Brexit News Archive: 21 Jul 2016

Stock rally pauses: Dow down after 9 days of gains

Investors react to more earnings and 1st European Central Bank policy meeting since Brexit
USA Today   |   Thu, 21 Jul 2016 20:50:37

Meanwhile, Across the Pond...

( Steven Hayward ) While we await the summa of Trumpismo tonight, it's worth a look across the pond at the early outings of Britain's new prime minister, Theresa May. I'd never heard of her before the Brexit vote, but at least two early moves look promising. First, she appointed ...
Power Line   |   Thu, 21 Jul 2016 20:35:40

Today's Headlines

Bloomberg: Draghi Joins Not-Quite-Sure Club Puzzling Over Brexit Aftermath. Mario Draghi is part of a growing club of central bankers who are just fine with admitting they're uncertain what's going on right now -- and that's no barrier to action. Far from giving fresh insights into how the U.K.'s decision ...
Between the Hedges   |   Thu, 21 Jul 2016 18:57:00

Brazil's Political Left Ousted The IMF, But New Leadership May Need It Back

The Petrobras scandal is Brazil's Brexit. An ex-IMF economist says the International Monetary Fund is needed to save Brazil once again.
Kenneth Rapoza, Contributor / Forbes   |   Thu, 21 Jul 2016 18:52:43

Kipper Williams on easyJet

Political turbulence hits airline as terror attacks, Brexit vote and sterling slump increase fuel costs Continue reading...
Kipper Williams / Guardian   |   Thu, 21 Jul 2016 18:29:39

Are VIX ETFs A Powder-Keg Waiting To Explode?

Authored by Peter Tchir, originally posted at Forbes.com, I have been following several 'bearish' ETFs and ETNs lately – UVXY, TVIX, VXX and SDS. All seem to have the following characteristics recently: After some initial post Brexit selling – they are all seeing steady, if not accelerating inflows Rather than ...
Zero Hedge   |   Thu, 21 Jul 2016 17:21:37

Leave London After Steve Cohen Doubles Down

The billionaire investor is expanding the London office of his firm, Point72 Asset Management, even as other firms pare back.
CHAD BRAY / NY Times   |   Thu, 21 Jul 2016 17:01:44

Sideways: Brexiteers' financial gains may be short-lived

Traders claiming to have profited from the Brexit vote were slow to identify themselves in the wake of the historic decision for the UK to leave the European Union.
Euromoney   |   Thu, 21 Jul 2016 16:45:00

Heckuva Job

I do not know how the UK will manage to unshit Cameron's bed, or if anybody in charge wants to.The U.K. economy may be heading for its first recession since 2009, with economists slashing their forecasts in the wake of the Brexit vote and now seeing two quarters of contraction ...
Eschaton   |   Thu, 21 Jul 2016 16:30:00

It's not just non-performing loans...

Mario Draghi on banks and monetary policy transmission from the ECB's press conference today: You're right, banks are important, especially important for the euro zone, which is basically a bank-based economy where the credit intermediation goes mostly through the bank lending channel. Bank equities in the aftermath of the Brexit ...
FT Alphaville   |   Thu, 21 Jul 2016 15:58:43

Shorts In U.K. Real Estate Reward Hedge Funds

The Brexit mayhem and consequent downturn in London's real estate market have gotten several hedge funds to take up new short positions in the U.K. real estate sector. See also Hedge Fund Assets Rise On Brexit Gains Marshall Wace bags profit from [...]
Value Walk   |   Thu, 21 Jul 2016 14:13:25

Land Securities warns on UK tenant demand

Property group expects Brexit uncertainty to persist
FT   |   Thu, 21 Jul 2016 14:06:05

TREASURIES-U.S. 10-year yields hit four-week high after U.S. data

* U.S. weekly jobless claims fall to 3-month low, boost yields * ECB's Draghi says euro zone has weathered Brexit volatility * Thirty-year JGB yields spike, helps U.S. yields overall By...
Reuters   |   Thu, 21 Jul 2016 14:05:46

Forex: "The Markets Are Getting Exciting!"

