UK election surprise adds to Japanese Brexit worries

The UK elections on "Super Thursday", June 8, appear to have been the only major event that day that wound up having a real impact on financial markets.

Earlier, she announced she would form a majority government with the Democratic Unionist Party to keep the Tories in power. May expected to increase the number of her Conservative Party's seats in the parliament in order to avoid additional problems during the talks.

On the one hand, a weakened Conservative prime minister might not have the power to resist calls from some within the party who want that clean break, even if that means losing privileged access to the European Union single market.

European Council President Donald Tusk on Friday congratulated British Prime Minister Theresa May on her reappointment, underscoring that Brussels and London should press ahead with the Brexit talks.

Morawiecki, who is also Poland's finance minister, said: "It's hard to say I'm happy - because it's not for us to judge the results of the elections in this way".

Mr Willis said: "There is a lot of good news priced into equities whilst bond markets continue to price in a somewhat bleaker outlook, though government bonds clearly remain supported by central bank policies".

May, who had campaigned against Brexit a year ago but took over the Conservative party after David Cameron lost last June's Brexit referendum, delivered her terms for withdrawal in March.

Article 50 is clear that there is a two-year window to compete exit negotiations.

Mr Oettinger told German radio station Deutschlandfunk that in negotiations "a weaker partner weakens the whole thing", while if both sides were strong "you get results more quickly".

Considerably less sympathetic to May's self-inflicted gunshot wound was Guy Verhofstadt, the European parliament's Brexit representative, who called the result "yet another own goal - after Cameron now May".

"As far as the commission is concerned we can open negotiations tomorrow morning at half past nine", Juncker told reporters in Prague.

The firm's chief sovereign analyst Moritz Kraemer told Reuters earlier this week that the shape of the post-Brexit deal with the European Union remained the main factor for the UK's rating.

There was clear frustration with the European Union at the failure of the election to deliver a decisive result.

"One year after their referendum, we still don't know the British position in the negotiations on Brexit and it seems hard to predict when we will, because democracy often requires time", she said. Bohuslav Sobotka said that too much time had already been wasted.

Any new coalition government could also take a softer Brexit stance in the scheduled talks, even possibly seeking to remain within the single market, which trigger further problems. "So that we will fulfil the promise of Brexit together and over the next five years build a country in which no one, and no community, is left behind".

Mrs May left no doubt when it came to clarifying the way she expected United Kingdom to leave the single market.

"I think the Conservative party as a whole is reluctant to get rid of Theresa May now because it would mean a leadership election, it would mean stalling on Brexit talks", Menon said.

  • Leroy Wright


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