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Live Well and Be Happy

Undoubtedly, 2020 had been a tumultuous year for all of us. For some, it could even be a year of sadness and loss. Loss of freedom, loss of stability, loss of jobs, and even loss of loved ones. As I'm writing this, the world is still battling hard with the pandemic. 

As we stepped into 2021, let's embrace Faith, Hope and Love. We will continue to learn new things, change and transform our lives to accommodate new ways of working, playing and living. Focus on family, health and the environment. Keep our mind and body active always. Besides family, remember that friends play an important role in our social and mental health. So, my friends, have a truly blessed new year. Whatever life throws at you; all this will pass.    

We still look forward to your content contribution. Be it written articles, poems, photographs, or activities that you wish to share, we will be pleased to publish them on AutumnLife. If you have read an interesting book, please contribute to our Book Corner. contributions@autumnlife.sg

January 2021

Disclaimer: All articles under EYE on the Market are a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analyses are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of any analysis. Individuals should consult with their personal financial advisors. ©2016 Copyright MK Khoo. All rights reserved. 

Brexit and its broader economic implications

by MK Khoo, 14 Jun 2017

The UK triggered Article 50 of the Lisbon Treaty on 29th March 2017 to leave the EU customs union. What follows will be two years of negotiation on the terms of UK's exit.

Possible implications and uncertainties:

1. Currency - it is still unclear as to whether the outcome of Brexit has been fully priced-in for the sterling pound.

2. Twin deficits -UK's fiscal deficit is expected to worsen due to government spending increase. UK's trade deficit is likely to deteriorate resulting from the increase in tariff and non-tariff barriers with the EU.

3. UK Bonds – There is a high percentage of foreign ownership of sterling denominated bonds currently. Any lightening of these holdings is likely to increase funding cost.

4. London's position as the banking hub for Europe may be at risk. Big international banks have announced plans to relocate significant headcounts out of the UK.

5. London house prices could experience downward pressure with rising supply and rents falling.

6. UK's tax revenue is likely to be hit as high paying finance jobs leave London.

7. As negotiations proceed, the prospect of a 'Hard' Brexit will weigh heavily on business and consumer sentiments.

Amidst great uncertainties on the future of the UK, there's nevertheless a silver lining after Brexit. That is, UK may yet once again become a global trading nation.

 

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