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UK Suffers Biggest Capital Outflow Since Lehman As Scottish Vote Nears
Investors pulled $27 billion out of UK financial assets last month - the biggest capital outflow since the Lehman crisis in 2008 - as concern mounted about the economic and financial consequences if Scotland left the UK, according to Reuters. Furthermore, Morgan Stanley said daily equity flow data pointed to "some of the largest UK equity selling on record."
Data compiled by London-based consultancy CrossBorder Capital said financial outflows from the UK totaled $27 billion in August, compared with inflows of $8.9 billion the same month last year.
That's the biggest monthly outflow since the white heat of the financial crisis in 2008, when giant U.S. bank Lehman Brothers went bust. It exceeded the selling of UK assets seen around the 2010 general election, when an inconclusive result led to several days of uncertainty.
"Sterling outflows have been an issue since the end of June, but they really gathered pace in August and now look like intensifying again with the possibility of Scottish independence coming to the front of investors' minds,", said Michael Howell, the managing director of CrossBorder Capital, which compiles the index.
The UK outflow was more than double the combined outflow from Germany and Australia. France, the United States, Canada and Japan all attracted net inflows.
Also on Friday, Morgan Stanley said daily equity flow data pointed to "some of the largest UK equity selling on record, demonstrating investor concerns ahead of the Scottish referendum next week."
Concern over the financial, economic and political effects if the UK breaks up has also weighed on sterling, triggering a surge in exchange rate volatility to its highest since the 2010 general election. In addition, selling pressure has mounted as speculation grew that the Bank of England would soon raise interest rates.
...
"The sterling index has effectively collapsed and the UK is second only to Japan in terms of financial market outflows," Howell said.
So far this year, there has been a net $206 billion outflow from the UK. Last year, there was a net annual inflow of $63 billion, Howell said.
While some respite in GBP-selling has occurred in thge last few days as boisy polls show a slight bias to a "no" vote, as we warned previously - With a “no” vote, the UK would still face rising political uncertainties.
The UK political landscape is in a state of extreme flux, with the enduring Scottish independence movement, the rise of UKIP as a political force and resultant change in UK party political dynamics, the moderate-to-high probability of a change of government in the 2015 elections and uncertainties over post-election fiscal policy, plus the non-negligible risk of a referendum on UK exit from the EU in 2017-18 or so. Even if the “no” camp prevails in September, we do not foresee a return to the pre-referendum political status quo in the UK. In our view, the outlook for UK political risks will remain elevated well beyond the referendum, and we suspect these UK political risks are underpriced in markets.
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As an aside
http://www.highlandclearances.co.uk/clearances/postclearances_whoownssco...
Top 20 land owners in Scotland broken down by Scottish ownership and foreign ownership.
I thought I was going to see Donald Trump on that list.
All that money is just coming to us.............
BUY BITCHEZ
BULLISH
kill me
RUSSIANS pulled $27 billion out of UK financial assets last month - the biggest capital outflow since the Lehman crisis in 2008
FIFY
AD
Somebody front ran that shit
I just got a financial hard on, err hardship.
Guess this means the "yes" vote is in...
Just gotta wait for it to become "official" soon...
^.^
Would not doubt that more then a few English are secretly pulling for independance. It give a flicker of hope that someone somewhere not to far might start countering the destructive constructivness that plagues merry old England.
$27B x FRB* = A FUCK OF A LOT OF DELEVERAGING & BLEEDING
[cue song] "There's a whole lotta shakin' goin' on..."
* FRB = Fractional Reserve Banking. See some YT videos on FRB.
Eg. 1 Chris Martensen... https://www.youtube.com/watch?v=qIxhsF6JLEA
Eg. 2: How Quantative Easing & Fractional Reserve Banking Work
Eg. 3: The Economics of Fractional Reserve Banking
Eg. 4: Money as Debt - FRB (part 2 of 5)
Isn't that Donald O'Trump?
Or are those O's the fucking Irish, I forget. Which one fucks sheep again? Oh yeah, the Welsch. All those Brits look alike to me.