Forex: "The Markets Are Getting Exciting!" Our Senior Currency Strategist explains why By Elliott Wave InternationalJim Martens, the editor of our Currency Pro Service, gives you a preview of what's going on in the FX world post-Brexit. Watch this new interview to learn which markets Jim's... Please click on the ...
EconMatters Global   |   Thu, 21 Jul 2016 14:03:00

Stock rally pauses: Dow opens lower after 9 days of gains

Investors react to more earnings and 1st European Central Bank policy meeting since Brexit
USA Today   |   Thu, 21 Jul 2016 13:48:43

Polaris Global Value Fund 2Q16 Commentary

Polaris Global Value Fund commentary for the second quarter ended June 30, 2016. Dear Fellow Shareholder, Global markets experienced normal spurts of volatility during the quarter, with the MSCI World Index in positive territory. The Brexit vote on June 23rd, [...]
Value Walk   |   Thu, 21 Jul 2016 13:23:18

Are VIX ETFs A Powder-keg Waiting To Explode?

I have been following several 'bearish' ETFs and ETNs lately - UVXY, TVIX, VXX and SDS. All seem to have the following characteristics recently After some initial post Brexit selling - they are all seeing steady, if not accelerating inflows Rather than showing signs of being 'stopped' out as the ...
Peter Tchir, Contributor / Forbes   |   Thu, 21 Jul 2016 13:22:00

E.C.B. Keeps Rates Steady, but Still Faces Plenty of Uncertainty

The eurozone is dealing with aftershocks of earlier crises, while coping with more recent threats like Britain’s vote to leave the European Union and a shaky banking system in Italy.
JACK EWING / NY Times   |   Thu, 21 Jul 2016 12:08:40

E.C.B. Keeps Rates Steady, but Still Has Plenty to Discuss Amid Uncertainty

The eurozone is dealing with aftershocks of earlier crises, while coping with threats like Britain’s vote to leave the European Union and a shaky banking system in Italy.
JACK EWING / NY Times   |   Thu, 21 Jul 2016 12:08:39

Markets have been very 'resilient': Brian Price

Brian Price, T. Rowe Price chairman & CIO, shares his outlook on the markets, and weighs in on Brexit, and the upcoming presidential election. I think investors will shake off the election - whatever happens, says Price.
CNBC   |   Thu, 21 Jul 2016 11:40:00

Confindustria says risk of new credit crunch in Italy (2)

(see related) Rome, July 21 - The CSC research unit of industrial employers' confederation Confindustria said Thursday that Italy risked enduring a new credit crunch due to the weight of non-performing loans on many banks' balance sheets and falling share prices following the Brexit. "The collapse o
Gazzetta Del Sud   |   Thu, 21 Jul 2016 11:29:00

Why Italy's bank crisis could be a 'ticking time bomb'

Just as the dust begins to settle on Brexit, Italy's banking system looms as the next threat to global financial markets. Previous attempts to resolve Italy's banking sector woes have proven to be less than effective. Non Performing Loans on the balance sheets of Italian banks represent over 8% of ...
Zero Hedge   |   Thu, 21 Jul 2016 11:27:00

Expect QE to extend beyond March 2017: Barclays

Antonio Garcia Pascual, chief European economist at Barclays, explains why the European Central Bank will eventually have to do a little bit more, in light of the Brexit vote.
CNBC   |   Thu, 21 Jul 2016 11:14:00

E.C.B. Likely to Leave Rates Unchanged at Policy Meeting, but Issues Loom

The eurozone is dealing with aftershocks of earlier crises, while coping with threats like Britain’s vote to leave the European Union and a shaky banking system in Italy.
JACK EWING / NY Times   |   Thu, 21 Jul 2016 10:51:35

Morgan Stanley Turns It Around After Rough Year

Morgan Stanley Turns It Around After Rough Year Low interest rates and Brexit have hurt the stock but strong quarterly results point to better times ahead.Morgan Stanley Turns It Around After Rough Year Low interest rates and Brexit have hurt the stock but strong quarterly results point to better times ...
Barrons   |   Thu, 21 Jul 2016 10:34:18

Growth outlook at risk, says Confindustria (2)

Rome, July 21 - The CSC research unit of industrial employers' confederation Confindustria said Thursday that Italy's GDP rose only 0.15% in the second quarter of 2016, compared to an estimated 0.25%, adding that growth "will not be very lively in the third either". It said that the Brexit and ...
Gazzetta Del Sud   |   Thu, 21 Jul 2016 10:17:00

21/7/16: Article 50: Facts

There is a lot of poorly informed nonsense being pushed around the media (especially 'new media') about Article 50 process relating to the Brexit. The best, most cogent and brief summary of what actually is involved in this process was provided back in February by the Open Europe think-tank here:
Constantin Gurdgiev   |   Thu, 21 Jul 2016 10:10:00

