We identified geopolitical risk as the key market driver in the second half of 2019 in our midyear investment outlook. The UK is the latest example, where deep divisions over a potential Brexit have unsettled the political landscape, paving the way for a broader set of potential outcomes. This could, over time, become a bigger worry for investors and businesses, in our view. We provide our take on the implications.
Chart of the week
British pound effective exchange rate, 1990-2019
Sources: BlackRock Investment Institute, with data from Refinitiv Datastream and the Bank of England,