It was the divorce announcement that shocked the world. No, not Brangelina, Brexit. It has been three months since the U.K. stunned markets by voting to leave the European Union. Shares and the currency have fluctuated as has the government and monetary policy.
Even though much has changed since the vote - the U.K. has had a new Prime Minister, a cut in the key deposit rate to 0.25% and an increase in quantitative easing - much has stayed the same. Negotiations to leave have yet to begin, as so-called Article 50, a legal clause that would officially state the U.K.'s intention to leave the EU, has yet to be triggered.
Foreign Secretary Boris Johnson (yes, that happened!) yesterday implied that Article 50 could be triggered in the early part of next year and that the U.K. would exit from the EU by 2019. This forced new Prime Minister Theresa May, who replaced David Cameron in the wake of the vote, to state that she alone makes the decision on when to trigger a formal exit.
No doubt Brad and Angelina will be divorced before the U.K. leaves the EU, and probably before Article 50 is triggered.
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But back to the markets.
The pound was down 0.93% against the dollar to $1.2956 today after Johnson's comments pointed to more political turmoil in the U.K. The currency has lost more than 10% in the three months since the vote.
Airline and banks remain the biggest losers on the FTSE 100. But the FTSE 100 itself has risen 9.1% from 6,338.10 just before the vote outcome was known, and now stands close to the 7,000 mark. It had fallen as low as 5,537 in February.
"The last three months have seen a resurgence in the fortunes of the mining sector, thanks to a continuing rise in commodity prices and a weakening pound. Companies with international earnings have done quite nicely out of Brexit, with the likes of Astra Zeneca, HSBC and Burberry benefiting from their global footprint," Hargreaves Lansdown said.
Luxury goods maker Burberry (BURBY) has gained 26.6% even though it has had recent problems. In July, Burberry named Marco Gobbetti, who currently heads Paris-based brand Celine, as its new chief executive.
The company announced an ambitious turnaround plan in May, designed to drive revenue growth, boost productivity and achieve at least £100 million ($130.1 million) in additional cost cuts by the 2019 fiscal year.
"At the other end of spectrum shares in airlines, house builders and banks have borne the brunt of Brexit, as investors shunned stocks which are heavily plugged into the domestic UK economy," Hargreaves said.
Low cost airline Easyjet has seen its shares fall 31.8% since the vote. The company has warned that Brexit would have an impact on its bottom line and was looking to expand more into Europe.
International Consolidated Airlines, the owner of British Airways, has lost 22.7%.