Theresa May is picking an early fight with EU leaders in her letter in which she formally announced the start of the UK’s Brexit process. Bond, equity and currency markets hardly responded. But perhaps they should have.
While Theresa May was delivering her long-awaited ‘hard Brexit’ speech in London, Chinese president Xi Jinping was addressing the World Economic Forum in Davos, lauding the merits of globalisation.
Sterling’s reaction over the weekend to leaked portions of Theresa May’s speech on the UK’s Brexit plans, and its general trend since 23 June, meant few expected much strength from the pound on Tuesday.
With Britain’s impending exit from the European Single Market all but confirmed by UK prime minister Theresa May this week, it’s time to face the possible consequences of the announcement for the UK financial sector, and for asset managers in particular.
In Orwell’s dystopian masterpiece 1984, Room 101 represents the “worst thing in the world”. 101 days on from the EU referendum, it’s up to Theresa May to convince the dissenters that Brexit is not a portal to their worst nightmares.