D-PIMS Weekly Market Update - Week of 22nd to 28th July 2019
Today’s Monday Update:
The main news last week centred around the Conservative leadership result:
• On Tuesday Boris Johnson was finally confirmed as the new Tory leader, by a large margin. His acceptance speech was notable by its focus on getting a Brexit ‘deal’ agreed, rather than a ‘Hard Brexit’, as previously. This was likely to appease the 6 or Tory Remainers that were threatening to quit the Party if Johnson was elected. This theme was later followed up by Johnson’s appointment of Mark Spencer as Chief Whip, who is a Tory moderate and ‘Remainer’.
• Wednesday saw Theresa May go to Buckingham palace to officially resign, followed by Boris Johnson being endorsed as Prime Minister by the Queen. He then made a rousing speech on the door step of ‘Number 10’ in which he made some very bold promises on major policy issues, all of which would involve substantial extra spending (and no doubt borrowing). He also re-confirmed his commitment to take the UK out of the EU by 31st October – ‘no ifs and no buts’. He was emphatic that the ‘Irish Backstop’ had to go.
• Johnson later confirmed his new cabinet with 17 Ministers leaving (some resigned, but most replaced). This new Cabinet has been widely reported as being a ‘brexiteer’one, no doubt due to the highest profile appointments. However, in actual fact most of the Cabinet Ministers are ‘Remainers’!
• Later in the week Johnson’s declarations around agreeing a new ‘Deal’ were shot down in flames by the EU, who insisted the existing ‘Deal’ is the only ‘Deal’. Each side then tried to push any blame for a potential resulting ‘Hard Brexit’ onto the other.
• The Markets seemed to ignore all the Political manoeuvrings and were generally up over the week. This enabled the D-PIMS Portfolios to put in a convincingly positive performance.
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Past Performance is no guarantee of, or guide to future returns.
The comments made above represent our interpretation of events and market views and are in no way a guarantee of future investment performance.