Category: brexit

Mapped: Economic Freedom Around the World


This post is by Anshool Deshmukh from Visual Capitalist


Map of Global Economic Freedom

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Mapped: Economic Freedom Around the World

How would you define a country’s economic freedom?

The cornerstones of economic freedom by most measures are personal choice, voluntary exchange, independence to compete in markets, and security of the person and privately-owned property. Simply put, it is about the quality of political and economic institutions in countries.

Based on the Index of Economic Freedom by the Heritage Organization, we mapped the economic freedom of 178 countries worldwide.

Measures of Economic Freedom

The index uses five broad areas to score economic freedom for each country:

  1. Size of Government: Greater government spending, taxation, and bigger government agencies tend to reduce individual choice and economic freedom.
  2. Legal System and Property Rights: The ability to accumulate private property and wealth is a central motivating force for workers and investors in a market economy, and well-functioning legal frameworks protect the rights of all citizens.
  3. Sound Money: Does earned money maintain its value, or is it lost to inflation? When inflation is high and volatile, individuals can’t plan for the future and use economic freedom (Read more...)

Four Reasons to Watch UK Equities



The following content is sponsored by BlackRock.

Over the past several years, UK equities have traded at a relative discount compared to other developed markets. This was largely due to ongoing Brexit negotiations, where uncertainty around trade deals and other legislation created significant headwinds.

Fast forward to today, and much of the uncertainty has passed. Does this mean it’s time to invest in the UK?

Looking Ahead

This infographic from BlackRock covers four reasons for why investors should consider an allocation to UK equities.

UK Equities infographic

So, why should investors consider an allocation to UK equities?

#1: The UK Market Is Not the UK Economy

The UK equity market is represented by many leading multinational companies from a variety of sectors.

For example, consider the FTSE All-Share Index, which contains over 600 companies listed on the London Stock Exchange. As of March 31, 2021, 72.5% of these companies’ total revenue was derived from outside of the UK.

A large share of overseas revenue provides investors with exposure to a range of global themes, where outcomes are not dictated by the UK economy itself.

#2: Business Activity is Ramping Up

The confirmation of a Brexit trade deal has provided UK companies with clarity around the rules of engagement, as well as the confidence to look ahead.

As a result, the UK has been ranked as the most attractive place in Europe for future investment.

CountryWhich country do you believe will be
the most attractive for foreign investment in 2021?
(% (Read more...)

A Geographic Breakdown of the MSCI ACWI IMI



The following content is sponsored by MSCI

MSCI ACWI IMI

A Geographic Breakdown of the MSCI ACWI IMI Index

How can investors track stock markets around the world?

Using the MSCI All Countries World Index Investable Market Index (MSCI ACWI IMI), investors can benchmark their portfolios to a comprehensive group of developed and emerging markets. With over $4.2 trillion in assets benchmarked to the ACWI—about 4% of all managed assets globally—the index is widely quoted.

In this graphic from MSCI, we explore a geographic breakdown of the MSCI ACWI IMI index, and how it has changed over time.

What is the MSCI ACWI IMI?

The MSCI ACWI IMI is a leading global equity index. It tracks the performance of a basket of securities that are intended to represent the entire global stock market. Altogether, it covers:

  • 9,200 securities
  • 23 developed markets
  • 27 emerging markets
  • 99% of the investable global equity market

Using a standardized approach, the index includes businesses of all sizes from small to large market capitalization.

Market Weights

The MSCI ACWI IMI Index is broken down into broad regions and specific markets, such as North America and the U.S. respectively. Below, we show the specific market weights of the index as of July 31, 2011 and July 31, 2021. We also show how much these weights have increased or decreased over the last 10 years.

MarketRegion2011 Weight2021 WeightPercentage Point Change
CanadaNorth America4.74%2.91%-1.8 p.p.
U.S.North America43.34%58.61%15.3 p.p.
Austria (Read more...)