If it benefits Donald to be Scottish, he'll tell you he's Scottish.
You're confusing him with Ronald McDonald.
Highland Spring owner Mahdi al-Tajir 'richest man in Scotland' (21 April 2013)
http://www.bbc.com/news/uk-scotland-22238445
urs schwarzenbach not schwarzenburg in the article.
The price to pay for saying no to the great Satin. Fuck the USA
And...? Who gives a shit?
the people outflowing..
Yeah who gives a shit. But you need the UK to ligitimise your fake foreign wars.................FUCK YOU ARSE HOLE.
By the way welcome to fight club you pussy!!
Let me repeat this again and again:
MONEY IS ...NOT....CAPITAL
Money is simply a CLAIM on capital
Goddit
..er, what's capital then?!
Factories, oil, copper, arable land.
Anything that produces stuff.
ah, assets ...ok i'm with you now >
Let me repeat this again and again:
Currency is NOT Money. Currency is a CLAIM on... Highly Leveraged... FRB
Do you feel less nauseous now? Here, have an airbag. And come to think of it...
Come in here, dear boy, have a cigar. You're gonna go far, fly high.
Well, I've always had a deep respect, and I mean that most sincerely. That is really what I think.
Someone knows that they are going to be leaving the "Empire".
Clan Kerr!
"We got a BLEEDER!" ("How'd you get the beans above the frank?")
Maybe somebody can help me here, but I thought if Scotland left the UK they were going to be in ruins. Small nation of 5+ million couldn't hold themselves together. From what I am reading people are closing investments in England at a rapid pace. If Scotland is an insignificant, welfare recieving, small population, that is is lucky to be in the UK why do so many people give a shit?
Yep.
basically any country can stand on its feet.. Scotland does not need Westminster, just as any nation does not need a bunch of parasitical scum in Govt sucking on its wealth creation capacity
the size of Scotland or any nation has nothing to do with it ..individuals stand on their own two feet, not nations, there is no society or nations come to that
They also dont need London sending thier young men to die in thier created hellholes.
The EXACT same thing was said about Slovakia and the Czech republic. After splitting each became more focused on local issues and flourished.
Scotland would probably benefit from not being in the same country as London. They would develop their own London, in Edenbouroughhhhhhhaaaaa
Grand Cayman and Barbados also 'broke away' and their economies are robust and vibrant. Many African nations broke away and are dirt poor riddled with corruption and dick-taters. Depends on the peeples who populate the break away nation.
I suspect the Scots will do very well; they're frugal, energetic and very bright in my experience.
"If Scotland is an insignificant, welfare recieving, small population, that is is lucky to be in the UK why do so many people give a shit?"
The gift of leverage/hypothecation working in reverse.
"So far this year, there has been a net $206 billion outflow from the UK. Last year, there was a net annual inflow of $63 billion, Howell said."
"
Russia saw nearly $75 billion in capital flight in the first half of the year as investors and ordinary Russians ditched the ruble en masse following sanctions imposed by the West on Moscow over its involvement in Ukraine.
Data released by the Central Bank on Wednesday showed $12.3 billion in capital outflow in the second quarter, following $62 billion in the first three months of the year.
The first-half figure is double the amount in the corresponding period of last year and more than the $62.7 billion in the whole of 2013.
"
UK=206billion vs RU=75billion
who's hurtin'?
propaganda
WaMu UK
UK WaMu
And NOBODY bought Gold. Amazing. The world and economies in turmoil and PMs are disregarded. Is this not obvious and probably unprecedented.
Since early this morning I've watched gold make 3 new lows. Each time it would bounce nicely of the low, only to be smacked down to a new low. The latest being 1228.1, before bouncing again to 1230, only to be smacked down again. Someone is damn desperate to make sure the gold price doesn't get out of hand.
WTF did you think was going to happen with the price of PM's when the CME allowed central bank participation?
But the CME told them they had to play fair!
The comex' most common gold derivative contracts:
- if I had gold, this is what I'd sell it for!
and
-if I had money, this is what I'd pay for gold!
