06
Jun
8 June elections in the UK: Theresa May’s gamble fails to pay off
May’s gamble fails to pay off. No more hard Brexit? The pound stabilises. GDP in decline. Real estate losing steam. Inflation to drive long-term rates up. Insufficient visibility on equities.
Key points
- Theresa May could well miss the mark during the upcoming general election
- Chance of more serene negotiations
- A less hostile Brexit?
- Likely stabilisation of the pound
- The BOE remains alert but is keeping monetary policy unchanged
- Consumer spending deteriorates further as purchasing power sags
- GDP is flagging, but leading indicators seem more positive
- Real estate slows down, as expected
- The bond market cannot turn a blind eye to the resurgence of inflation indefinitely
- Insufficient visibility with regard to the UK equity market
