Saturday, June 25, 2016

Moody’s cut its outlook for the UK – BBC

And in the end it all comes back to gold, the safe haven par excellence in the day of the collapse of the markets after the outcome of the referendum on Brexit, returned the highest since March 2014 up to the $ 1355 the ounce appreciating by more than 4%. Since beginning of the year the precious metal had scored a higher upside to 20% while only in December 2015 prices, the third consecutive year of decline, had sunk below $ 1050, to levels not seen since 2010. But it was after the great financial crisis that gold has experienced a resounding “boom”: from the price had risen by 150% beginning in September 2008 to the end of September 2012 only to deflate the following year and then resume laboriously share. Now Brexit back to talk of this investment considered “zero risk.” It is no coincidence that in recent days also excellent names of finance, such as George Soros, you are left to conquer by gold. The 85 year old financier is in fact returned to trade by stealing all the gold companies shares and ETFs on precious metal.

but now the wait is for the reopening of markets on Monday . After Black Friday when the European markets have lost 637 billion in a single day, they expect the reactions of cold markets, after the choice of London to go out from the EU will have been in a sense metabolized. The Moody’s rating agency has already warned that after Brexit the UK is to downgrade risk: economic growth in Britain, said Moody’s, will be weaker as well as public finances and will therefore be more difficult a deficit cutting. Brexit, according to the rating agency, opening a “prolonged period of uncertainty” for the United Kingdom, with negative implications for the medium-term growth. The impact on the economy will be heavy “unless the British government can negotiate a commercial exchange, which is similar to its current position in the single market.” In the meantime, the international rating agency confirmed the rating of “Aa1″ for Britain, but changed its outlook from stable to negative.

implications will also be overseas where well Fed said to be ready, if necessary, to provide liquidity to the markets. According to some experts of monetary policy seems certain at this point that the chairman of the US Federal Reserve Janet Yellen, will not lift rates even in July and could not do so throughout 2016 postponing the decision to the new year. “The eurozone is falling – said in a CNBC interview Alan Greenspan, former Federal Reserve chairman – and Brexit is just the tip of the iceberg.” According to former Fed number that has not happened with the crisis of 2008-2009 and the endless crisis in Greece could happen now with the release of the UK from the European Union. “This is the worst time that I remember from the beginning of my career,” added Greenspan, who was chairman of the US central bank until 2006, on the eve of the earthquake on the financial markets which has led to years of recession and instability in the markets . The Brexit, is convinced the former central banker, will have “a corrosive effect, implications that will not be easy to stop.” From “almost certainly” by the resurrection of the pro-independence instances of Scotland. But the effect in other European countries it is difficult to predict. Also that in America, where you are in a tough election campaign for the succession to Barack Obama.

June 25, 2016 (amendment 25 June 2016 | 10:26)

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