Skip to main content

Boris Johnson concedes leadership

Will a vote of no-confidence be necessary?

07 July 2022

Outgoing UK Prime Minister Boris Johnson finally conceded that his position is untenable following the most resignations from government that the country has seen in such short order. Things are likely to still take a few interesting turns before he exits No.10. The pound and the market’s initial reaction were widely euphoric at the prospect of an end to the political chaos that has marked his time in office, but it is unlikely to be sustained – the economic malaise that the UK finds itself in is unlikely to reverse course anytime soon. Johnson could stay on as an interim leader until a new one is decided, which would mean a few more months clinging to the trappings of power, albeit effectively neutered. Were that to happen, the Labour Party have already signalled that they would instantly push for a vote of no-confidence in the government which, should they win (which is more than likely), would require the Queen to appoint a prime minister. Constitutional crises are not good optics from a market perspective but then should we not have expected this eventual outcome? UK risk assets look decidedly unattractive until this political circus has packed up and moved on.

Important legal information
The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is not an indicator for the current or future development.

Charles Hepworth

Investment Director
My Insights

Active Thinking

Fed wary of cutting US rates too quickly

Charles Hepworth

UK services sector continues to expand

Charles Hepworth

UK retail sales bounced back strongly in January

Charles Hepworth

Charles Hepworth Blog