Pound sterling surge: Calm before the Brexit storm?
Uncertainties ahead as new administration would not try to negotiate a trade deal with the EU beyond 2020
London
BRITISH Prime Minister Boris Johnson's convincing electoral win has set a path forward for British businesses in the short term. At a minimum, there is now some certainty that the UK will leave the European Union (EU) - and soon.
In particular, analysts said, the outlook for small caps has improved on the back of expectations for greater domestic certainty on multiple fronts. Companies can now move forward on decisions involving resources, creating employment and economic opportunities.
Confirmation of the Conservative's Parliamentary majority, the largest since 1987, was followed by a strengthening of the pound to its 19-month high. The FTSE 100, too, saw significant gains.
"A Conservative majority resolves the political uncertainty in the UK with a Eurosceptic party. This may help boost confidence and economic performance in the short term - something that has been affecting UK plc following the country's decision to exit the European Union," said Richard Burrett, chief sustainability officer at private equity investment manager E…
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
G7 pledges swift aid for Ukraine, seeks to calm Middle East
H5N1 strain of bird flu found in milk: WHO
China moves to boost foreign investment in domestic tech companies
Xi orders China’s biggest military reorganisation since 2015
Warner Bros CEO earned US$49.7 million in strike-impacted year
Teheran signals no retaliation against Israel after drones attack Iran