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Business

Property fund closures ring Brexit alarm bells

Opening sequence

Opening sequence

Business

Property fund closures ring Brexit alarm bells

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17:55
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COMING UP:Property fund closures ring Brexit alarm bells

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Transcript

00:00:00
>> 30, 35, 40.>> Stocks in the red around the globe on Wednesday. European banks among the worst hit as investors worry what Brexit will mean for them. But in the UK, it's property stocks leading the way lower, they're in the red after three real estate investment funds totaling about 10 billion pounds, said they were suspending withdrawals.
00:00:21
The exit doors being slammed shut on investors who want to pull their money out of property. Reuter's breaking views associate editor Swaha Pattanaik.>> Its definitely worried some people, and its showing how perhaps people had overestimated the liquidity of some of the places they parked their money. There is definitely going to be a bit of a downturn in the commercial and probably the residential property market.
00:00:45
How much this is signaling a wider downturn in the market as a whole is not yet clear.>> Sterling still in the eye of the storm. It hit fresh 31 year lows overnight as Brexit worries bubbled. The currency under pressure even as stocks had earlier seem to rally.
00:01:00
But foreign exchange and equities may be two sides of the same coin.>> The stock market's optimism may have as much to do with say, sterling slide which is going to help sort of the revenues from overseas for Fortune 100 companies. It's also telling you something about central banking hopes.
00:01:18
That Mark Carney will ride to the rescue yet again with more easing rather than a hope that the economy is going to be hunky-dory.>>
NOISE] B
nds telling the same story prices soaring for supposed safe havens like German and Japanese government debt. The UK equities remain above pre-breaks at levels the signs are fear is setting in.