Industry in 'wait and see' mode as UK outlook post-Boris looks cautiously optimistic

Domestic businesses could benefit

The asset management community is sitting on its hands as it assesses the ongoing political changes in the UK following Boris Johnson’s resignation. Some are hopeful a “firm hand on the tiller” will lead to a boost for the UK equities, while others think this will have little impact on what is considered a dire macroeconomic environment.

"This development is undoubtedly positive for the UK market, the UK economy and its voters," said James Penny, chief investment officer at TAM Asset Management. "The UK economy will always respond positively to a firm hand on the tiller of the country, so this is only a benefit for the economy and its prospects as we head into a time of economic contraction," he explained.   Adding that while clear market winners are not "immediately apparent", the successor to Johnson is likely to have a "softer stance" with regards to Brexit negotiations and that could boost UK domestic businesses. ...