Reuters logo
Norway's wealth fund says sterling flash crash reflects expectations of UK economy
October 11, 2016 / 8:46 AM / a year ago

Norway's wealth fund says sterling flash crash reflects expectations of UK economy

OSLO, Oct 11 (Reuters) - Friday’s flash crash in sterling was a correct move that reflected the expectations of the UK economy, a senior official at Norway’s sovereign wealth fund, the world’s largest, told Reuters on Tuesday.

The fund is one of Britain’s biggest foreign investors, owning shares in most top UK companies and holding $11 billion in government bonds. It co-owns Regent Street, one of London’s premier shopping streets.

Conversely, Britain is crucial to the fund as its second-largest investment location after the United States, accounting for 10.2 percent of the fund’s value at end-2015.

“It (the flash crash) was a permanent impact on the price. So if you do believe in markets, it was a correct move. It reflects the expectations of the UK economy,” Oeyvind Schanke, the fund’s Chief Investment Officer for asset strategies, said in an interview.

Asked whether he shared that view, Schanke said: “Yes, I do believe in market forces and I do believe that investors have an ability to price. And what that price move indicates to me is that they are worried about what is happening in the UK.”

He declined to say if the fund had taken any steps after the flash crash. (Reporting by Gwladys Fouche, editing by Terje Solsvik)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below