NVIDIA Acquisition Rumors Dismissed by Morgan Stanley as Strategically Flawed 
Paraguay Holds Interest Rate at 5.5% as Inflation Remains Stable Amid Global Uncertainty 
Bank of Japan Governor Signals Accommodative Stance Amid Negative Real Rates 
Want to cut your energy bills? Here’s how five experts are doing it 
J.P. Morgan Downgrades Essity AB on Rising Costs and Weak Earnings Outlook 
RBNZ Holds Rates at 2.25% as Middle East Conflict Fuels Inflation Concerns 
Bank of America Maintains Forecast for Two Fed Rate Cuts in 2026 Despite Inflation Risks 
Japan Inflation Expectations Rise as BOJ Rate Hike Timing Faces Uncertainty 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
What drive GBP hedging for further downside risks:
Despite UK GDP prints managed to post better than forecasted numbers, actual 0.6% versus forecasts at 0.5% and previous 0.4%, the UK growth outlook has been hit by mounting Brexit risks and policy uncertainties.
The weaker growth forecasts and lower rate outlook is compounded by a very large current account deficit. According to a Bloomberg survey on Wednesday, consensus looks ahead for the U.K. to contract by 0.1% in Q3. Investors were now eyeing the BoE’s upcoming policy meeting amid growing expectations for a rate cut.
While the BoE rate cut appears imminent as policy makers look for a weaker currency to help support the economy.
As a result, the sterling is expected to weaken further, bottoming in the low 1.20s in early 2017, as the Fed readies to hike.
Amid the Brexit-induced turbulence, Polish assets have acted as the prominent proxy for the CEE region for the past month, with adverse market moves across Polish asset classes amplified by on-going political noise.
GBP Hedging Portfolio:
To protect against an uncertain political and economic environment following the Brexit referendum, we recommend going long our ‘Brexit+’ / short ‘Brexit-’ baskets.
Since the UK's decision to leave the European Union, our ‘Brexit+’ basket has outperformed our ‘Brexit-’ basket by 8% (since 24 June).
‘Brexit+’ basket is composed of stocks likely to be resilient in a Brexit scenario: The UK exporting companies (benefit from lower GBP) - European companies susceptible to gaining market share in case of Brexit.
‘Brexit-’ basket is composed of stocks which could suffer from Brexit: - UK companies sensible to domestic growth - Foreign companies exporting to the UK - UK companies with cost based on foreign currency but revenue in GBP - UK companies heavily indebted in GBP.
