{"id":140173,"date":"2019-01-15T09:30:36","date_gmt":"2019-01-15T14:30:36","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=140173"},"modified":"2019-01-15T18:18:12","modified_gmt":"2019-01-15T23:18:12","slug":"uk-financial-assets-and-pound-will-rally-if-pm-gets-her-way-on-brexit","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/01\/uk-financial-assets-and-pound-will-rally-if-pm-gets-her-way-on-brexit\/","title":{"rendered":"UK financial assets and pound will rally if PM gets her way on Brexit"},"content":{"rendered":"
January 15, 2019<\/div>
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By George Prior<\/strong><\/p>\n

UK financial assets and the pound will rally if Theresa May\u2019s Brexit deal is passed today (Tuesday), affirms the CEO of one of the world\u2019s largest independent financial advisory\u00a0organizations.<\/p>\n

The comments from Nigel Green, deVere Group\u2019s founder and chief executive, come as the UK Prime Minister gave a\u00a0final plea to persuade the lawmakers in parliament to back her Brexit deal.\u00a0 It follows an \u201calleged coup\u201d by pro-EU politicians attempting to strip the British government of control.<\/p>\n

Mrs\u00a0May\u00a0postponed a parliamentary vote\u00a0on her deal last month, admitting she was set to lose it.\u00a0 To win today, the PM has to overcome heavy opposition from across the political spectrum.<\/p>\n

Mr\u00a0Green observes: \u201cIf it is passed, sterling will rally sharply as the prospect of a no deal, and\/or months of further uncertainty ends.<\/p>\n

\u201cSentiment towards UK stocks will also rally, particularly given the attractive valuations of many UK companies.<\/p>

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\u201cHowever a strong pound may dilute the impact on exporters, as their earnings in dollars and euros, amongst others, will become less valuable in sterling terms.<\/p>\n

\u201cAs such, the FTSE 100, the UK\u2019s benchmark index, may underperform small and\u00a0mid cap\u00a0stocks in the relief rally that follows\u00a0the Bill\u2019s\u00a0passing.\u201d<\/p>\n

He continues: \u201cIf the bill is not passed, as is widely expected, sterling and UK financial assets will probably be unmoved since this is the expectation \u2013 the markets have priced it in.<\/p>\n

\u201cHowever, a significant loss for the government (say by over 40 votes), would lead to a further fall in sterling and negative sentiment towards UK stocks. Financial markets do not like political uncertainty.\u201d<\/p>\n

Mr\u00a0Green goes on to say: \u201cShould Theresa May be defeated, the leader of the opposition Labour party, Jeremy Corbyn, will push for a general election.<\/p>\n

\u201cAnother UK election in these highly unusual times can be expected to spook the markets and have a direct negative impact in the short-term at least on the pound, the FTSE and UK financial assets generally.\u201d<\/p>\n

The deVere CEO concludes: \u201cThere is potential for a large relief rally for UK financial assets and Sterling if\u00a0Mrs\u00a0May\u2019s Brexit bill is passed \u2013 but this looks unlikely to\u00a0materialize.\u201d<\/p>\n

About:<\/strong><\/em><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/em><\/p>\n

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By George Prior UK financial assets and the pound will rally if Theresa May\u2019s Brexit deal is passed today (Tuesday), affirms the CEO of one of the world\u2019s largest independent financial advisory\u00a0organizations. The comments from Nigel Green, deVere Group\u2019s founder and chief executive, come as the UK Prime Minister gave a\u00a0final plea to persuade the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-140173","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/140173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=140173"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/140173\/revisions"}],"predecessor-version":[{"id":140174,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/140173\/revisions\/140174"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=140173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=140173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=140173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}