Brexit Fears: Is Panic the Right Response To Brexit

Brexit fears

Editor: Vladimir Bajic | Tactical Investor

Brexit fears

The following article makes for a compelling read and so I thought I would highlight an excerpt of this article before getting to the story at hand:

” Greed and recklessness continue to govern the markets; nothing was learned from the 2008 financial crisis. Hence, history is destined to repeat itself and this might occur a lot faster than most anticipate.  Fitch states that Subprime Auto bond delinquencies are at a 20 year high.

The number of individuals who are more than 60 days late on their auto payments surged 11.6% year over year; this brings the current delinquency rate to 5.16%.  During the financial crisis of 2008, the delinquency rate peaked off at 5.04% according to fitch.    Next Subprime Crisis: Auto Bond delinquencies

Brexit fears: Pound Stumbles To 3 years lows

Britain’s deepening political crisis has heaped further pressure on the pound, which on Tuesday morning fell to its lowest level since the “flash crash” of October 2016 as investors braced themselves for a pivotal day in parliament. Sterling declined as much as 0.8 per cent to $1.197.
The last time it hit such a low level was four months after the 2016 EU referendum when it tumbled 9 per cent against the dollar before quickly rebounding.
The pound has not regularly traded below $1.20 since the mid-1980s. Conservative rebel and former chancellor Philip Hammond predicted that MPs opposed to a no-deal had the numbers to seize control of the House of Commons timetable on Tuesday to introduce legislation to force the government’s hand.  Full Story

Brexit Fears: EU Settlement Applications Spike

The number of EU nationals and their family members applying to remain in the UK after Brexit has surged in the last month amid mounting fears of a no-deal scenario and concern surrounding their future rights.

Government figures show applications for the EU settlement scheme more than doubled from 131,300 in July to 299,000 in August, marking the highest number since the scheme was fully rolled out in April.

The Home Office said the total number of applications received to date (12 September) was more than 1.3 million, with around 200,000 people applying within the last 12 days alone.

As of 31 August, a total of 188,600 people, 14 per cent of those who have applied, were still waiting for an outcome on their applications.

The data also showed an increase in the proportion of applicants getting pre-settled status, which grants them five years’ residency in the UK before they have to re-apply, raising concerns people may have been wrongly denied permanent immigration status. Full Story

Carbon emission credits slide over Brexit Fears

The price of carbon-emissions credits has fallen sharply in recent weeks as traders worry that a deluge of U.K. credits could flood the market in anticipation of a disruptive Brexit.

The price of carbon-emissions credits—which European Union countries hand out to large industrial polluters to curtail the production of greenhouse gases—has plunged 13% since late July to around €25 ($27) a ton of carbon dioxide emitted, ending Tuesday more than 4% down for the week so far.

Driving prices lower: the persistent risk that the U.K. will crash out of the EU without an agreement and a series of weak European economic data that have suppressed long-term investors’ appetite, says Tom Lord, a trader at London-based Redshaw Advisors, which advises and trades carbon on behalf of polluting companies.

“Brexit and the trade war side of things are leading to long-term investors exiting positions,” he said. Full Story

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