The economic impact of Brexit on continental Europe will be small, according to Niall Gallagher, investment director of European equities at GAM.
European investors are more uncertain about their macroeconomic outlook than ever before. In a year’s time, the share of fund buyers with an uncertain macroeconomic outlook has doubled to 60% according to Expert Investor data.
No doubt you have recently come across some articles that mention the words ‘millennials’ and ‘investing’ in the same breath. But unlike many asset managers want you to believe, millennials are not just another generation such as the babyboomers.
In its latest Flow Show note, Bank of America Merrill Lynch pointed out that, at current rates, it would take you 1387 years to double your savings in a 1-year German deposit account.
Europe’s share of the world economy may be declining steadily, but there is at least one area where the continent is growing in importance: asset management revenues. Global asset management companies are deriving an ever growing share of their revenue from Europe, at the expense of the United States.
The UK risks losing its financial passporting rights if it leaves the European single market following the Brexit vote. Some asset managers are taking action to counter this threat, while others sit back and wait.
Belgian fund buyers believe Brexit will have a long-term negative impact on equity or bond prices, or even on both. Fund managers speaking at the Expert Investor Belgium forum are hardly more optimistic.
Bank of England governor Mark Carney has indicated an interest rate cut and other new stimulus measures are on the cards.
A number of commentators have sought to reassure investors that the events of last week were not ‘a Lehman moment’.
Hogan Lovells says the solution to the post-Brexit passporting problem is not as simple as setting up a brass plaque company inside the EU.