BREXIT - Near term and longer term views
We very much doubt that the financial markets remotely expected the BREXIT vote to deliver a ‘leave outcome’ (and we also very much doubt that many people that voted for it actually expected it to occur). The London-based financial institutions were probably too affected by the sentiment in London and therefore unaware of the strength of feeling outside of the M25 London orbital road. Watching the referendum outcomes by constituency, it is very apparent that while London voted almost 60:40 to remain, the proportions were essentially reversed in much of the rest of England and Wales. Scotland voted to remain and with the SNP pushing not just continued EU membership but membership of the Euro.
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