going to cause a short-term recession, says Larry Fink, BlackRock CEO, providing his outlook on the the UK's economy after Brexit.
CNBC   |   Thu, 14 Jul 2016 11:04:00

Why Putin Loves Brexit

In the Russian president’s view, what makes Europe weaker makes him stronger.
ANDREW FOXALL / NY Times   |   Wed, 13 Jul 2016 15:10:59

Can OPEC Supply The Tighter Oil Market It Predicts?

OPEC expects oil demand to remain strong through 2017, but downgraded its assessment because of the Brexit result. In its latest monthly Oil Market Report for July, OPEC sees oil demand rising this year and next, almost exclusively from non-OECD Asia. The OECD, which includes the U.S. and Europe, only ...
Nick Cunningham / Oil Price   |   Tue, 12 Jul 2016 21:51:18

Post Brexit: Why The UK Is No Longer A Place I Want To Do Business

I am British. I also hold a directorship at six UK limited companies. And in August, I was about to become director of a seventh. But those plans are now on ice, thanks to Brexit referendum result.
My Say, Contributor / Forbes   |   Tue, 12 Jul 2016 19:28:00

Criticism of Bank over Brexit should end unless impropriety is proved

Mark Carney may have overreacted in squabble with Jacob Rees-Mogg about referendum but he deserves sympathy By the end of the Treasury select committee's session, Mark Carney looked as if he could happily punch his chief tormentor, the Tory MP Jacob Rees-Mogg. It was the umpteenth time Carney had been ...
Nils Pratley / Guardian   |   Tue, 12 Jul 2016 18:50:54

Op-Ed Contributor: Brexit and Irish Unity

England voted to leave the E.U., but Northern Ireland didn’t.
GERRY ADAMS / NY Times   |   Tue, 12 Jul 2016 17:48:06

Fed's Stanley Fischer Says Brexit Implications Still Being Evaluated

Federal Reserve Vice Chairman Stanley Fischer said Friday the Fed will know more by its July meeting about the implications of the so-called Brexit vote for the U.S. economy, and said those effects will be weighed against positive incoming U.S. economic data.
WSJ   |   Fri, 1 Jul 2016 15:32:43

Some Traders See Emerging Markets Coming Back

A week after the U.K. vote to leave the European Union sparked a global market rout, some investors are already betting that emerging markets are on their way back.
WSJ   |   Thu, 30 Jun 2016 20:19:52