UK politics amongst market movers today – Danske Bank

Danske Bank analysts suggest that today's main even is the announcement around midday of the next UK Conservative Party leader, who is also going to succeed Theresa May as Prime Minister.

Key Quotes

“Everyone expects it to be Boris Johnson. While Boris Johnson is more pro-Brexit than Theresa May, the arithmetic in the House of Commons is unchanged making it difficult for him to force a no-deal Brexit despite it being the default option from a legal point of view.”

“Noticeably, pragmatic Conservative Philip Hammond has said he will step down as Chancellor if Boris Johnson wins and has not ruled out he will bring down his own government if necessary to prevent a no-deal Brexit.”