Investors pull $27B out of Britain amid Scottish secession fears: reportSeptember 15, 2014 - 15:30 AMT PanARMENIAN.Net - Almost $27 billion of financial assets were pulled out of Britain in August in the run up to Scotland’s vote on independence, according to a new report by a London-based consultancy comparing the capital outflow to the Lehman Brothers collapse in 2008, RT reported. The financial outflow of 16.8 billion pounds ($27 billion) in August was the biggest since the white heat of the 2008 financial crisis when the U.S. bank Lehman Brothers went bust, according to a CrossBorderCapital report compiled by the consultancy and released on Friday, September 12. “Sterling outflows have been an issue since the end of June, but they really gathered pace in August and now look like intensifying again with the possibility of Scottish independence coming to the front of investors’ minds,” said Michael Howell, the managing director of the CrossBorder Capital. The consultancy pointed out that the figures also dwarfed the selling of UK assets around the 2010 general election, after which there were several days of uncertainty over who would form the government. Howell added that UK outflow was more than double the combined outflow from Germany and Australia and only Japan is currently seeing a faster rate of capital outflow from the country. This year UK has experienced a net 127 billion pound outflow ($206bn), while in 2013 a net 39 billion pounds ($63bn) flowed into the nation’s economy, he added. The daily equity flow data pointed to “some of the largest UK equity selling on record, demonstrating investor concerns ahead of the Scottish referendum next week,” said Morgan Stanley on Friday. Scotland is to vote in a referendum on its independence from Britain on Thursday, with opinion polls displaying a narrow gap between the pro-independence campaigners and those against the exit from the union. The latest ICM/Sunday Telegraph poll showed the biggest ‘Yes’ share of the referendum campaign, with 54 percent reporting an intention to vote ‘yes’ and 46 percent ‘no’. The new liquidity report comes as the world’s leading investment banks warned of the financial folly Scotland would face if it votes for leaving the 307 year union with the UK. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | U.S. welcomes Armenia, Azerbaijan’s border delimitation announcement Blinken said it is an important step towards concluding a durable and dignified peace agreement. Residents Of border villages protest as Armenia, Azerbaijan agree on delimitation Residents of several Armenian communities in the northeastern Tavush province began protests late on Friday. European Parliament to discuss repression in Azerbaijan The European Parliament will discuss repression of civil society in Azerbaijan on April 24 PACE wants concessions from Azerbaijan to accept Baku back A PACE co-rapporteur said that Azerbaijani authorities must make certain concessions so that the country can return to PACE. |