The time has arrived, 47 years after he told his sister that he’d like to grow up to be a world king, he finally gets his opportunity to take the reins of a country. In this case a country in crisis and a government which is on the verge of breaking up.
Boris Johnson won the Conservative Party membership by a landslide, defeating Jeremy Hunt by over 45,497 votes. The new prime minister spent most of the afternoon informing his Party that he will uphold his pledge of leaving the European Union and will not allow an early general election to take place.
Firstly, however, Johnson will likely head over to Brussels and attempt to renegotiate the withdrawal agreement which took Theresa May and her team over 2 years to create. His main focus will be around the Irish border backstop, something which he, in his own words, would like to ‘delete’. How willing the EU are to concede any ground on this point is quite easy to grasp – they are not! The next move for GBP may revolve around Johnson’s ability to extract any meaningful change over this thorny issue which be paramount to the pound’s future.
Today is light on the economic calendar, main focus will be placed on eurozone and US PMIs. Many participants will choose to place their attention on tomorrow’s ECB monetary policy announcement which should be a big moment for the shared currency.
Written by Viv Savani. 9:50am, July 24th 2019
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8:46am, August 5th 2019
Summer markets proving volatile as fresh week commences…