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Reading runes of capital suggest Brexit finale will not be so bad

China Daily | Updated: 2019-01-23 08:28
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Britain's Prime Minister Theresa May leaves Downing Street in London, Britain, Jan 21, 2019. [Photo/Agencies]

Brexit is indeed a "big event" that affects the current global political and economic trends. Under the background of the weakening of world economic growth, the international community generally hopes that Brexit can proceed smoothly and should not become the trigger for the crisis. Therefore, all parties are highly concerned about the outcome of the Brexit. Beijing News comments:

Given capital's instinct to draw on advantages and avoid the disadvantages, international capital flows provide us with a valuable way to predict whether Brexit will become the trigger for a crisis.

Capital is ruthless, but also honest and it has often inadvertently played the role of a prophet in history. So the flow of international capital can be seen as a barometer to forecast the future development of Brexit.

The flow of international capital has assumed a role as a prophet on many occasions in history.

Starting from profit maximization, capital obviously prefers the United Kingdom staying in the European Union or else a soft Brexit.

When the international community was generally pessimistic about the prospect of Brexit, the capital market was "emotionally stable" and the pound's exchange rate was unexpectedly "stable".

In other words, the capital market is confident with the future development of Brexit.

It is clear that although the British public do not like the Prime Minister Theresa May, they also do not accept a no-deal Brexit, so they are giving May more time to seek a better deal.

It is precisely because there is still the prospect of a "soft Brexit" that the capital market has not experienced significant fluctuations. Can capital guess the end for Brexit this time?

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