Please see below for today’s update on key Brexit news items:

  • $55 billion fund manager BlueBay Asset Management has begun selling sterling, betting that the UK is set for a damaging Brexit process. It follows companies such as Allianz Global Investors, which have decided to short the pound. (Independent)
  • The European Central Bank has rejected the possibility that Brexit could pose a major threat to the euro area economy. Vitor Constancio, the ECB’s vice-president, said that Brexit could not significantly harm the ongoing recovery in the euro area. Despite this, the ECB has urged banks to undertake all necessary preparations, acknowledging that Brexit may lead to increased financing costs for businesses, although it noted that these were likely to be modest. (Financial Times)