, Columnist
U.K. Investors Have Too Much Faith in Their Government
The benign state of affairs in markets only works in a best-case outcome.
Rearranging the borders.
Photographer: Luke MacGregor/BloombergThis article is for subscribers only.
The U.K. government will soon invoke Article 50 of the Lisbon Treaty to begin divorce proceedings from the European Union. The Scottish government is seeking to hold a second independence referendum before Brexit talks wind up. An otherwise uneventful Bank of England meeting had one interest-rate dissenter with others potentially sympathetic as inflation stirs.
But if you look at markets you would never know that the myriad implications of Brexit are spreading, vine-like, through the U.K. Investors shouldn’t assume this disconnect will continue, especially if Brexit turns out to be less like a process and more like a Wile E. Coyote moment.