15 November 2018 by jbchevrel
Brexit headlines dominated the wires today, especially after the official announcement of Dominic Raab’s resignation. € CDS indices went wider (Main +3.3 XOver +13.8) with UK names logically underperforming, Gilts rallied 13bp, GBP lost 2% vs most G10s. May’s speech in front of Parliament took them off the wides, as she said that the deal was still a ‘draft’ at this stage. In banks space, STANLNPLC and HSBCHD outperformed (+7/+10) the truly domestic UK banks, namely BACRPLC +17 RBSGRP +17 LLOY +18. Banks stocks also crashed, RBS lost 10% in LSE, as Corbyn considers breaking it up to create new local public banks, if he was to take power (an event whose probability has increased a good deal today). As far as UK retailers (~ +18) are concerned, underperformance was pushed further by the publication of much weaker-than-expected headline retail sales for October (-0.5% MoM vs +0.2% consensus). 2% later on GBP$, the consensus seems that the deal May has negotiated will not pass Parliament in its current state.