Reflections on Elections
09 June 2017
The public have voted and it’s a resounding….not sure!
Experts from across Henley Business School share their thoughts and insights into today’s election results.
The markets got it wrong, again
The financial markets thought they were going to get a strong and stable result (at least until late yesterday), what they didn’t want was uncertainty, but the British electorate has given them confusion.
So whilst the markets have probably got it wrong again, with strong support for the pound (predicting a Tory victory), the reaction is now mixed.
The currency markets are down, and this has impacted on the rise of the FTSE 100, but so far the markets are steady awaiting news from the current prime minister - we have seen nothing like the reaction after the shock of Brexit. Despite media hype and also Labour ambition, it seems only a Conservative government is realistic either in a minority or with the DUP. The biggest threat now to the markets is the Brexit negotiations and the UK negotiating hand is significantly weakened but on a positive it looks likely only a soft Brexit would be palatable - unless of course we have another election in October!
Professor Adrian Bell
Head of ICMA Centre at Henley Business School
Time to bet on uncertainty
The only thing certain is that we are living uncertain times.
The markets don’t seem too surprised on the election results, but until a clearer picture emerges on the political front regarding government and the (possible change in the) persona of the prime minister, volatility in most financial markets will prevail. Time to bet on it? It is hard to predict directional changes; but whatever the chaos, a crash is not guaranteed.
Dr Emese Lazar
Programme Director: MSc Financial Engineering Lecturer in Finance
An employee opinion survey gone badly wrong!
Whatever you think about the UK election result, however frustrating and tortuous you think Brexit will be because of the politics and personalities of a hung parliament, you have to admit something at least. It's a triumph for democracy. Peter Drucker used to say that "culture eats strategy for breakfast".
I'd say that "democracy eats leadership for breakfast".
I can't think of any place in the corporate world where the workers, the masses, the rank and file could give such clearly negative feedback about leadership or the CEO. This election was the equivalent of an employee opinion survey gone badly wrong!
Director of Partnerships