So Steve what do you think happens next
with brexit and what do you think the
impact will be on sterling?
You know I would say the path of least resistance, I think,
is a hard brexit because I mean did anybody notice that last week
when Parliament voted to not allow a
hard brexit no one came forward and said
ok here's our plan. The episodes
with Theresa May sort of indicated
there's no consensus on what a brexit
should even look like. So you know
despite all the noise it's hard to see
how anybody's going to be able to call
on any one individual plan. The
only thing we know is there's a deadline.
What worries you more when it comes to
the stock market? A no-deal Brexit
or Jeremy Corbyn's proposed policies?
There are three potential outcomes here. You get a a Brexit deal and Johnson
remains prime minister. You get a hard
Brexit and Johnson remains prime
minister. Or you get Corbyn, and a deal
with the EU.
Those are your three. So the best outcome in terms of the British stock market, and
I'm not making a political judgment I'm
just talking about what I think will
happen if one of the three scenarios
happens. So a Johnson with a deal is the
most positive outcome for the UK stock
market. A Johnson with a hard Brexit is
a negative and you would see a
correction in the UK stock market very
quickly, and then you know what happens
after that would be determined by
what the Boris Johnson government do / say after that. Or a Corbyn, Corbyn takes over
and works how to deal with the EU. To me
that's the worst outcome for the UK, by
far. Again leaving aside your political
views, and I'm not going to espouse mine,
this is purely a judgment on what the
stock market will do. You know Corbyn's
policys are things like to nationalise the utilities,
break up Royal Bank of Scotland. It's a
very left-wing policy which, who owns
stocks? who manages stocks? they are
people from the establishment who like
capitalism - they'll vote with their feet,
and the market would, I think, would have
a very severe downturn if that would
happen.
 
