The political and economic paralysis continues in the UK as\nthe country awaits a new prime minister and the results of Brexit.<\/p>\n\n\n\n
British Prime Minister Teresa May resigned as Conservative\nleader on Friday and will serve as interim prime minister until the leadership\ncontest is completed.<\/p>\n\n\n\n
The deadline for nominations for Conservative leadership is\nMonday, and there are currently six candidates in the race, including prominent\ncandidates Boris Johnson and Jeremy Hunt (former and current secretary of\nstate), both of whom met with US President Donald Trump during his visit to the\nUnited Kingdom.<\/p>\n\n\n\n
Most of them are keen to promote their credentials in\nsupport of Brexit as the broader Conservative Party and pro-Brexit members call\non the government to make progress in leaving the EU by the new deadline on\nOct. 31.<\/p>\n\n\n\n
Boris Johnson, who is expected to become a leader of the\nConservative Party, said he would try to renegotiate May\u2019s Brexit deal with\nBrussels.<\/p>\n\n\n\n
After three years of Brexit negotiations with the EU since\nBritain’s EU exit referendum in June 2016, the prospect of reopening the talks\nunder Boris Johnson will lead to a long sigh of stress across the EU.<\/p>\n\n\n\n
Officials there have already said the deal will not change,\nmaking the possibility of a “no deal” for the union in October,\nalthough most lawmakers in the British parliament have voted against such a\nscenario. Britain’s Chancellor of the Exchequer Philip Hammond said on Saturday\nthe possibility of a no-deal was “very small.”<\/p>\n\n\n\n
Teneo Intelligence’s research team on Monday warned that the\n“expectations about renegotiations and no-deal will be raised by most\ncontenders” and warned of further volatility in the meantime.<\/p>\n\n\n\n
“But once the new PM has taken over, the reality of\npolitical polarization will once more constrain their ability to make good on\ntheir promises. The result will be increased volatility in the run-up to the 31\nOctober extension deadline,\u201d said the research team.<\/p>\n\n\n\n
Meanwhile, the UK economy seems shaky as uncertainties about\nthe country’s future relationship with the EU, its largest trading partner,\ncontinue to dampen corporate and investor confidence.<\/p>\n\n\n\n
The UK economy contracted a more-than-expected 0.4 percent\nin April after falling 0.1 percent in March, the National Bureau of Statistics\n(NBS) said on Monday. In terms of quarterly performance, growth slowed to 0.3%\nin the three months to April after a 0.5% expansion in the first quarter. The\npound dropped almost 0.6% against the dollar after the release of data to\n1.2651.<\/p>\n\n\n\n
The monthly decline in gross domestic product is mainly due\nto the dramatic drop in car production, which fell 24% in April from the\nprevious month – the biggest drop since records began in 1995. Analysts said\nthe economic boost provided by stockpiling manufacturers in the run-up to\nBrexit’s original date of March 29 has now been reversed.<\/p>\n\n\n\n
There was also a widespread weakness in the manufacturing\nsector in April, as the consolidation of the early completion of orders before\nUK\u2019s original departure date from the EU faded.<\/p>\n\n\n\n
If we look at the UK economy, it seems that we have a large\ninventory stocking before the date of Britain’s original Brexit date and now\nsee the flip side of this matter.<\/p>\n\n\n\n
The UK is now facing a state of political and economic\nuncertainty and we believe this will be the case for at least the next two\nquarters.<\/p>\n\n\n\n
The longer the debate over Brexit continues, the greater the\nlonger-term implications. The country has been struggling with capital\ninvestment for a while and will continue to struggle, because who wants to\ninvest in this economy, which faces so much uncertainty at this time?<\/p>\n","protected":false},"excerpt":{"rendered":"
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