Growth outlook at risk, says Confindustria

Rome, July 21 - The CSC research unit of industrial employers' confederation Confindustria said Thursday that Italy's GDP rose only 0.15% in the second quarter of 2016, compared to an estimated 0.25%, adding that growth "will not be very lively in the third either". It said that the Brexit and ...
Gazzetta Del Sud   |   Thu, 21 Jul 2016 09:38:00

Brokers: Direct Line, Legal & General under scrutiny

Barclays Capital released a note on insurance groups on Thursday, with the banking giant repeating its largely negative view of the sector as a whole. While it doesn't expect any impact from Brexit in the near-term, Barclays said that, in the longer term, "growth may slow if the UK does ...
Proactive Investors   |   Thu, 21 Jul 2016 08:52:00

Morgan Stanley chief exec says staff may need be moved from UK

Morgan Stanley's chief exec has said the bank will relocate some of its UK staff following the Brexit vote.
Here Is The City   |   Thu, 21 Jul 2016 06:50:31

Breedon Aggregates remains confident after excellent operational performance

Breedon Aggregates Ltd (LON:BREE), which produces materials for the construction industry, brushed aside uncertainty caused by the Brexit vote as it reported an excellent first half operating performance and a 19% increase in pre-tax profit. The largest independent aggregates business in the UK, which also has a Scottish division, also ...
Proactive Investors   |   Thu, 21 Jul 2016 06:43:00

Why untangling UK industry from Europe may be 'impossible'

Bavarian firms abhor prospect of divorcing UK and German manufacturing, but if pushed, prefer loyalty to the single market When Bavarian politicians rhapsodise about their "laptop and Lederhose" economy, they most likely have in mind businesses such as Dräxlmaier in Lower Bavaria. The slogan encapsulates the state's transition from agriculture ...
Philip Oltermann in Vilsbiburg / Guardian   |   Thu, 21 Jul 2016 05:00:00

What to watch for at the ECB meeting

Draghi set to wrestle with Brexit economic fallout, QE headaches and problems with Italian banks
FT   |   Thu, 21 Jul 2016 04:32:10

Brexit uncertainty for wine sector: bank

The fall in the value of the British pound following the Brexit vote could impact on the demand for imported wine in the UK, says Rabobank.
SMH   |   Thu, 21 Jul 2016 04:06:14

China SAFE: Haven't seen big impact of Brexit on capital flows

Additional headlines crossing the wires from the Chinese fx markets regulator, SAFE (State Administration of Foreign Exchange): China to maintain rel
Dhwani Mehta / FX Street   |   Thu, 21 Jul 2016 03:05:58

Gold clocks post Brexit low on strong US economic outlook

Gold prices clocked a post Brexit low of $1310.50 levels as increasingly optimistic US economic outlook pushed up Fed rate hike bets and strengthened
Omkar Godbole / FX Street   |   Thu, 21 Jul 2016 02:38:38

IMF's Christine Lagarde Talks Money Laundering, Turkish Coup Attempt and Brexit

IMF Managing Director Christine Lagarde discusses global banking, the coup attempt in Turkey and the Brexit vote. She speaks with Tom Keene at the New York Federal Reserve on "Bloomberg Markets."
Mark Motive / Plan B Economics   |   Thu, 21 Jul 2016 02:31:00

Sorry moaners, Brexit means Brexit

Many defenders of the European Union have responded to Brexit's victory with their own versions of childish foot stamping.
Austrailian   |   Thu, 21 Jul 2016 02:18:00

Farage: Even I wince at Trump

In Cleveland, the former UKIP leader also says Barack Obama was rude to Britons and led to a 'big Brexit bounce'.
Austrailian   |   Thu, 21 Jul 2016 00:59:00

Is Britain Really Open for Business?

