Brexit will renew pressure on Swiss franc

2016 ◽  
Keyword(s):  
Interest Rates ◽  
Financial Market ◽  
Swiss Franc ◽  
Content Type ◽  
Economic Threat ◽  
National Bank ◽  
Market Turbulence ◽  
The Uk ◽  
Private Banking ◽  
The Eu

Subject Outlook for the Swiss economy. Significance Financial market turbulence following the UK vote to leave the EU has caused sharp pound depreciation and demand for 'safe-haven' assets, including the Swiss franc. With official interest rates already negative, Swiss authorities can do little except intervene directly in the foreign-exchange (forex) market. So far, the franc has remained below the high hit in January 2015 following the Swiss National Bank (SNB)'s decision to end the currency's peg to the euro. However, concerns over the economic threat of a strong franc and the high cost of living in Switzerland will be revived. Impacts The SNB is unlikely to reintroduce the euro peg. Further economic weakness and more job losses will emerge if the franc and its cost base strengthen further. With the exception of particular niches, the movement of both commuters and businesses to cheaper EU bases may accelerate. Exceptions include sectors of specialism, such as pharmaceuticals, private banking and headquarter operations for multinationals.

Brexit will remove advocate for Balkans enlargement

2016 ◽  
Keyword(s):  
Emerging Economies ◽  
Eu Enlargement ◽  
Western Balkans ◽  
Content Type ◽  
The Balkans ◽  
National Bank ◽  
Key Policy ◽  
The Uk ◽  
Business As Usual ◽  
The Eu

Subject Prospects for EU enlargement to the Western Balkans after the UK vote to leave. Significance EU officials and diplomats in the region are publicly trying to send messages that, when it comes to the accession prospects of the Western Balkan countries, everything remains 'business as usual', despite the UK vote to leave ('Brexit'). The familiar refrain is that as long as the countries of the region deliver on the reforms demanded by the EU, the process will continue to move forward. Impacts UK-Balkans trade, investment and remittances flows are too low to inflict any appreciable Brexit 'shock'. Serbia will remain on course for the EU despite Brexit, which will have no major financial or economic impact, the Serbian premier has said. However, the National Bank of Serbia cut its key policy rate yesterday, expecting Brexit to affect emerging economies, including Serbia. Pro-Russian elements in the Balkans will welcome UK withdrawal as removing a perceived obstacle to rapprochement between the EU and Russia.

Uncertainty will moderate the UK sterling rally

2019 ◽  
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Prime Minister ◽  
Trade Barriers ◽  
Monthly Data ◽  
Content Type ◽  
The Uk ◽  
Global Growth ◽  
The Eu

Subject Influence of Brexit on financial markets. Significance Prime Minister Boris Johnson's letter to the EU requesting another Brexit delay (although he still hopes to leave by October 31) has injected more uncertainty into financial market trading. Investors see the Brexit outcomes as binary: either a chaotic departure, triggering a dramatic sell-off in UK assets, or an orderly withdrawal, triggering a rally. Impacts The FTSE 100 index has fallen 7% since July 3 and UK equities are likely to remain unpopular as much uncertainty will persist post-Brexit. Monthly data suggest that UK GDP is on track to avoid recession in the July-September quarter, but it will struggle to stay on this track. Sterling will fall if there is a no-deal exit, offsetting trade barriers, but exporters will see little benefit amid weak global growth.

Brexit will accentuate global market distortions

2016 ◽  
Keyword(s):  
Interest Rates ◽  
Global Market ◽  
Bond Yields ◽  
Equity Prices ◽  
Content Type ◽  
Us Economy ◽  
The Us ◽  
The Uk ◽  
Economic Outlook ◽  
The Eu

Subject Outlook for post-Brexit markets. Significance The UK vote to leave the EU is exacerbating distortions in financial markets. Government bond and equity prices are rising, sending contradictory signals about the global economic outlook. Yields on US and German bonds partly retraced their steps last week as initial fears about the consequences of the Brexit vote diminished. However, the yield on ten-year Treasuries remains 20 basis points (bp) lower than on referendum day, June 23, and the S&P 500 index stands close to a record high. The expanding universe of negative bond yields is fuelling investor appetite for risk assets, including equities. Impacts Markets may be underestimating the likelihood of higher US interest rates given recent signals of improvement in the US economy. Demand for safe-haven assets could stay strong, with the price of gold rising 5.6% since the referendum. Heightened uncertainty may mean that the oil price rally is over; it could even reverse given the persistent supply glut.

scholarly journals The normative evolution of corporate governance in the UK: an empirical analysis (1995-2014)

