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Investment Report

Not amused

One thing we have to give the Britons credit for, they are always good for a Big Bang. The first dates back to 1986 when Margret Thatcher’s government deregulated the London financial markets. The majority of market participants perceived this positively as in the years following, the Bang helped to increase the importance of the financial centre on the Thames and to narrow the gap between itself and its major rival on the Hudson River. As a result, prosperity increased throughout the country. However, after Big Bang 2.0, triggered by the unexpected result of the Brexit vote, the sentiment today along the banks of the Thames is very different. Long faces are the order of the day or, borrowing a famous English saying: „The financial community is not amused“. The mood was not lightened any further by the rating agency Standard & Poor’s decision to downgrade Britain’s “AAA” rating to “AA” with a “negative outlook”.