UK: Aftershocks of the Brexit vote continue to be felt - BBH

Research Team at BBH, suggests that the aftershocks of the Brexit vote continue to be felt.

Key Quotes

“Markets were spooked by news this week of pressures in the UK property market, as several asset managers froze withdrawals from property funds after a spike in redemptions was seen.  Another asset manager today said it halted plans to lease new offices in London due to the Brexit vote, as it appears that stress on the UK property market is just beginning.

The UK political backdrop remains unclear.  However, there was one small step towards clarity Tuesday.  In the first round vote for Tory leadership, Theresa May won handily with 165 votes.  She was followed by Andrea Leadsom with 66, Michael Gove with 44, Stephen Crabb with 34, and Liam Fox with 16.  Under the rule, Fox has now been eliminated.  The second round of voting takes place Thursday and continues until there are only two candidates to be presented to Tory party members for a final vote.

The UK statistics office said July inflation data to be published on August 16 will be the first to truly reflect the impact of the Brexit vote.  It noted that earlier data points will cover some weeks in June, which would largely capture the pre-referendum period.  BOE Governor Carney didn’t waste any time in acting this week, though the BOE is not due to release updated growth and inflation forecasts until August 4.”