General Election 2017: Theresa May resignation expected by banks and asset managers

 
Oliver Gill
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General Election 2017 - Maidenhead Count And Declaration
Theresa May called a snap election in April (Source: Getty)

All eyes will be on Prime Minister Theresa May today following a disastrous night for the Conservatives.

Many in the City are expecting it is the end of the road for the PM. Daiwa Capital Markets head of research Grant Lewis said "it is unlikely to be a government headed by Theresa May for long".

He added: "An announcement of her resignation can be expected, possibly imminently, although she will no doubt stay on while her successor is found."

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Meanwhile, M&G's head of retail fixed interest Jim Leaviss said:

The Prime Minister is holding a press conference at 10am – it is possible that she resigns at that time. This is an extremely poor result for her personally... we face the possibility of a new Conservative party leadership battle (perhaps beginning later today) and even another General Election later this year.

Malcolm Barr, an economist at JP Morgan said: "Having called the election and then lost seats, May’s hold on the leadership is likely to be tenuous at best.

"Theresa May may seek to remain as PM and leader of the Conservative Party for now. It is extremely difficult, however, to see how a stable and coherent policy toward Brexit can be constructed and implemented given this political backdrop."

Weak and wobbly

Derek Halpenny European head of global markets research at MUFG, agreed. He said:

It is a disastrous result for the Conservative party who have lost their 17 seat working majority. Prime Minister May will now face intense pressure to resign having overseen a 'weak and wobbly' campaign. The public provided a clear thumbs down to her manifesto and stand-offish approach.

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UBS global chief investment officer Mark Haefele said: "The result is likely to call the position of the Prime Minister into question."

And Dean Turner, an economist UBS Wealth Management added: “Our expectation is that Theresa May’s future will be in doubt, potentially sparking a search for a new leader."

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