A crisis of leadership and politics not economics

The last few days have been brutal for investors. The unthinkable happened against all the bookies odds and City’s expectations. While the FTSE 100 has declined by just 4%, since the close of Thursday night this belies some substantial volatility with major moves in Sterling, bonds and UK domestic cyclicals and financials.We view the primary risks as one of politics not economics, but political risk could lead to an economic one if not handled properly. Please contact us for a copy of the note.