Tied to Britain after Super Thursday, Boris Johnson becomes stronger

Tied to Britain after Super Thursday, Boris Johnson becomes stronger

Super Tuesday is behind us and Premier Boris Johnson has a clear victory for the Conservative Party and an equally clear defeat for the opposition Labor Party. First answer from markets: Uk bonds Sterling in the dust, below. Today, the British currency is rising 0.6% against the Euro. Earnings against the dollar were around 1 percent, reaching about 1.41 after February.

What is it Super thursdayThe which day Administrative election In uk The Tories conquered many municipalities, stripping them mostly of labor. He won the vacant seat in Hartlepool, England, a leftist stronghold for the first time in history. Clear progress has also been made in Wales, where Labor is leading the region, as well as in London, where outgoing mayor Sadiq Khan has struggled far more than dominating rival Sean Bailey.

he’s in ScotlandThe A clear victory for the independents of the SNP with 64 seats out of 129, less than the absolute majority needed to govern alone. Conservatives are stable and Labor is slightly down, losing 2 seats and down to 22. A photo, which reinforces the premier and its executive overall, punishes Labor, still opposing Brexit despite the exit of the United Kingdom by Europeans. The union now officially took place 16 months ago.

UK bonds cause decline

We were saying, UK bonds are falling. The yield is along the maturity curve. The 2-year bond offers around 0.04%, just 0.80% (+2 basis points) for the 10-year. And this Gilding At 50 it falls from 1.11% to 1.15%. Folding is due to a mixture of factors.

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First, the strengthening of Prime Minister Johnson cleared some of the clouds gathered on Downing Street in recent weeks. The head of the government is accused of improperly using public funds for the renovation of government housing. But there is more. The same has recently announced a new exemption of anti-Kovid bans: pubs will be able to serve customers indoors even after months of bans. And “vigilant hugs” will be allowed in public.

Infections and deaths occur independently in the United Kingdom, thanks to the success of the rapid vaccination campaign, with the former now on the order of 2,000 per day and the latter around ten. The restart of the British economy supports the assumption of further risks on the markets and affects gilts as “safe assets”. Without this, Bank of england It met on Super Thursday and reports a downturn in bond purchases worth £ 1 billion in the week. All factors negatively impacting UK bond prices.

But it is easy to say that they did. Scottish move towards a new demand for results Referendum for independence of scotland. This was clarified by First Minister Nicola Sturgeon. There will be new political tensions in London, not to mention those with France on the island of Jersey and related to fishing diatribes. Side effects of Brexit are also quite evident in Northern Ireland, where there have been violent protests in recent weeks. However, within a few years the Bank of England fears a first rate hike appears to seal the fate of UK bonds. Even with the seriousness of the case, given that inflation in the UK still rose to only 0.7% in March, 1 point lower than the eurozone in April.

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