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.
Brexit Beckons
Well, Prime Minister Boris Johnson has done it. Nearing four years after the UK’s referendum, it now seems almost certain the UK will officially leaving the EU early in 2020, following an election most have justifiably described as a landslide for the Conservative party and a rout for Labour and the Liberal Democrats.
Though the election’s outcome lends clarity to a longstanding source of uncertainty, ample weighty questions remain, including what a post-Brexit UK economy will look like and how quickly the country will be able to negotiate agreements with major trading partners—notably, the US and the EU. Complicating matters, an agreement with one probably implies trade-offs in terms with the other. For example, a likely goal for the US in any negotiations is securing better access to the UK market for its agricultural products. But US agricultural products generally don’t meet EU standards. So concessions to the US could lead the EU to counter by raising barriers which it hopes will ensure US products don’t make their way into the EU via the UK without passing muster.
There are similar questions about whether the UK will maintain the EU’s high labor and other regulatory standards. On one hand, maintaining the EU’s labor and regulatory standards likely makes reaching a trade deal easier. But on the other, among the original underpinnings of Brexit was that the UK no longer wanted to be beholden to EU standards. Further, the UK would be agreeing to follow standards in whose establishment it no longer participates once its representatives have officially left Brussels.
Then there are questions about the fate of the United Kingdom itself. Somewhat lost amid the overall result was the Scottish National Party’s (SNP) resounding victory, in which it claimed 48 of 59 Scottish parliamentary seats. Since the 2016 Brexit referendum, the SNP has been a staunch opponent of taking the UK out of the EU. With the party’s ranks reinforced, not only will it undoubtedly continue to oppose Brexit, it will likely make Brexit a significant justification for revisiting the question of Scotland’s own independence from the UK. The most recent Scottish independence referendum in 2014 was rejected rather soundly, and for now, PM Johnson has indicated he won’t even consider holding another. But the issue is sure to be raised again—SNP leader Nicola Sturgeon has already promised as much.
All told, only a small piece of the picture became clearer after Thursday’s election. Where the UK goes from here has implications sure to reverberate beyond the country’s shores for the foreseeable future.
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.