{"id":161708,"date":"2019-12-13T09:30:37","date_gmt":"2019-12-13T14:30:37","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=161708"},"modified":"2019-12-13T08:11:36","modified_gmt":"2019-12-13T13:11:36","slug":"boris-johnson-victory-boost-for-the-pound-economy-and-uk-financial-assets","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/12\/boris-johnson-victory-boost-for-the-pound-economy-and-uk-financial-assets\/","title":{"rendered":"Boris Johnson victory: Boost for the pound, economy and UK financial assets"},"content":{"rendered":"
December 13, 2019<\/div>
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By George Prior<\/strong><\/p>\n

Expect the British pound to soar above predictions to $1.40, billions of pent up business investment to be unleashed to boost the UK economy, and the FTSE 100 to open stronger before paring back, as Boris Johnson\u2019s Conservatives secure an impressive majority in the UK general election.<\/p>\n

But there are many serious challenges ahead, warned the CEO of one of the world\u2019s largest independent financial advisory organizations.<\/p>\n

Nigel Green, chief executive and founder of deVere Group, comments: \u201cThe pound has enjoyed its biggest surge in a decade on the hopes that a solid Conservative majority can finally end the Brexit deadlock.<\/p>\n

\u201cMany traders were caught off guard by the size of the majority and this may push the pound even higher than previous predictions. We could see bullish traders now take it to $1.38 or maybe even as high as $1.40.\u201d<\/p>\n

He continues: \u201cWith more political certainty due to the large majority, the UK economy is also likely to receive an election bounce.<\/p>

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\u201cBillions of pounds in business investment that has been on the sidelines due to the parliamentary paralysis\u00a0is now ready to be unleashed. This will give a much-needed boost\u00a0the slowing British economy.\u201d<\/p>\n

He goes on to add: \u201cThe UK\u2019s FTSE 100 will open higher on Friday morning. However, this is likely to be a positive knee-jerk reaction, with some gains likely to be given up throughout the day as most FTSE companies earn\u00a0in dollars and the pound is stronger.\u201d<\/p>\n

The deVere CEO also offers a cautionary caveat: \u201cIt now looks more likely that Boris Johnson will indeed be able to \u2018get Brexit done.\u2019<\/p>\n

\u201cHis party\u2019s large majority in the Commons helps him pass his Brexit deal and it gives him more political sway when negotiating the UK\u2019s future relationship with the EU and reducing the risk of no-deal at the end of 2020.<\/p>\n

\u201cHowever, there\u2019s still a long way to go. Mr Johnson\u2019s self-imposed end of December 2020 deadline is a mammoth challenge, and a no-deal Brexit is still possible on January 1 2021.<\/p>\n

He adds: \u201cThe result election also puts a question mark over Scotland\u2019s future in the United Kingdom.\u00a0The SNP\u2019s gains will embolden them in their key aim of securing Scottish independence.<\/p>\n

\u201cMr Johnson\u2019s monumental task to deliver Brexit with a deal and the Scotland issue will continue to fuel uncertainty in 2020.\u201d<\/p>\n

Mr Green concludes: \u201cBoris Johnson\u2019s election gamble has paid off.\u00a0 Christmas has come early for the pound, the British economy and UK financial assets.\u201d<\/p>\n

About:<\/strong><\/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<\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior Expect the British pound to soar above predictions to $1.40, billions of pent up business investment to be unleashed to boost the UK economy, and the FTSE 100 to open stronger before paring back, as Boris Johnson\u2019s Conservatives secure an impressive majority in the UK general election. But there are many serious […]<\/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-161708","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161708","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=161708"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161708\/revisions"}],"predecessor-version":[{"id":161709,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161708\/revisions\/161709"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=161708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=161708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=161708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}