2019 ◽  
Vol 19 (5) ◽  
pp. 1015-1041 ◽  
Author(s):  
Stefanie Pletz ◽  
Joan Upson
Keyword(s):  
Corporate Governance ◽  
Longitudinal Data ◽  
Empirical Evidence ◽  
Financial Market ◽  
Data Set ◽  
Content Type ◽  
Market Growth ◽  
Implementation Model ◽  
Quantitative And Qualitative Research ◽  
The Uk

Purpose This paper aims to analyse normative corporate governance evolution in the UK between 1995 and 2014 against the benchmark of Organisation for Economic Co-Operation and Development (OECD) regulatory principles. Design/methodology/approach Methodologically, the authors conduct an empirical, longitudinal data set analysis of the formative years of UK normative corporate governance development between 1995 and 2014. We provide a qualitative discussion of the empirical evidence that links the type of UK regulatory corporate governance development to financial market growth thereby adopting a mixed approach based on quantitative and qualitative research methods. Findings The authors find that compared to the OECD model of corporate governance, the UK model is less rigid following a more self-regulatory approach based upon a “comply or explain” paradigm. Thus it is scored below corporate governance systems that follow a compulsory implementation model. However, even with such “low” tilt towards formal shareholder primacy norms, the UK has the best performing financial market. As a quasi-empirical study, the authors suggest that there are several historical and economic reasons for this, which together with a robust rule of law in the UK contribute to this performance – and the law especially the type or tilt is less relevant. Originality/value This is the first of its kind empirical, longitudinal data set analysis with qualitative elements that links empirical evidence to regulatory developments in the wider context of UK corporate governance evolution.

scholarly journals What do students think of self-determined learning in entrepreneurship education?

2018 ◽  
Vol 60 (7/8) ◽  
pp. 841-856 ◽  
Author(s):  
Isla Kapasi ◽  
Galina Grekova
Keyword(s):  
Entrepreneurship Education ◽  
Practical Experience ◽  
Potential Contribution ◽  
Content Type ◽  
Approach To Learning ◽  
Mixed Methods Approach ◽  
Perceived Employability ◽  
The Uk ◽  
Uk Higher Education ◽  
The Eu

Purpose The purpose of this paper is to examine the perceptions and perspectives of students with regards to self-determined learning in an entrepreneurship education (EE) context and its potential contribution to employability. Design/methodology/approach This research used a mixed-methods approach with a sample of 25 students currently attending a UK higher education institute. The students had access to participation in EE modules but self-determined learning-informed modules or programmes were not currently offered. Students were invited to attend focus groups and as a result of emergent themes, a business school-wide survey was developed. Findings This research makes two tentative contributions to the EE field. First, the findings of this student cohort are similar to those found throughout the UK and the EU with regard to the perception of the value of a degree by students; its contribution to the hidden curriculum; and the importance of practical experience. The research also adds to the field by considering the value of a self-determined learning approach to developing the capabilities and competencies of graduates. This approach to learning in a context of EE was in general well received by potential students, particularly the applied aspect of the programme. However, there is a perception of risk about this approach to learning and students are concerned about the value of a programme like this to employers in general. Originality/value The study contributes to discussions on the value of EE on perceived employability and in particular self-determined learning through entrepreneurship activity.

scholarly journals EU28 Capital Market Perspectives of a Hard BREXIT: Theory, Empirical Findings and Policy Options

2019 ◽  
Vol 16 (1) ◽  
Author(s):  
Paul J.J. Welfens ◽  
Fabian Baier ◽  
Samir Kadiric ◽  
Arthur Korus ◽  
Tian Xiong
Keyword(s):  
Interest Rates ◽  
Trade Agreement ◽  
Corporate Bond ◽  
Government Bonds ◽  
Risk Premiums ◽  
Bond Risk ◽  
The Uk ◽  
Key Aspects ◽  
The Cost ◽  
The Eu

Abstract Key aspects covered refer to the cost of leaving the EU and in particular the implications for corporate bond risk premiums in the UK and the Eurozone: The gap between the interest rates of corporate bonds and government bonds could increase in the UK and Eurozone, respectively, as a result of BREXIT where the 2016 BREXIT referendum itself is considered to be a first BREXIT event (see the empirical findings), followed by the main BREXIT event, namely the day of officially leaving the EU – possibly as a No-deal BREXIT. It is as yet not clear what type of BREXIT will be implemented – hard versus soft – and it is also unclear what type of free trade agreement the EU and the UK could accomplish post-BREXIT. However, it is obviously necessary to carefully consider the background of the BREXIT dynamics and to then refer to various versions of BREXIT if one is to understand the inherent politico-economic dynamics of BREXIT – with a No-deal case representing an analytical benchmark which most politicians in the British Parliament obviously would want to avoid; a simple way to indeed avoid this case, with obvious high costs for the British economy, is not easy to discern as the UK’s political system is fractured. If the safe-haven status of the UK should be impaired by BREXIT, the rise of government bond interest rates by 0.3 percent would stand for the same burden as the net UK contribution to the EU.

