It’s official: the British government confirmed that the plan for leaving the European Union may cost a lot for the country’s economy.
National crisis: no easy way in the Brexit deal
With a range of possible Brexit scenarios, the economic costs will definitely be significant. According to latest reports, Theresa May has been accused of being an architect in the UK’s “national crisis”.
At this critical moment for British history, the country is under the threat of a “no deal” exit from the EU, which may crater the UK economy.
Official estimates predict the harsh economic reality of Brexit: under any scenario, leaving the EU will make the UK poorer than if it were to remain in the EU.
If May’s plan could potentially result in new trade barriers and cause the economic slowdown, the chaotic exit with ‘no deal’ would be worse than the UK suffered during the global economic crisis in 2008.
Brexit 50/50 Indices: barometers for assessing Brexit impact
The markets’ performance post-Brexit shows the importance of capturing how companies from different sectors are exposed to business activity abroad.
Understanding the geographic distribution of British companies’ revenues might be crucial for investment decisions and the management of global portfolios. Even Brexit uncertainty can bring new opportunities to trade.
If you want to learn how Brexit is impacting UK companies, follow Brexit 50/50 indices and discover their live rates.
The Cboe UK Brexit High 50 index and the Cboe UK Brexit Low 50 index analyse the difference between the performance of companies that earn the large portion of their revenue from the UK and those businesses that experience less revenue exposure to Britain.
Brexit High 50
The Brexit High 50 index (BUKHI50P) is comprised of 50 of the largest UK-listed companies that derive the biggest portion of their revenue from the United Kingdom. This is a barometer that is designed to measure the impact of Brexit on the fortunes of these domestically-focused businesses.
Just like other stock market indices, the Brexit High 50 will rise and fall as the share prices of the companies making up the index fluctuate. Companies within the index include insurer Admiral; telecoms business BT; airline EasyJet; and retailer Sainsbury.
The Brexit Low 50 index (BUKLO50P) is comprised of 50 of the largest UK-listed companies which derive the smallest part of their revenue from the UK. This index is designed to measure the influence of Brexit upon those businesses that are not reliant on the UK for a significant portion of their income.
Just like other stock market indices, the Brexit Low 50 will rise and fall as the share prices of the companies making up the index fluctuate. Companies within the index include miner Anglo American; beverages business Diageo; leisure company Intercontinental Hotels; and engineer Rolls-Royce.
With 100 days left before Britain plans to say goodbye to the European Union, business groups in Britain are criticising politicians for internal fighting, rather than preparing for a possible no-deal scenario. Let’s follow the news and see how Brexit influences the markets.
The Brexit High 50 (BUKHI50P) and Brexit Low 50 (BUKLO50P) will be available to trade Monday – Friday until the end of the trading session, which closes at 18:00 UTC each Friday. All open positions will be closed each Friday between 18:00 and 19:00 (UTC).