BUZZ-UK stocks: hedging the Brexit risk

** Shorting UK property, financial and materials stocks recommended as the best way to hedge any risk of a Brexit

** Continued warnings from the Bank of England and businesses see brokers looking to hedge the unlikely event of a British exit from the European Union

** Governor Mark Carney said on Tuesday the central bank detects economic uncertainty ahead of a possible vote

** JPM says base case still for the UK to remain, but suggests shorting basket of stocks most exposed to a Brexit for those more bearish

** Sees Berkeley as best short in property sector due to its skew to London and foreign investors

** Banks (RBS (LSE: RBS.L - news) , Lloyds, Barclays (Swiss: BARC.SW - news) ) at risk if Brexit puts a Scottish referendum back on the agenda

** Aviva (Other OTC: AIVAF - news) , Schroders (LSE: SDR.L - news) and Henderson all have significant assets in Europe, LSE could see issues from its Italian-based Monte Titoli clearing arm

** In industrials and materials, midcap Victrex among the most exposed: has three quarters of its cost base in the UK but just 3 pct of sales; Rolls Royce (LSE: RR.L - news) , Croda and Johnson Matthey (LSE: JMAT.L - news) also exposed, JPM says

** Sterling at 7 yr lows ; likely to weaken further on any uncertainty

** Best (LSE: 0M1A.L - news) odds on Brexit still 2/1; best odds for UK to remain 2/5

(RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)