Theresa May in her first weeks as prime minister has vacillated between supporting an open, globalized vision for Brexit and one guided by economic nationalism.
WSJ   |   Thu, 21 Jul 2016 00:46:56

Britain Begins Sounding Out Europe on Brexit Conditions

Britain's Theresa May met with Germany's Angela Merkel for the first time Wednesday, declaring that the U.K. wasn't walking away from its "European friends."
WSJ   |   Thu, 21 Jul 2016 00:45:27

As UK property funds unload assets, there'll be good deals: Pictet Alts boss

Brexit exposed cracks in U.K. property investments, but there's still opportunity in the market, Nicolas Campiche said.
CNBC   |   Thu, 21 Jul 2016 00:36:00

Newspaper headlines: No Brexit 'rush' and Allardyce for England

Theresa May's first steps as prime minister and Sam Allardyce's impending appointment as England football manager are among the Thursday's headlines.
BBC   |   Wed, 20 Jul 2016 22:57:18

Stock rally has downside: pricey P-E ratios

Yellow flag? The post-Brexit rally to new highs for the S&P 500 has pushed the broad U.S. market's valuation well above its long-term average.
USA Today   |   Wed, 20 Jul 2016 22:05:27

U.K. Defense Secretary Michael Fallon: Contributions to ISIS War Prove 'Brexit' Hasn't Diminished World Role

Britain is not moving toward isolationism following a referendum to withdraw from European Union, Michael Fallon says.
Paul D. Shinkman / U.S. News   |   Wed, 20 Jul 2016 21:40:59

Morgan Stanley Turns It Around After Rough Year

Low interest rates and Brexit have hurt the stock but strong quarterly results point to better times ahead.
Barrons   |   Wed, 20 Jul 2016 21:26:34

Breakingviews: Cost Cuts Help Volkswagen Profit, but Brexit Will Hurt It

The $4.8 billion gain provides a much-needed financial cushion, but the company’s recovery is likely to slow because of Britain’s vote to leave the European Union.
OLAF STORBECK / DealBook   |   Wed, 20 Jul 2016 21:12:19

When will the bulls take a breather?

Mid-week market update: As stock prices have recovered strongly off the Brexit panic bottom to make a new all-time high, there are numerous signs that the market is ready to take a breather. In all likelihood, a period of sideways consolidation or minor pullback is on the horizon.The full post ...
Humble Student of the Markets   |   Wed, 20 Jul 2016 21:00:00

Stock rally has downside: pricey P-E ratios

Yellow flag? The post-Brexit rally to new highs for the S&P 500 has pushed the broad U.S. market's valuation well above its long-term average.
USA Today   |   Wed, 20 Jul 2016 20:57:04

Morgan Stanley CEO Gorman says he has 'no clue' on Brexit impact

By Olivia Oran (Reuters) - Morgan Stanley Chief Executive James Gorman said on Wednesday he has "no clue" how the bank should allocate employees in Europe following Britain's vote to leave the European Union. Speaking on CNBC following Morgan Stanley's second-quarter earnings, Gorman said there remains a great deal of ...
Business Insider   |   Wed, 20 Jul 2016 20:52:33

ECB Faces Brexit Challenge

The UK EU Referendum Aftermath Has Reduced the impact of ECB Stimulus The European Central Bank (ECB) is expected to keep rates and quantitative easing (QE) measures unchanged with the focus for investors being the words of President Mario Draghi that will address the central bank's response to Brexit risks ...
Alfonso Esparza / OANDA   |   Wed, 20 Jul 2016 20:34:43

May's Prime Minister Duties Begin in Earnest

Theresa May faced the first big tests of her premiership with a grilling by U.K. lawmakers in Parliament and her first trip abroad as prime minister.
WSJ   |   Wed, 20 Jul 2016 20:30:42

Japan plans ¥20 trillion stimulus package to shore up economy, brace for Brexit

The Japanese government is arranging to compile a stimulus package of at least ¥20 trillion ($188 billion) to help the domestic economy emerge from deflation and fend off the possible adverse effects of Brexit, sources said Wednesday. The government initially envisaged compiling a stimulus package of somewhat more than ¥10 ...
Japan Times   |   Wed, 20 Jul 2016 20:19:38

OPINION. The World After Brexit: Alliances for the 21st Century

US News and World Report.
US News and World Report. / World Affairs   |   Wed, 20 Jul 2016 20:17:38

SP 500 and NDX Futures Daily Charts - Bubble Up to the Bar

Stocks were in rally mode today, as it was risk on all the way. The markets were cheered by Microsoft's results last night, and the love in between May and Merkel that is dispelling the Brexit fears. After the bell today, Intel beat the numbers. However the markets were not ...
Jesse's Café Américain   |   Wed, 20 Jul 2016 20:17:00

Brexit, Migration, and Increasing Economic Diversity Within the European Union

photo: Rich Girard Migration is a sensitive issue today in many countries. In the UK people who voted for Brexit cited lack of control of the border as the most important issue that influenced their vote. In other parts of the EU, many countries imposed border barriers against non-EU migrants, ...
Thomas Grennes / EconoMonitor   |   Wed, 20 Jul 2016 20:08:54

