Brexit: The Revenge Of The Precariat Over Davos Man – FIS Group

Brexit: The Revenge Of The Precariat Over Davos Man – FIS Group

Brexit: The Revenge Of The Precariat Over Davos Man by FIS Group

The Revenge Of The Precariat Over Davos Man

The turmoil that erupted after the June 23rd Brexit referendum has purportedly prompted many people who voted “Leave” to rethink their decision. New PM Theresa May has stated that “Brexit means Brexit,” dimming hopes that the referendum’s results would be reversed; but also inferring that Article 50 will not be invoked until next year. May has also appointed a number of prominent Brexit supporters to her cabinet, with David Davis heading the new “Brexit Ministry” and Boris Johnson installed as the Foreign Secretary. These pronouncements and appointments could indicate that she has succumbed to Brexit (despite her earlier opposition) or it could be a shrewd political strategy to allow its economic and political consequences to hit home with voters and force her former rivals to “own” the fallout if and when the public turns on Brexit and its proponents. If future opinion polls show that a decisive plurality of UK voters favor remaining in the EU, this would give the British government the excuse necessary to call for a second plebiscite.

As the earthquake which was the Brexit referendum plays out, there has been no shortage of commentaries on the market’s twists and turns from its aftershocks. In this quarter’s outlook we maintain our near-term market views as initially portended in the immediate aftermath of the referendum result (see our Market Insights Alert, “Beyond Brexit”). But we also focus on the bigger picture, to contextualize the broader implications of the Brexit vote to the political economies of Europe and the United States. Our regular sector and region specific investment outlook for Q3 will follow at the end.

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