What Theresa May’s Failed Gamble May Mean for Investors

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Part 4
What Theresa May’s Failed Gamble May Mean for Investors PART 4 OF 4

Will the UK Election’s Outcome Delay Brexit Negotiations?

UK election’s outcome and Brexit

Brexit negotiations have already begun. However, the market now expects some delay in the negotiation process due to the UK election’s outcome. 

The nation requires a stable political environment for the Brexit process, but the election’s outcome has showcased a troublesome political environment.

Will the UK Election&#8217;s Outcome Delay Brexit Negotiations?

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On June 23, 2016, the United Kingdom (EWU) voted to exit the European Union (VGK) (IEV) (EZU). UK citizens likely voted to leave the European Union (or EU) for the following reasons:

  • Because the EU allows free movement among its member countries, jobs for local UK residents have been reduced.
  • UK citizens believe that the EU is imposing too many rules for doing business and too many membership fees each year.

How will businesses be affected?

London is home to various businesses. It’s also a major backbone for various financial institutions such as HSBC (HSBC) and Barclays (BCS). After the outcome of the Brexit vote, market participants expected the businesses of the above-mentioned institutions to be hampered, along with the trade flows between the United Kingdom and various EU nations.

Businesses in a country require a stable government, a stable political environment, and active policy formation. Changes in various policies that will be suitable for businesses are a welcome step. A stable government in the United Kingdom would bring about change in the business environment, and it would likely also bring more investment to the United Kingdom.

You may also be interested in reading Why Goldman Sachs Is Optimistic about ‘Secular Growth’ Tech.


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