Election uncertainty clouds outlook for Britain
The decision of British Prime Minister Theresa May to call a snap general election appears to be a massive political miscalculation. The results reported that the Conservative party has lost its overall majority of 12 and created a hung parliament, a distribution of seats that does not provide a clear majority for either party. May went into the general election repeating a slogan of “strong and stable” government but the results point to the opposite. The Conservatives are likely to try governing as a minority government just before Brexit talks start on June 19. The sterling has suffered against all major currencies, just as it did after Brexit although, understandably. As the analysts below argue, the election results created a mixed investment environment for all the market players without a strong and stable leadership.