For the first time in 20 years, markets will have to survive without support from central banks.
The existing Brexit deal has once again failed to win the backing of a majority in parliament.
This quarterly publication from our Pension Solutions and Advisory Group provides UK pension funds with timely updates on market trends, funding levels and the latest industry and product developments.
This week the House of Commons demonstrated that a clear majority of Members of Parliament (MPs) are not willing to leave the EU without a deal.
With global recessionary risks rising, we provide a framework to help UK pensions prepare for near-term risks that could challenge the fulfillment of their sponsor covenants.
We further discuss how institutional investors can protect their portfolios from late cycle headwinds and rising volatility so that they can be positioned for long-term success.
While no deal is not the most likely scenario in our view, the risks are rising. The UK outlook is binary. A Brexit deal could see sterling bounce to 1.40 against the dollar, but no deal on 31 October could see a further slump to 1.10.
Last night a series of votes took place in the UK House of Commons. The purpose of the votes was to establish a potential way forward for the Brexit negotiations that could command the support of a majority of members of Parliament (MPs).
At the latest Monetary Policy Committee (MPC) press conference, Governor Carney noted that businesses are taking a very cautious approach right now because of the uncertainty around the outcome of the ongoing Brexit negotiations.