Brexit effect even in the auction houses: the largest uncut diamond in the world (1,109 carats), as well as the second largest ever found, did not find an owner. "Lesedi La Rona" ( "Our Light") was discovered in November 2015 in a Canadian-owned mine in Botswana. As for greatness surpasses only the "Cullinan Diamond" found in 1905 in South Africa: one of the diamonds taken from it joined part of the British crown jewels.
S & P has no plans to cut the sovereign ratings of other EU countries following the ‘leave’ victory in the British referendum last week. The statement was made by the head of sovereign ratings agency Moritz Kramer, during a video conference.
On Monday, according to the result of the referendum, S & P had cut two notches its assessment on the UK, to AA from AAA, maintaining a negative outlook.
What will happen next is very difficult to assess, and this lack of visibility is the very reason why markets should remain very volatile and unpredictable over the months to come.
Politics will outshine market fundamentals, where the UK and the EU will enter into long and complex negotiations.
During his trip to Scotland, Donald Trump wanted to release his first impressions about the Brexit, "appreciating" the choice made by the British people. In an interview with Italian newspaper La Stampa said that "The people in the UK have claimed their independence, the right to decide how to govern the country and determine their own destiny. It seems to me that this is a positive thing in general. The crumbling of Europe instead is a fact, not my opinion. It depends on the errors committed by its inadequate leadership.
The markets had been anticipating a “remain” victory and the surprise effect should even amplify the impact on financial markets. The immediate effect should be extreme volatility with market dislocations due to margin call, panic selling and the search for safe haven.
The UK are to enter into a two year procedure with the EU, to negotiate the exit terms. The EU will probably not make it easy in order to discourage other leavers, which promise to keep uncertainty and volatility fairly elevated at least for the next months.
Nothing surprising came out of this SNB meeting. The increase in the oil price is the main explanation of the upward revision of the inflation outlook. However, the effects of oil are short-termed. In a couple of months, this should disappear. The SNB sounds a bit too optimistic, in our view, on the US and European outlook, which will be also key to its monetary policy. Things might be slower than what the SNB displays.
Similarly to the Scottish independence referendum in 2014, markets are starting to get nervous two weeks from the Brexit vote. A single poll by an independent newspaper showing 55% in favour of Brexit, was enough to spur doubt among investors. The volatility on European markets spiked up and oil fell 3% last Friday. The EUR/CHF is also particularly affected with 1 month implied volatility reaching the highest level since the summer of last year.
Christine Lagarde, via Twitter, responded publicly to the applications received. At the end of the IMF and World Bank work, the general manager of the Fund is entrusted to the popular social network to explain the IMF recipes. On the possibility that Britain bait by the European Union, Lagarde reiterated that creates ” uncertainty ”: ” We have already revised down its UK growth forecasts, there is already uncertainty ” and there will also after the pending referendum for the definition of relations between Great Britain and Europe. An uncertainty which has a ” impact ” on the economy but also on the European English, dealing with the political crisis and social refugees. ” It ‘a global humanitarian issue that, if not managed well, can worsen. If managed well can lead ” economic benefits declared the number one of the IMF. ” In Europe need more cooperation, serves a real banking union ”.