An ETF Strategy to Access Morningstar's Top International Picks

With lingering concerns over the Eurozone, a post-Brexit world and growth in China, investors seeking international exposure should turn to exchange traded funds that target strongly positioned companies. On the upcoming webcast, ETF Strategy to Access Morningstar's Top International Picks, Dan Lefkovitzm Content Strategist for Indexes Morningstar, Alex Morozov, Director ...
ETF Trends   |   Wed, 20 Jul 2016 19:59:57

Is a U.S.-U.K. Free-Trade Agreement on the Way?

Abandoning President Obama's insulting "back of the queue" rhetoric now that Britons have voted to Brexit, the Obama administration is signaling an openness to a U.S.-U.K. free-trade agreement. Newly named British foreign secretary Boris Johnson, the former mayor of London and one of the leaders of the Leave campaign, met ...
National Review   |   Wed, 20 Jul 2016 19:49:59

Mauritius cuts rate 40 bps, citing Brexit and US election

The central bank of Mauritius cut its benchmark repo rate by 40 basis points to 4.00 percent to support the economy, saying "the downside risks to the domestic growth outlook outweighed the risks to the inflation outlook." It is the first cut in rates by the Bank of Mauritius since ...
centralbanknews.info / Central Bank News   |   Wed, 20 Jul 2016 19:48:00

Morgan Stanley's Gorman on earnings

Morgan Stanley CEO James Gorman sat down with CNBC's David Faber to discuss the future trajectory of the firm.
CNBC   |   Wed, 20 Jul 2016 19:23:00

Brexit: The Breakup Texts

This newly discovered text exchange between Great Britain and the European Union sheds light on the historic breakup.
Tara Schuster / New Yorker   |   Wed, 20 Jul 2016 19:15:53

Luxembourg calls for 'smart divorce' amid Brexit talks

Szu Ping Chan / Telegraph   |   Wed, 20 Jul 2016 19:05:28

Johnson Matthey mixed up on Brexit

Decline in sterling boosting revenues but international workforce worried about future
FT   |   Wed, 20 Jul 2016 19:02:25

Wait for Brexit fog to clear before interest rate cut

Kristin Forbes / Telegraph   |   Wed, 20 Jul 2016 19:00:00

VIX Hits 11 Handle - Crashes At Fastest Pace In History

In the 17 trading days since Brexit, VIX has fallen 15 of them plunging from almost 27 immediately after the British vote to 11.4 lows this morning - the lowest since August 2014. This collapse is the fastest in the 26 year history of VIX. Leaving the VIX term structure ...
Zero Hedge   |   Wed, 20 Jul 2016 18:45:00

US bonds slip as safe-haven bid continues to wane

U.S. sovereign bonds built on this week's gains Wednesday as demand waned for safe haven assets prompted by the Brexit vote.
CNBC   |   Wed, 20 Jul 2016 18:42:00

Morgan Stanley's Gorman on earnings

Morgan Stanley CEO James Gorman sat down with CNBC's David Faber to discuss the future trajectory of the firm.
CNBC   |   Wed, 20 Jul 2016 18:26:00

Merkel offers May more time on Article 50

PM's first stop on long haul to Brexit elicits accommodation from chancellor
FT   |   Wed, 20 Jul 2016 18:25:18

VIX Since the Brexit

No fear. No worries. No problems.
Tim Knight / Tim Knight   |   Wed, 20 Jul 2016 18:08:31

Britain needs time before Article 50

Prime Minister Theresa May said Britain needed to take time to determine its objectives before triggering Article 50.
CNBC   |   Wed, 20 Jul 2016 18:05:00

How To Trade Price Shocks, Including Brexit

Remember that price shocks involve more risk than most trading days, so be sure to start small. Most moves will be small, but it will be good practice and your experience can save a great deal of future grief.
Perry Kaufman, Contributor / Forbes   |   Wed, 20 Jul 2016 18:03:00

Brexit: Theresa May says talks won't start in 2016

Theresa May says the UK will not begin official negotiations on leaving the EU this year as she holds talks with Germany's Angela Merkel.
BBC   |   Wed, 20 Jul 2016 17:49:10

"The World's Central Banks Are Making A Big Mistake"

