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Sterling drops with hung parliament a possibility

Wednesday, May 31, 2017 - 01:49

Prime Minister Theresa May could lose control of parliament in Britain's June 8 election, according to a projection by polling company YouGov, raising the prospect of political deadlock just as formal Brexit talks begin. Kate King reports on how such an outcome could impact markets.

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Britain's prime minister entered the election campaign with an 18 point lead Now, it appears Theresa May is on a slippery slope with a new poll suggesting she could not only lose seats, but control of parliament when the UK votes next week. (SOUNDBITE) (English) SENIOR MARKET ANALYST, LONDON CAPITAL GROUP, JASPER LAWLER, SAYING: "The latest you YouGov survey was more of a slightly more experimental in nature involve 50000 people but it wasn't a direct poll more sort of range of possible scenarios one of which was a hung parliament. So it's being taken with a pinch of salt by markets but we're seeing the British pound lower." Sterling dropped nearly half a percent against the dollar May called the snap election so she could enter Brexit negotiations in a stronger position Despite the confidence hit, the prime minister still happy to tow the party line ( SOUNDBITE) (English) BRITISH PRIME MINISTER THERESA MAY SAYING : "The only poll that matters is the one that's going to take place on the 8th of June and then people will have a choice as to who they want as leader, who they want as prime minister, taking this country forward into the future, me or Jeremy Corbyn. I have the plan for the Brexit negotiations but I also have a plan to build a stronger and more prosperous Britain. Most other projections suggest the conservatives will win soundly But even the idea of political deadlock could cause further volatility (SOUNDBITE) (English) SENIOR MARKET ANALYST, LONDON CAPITAL GROUP, JASPER LAWLER, SAYING: "I suspect that uncertainty is going to unravel further in the markets. I think the biggest moves would probably take place both in the pound and the FTSE 100 once the election is actually taking shape once we get some of those early figures on election day." Voters appear to be being influenced by the Manchester attack and May's unpopular social care proposal As labour closes in, the prime minister will need to ensure more people are on board.

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Sterling drops with hung parliament a possibility

Wednesday, May 31, 2017 - 01:49