EU-UK deal allows Cameron to campaign against Brexit

2016 ◽  
Keyword(s):  
United Kingdom ◽  
Prime Minister ◽  
Transition Period ◽  
David Cameron ◽  
Content Type ◽  
The United Kingdom ◽  
Eu Membership ◽  
Scottish Independence ◽  
The Uk ◽  
The Eu

Subject The package of reforms on a new EU-UK relationship. Significance The agreement between the United Kingdom and its EU partners sets the stage for the UK referendum on EU membership, which Prime Minister David Cameron has set for June 23. Cameron said he had negotiated new terms that would allow the United Kingdom to remain in the EU. Impacts The deal bolsters the campaign to remain in the EU, but the referendum outcome is still highly uncertain. The deal will only come into effect if the outcome is for remaining, forestalling a second referendum for better terms. If the outcome is for leaving, a new relationship with the EU would have to be negotiated during a two-year transition period. It would also probably lead to a second Scottish independence referendum and UK break-up.

UK agriculture will pursue new markets post-Brexit

2017 ◽  
Keyword(s):  
Wine Industry ◽  
Agricultural Policies ◽  
Content Type ◽  
The United Kingdom ◽  
Wine Experts ◽  
Food And Drink ◽  
Scottish Independence ◽  
The Uk ◽  
The Impact ◽  
The Eu

Subject The impact of Brexit on the UK agricultural and food and drink sectors. Significance Agriculture and the food and drink sector will be among those industries most affected by Prime Minister Theresa May’s decision to pursue a ‘hard’ Brexit. It is uncertain to what extent domestic agricultural policies will replace the support and funding mechanisms of the EU. The food and drink sector will have to adjust to the possibility of future tariffs. Impacts Scottish independence would hit the drink sector, with Scotch whisky alone accounting for almost one-quarter of UK food and drink exports. The burgeoning UK wine industry could be damaged if the informal knowledge transfer from French wine experts slows down. The United Kingdom and the EU will need to cooperate on the issue of access arrangements for fishing.

UK's Cameron likely to go for EU referendum in 2016

2015 ◽  
Keyword(s):  
Prime Minister ◽  
Conservative Party ◽  
Dutch Government ◽  
German Government ◽  
Content Type ◽  
Eu Membership ◽  
Official Position ◽  
Eu Referendum ◽  
The Uk ◽  
The Eu

Subject The government's preferred timetable for the UK referendum on EU membership. Significance The EU membership referendum will be a major event in both EU and UK political and commercial life. Prime Minister David Cameron's official position is that the poll could take place any time before end-2017. He is less concerned about the likely outcome of the referendum, which he is confident will produce an 'in' result, than about achieving a margin in favour of membership that decisively settles the question and minimises the damage to the Conservative Party arising from the process. Impacts The most likely referendum date is September 15, 2016. This timetable would make the key renegotiation period the first half of 2016, when the sympathetic Dutch government chairs the EU Council. The German government would also prefer the UK referendum to be dealt with relatively quickly.

'Juncker Plan' could mean EU investment bulge

2016 ◽  
Keyword(s):  
European Commission ◽  
Geographical Distribution ◽  
High Grade ◽  
Content Type ◽  
Chinese Investment ◽  
Investment Plan ◽  
Eu Referendum ◽  
Commission President ◽  
The Uk ◽  
The Eu

Subject The possible economic impact of the EU investment plan (the 'Juncker Plan'). Significance The EU investment plan launched by European Commission President Jean-Claude Juncker just over a year ago has made a slow start. This will encourage doubts that have existed since the scheme's inception about its operation and likely impact. Impacts Even by 2020, the EU economy will still probably require every effort to boost growth and make up for lost investment. Given continuing strong demand for high-grade bonds and equity investments, it should be possible to achieve the fundraising target. The plan could become a vehicle for Chinese investment into the EU: China is talking of 5-10 billion euros in future investments. The geographical distribution of funded projects could be politically sensitive within the EU. The plan could come under scrutiny during the UK EU referendum campaign; UK projects may come too late to have an impact before the vote.

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