GREAT BRITAIN – FOREIGN RELATIONS – EUROPEAN UNION

Recession in Europe a ‘very scary’ prospect

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Original article by Vesna Poljak, James Chessell, James Thomson
The Australian Financial Review – Page: 15 & 20 : 27-Jun-16

Opinion is divided regarding the likely impact of the UK’s vote to leave the European Union. Financial markets were sold down in the wake of the "Brexit" referendum, and Wilson Asset Management chairman Geoff Wilson warns of the potential for another financial crisis. However, Randal Jenneke of T Rowe Price does not expect Brexit to lead to an economic crisis, arguing that it is a political issue and a political crisis. Meanwhile, Investors Mutual’s Anton Tagliaferro says Brexit will have no impact on the majority of Australian-listed companies.

CORPORATES
WILSON ASSET MANAGEMENT, T ROWE PRICE GROUP INCORPORATED, INVESTORS MUTUAL LIMITED, FTSE 100 INDEX, METAGE CAPITAL GLOBAL VALUE FUND, UNICREDIT SPA, BANCO POPOLARE, BANK OF IRELAND PLC, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER, EUROPEAN COMMISSION

It’s a big short-term buying opportunity

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Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 24-Jun-16

Charles de Bolssezon of Societe Generale forecasts that the FTSE 100 will rally in coming months if the UK votes to remain in the European Union. However, the FTSE is tipped to shed about 15 per cent if Britons vote to leave the EU, while the S&P 500 will fall by 10 per cent. Richard Coppleson of Bell Potter says Australia’s benchmark S&P/ASX 200 would also fall sharply in the event of a "Brexit", but he adds that this would create buying opportunities for investors in the short-term.

CORPORATES
SOCIETE GENERALE SA, FTSE 100 INDEX, STANDARD AND POOR’S 500 INDEX, BELL POTTER SECURITIES LIMITED, STANDARD AND POOR’S ASX 200 INDEX, EURO STOXX 50 INDEX, FTSE 250 INDEX, NIKKEI 225 INDEX, CITIGROUP INCORPORATED, BANK OF ENGLAND, UNITED STATES. FEDERAL RESERVE BOARD

RBA warning on Brexit

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Original article by Phillip Coorey, James Chessell
The Australian Financial Review – Page: 1 & 4 : 24-Jun-16

Prime Minister Malcolm Turnbull says there will be a global economic shock if the UK votes to leave the European Union, adding that the Coalition is best-placed to manage the Australian economy during such turmoil. Meanwhile, both major political parties have been briefed by the heads of the Reserve Bank, the Australian Prudential Regulation Authority and the Treasury on the likely impact of a "Brexit" on the local financial market. The outcome of the referendum is tipped to be very close.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER, EUROPEAN COMMISSION, STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

Markets skittish as Brexit vote looms

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Original article by Jessica Sier
The Australian Financial Review – Page: 22 : 20-Jun-16

The UK’s referendum on membership of the European Union is expected to be a key focus for Australian investors in the week beginning 20 June 2016. However, Alex Holmes of Capital Economics says the global economy is unlikely to be significantly affected in the long-term if the UK votes to leave the EU. Investors will also be awaiting the release of the minutes from the Reserve Bank of Australia’s latest board meeting, as well as US economic data such as unemployment claims and oil inventories.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CAPITAL ECONOMICS LIMITED, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. SENATE COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS, UNITED STATES. HOUSE OF REPRESENTATIVES COMMITTEE ON FINANCIAL SERVICES, RESERVE BANK OF INDIA, INDIA. PRIME MINISTER’S OFFICE