Monday, August 15News That Matters
Shadow

Business

Hung parliament sinks business confidence, IoD finds

Hung parliament sinks business confidence, IoD finds

Business
The uncertainty caused by the general election has led business confidence to sink "through the floor", according to a lobby group.A snap poll of 700 members of the Institute of Directors found a "dramatic drop" in confidence following the hung parliament.Members saw no clear way to resolve the political impasse quickly, the IoD said.However, it found there was "no desire" for another election this year.Going to the polls again before Christmas would have a negative impact on the UK economy, which was already facing global headwinds, the IoD said.The loss of the Conservatives' majority in the Commons has led Theresa May to seek the support of MPs from Northern Ireland's Democratic Unionist Party to govern.The resulting political uncertainty could have disastrous consequences for the UK eco...
UK election result 'may delay Brexit talks'

UK election result 'may delay Brexit talks'

Business
The UK general election result could delay Brexit talks and be negative for the economy, credit ratings agencies Moody's and S&P have warned.The Brexit negotiations with the EU were due to start on 19 June but Moody's said the fact that the Conservatives had lost their majority would delay the start of the talks. It will "complicate and probably delay Brexit negotiations," it warned.Moody's said it could also further pressure the UK's public finances.The "inconclusive" outcome of the general election could mean the government places less of a priority on cutting the budget deficit. This would be negative for the UK's credit rating and make it more expensive for the country to borrow money.As a result, Moody's said it expected fiscal risks to increase, because in its view the budget def...