Since the UK narrowly voted to exit the European Union last year, the value of the pound depreciated against a basket of the world’s major trading partners, most noticeably the dollar and the euro. This depreciation was inevitable because Brexit prompted fears that long-term investment (amongst many other deterministic factors) in Britain would be changed forever, though the format of this change in economic terms in the meantime is thus far unknown. This uncertainty is set to continue during, and long after, the Brexit negotiations end. But the exchange rate continues to decline, and this will have consequences in the long term. But what is the impact on important economic fundamentals such as growth, wages and inflation?
The implications of Brexit will begin to become much more explicit as the negotiations progress. Private Banks have many issues to consider, particularly their most valued clients, the High Net Worth and Ultra High Net Worth Individuals (UHNWIs and HNWIs) and how the landscape will change for this very important client base. This document outlines the main points on the major areas on the agenda from the perspective of Private Banks, and the changes from their perspective with regards to Brexit.
Britain’s continuing membership of the European Union had been a compulsive debate within the walls of Westminster and wider political circles years before the EU referendum. But was this area of UK politics really prevalent in the minds of the British people in the years preceding the vote? Fast forward to the mid-point of the coalition government and the announcement of the vote to be put to the people with regards to the UK’s membership of European Union. The date was June 23rd 2016, but prior to that – and only a few months earlier, the Prime Minister, David Cameron announced that he would be putting forward a series of demands, or diplomatically put, a ‘better deal for the UK in terms of its membership of the European Union’. But how far did he actually progress with these deals, and did he really return from Brussels with a better deal? Did they firmly address the concerns of the British people and if they did, why then are we no longer part of the EU?
Uncertainty is the lack of clarity about the future. However, in order to understand what the future holds in periods of uncertainty, it is important to understand the components and characteristics of uncertainty, and what factors are driving economic uncertainty. When bad news arises, many things come into play simultaneously. Demand, supply, investment and a vast array of other factors play a part in an economic downturn. How do we measure uncertainty and why is this so important in Economics?