Authored by John Mauldin via While everyone was talking about Brexit last month, the Bank for International Settlements released its 86th annual report. Based in Basel, Switzerland, the BIS functions as a master hub for all the world's central banks. It settles transactions among central banks and other international organizations. ...
Zero Hedge   |   Wed, 20 Jul 2016 17:45:00

Angela Merkel says the UK is right to pause before triggering formal Brexit talks in a boost for Theresa May

Christopher Hope / Telegraph   |   Wed, 20 Jul 2016 17:42:07

OANDA MP - BoE Talks Down Brexit Impact (Video)

Senior Market Analyst Craig Erlam talks about how markets are responding to the latest Bank of England report on Brexit and the UK jobs report, as well as corporate earnings which are helping push US indices to record highs.
Craig Erlam / OANDA   |   Wed, 20 Jul 2016 17:38:20

Merkel says no one wants prolonged period of Brexit limbo

BERLIN, July 20 (Reuters) - German Chancellor Angela Merkel said on Wednesday that it was normal for Britain to take some time to figure out its Brexit strategy but that a lengthy period of limbo was...
Reuters   |   Wed, 20 Jul 2016 17:29:46

Asset managers assess impact of Brexit

Groups prepare to report on how the vote has affected their earnings
FT   |   Wed, 20 Jul 2016 17:23:30

Britain must be clear on what EU ties it wants before Brexit talks-Merkel

BERLIN, July 20 (Reuters) - German Chancellor Angela Merkel said on Wednesday that Britain should be clear about what kind of relationship it wants to have with the European Union before starting...
Reuters   |   Wed, 20 Jul 2016 17:09:11

London mid-caps climb above Brexit levels for the first time in a month

It took a month, but finally London's midcaps have climbed above their Brexit levels for the first time as shares closed higher on Wednesday while top AIM stocks hit their highest levels of the year. The FTSE 250 index of predominantly UK-centric mid-cap stocks expected to lose out to a ...
Proactive Investors   |   Wed, 20 Jul 2016 17:06:00

Brexit and Europe's Impossible Refugee Math

In a recent GMO commentary on Immigration and Brexit, founder Jeremy Grantham laid out precise reasons why Brexit was a mathematical certainty Grantham thinks Brexit was a bad idea.On the second sentence, I disagree strongly.The following snips, including bullet points... Please click on the post title or visit for full ...
EconMatters / EconMatters Global   |   Wed, 20 Jul 2016 17:00:00

Even This Brexit Leader Says Trump "Makes Me Wince"

One of the most important conservative politicians in Cleveland this week isn't even a Republican. It's Nigel Farage, the former leader of the UK Independence Party who led the successful push for Britain's exit from the European Union. Farage was invited to Cleveland by the Republican National Committee and was ...
Mother Jones   |   Wed, 20 Jul 2016 16:57:45

FTSE 100 smashes 6,700 and pound breaks $1.31 as Bank of England survey shows 'no clear evidence' of sharp Brexit slowdown

Tara Cunningham / Telegraph   |   Wed, 20 Jul 2016 16:57:00

Pound and shares rise as Bank signals limited Brexit fallout -as it happened

EU consumer confidence falls after Brexit Bank of England: no clear sign Brexit slowdown is underway European markets rise on Brexit fallout relief UK jobless rate hits lowest in more than a decade Pound rises on data 5.49pm BST With Wall Street hitting new record highs, global markets were in ...
until 2.10 / Guardian   |   Wed, 20 Jul 2016 16:49:00

Britain and EU eye ground rules for Brexit

Some members strongly oppose any kind of informal negotiations
FT   |   Wed, 20 Jul 2016 16:44:42

Bank of England sees 'no clear evidence' of sharp Brexit hit yet

The Bank of England says it has seen no clear signs yet of a sharp economic slowdown after last month's vote to leave the European Union, raising questions over how aggressively it will act to boost the economy when it meets next month.
Reuters / CBC   |   Wed, 20 Jul 2016 16:43:02

Brexit currency effect to have big impact on company results: report

By Caroline Valetkevitch NEW YORK (Reuters) - Currency market fluctuations following Britain's vote to leave the European Union will hurt corporate results in the coming quarters, possibly resulting in a negative impact of as much as $35 billion to $40 billion, according to a report from FIREapps on Wednesday. FiREapps ...
Business Insider   |   Wed, 20 Jul 2016 16:37:42