Banksters pull the rug out from under
the Sterling
Now we know why SORO''''s was crying
Soro's is sobbing because fracturing nations make it more difficult for the NWO
one world Govt has been a dream of rich sicko parasites for Centuries, see the Rothchilds history... and it's been a complete failure for Centuries ...but it doesn't stop these retards from dreaming and scheming ...and failing for the 100th time
Record equity outflows and the Footsie is....flat.
Congrats, central bankers, you are one sick bunch.
I don't quite understand how this works. Why would capital leave UK? Example: suppose America split up into 50 separate countries. Does the quantity of Coca Cola consumed go down? No. Does Coca Cola suddenly become less profitable? No. Should Coca Cola or Apple or any other company stock go down as a result of America splitting up? They shouldn't.
nr. 1
Always think about energy and EROIE, 90% of energy is on Scottish territory. If yes then likely a Scottish take over of these fields, introduction of a new currency, new govt. policies etc.
Nr. 2
For large intl. corporations, control and mgmt of politics and hence economics come first, then only sales figures will be of interest, which will adapt accordingly
Meanwhile people, the gold price is going down the shitter......
TYLERS... where is the analysis on this???????????????
there's already analysis on it ..of the counter cyclical variety ...read GoldCore's articles.. whatever he says, do the opposite ...with 100% reliability
These points will suffice:
1. Its totally managed by the Rothchilds central banks, most notably "The FED".
the end
Get ready the time is drawing near. Full blown economic collapse is araond the corner
http://newamerica-now.blogspot.com/2014/02/beyond-collapse.html
No way in hell Scotland is going to be allowed to split. Its waaay too late to get anything constructive done via conventional, honest, legal means. The only way now that the Evil Empire will be defeated is via a big bloody fight, which gets closer every day.
What precisely is backing the UK economy in the first place???
Answer that and you may get some idea why Scottish independence is "do-able".
Really, outside the "City" there is no economy, which means, the "City" scam
relative to Europe breaks down with independnece. You'd run too if your
were inside the City.
Scots simply adopt the EU$ ( yeah... I Know... ) and re-join the EU. Nothing
really changes for them.
May just be me, but I just can't believe that this whole Scottish "independence" vote has not been engineered by the Rothschild banksters to provide cover for something. I.e. if it was not engineered or served their needs then they would have had it put down by violence and extortion.
An American, not US subject.
"It's a Rothschild world and you're just the draft animal in it."
nailed it
Scotland referendum: Alex Salmond says independence best for Wales
http://www.bbc.com/news/uk-wales-politics-29182647
Wales and NI aren't going anywhere, they're both leaches on Englands side. Scotland on the other hand is pretty valuable hence the desperation to keep it.
Os byddwn yn dewis gwneud, mae'r dyfodol i ni
He's right. In fact independence would be best for all of the regions of the UK except the south east. London and The City are great sucking vacuums. Northerners should reform Northumbria and break off from the south.
While all eyes were anxiously fixed on the Scot(s)...
Check out those Spanish down in Catalanes!
As I've said elsewhere on "ZH" they at least act like they gotta pair, so we'll see if Scotland can outdo this "show"...
America watch from the sidelines like you always do, cause you don't have either the "balls" or the wisdom to do what these people are attempting to do in the sacrifice department!
We might as well call ourselves the "Oath Keeper Cowards"!
This is all show so there will be an excuse to rocket the markets the day after. Even if the majority vote 'yes' it will be manipulated by the TPTB to a 'no'. It's all pre-decided......
Scotts are give bunch of lefties. They won't dare give up grandpa's pension.
Scottish people turn out to welcome their national politicians returning as a group from London to convince them to remain in the UK.
https://www.youtube.com/watch?v=DiMXuEmqAHA
So where was the $27bn invested as the FTSE 100 is up 2% in the last month?
The Battle of Pound Sterling began at Stirling Bridge?
Too poetic methinks.
Images for battle of stirling bridge
I thought William Wallace settled this some years ago.