The existing Brexit deal has once again failed to win the backing of a majority in parliament.
The coming week is a very big week for sterling investors since the Chancellor will present a new statement on fiscal policy and there are a series of votes in the House of Commons to break the Brexit impasse.
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.
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).
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.
Trade policy is of first-order importance in a more connected world, and markets have been reacting nervously to U.S. trade disputes.
The Italian election did not result in a majority for either a single party or coalition.
As we compiled the 2018 edition of our Long-Term Capital Market Assumptions, the world economy has enjoying its best period of synchronized growth in more than a decade.
The first rate rise in a decade was widely expected by markets.