UBS - Straight talk: Brexit. What now?

The UK has spoken. By a margin of 52% to 48% the UK public has voted to revoke its membership of the European Union. Prime Minister David Cameron has resigned. However, the invoking of Article 50 of the Lisbon Treaty is on hold while the leading lights of the Conservative party position themselves for the leadership battle. The main UK opposition party, Labour, is similarly riven with in-fighting post the Referendum. In short, next steps for the UK are unclear and UK political dysfunction may be higher than most investors will have accounted for.