With quite a bit riding on the outcome of the UK vote this week, the economic players are preparing for a UK exit risk from the European Union. The Bank of England reportedly increased member bank reserves $3.5 billion in anticipation of a BREXIT liquidity rush, while mutual funds invested in UK equities recorded redemptions last week totaling $1.1 billion. Over the past 8 weeks, total UK stock portfolios have lost nearly $3 billion, while M&A activity is off 70% from this time last year. Overseas, global central banks are also taking note, including Fed Chair Yellen in her recent remarks, and in Japan, with the BoJ also noting it was making contingency plans for Brexit. Adding fuel to the fire, last week the wire houses were adding their own comments to the UK pain, with Morgan Stanley commenting that the FTSE 100 could fall 16% from current levels, and Goldman Sachs noting that sterling could decline 11% on a trade-weighted basis against a basket of currencies. We’re definitely expecting an interesting week ahead.