LONDON (Reuters) – Boris Johnson was elected as leader of Britains governing Conservative Party and the next prime minister on Tuesday, tasked with following through on his “do or die” pledge to deliver Brexit in just over three months time.
Boris Johnson speaks after being announced as Britain's next Prime Minister at The Queen Elizabeth II centre in London, Britain July 23, 2019. REUTERS/Toby Melville
Here is some reaction to the news:
POLITICS:
DONALD TRUMP, U.S. president:
“Congratulations to Boris Johnson on becoming the new Prime Minister of the United Kingdom. He will be great!”
MICHEL BARNIER, EU Brexit negotiator:
“We look forward to working constructively with PM Johnson when he takes office, to facilitate the ratification of the withdrawal agreement and achieve an orderly Brexit.
“We are ready also to rework the agreed declaration on a new partnership.”
MOHAMMAD JAVAD ZARIF, Iranian foreign minister:
“I congratulate my former counterpart, @BorisJohnson on becoming UK PM. Iran does not seek confrontation. But we have 1,500 miles of Persian Gulf coastline. These are our waters & we will protect them.”
ANDREA LEADSOM, Conservative MP:
“It is a good two thirds of the vote went to Boris so it shows it is a very, very clear win, something for the whole party to get behind… I think Boris is going to be fantastic, it was an excellent speech from him, very uplifting, very unifying…
“If you are not prepared to walk away you will never get a renegotiation so you absolutely have to be prepared to walk away (with a no deal).”
LIZ TRUSS, Chief secretary to the treasury:
“It was a strong message of unity for the party but also for the country as a whole.”
JOACHIM LANG, Federation of German Industry managing director:
“Threats from London of a disorderly EU exit are damaging and rebound like a boomerang…The new prime minister must commit to an orderly transition…
“If the new government in London charts the wrong course, the damage to trade with the UK and investments on the island could be swift and significant.”
MARKETS:
FAHAD KAMAL, Chief Market Strategist at Kleinwort Hambros:
“Our base case is still that there will be some kind of soft Brexit but more likely that there will be a delay. Why? because there is too much damage from a hard Brexit so why would anyone shoot themselves in the foot?…
“If you look at Johnsons history he often takes different positions on the same issue… He is not really a Brexiteer in terms of his ideology, its all about political calculation so we think he will tilt towards a pragmatic outcome.”
LEIGH HIMSWORTH, Portfolio Manager, Fidelity International:
“The options facing the UK remain broadly the same: a Withdrawal Agreement similar to that presented by Theresa May; a general election to win a greater majority for the Conservative party or a new referendum.
“The outcome will depend on how confident Boris feels in his own political power. His support of the Leave campaign gives him leverage over the right wing while the bluster may win Labour Leave voters. His personal background may help him retain the Tory heartland. But the key question is whether he will be able to extend his charm over the Channel.”
PAUL OCONNOR, Head of UK-based Multi-Asset team at Janus Henderson Investors:
“The market response has been fairly muted so far, which is not surprising given how widely anticipated this outcome was. The pervasive uncertainty surrounding Brexit has already taken its toll on UK assets and is now somewhat priced in…
“If we look to betting markets as a guide to consensus expectations, we see a no-deal Brexit is a one-in-three chance, with investor dread of this being somewhat offset by the view that there is still a one-in-four chance that Brexit is cancelled.”
DAVID ZAHN, head of global fixed income at Franklin Templeton:
“This increases our chances of a no-deal Brexit, and 10-year Gilts at 70 bps is already pricing that in. The big risk is whether he can he form a government and I think he can…
“It will be a very Brexiteer cabinet and markets are set up for that. We have roughly 100 days until Oct 31 to sort this out, it seems unlikely. We dont see a chance of a general election as we dont have time.
“What we have seen from new European head is that nothing will be changed. It seems like we are headed towards a no-deal Brexit.”
CHRIS GRAHAM, Europe economist at Standard Chartered:
“Johnson has said he wantRead More
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