Invest
New PM won’t upset UK markets
Boris Johnson’s appointment as Britain’s next prime minister won’t have a huge impact on domestic or international markets, according to a global financial advisory CEO.

New PM won’t upset UK markets
Boris Johnson’s appointment as Britain’s next prime minister won’t have a huge impact on domestic or international markets, according to a global financial advisory CEO.

In predicting the prime ministerial outcome, the chief executive and founder of deVere Group, Nigel Green, said that the change to the leadership means “it can be expected that there will be a knee-jerk reaction for the pound to the downside on the announcement that Boris Johnson has won the keys to Number 10”, but that this outcome has been largely priced into the pound in recent times.
It was announced late yesterday that Mr Johnson had become the leader of the in-power Conservative Party, and would as a result, be sworn in as the nation’s newest prime minister.
“Boris Johnson has been the clear favourite in this leadership race since the beginning,” Mr Green said.
“As such, the markets have been pricing in the immediate impact on sterling of the Johnson administration,” he continued, adding that as any change is expected and priced in, “it will not drop too much further or for too long”.
For investors, a bigger issue facing the pound is the possibility of no-deal Brexit by the 31 October deadline.
This would mean the country would leave the European Union without concluding a withdrawal agreement. Both the UK and the European Union have an exit deal in place but are struggling to get approval through parliament.
Mr Green commented that the Brexit chaos and uncertainty have had an impact on the British pound.
It has also “been driven by fears regarding Mr Johnson’s embrace of the possibility of a no-deal Brexit on 31 October, with many forecasting an economic shock for Britain if this were to occur”, he noted.
“However, there’s also an argument to suggest that Mr Johnson’s controversial ‘do or die’ approach – and a hard break – will at least end the years of failed negotiations which have fuelled endless uncertainty for business and the markets,” the CEO continued.
“A quicker and cleaner exit from the EU could indeed deliver an unexpected boost for the pound as international and domestic investors get the clarity they crave before stepping off the sidelines and investing into the UK.”
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author

About the author


Stock market
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more

Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more

Stock market
Facebook debuts new name
Zuck gets meta. ...Read more

Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more

Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more

Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Stock market
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more

Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more

Stock market
Facebook debuts new name
Zuck gets meta. ...Read more

Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more

Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more

Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more