Roger Farmer on NGDP targeting

Marcus Nunes directed me to a very interesting post by Roger Farmer (written right after the Brexit vote.) Farmer suggests that the Bank of England needs to do whatever it takes to prevent uncertainty from depressing aggregate demand. Indeed it should consider buying shares in an index fund, if necessary. ...
Money Illusion   |   Wed, 20 Jul 2016 16:24:45

The EU and Brexit: Sailing in uncharted waters

The momentous decision to opt for exit from the European Union that was made by a slim majority of the British public on 23 June immediately will have long-lasting effects which will linger for years to come. The immediate result of the Brexit decision was profound domestic political and economic ...
christianschweiger / Ideas on Europe   |   Wed, 20 Jul 2016 16:13:32

The case for constructive populism

The Brexit vote has unleashed a huge amount of commentary on anti-establishment politics, the failure of experts , the abdication of the left , and much else. Juxtaposed to the presidential campaign in the United States, Brexit is regarded by many as a wake-up call. In response, former US Treasury ...
Brookings   |   Wed, 20 Jul 2016 16:09:00

Eurotunnel slashes earnings target by €25m after Brexit vote

Fall in sterling after referendum forces cross-Channel rail operator to cut full-year performance goal Eurotunnel has cut its annual earnings target by €25m (£21m) due to the collapse in the value of the pound after the Brexit vote. The cross-Channel rail operator warned that further downward movements in the UK ...
Terry Macalister / Guardian   |   Wed, 20 Jul 2016 16:03:59

WSJ City's Brexit Briefing: Europe Inc. Feels Brexit Pain, KKR's Kravis Bearish on London

Good afternoon from London. Here's essential reading for the City on today's Brexit developments from WSJ City. For updates throughout the day, you can download WSJ City for iPhone here or Android here. You'll need to open this email on your mobile device to do this. And you can sign ...
Philip Georgiadis / MoneyBeat   |   Wed, 20 Jul 2016 16:02:44

Mydentist launches first post-Brexit vote sterling junk bond

Mydentist has announced the first sterling junk bond deal since the UK voted to leave the European Union, underlining how quickly the high-yield market has rebounded from its initial sell-off.
IFR   |   Wed, 20 Jul 2016 16:00:00

IMF Predicts Brexit Will Slow Global Growth - A Little Unlikely Really

The International Monetary Fund has released its latest update to global growth prospects. And it says that the uncertainty over Brexit, the process of Britain leaving the European Union, is going to markedly slow that global economic growth. This seems a little unlikely on the face of it. Sure, Britain ...
Tim Worstall, Contributor / Forbes   |   Wed, 20 Jul 2016 15:47:32

UK PM May Heads to Berlin, Paris for First Round of Brexit Talks

Euobserver. Belgium.
Euobserver. Belgium. / World Affairs   |   Wed, 20 Jul 2016 15:45:10

BRIEF-Moody's says Brexit unlikely to affect EU finances

July 20 (Reuters) - Moody's on Brexit's impact on EU finances:
Reuters   |   Wed, 20 Jul 2016 15:41:19

Article 50: The Brexit divorce paper

Just 263 words in the Lisbon treaty will dictate the talks - and shape the UK's ties with Europe
FT   |   Wed, 20 Jul 2016 15:33:11

How the European Union and the United Nations Should Lead After Brexit

Brexit serves as a stark reminder of the importance of global organizations and the need for them to adapt.
Miroslav Laják / U.S. News   |   Wed, 20 Jul 2016 15:30:00

How European Poverty Has Radically Shifted in the Last Decade

Brexit is the latest woe in a decade full of economic turmoil for the European Union.
The Conversation / U.S. News   |   Wed, 20 Jul 2016 15:15:03

Brexit's Nigel Farage says some of Donald Trump's ideas are 'pretty out there'

Republican National Convention 2016 live updates: Donald Trump will arrive in Cleveland ahead of Mike Pence accepting the vice presidential nod July 20, 2016, 2:46 p.m. What to know about the Republican National Convention in Cleveland:• Watch the convention with us live.• Catch up with what you...
Lisa Mascaro / LA Times   |   Wed, 20 Jul 2016 14:55:00

Brexit bump instills no confidence among bond traders

(Reuters) - Even after a good quarter, optimism is hard to find on Wall Street's bond trading floors. Revenue from fixed income, currency and commodities trading at the five biggest US banks rose 21% to US$13.1bn in the second quarter from a year earlier, Reuters calculated from their reported results.
IFR   |   Wed, 20 Jul 2016 14:54:00

