How good news is in the price?
Our equity strategy team have already highlighted the potential FX impact of impending M&A flow which could be positive for the GBP. Given the perception of improving global conditions (notwithstanding recent volatility), there are corners of the market which believe the natural extension would be an improvement in M&A: with sterling traditionally benefiting from such trends, a surge in M&A (one of the top 10 ‘alternative scenarios’ according to our Asset Allocation 2014 Outlook) could ensure the UK’s economy remains well-funded and the currency supported.
Read the full report: UBS