Markets remain relatively more sanguine than polls on Brexit. However, the referendum has already weighed on domestic activity. Even more, a vote to leave could reduce trend GDP growth and there is also a risk of political contagion. In light of this, we remain mild sterling bears and stay benchmark FTSE100. On UK sectors, we upgrade retailing to benchmark from underweight and reduce our underweight of UK REITs (the most sterling-sensitive UK sector), while staying underweight regulated utilities.