22 Jul Fixed Income Perspectives – ‘Britain’s Exit, On and Off the Pitch’
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Voya Investment Management – Fixed Income Perspectives – July 2016
While the continent cheered England’s exit from the Euro Cup at the hands of Iceland, there was little celebration days before when the British voted to exit the European Union. Not only England’s football future looks uncertain: economic and political uncertainty have spread well beyond the pitch. The U.K. economy has been slowing since 2014, with growth expected to dip below 1% for 2016. The PMI index is at its weakest level in three years, and vulnerabilities exist through the business confidence channel and through the previously red-hot real estate market.