Snap, crackle and pop! General Election 201719 April 2017
With much ado, a snap election was called by our Prime Minister for 08 June 2017. The press crackled into life with great aplomb and we will need to see what the result is for the 'pop' part of the title. Does 'pop' mean a landslide to the Conservatives (we hope there is better balance than this current majority of 17 seats)? We will have to wait and see, noting how wrong the 'swingometers' have been in the last few elections. No TV debates, just manifestos to consider.
The financial markets reacted on 18 April 2017 with Sterling stumbling at first then moving upwards firmly and correspondingly UK stock markets moved downwards.
In addition, there was some great fiscal news that was drowned out by the snap election, from the International Monetary Fund, noting that it has upgraded the growth forecasts for the UK for both this year and next. More can be found here: https://www.ft.com/content/5213d9fc-227c-11e7-8691-d5f7e0cd0a16
Indeed, the UK is in a strong financial position looking forward (the IMF ranks us as the second fastest growing major advanced economy for this year) and our political position and strength (perceived or real) abroad is vital in the coming years. Therefore, a General Election from this sole perspective is worthwhile. Securing trade and UK prosperity in our forthcoming negotiations is important. With both France and Germany also going to the polls over the next six months, creating clear political mandates is likely to be a good thing.
I am sure we will all monitor the coming weeks, interrupted by the local elections in May, with interest. Please do speak to the team at Chapters Financial about your needs, requirements or views as we head towards to the summer...and the polls. Snap, crackle...perhaps pop!
No individual advice is provided during this blog.
Keith Churchouse FPFS
CFP Chartered FCSI
Chartered Financial Planner
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