// Par Mariama FOFANA //
Last Thursday (December 12th), Boris Johnson won the legislative elections allowing the Conservative party to snatch the victory. This victory had a huge impact on Britain’s politics but mainly on its finance. Indeed, since the announce of the final results the pound sterling gained +2,7% in its value compared to the dollar —making it £1 = $1,35 ; and +2,5% compared to the Japanese yen. This rise seems to comfort the pro brexit who were confronted by pro remain by the following argument : leaving the European Union will ultimately lead to the fall or, mostly the instability of the British money.
Overall, the City gained 2%. The sector that profits the most from it is the bank. Banks like the Royal Bank of Scotland (RBS) gained 8,4% and picked at 14%. Nevertheless, this reaction shows that the sector is very sensible and affected by the political conjonctures. This leads to the following question : what would happen in case of a fail of the Brexit? Or in case of political instability? It would be logical to consider that the stock exchange prices would be impacted and therefore plummet. Boris Johnson’s job is to carefully and successfully guide England through this ongoing Brexit. Now that Britain is out of this political impasse, Boris Johnson should —in theory, be able to efficiently realize the Brexit January 31st 2020. The investors are reassured by the positive financial situation of the country which helps Johnson’s situation since they seemed pretty skeptical in regards of the disunion of Britain and the EU. Tories’ victory by a vast majority gives back hope to a very affected Britain. Indeed, the inner instability and changes of political points of vue (Cameron to May and now Johnson) completely took away the country’s credibility to the eyes of the world. They were seen as very unsure and unprepared however, this might be the end of it. Let’s just see if they can keep it still until 2020.