Boris Johnson’s return to 10 Downing Street as Prime Minister would send financial markets into “utter chaos” at a time when Britain is facing an economic meltdown
This is the stark warning from the CEO and founder of deVere Group, one of the world’s largest financial advisory, asset management and fintech organisations.
Nigel Green is speaking out after Johnson flew back to London from the Caribbean, cutting short a family holiday, it is assumed in order to throw his hat into the ring to replace Liz Truss as Prime Minister.
“The Second Coming of Boris Johnson would receive the wrath of already jittery financial markets,” he says.
“It was the markets’ horrified reaction to Liz Truss’s disastrous mini-budget that forced her to resign after just 45 days in office. The pound hit historic lows against the dollar, gilt yields jumped, and stock markets fell. The mortgage market, the pension market, the housing market, amongst others, all took a battering.
“We can expect to see the same kind of market carnage should Boris Johnson take back the keys to Number 10.”
The deVere CEO continues: “There are several areas of concern for investors surrounding a potential return of Johnson.
“First, he could unpick the stabilising work being done by the new Chancellor Jeremy Hunt, who is desperately trying to repair the immense economic damage inflicted by the Truss administration.
“Second, the ex-PM is still under investigation by the Privileges Committee for potentially lying to Parliament.
“If found guilty of misleading the House, Johnson could be suspended and face a by-election and the country will be choosing another prime minister in January.
“Third, this is the man who was forced to go only a few months ago after more than 50 Members of Parliament resigned from his own government within 48 hours. They deemed him unfit for office.”
He goes on to say: “All of this – plus the fact he broke the law and was fined over Partygate, broke electoral law, broke the ministerial code, and failed to turn up for emergency COBRA meetings, amongst other matters – means he cannot be the unifying, stabilising force.
“It all creates more massive uncertainty which markets loathe. Right now market confidence is critical.”
Earlier this week, the deVere CEO spoke publicly about the good work being done by the new Chancellor, but admitted Mr Hunt faces an uphill battle to restore the country’s credibility.
“To investors, the UK looks ungovernable, and its economy resembles that of an emerging market, not a G7 nation.
“The massive loss of credibility cannot be regained all that rapidly. U-turns and abandoning landmark economic policy after economic policy does not inspire investor confidence and trust. UK financial assets currently remain hugely unattractive for investors.”
Nigel Green concludes: “For everything he has come to represent in recent times, Boris Johnson’s return will spook financial markets and create yet more economic turmoil in the UK.”