LONDON - The scale of Boris Johnson’s election victory on Thursday may be enough to draw back billions of pounds of investment that have sidestepped UK stocks for years over Brexit, mirroring the U.S. market surge seen after Donald Trump’s election three years ago.
Not only does the size of the majority bring some clarity to the Brexit fog, but money managers say it may well allow Johnson room to face down more extreme elements of his fractious Conservative Party and negotiate a relatively quick trade deal with Brussels involving softer terms than many had feared only a week ago.
Several asset managers have been underweight on UK stocks since then, but a slight uptick in sentiment could quickly suck in tens of billions dollars. Just a day ago, consensus among analysts was that Johnson would win only a modest majority and that he would have to tread carefully in negotiating a free trade deal with the EU.
And - as per Friday’s exchanges - positive noises between London and Brussels about a free trade agreement will be important.In the immediate aftermath of Trump's victory, the U.S. small business optimism index, released in Jan 2017, posted its biggest rise in 30 years. The S&P 500In the UK, investors will be keenly looking into similar signals from business sentiment surveys, such as the Purchasing Managers’ Index as soon as January.
frankly speak, I am looking the girl in picture
Miss out what?Taxes that will make everything more expensive in the UK? They produce nothing anymore!