Visualizing the UK and EU Trade Relationship


This post is by Avery Koop from Visual Capitalist


uk trade with eu

Can I share this graphic?
Yes. Visualizations are free to share and post in their original form across the web—even for publishers. Please link back to this page and attribute Visual Capitalist.
When do I need a license?
Licenses are required for some commercial uses, translations, or layout modifications. You can even whitelabel our visualizations. Explore your options.
Interested in this piece?
Click here to license this visualization.

Visualizing the UK and EU Trade Relationship

With Brexit solidified and a new trade deal having been struck between the UK and the EU, it appears that a sense of normalcy has returned to the European continent.

The Trade and Cooperation Agreement (TCA) between the two entities came into effect on January 1st, 2021, corresponding with the UK officially leaving the EU Single Market and Customs Union on the same day. The new deal will help the status quo of trade continue, but how important is trade between the EU and the UK?

This visualization, using data from the British House of Commons’ Statistics on UK-EU Trade Briefing Paper, reveals the significance of trade between the UK and EU member states.

Who Does the UK Trade With in the EU?

The EU is the UK’s biggest global trading partner, representing 47% of the country’s total trade.

To break it down further, the EU is the buyer of 42.6% of the UK’s total exports, while also being the source of 51.8% of their total imports. Here’s a (Read more...)

Brexit deal: What Start-ups Need to Know


This post is by Philippe Botteri from Cracking The Code



On 23 June 2016, despite the betting odds being largely in favour of “Stay”, the UK decided to leave the European Union. Four and half years later, we finally know what this means – or at least have a guiding framework as several items still need to be worked out. For those of you who need a reminder of the complex chain of events triggered by the results of the referendum, I've included a full time line up until the trade deal was agreed on 24 December, 2020 below.

 

In the meantime, let’s go back to May 2016. Ahead of the  referendum result, Accel published a post discussing the potential implications of Brexit for start-ups. Then, the expert views on the outcome for the UK were fairly negative. In one of the most comprehensive polls of experts (FT poll of more than 100 economists in Jan 2016), more than75% thought Brexit would adversely affect the UK’s medium-term economic prospects; only 8% thought Britain’s economy would benefit.

 

Back to today: were these predictions accurate? Did the deal reached on 24 December  negatively impact the tech ecosystem? In 2016, we highlighted five key areas which could have a major impact on start-ups: freedom of movement for EU and UK citizens, Fintech regulation, EU R&D funding, data privacy and currency impact. Let’s have a look at where we landed.

 

Freedom of movement

For EU founders or start-up employees already living in the UK, the changes are minimal. EU (Read more...)

Brexit deal: What Start-ups Need to Know


This post is by Philippe Botteri from Cracking The Code



On 23 June 2016, despite the betting odds being largely in favour of “Stay”, the UK decided to leave the European Union. Four and half years later, we finally know what this means – or at least have a guiding framework as several items still need to be worked out. For those of you who need a reminder of the complex chain of events triggered by the results of the referendum, I've included a full time line up until the trade deal was agreed on 24 December, 2020 below.

 

In the meantime, let’s go back to May 2016. Ahead of the  referendum result, Accel published a post discussing the potential implications of Brexit for start-ups. Then, the expert views on the outcome for the UK were fairly negative. In one of the most comprehensive polls of experts (FT poll of more than 100 economists in Jan 2016), more than75% thought Brexit would adversely affect the UK’s medium-term economic prospects; only 8% thought Britain’s economy would benefit.

 

Back to today: were these predictions accurate? Did the deal reached on 24 December  negatively impact the tech ecosystem? In 2016, we highlighted five key areas which could have a major impact on start-ups: freedom of movement for EU and UK citizens, Fintech regulation, EU R&D funding, data privacy and currency impact. Let’s have a look at where we landed.

 

Freedom of movement

For EU founders or start-up employees already living in the UK, the changes are minimal. EU (Read more...)