MM Warburg to continue avoiding UK assets

After avoiding sterling assets since the referendum vote MM Warburg & Co said it intended to continue doing so, the bank's head of asset management and chief economist has said.

In an interview with Bloomberg, Carsten Klude said a so-called 'hard' Brexit was increasingly likely and would send assets crashing.

“Trade negotiations are very, very complicated. [...] I wouldn’t be surprised if Brexit negotiators come to realize after two years that they haven’t executed the whole program.”

Nevertheless, Klude admitted to having been wrongfooted by the Footsie's 18% jump since from its post-Brexit lows.

For Klude, the "major sticking-point" would be Britain´s financial sector, given the Prime Minister´s hard stance on immigration and the European Union´s own rigid stance on the subject.

In the German broker´s favour perhaps, it was one of the few to correctly predict the result of the UK´s referendum vote.