UK Prime Minister Theresa May resigns

The resignation of the British Prime Minister, Theresa May, supports our recent view that the chances of a Brexitdeal have fallen and that the chances of another delay and a no deal Brexit have risen. While the financialmarkets have probably already priced this in, with concerns over the global economy also rising, webelieve that the downside risks to the pound (even though it initially rose on the news) and gilt yields are growing.