Lagging stocks, a battered pound: investors get a painful glimpse of ‘no-deal Brexit’ Britain

In a year that’s featured a global pandemic and a tidal wave of liquidity from central banks, investors are bracing themselves for a risk they’ve ignored for most of 2020: Brexit.

The prospect of the U.K. and European Union reaching a trade agreement by an October deadline is looking less likely, with Britain saying this week it’s willing to walk away and break international law in the process. That risks the pound falling to a 35-year low, stocks that lag international peers, and bond yields turning negative for the first time amid bets on Bank of England interest-rate cuts, fund managers say.

“If we have a big selloff in risk assets, and a bad Brexit outcome, then there’s no reason the pound couldn’t fall back through the March lows,” said Mike Riddell, a portfolio manager at Allianz Global Investors. That would mean a 12% slump to around $1.14, the lowest … Read More

American Eagle beats quarterly revenue estimates By Reuters

© Reuters. An Omani man passes in front of an American fashion brand, American Eagle Outfitters in City Center Mall in Muscat

(Reuters) – American Eagle Outfitters Inc (N:) beat Wall Street estimates for second-quarter revenue on Wednesday, as people stuck at home due to the COVID-19 pandemic shopped online for athleisure and lounge apparel from the retailer’s Aerie label.

Total revenue fell to $883.5 million in the three months ended Aug. 1, from $1.04 billion a year earlier, but beat expectations of $847.8 million.

Net loss attributable to the company was $13.8 million, or 8 cents per share, compared with a profit of $64.98 million, or 38 cents per share, a year earlier.

The company recorded about $14 million in impairment, restructuring and COVID-19 related charges in the latest quarter.

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