Brexit business tracker

How the UK's EU referendum vote has affected banks, technology companies and exporters
FT   |   Wed, 20 Jul 2016 14:40:43

RPT-Bank of England rummages in tool box for new options after Brexit

LONDON, July 20 (Reuters) - As the Bank of England faces its biggest challenge since the global financial crisis, it may have to get creative about how to stimulate the economy after Britain's voted...
Reuters   |   Wed, 20 Jul 2016 14:34:54

"The Market's In Conflict" - 11 Red Flags In A Sea Of Green

Having tagged last Thursday's intraday highs, S&P futures are fading this morning (for now)... but, as Bloomberg notes, U.S. stock-market internals are exhibiting conflicting signs as the rally in the S&P 500 Index approaches 10% from the low reached after Brexit. Just 5 percent of companies in the benchmark have ...
Zero Hedge   |   Wed, 20 Jul 2016 14:21:54

May commits to a balanced budget

PM says there will be strict limits to post-Brexit stimulus
FT   |   Wed, 20 Jul 2016 14:00:59

Why A Brexit Crisis Is Not A Bust

Tags A A Home | Feed | Blog.rssBooms and BustsBusiness CyclesMoney and BankingWhy A Brexit Crisis Is Not A Bust 0 Views A recent survey of UK firms conducted by Deloitte has revealed that the referendum decision to leave the EU has battered business confidence, as "82 percent of chief ...
Mises Institute   |   Wed, 20 Jul 2016 13:28:06

bump instills no confidence on sullen bond trading floors

July 19- Even after a good quarter, optimism is hard to find on Wall Street's bond trading floors. Results were helped by Britain's surprise vote to leave the European Union, which rippled across global markets- including record currency volumes for some big banks. "We aren't buying into it just yet," ...
CNBC   |   Wed, 20 Jul 2016 13:06:00

Top Analyst Upgrades and Downgrades: Johnson & Johnson, Lockheed Martin, MGIC Investment, TransCanada, Verizon and More

The stock market is still challenging all-time highs, despite fears of Brexit and valuations being high. Investors just keep proving that they will buy their favorite stocks on pullbacks. 24/7 Wall... BWLD CHTR FANG GCO JNJ KALU LMT MTG NUE PNRA PZZA SAP SFLY SPLK STLD TRP TS VZ WDAY ...
24/7 Wall St.   |   Wed, 20 Jul 2016 12:55:39

Theresa May's Duties as Prime Minister Begin in Earnest

Theresa May faces the first big tests of her premiership with a grilling by U.K. lawmakers in Parliament and then her first trip abroad as prime minister.
WSJ   |   Wed, 20 Jul 2016 12:10:21

Here's a super-quick guide to what traders are talking about right now (EBAY, FFIV, INTC, QCOM, AXP)

Via Dave Lutz at JonesTrading, here's a super-quick guide to what traders are talking about right now: Good Morning! Futures eyeing fresh highs as Earnings rolls (MSFT, MS and ISRG big beats), while the BOE's Brexit report sparked €500mln of buying in EuroStoxx Futures in one tick. The S&P is ...
Business Insider   |   Wed, 20 Jul 2016 11:34:10

UK employment report was stronger than expected - BBH

Research Team at BBH, suggests that although sterling and interest rates have not fully recovered from the Brexit decision, equity markets have, and f
Sandeep Kanihama / FX Street   |   Wed, 20 Jul 2016 11:11:25

US bonds slip as safe-haven bid continues to wane

U.S. sovereign bonds built on this week's gains Wednesday as demand waned for safe haven assets prompted by the Brexit vote.
CNBC   |   Wed, 20 Jul 2016 10:07:00

Fed Officials Gain Confidence They Can Raise Rates This Year

Federal Reserve officials are looking more confidently toward a rate increase before year-end, possibly as early as September, now that financial markets have stabilized after the Brexit vote and the economy shows signs of picking up.
WSJ   |   Wed, 20 Jul 2016 00:36:56

IMF cuts UK growth forecasts following Brexit vote

Predictions revised down from April as IMF says EU referendum result has 'thrown a spanner in the works' of global recovery The International Monetary Fund has slashed its forecast for UK growth next year after warning that the decision to leave the EU had damaged the British economy's short-term prospects ...
Larry Elliott Economics editor / Guardian   |   Tue, 19 Jul 2016 23:10:15

Brexit News Archive: 21 Jul 2016     |     enquire