Investment Outlook August 2022: Brexit after Boris

This monthly commentary gives a roundup of global markets and trends.

In this edition:

• While the imminent departure of Boris Johnson may have had little impact on UK asset prices, the long-term drag from the country’s poor relationship with the EU may start to ebb
• It is possible that a new prime minister could seek rapprochement with the EU and tone down the hard Brexit rhetoric seen in recent years
• The UK’s current account deficit with the EU has improved over the past six years, meaning the UK economy is less vulnerable to volatile international capital flows to fund it
• In spite of a recent rally for global markets, investor sentiment remains gloomy. However, we continue to believe there are reasons to be upbeat on the resilience of the global economy