Brexit

We remain in the dark when it comes to knowing where this extraordinary saga is heading.

Risk Disclaimer

Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

We remain in the dark when it comes to knowing where this extraordinary saga is heading. The Prime Minister is trying to cobble together parliamentary and EU agreement for a deal that will maintain Britain’s position in the Customs Union and bound by all the various EU rules but without any involvement in setting those rules. That makes no sense to us. Many in British politics (and the EU) are pushing hard for a second referendum – if you don’t like the result of the first have a second or third until you get the result you want. It’s an interesting take on democracy.
 
The British people voted to opt out of a union that has the ultimate goal of a federal state – the United States of Europe. This agenda has never been secret or disguised. It is pertinent, however, that Europe’s third largest continental economy, Italy, has now moved decidedly into the eurosceptic camp. At the same time Germany is weakened by a Chancellor in her last term with rapidly fading electoral support whilst President Macron in France is battling violent protests on the streets over his fiscal agenda. In other words, Europe is a long way from presenting itself as a welcoming and harmonious whole at precisely the time Britain self-harms as it wrestles with the EU dilemma.
 
It seems that no one will come out of this with credit. The bitterness and rancour will continue for a long time but hopefully as the dust settles, whichever way it goes, the British economy will gather itself and move on. It has the potential.

Risk Disclaimer

Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

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