Special Report: What the Brexit Vote Could Mean For Your Investments
As the vote on the UK’s inclusion in the E.U. draws closer, markets and world leaders are growing nervous. Many figure heads have been condemned for airing their views on how the people of the UK should vote in the referendum which threatens not only financial stability in the UK but the entire global economy.
The International Monetary Fund’s view on the UK leaving the E.U was channelled through the head of the organisation Christine Lagarde as she said:
we have looked at all the scenarios. We have done our homework and we haven’t found anything positive to say about a Brexit vote.
Such comments have been lambasted by the ‘In’ camp who say such organisations should not be involved in the a political debate; an argument rejected by the IMF, who responded that is was well within their remit to access and comment on potential risks to the global economy. Bank of England Governor Mark Carney also controversially waded into the Brexit debate with comments made at a monetary policy speech, highlighting the deep shadow a vote to leave would cast on the UK economy:
Either families would face lower incomes because inflation would be higher, or the economy would be weaker with a hit to jobs and livelihoods. This is a lose-lose situation for Britain. Either way, we’d be poorer.
Like Christine Lagarde, Mark Carney was subject to criticism for taking a political stance on the Brexit debate; the Bank of England also rebuked such views and pointed towards the BoE’s mandate to maintain financial stability, arguing that Mark Carney was merely warning of the potential risks created by a ‘Leave’ victory.
It is not only Christine Lagarde and Mark Carney who have publicly spoken of the risks of leaving the European Union; Barack Obama said “it could be five years from now, 10 years from now, before we’re actually able to get something done,” when referring to the length of time the UK could structure a trade deal with the US in the case of the UK leaving the E.U. Whether these hugely influential and powerful figure heads are highlighting risks to trade or the general livelihoods of the people of Britain, there is a consensus; leaving the E.U. would be bad for.
In the full brexit report you’ll also find out about:
- Risk Premium – Making risk aversion work in your favour
- Doomsday Scenario – Volatility, uncertainity and it’s effects
- The Opportunity – Including full currency pairing tables