Prime Minister Teresa May announced her resignation and will leave #10 Downing Street on June 7th. The beauty contest to replace her has already started. Boris Johnson seems to be the current front runner…
Prime Minister May was dealt a tough hand when she took over after PM Cameron, as a backer of staying in the EU, leading, for all practical purposes, a minority government, getting a deal on Brexit with Europe was always going to be an uphill battle of difficult proportions. What lies ahead is anyone’s guess, but the certainty is that there will be a battle to keep Boris out of the PM role as he is not respected by all.
A key going forward will be when the new PM goes to meet the EU leaders and says he/she needs concessions from Europe. If Europe says no, then the odds of a No Deal must be very high.
Our general view at Minter given all of the various global economic issues and what we believe is slowing global growth, we are in a sell on rallies in the global equities. Until we get some clarity on the global issues such as Trade, Brexit, Iran etc. Commodities are torn between a strong USD, slower growth and the political uncertainty.