My conclusion here is that the conditions that created underperformance in the first quarter are still in place and will pressure UK wages and growth. The result will be more accommodative monetary policy than otherwise expected, and probably more accommodative fiscal policy as well....
I see the vote for Brexit in 2016 and the vote this past Thursday both as expressions by middle class Britons for more economic opportunity. In 2016, the EU was the object of scorn. This past election, the UK’s own government suffered at the polls due to middle class disenchantment. The Prime Minister’s colleagues are backing her for now, because they want to avoid a messy leadership contest just as Brexit has started. However, if things don’t change once negotiations are underway, Theresa May could find herself out of a job. And this uncertainty adds additional downside pressure to the British economy.Credit Writedowns
Anarchy in UK politics means lower yields and ends austerity as we know it
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