Important Information
This information is provided for general educational purposes only without regard to your particular investment needs. This material, including any attachments or hyperlinks, should not be taken as investment or tax advice of any kind whatsoever (whether impartial or otherwise) on which you may rely for your investment decisions, nor be construed as an offer, solicitation or recommendation for any investment strategy, product or service. Investors should consult their financial and tax adviser before making investments in order to determine the appropriateness of any investment discussed herein.
Material authored by any particular Artisan Partners individual or team represents their own views and opinions, which may or may not reflect the views and opinions of Artisan Partners, including its autonomous investment teams or associates. Statements are based on current market conditions and other factors, which are as of the date indicated and are subject to change without notice. While this information is believed to be reliable, there is no guarantee to the accuracy or completeness of any statement in the discussion.
All investments are subject to risk, which includes potential loss of principal. Past performance is not indicative of future results.
This material may reference index or other information that is subject to copyright by its respective service provider, including the following: MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI. Frank Russell Company ("Russell") is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor or endorse the content of this communication. The herein referenced S&P index ("Index") is a product of S&P Dow Jones Indices LLC ("S&P DJI") and/or its affiliates and has been licensed for use. Copyright © 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). None of S&P DJI, Dow Jones, their affiliates or third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none shall have any liability for any errors, omissions, or interruptions of any index or the data included therein. Source ICE Data Indices, LLC, used with permission. ICE Data Indices, LLC permits use of the ICE BofAML indices and related data on an "as is" basis, makes no warranties regarding same, does not guarantee the suitability, quality, accuracy, timeliness and/or completeness of the ICE BofAML indices or any data included in, related to, or derived therefrom, assumes no liability in connection with the use of the foregoing, and does not sponsor, endorse, or recommend Artisan Partners or any of its products or services.
© 2024 Artisan Partners. All rights reserved.
About That Irish Backstop …
A key hold-up in Brexit negotiations is the so-called Irish backstop—which has to do with the fact that the only physical border between the UK and an EU country is that between the Irish Republic and Northern Ireland. This introduces questions about how trade between the two will be conducted once the UK (and Northern Ireland with it) is no longer in the EU, but Ireland remains part of the common market.
In one sense, these tensions go back centuries, resurrecting questions that have long-plagued the island about its proper place—as a country, in relation to the UK, and in relation to the rest of Europe. And then there is the age-old religious divide between Catholics and Protestants.
As old as these troubles are, they are also relatively new aspects—in the sense that it’s been 20 short years since much of the violence was calmed via the Good Friday Agreement (or the Belfast Agreement), which brought to a close a violent period known as the Troubles, which started in the 1960s. The idea of bringing back a hard border between Ireland and Northern Ireland for the sake of trade hearkens back to armed guards at checkpoints, bombings and Bloody Sunday.
As a result, all sides agree there shouldn’t be a physical barrier between Northern Ireland and the Republic (i.e., between the EU and the UK, in a post-Brexit world). To get around that, the EU’s initial proposal was Northern Ireland would remain in the single market, while England, Scotland and Wales would leave and be free to negotiate their own trade deals. Naturally, the UK wasn’t so fond of this solution—nor was the Democratic Unionist Party in Northern Ireland, which favors unification with the UK (as opposed to the Republic of Ireland).
Former Prime Minister Theresa May had proposed an alternative: In the event the UK left the EU without a deal, the entirety of the UK would remain in the EU’s customs union indefinitely—as would, of course, Northern Ireland—until a more permanent arrangement could be reached. Naturally, this wasn’t particularly satisfactory to pro-Brexiters, who saw in it the EU’s means of keeping the UK effectively in the EU and preventing it from negotiating individual trade deals with other countries.
While it has periodically appeared as though the two sides may reach an agreement, thus far, it remains the main sticking point in never-ending Brexit negotiations. Time will tell whether recently installed PM Boris Johnson will be able to deliver on his promise to take the UK out of the EU by the October 31 deadline without prompting a full-blown constitutional crisis.
Contact the Editorial Staff
Have a question or comment? We welcome your feedback. Comments will not be made public, but will be read by a member of our editorial staff.
Thank you for your question or comment.