A survey of global investors by Barclays lays bare the depth ofmarket pessimism as the U.K. starts divorce talks with the EuropeanUnion.
Torturous, drawn-out negotiations with the EU that “involvea series of delays” is the likeliest scenario foreseen by themajority of the 642 respondents, Barclays strategist SreekalaKochugovindan wrote in a report accompanying the release of thesurvey on Monday. That “may in turn weigh on market sentiment,” shesaid.
About 64% are skeptical the exit will be orderly and expectprotracted discussions to sap the value of U.K. assets, inparticular the pound. Its sharp drop since the Brexit vote hascheapened the real effective exchange rate to near an historic low,and investors don't foresee a recovery to pre-referendumlevels.
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