The chances of a cooperative outcome on Britain's divorce talks with the EU have improved in the last two weeks, said the global fixed income CIO Andrew Balls at PIMCO, the biggest bond investor in the world with $1.66 trillion (1.3 trillion pounds) of assets under management.

According to Balls, the UK banks look attractive and that there is more upside potential for sterling. 

"Our expectation has been for a cooperative outcome, avoiding the chaotic no-deal Brexit," he told Reuters. "In the last week or two, we are seeing now there seems to be further movement in that direction."