Disappointing GDP growth. Greater economic risks in Q4. The BoE is considering applying negative rates. Long rates are close to zero. Negative prospects for the pound and equities.

Key points

• A no deal Brexit is on the horizon, the worst-case scenario is becoming increasingly likely
• 1 trillion euros’ worth of trade will be subject to new duties
• Disappointing growth in the 3^rd quarter
• 4^th quarter GDP looks to be shakier than it seems
• Confidence is yet to return
• Leading indicators are misleadingly optimistic
• The BoE is preparing to cut its key rates
• Long rates remain close to zero
• Negative prospects for sterling
• British equities are paying the price of chaotic politics

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