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Opinion
Marcus Ashworth

Will Sterling Markets See a Silver Lining If Boris Leaves?

The prime minister could remain in office but U.K. assets could respond to his departure with a premium.

Liz Truss, left, and Rishi Sunak leaving 10 Downing Street after a cabinet meeting in 2019.

Liz Truss, left, and Rishi Sunak leaving 10 Downing Street after a cabinet meeting in 2019.

Photographer: Bloomberg/Bloomberg

Boris Johnson could withstand the latest concerted attempt to remove him from office — he is not known as the greased piglet for nothing — but it is wise to consider what may happen if his tenure does end up being even shorter than that of his ill-fated predecessor Theresa May.

Markets as a rule hate uncertainty, but a premature defenestration of Johnson as prime minister, though a shock, would not qualify as a major surprise. Sterling may take an initial dip, as might U.K. equities, but likely only fleetingly. It would be akin to an embattled chief executive officer leaving a company. There could well be a premium for new management.