A large German investment company is pulling money out of UK investments over the uncertainty surrounding the Scotland independence vote.
The FT’s Fast reports that Union Investment says that a Yes vote would have significant economic consequences for both England and Scotland.
“No one will invest there as long as fundamental questions go unanswered. For the capital markets, the independence of Scotland poses no opportunities, only risks” said the head of Union’s pension investments, Frank Engels
Union said they are now cutting positions in UK stocks and corporate bonds (though they’ve probably already done so).
I still believe that there is more being made of the consequences of a yes vote than will actually arise and I’m still happy to trade against the uncertainty. Engels also said that Scotland becoming independent would increase the chances of England pulling out of Europe significantly. What a load of tosh!
Full article from FT Fast is here (gated but available with a free sub)
Update: Mark Carney has announced that he’ll leave the G20 meeting early on Scottish vote day. Any excuse to get out of a meeting eh?
