Guy Foster, Group Head of Research at Brewin Dolphin, comments on the appointment of Boris Johnson as Prime Minister. He explores the likely next steps for Boris, the impact that his appointment will have on Brexit negotiations and predicts how this will affect the economy.
Key points include:
Boris Johnson’s appointment as PM makes a no-deal Brexit seem like a closer prospect than ever – but Brewin Dolphin still think it unlikely to occur
Johnson’s rhetoric leaves room for both the UK Government and EU to make concessions that could result in a deal
While Brewin Dolphin think it unlikely to happen, if there is a no-deal Brexit UK Government, bond prices would be expected to rally
The pound would likely fall, benefiting the large internationally-focused companies that dominate the FTSE 100