Here’s a rundown of the five most telling quotes from Prime Minister Theresa May on the economy and how we expect them to affect the market in the coming months and years.
5. “I want [the agreement we reach with the E.U.] to give British companies maximum freedom to operate within the single market”
It seems Mrs May is hoping to preserve a free market with Europe. This might initially spark optimism, after all more trade means more growth and so stock prices should rise as options become more enticing. But it is questionable whether she will be able to live up to these promises given the frosty reception the world at large has given the rest of her party conference speech, due to its overall tenor.
4. “People with savings found themselves poorer”
It’s certainly true that inflation has been a fact of life since 2008, thanks in part to the strategy of quantitative easing. This does mean that those who have stored their money in banks may now be worse off than those who kept their wealth in bonds, commodities, or even other currencies by trading over services like FxPro. For many, though, this news will be too little too late, as the damage has been done, though it may still lead to further investment.
3. “Where markets are dysfunctional we should be prepared to intervene”
An unusual stance for a conservative to take, it is not yet clear whether these interventions will be to the benefit or to the detriment of private companies operating in the sectors she is referring to, such as housing and telecoms.
2.“It’s about identifying the industries that are of strategic value to our economy and promoting them through policies”
No obvious candidates have appeared in her speeches yet but its clear she plans to encourage growth in specific sectors. U.K. investors who can correctly predict which industries May’s new financial policies will prop up could be in for a windfall if the kind of growth her party is hoping for comes to pass.
1. “I’m putting you on warning”
Said to the heads of the many major multinational corporations catching flack for their failure to pay taxes, this will have interesting market consequences if May opts to back up her rhetoric with actions. Companies like Google, Apple, and Starbucks may see their shares become less valuable if they are forced to take that hit.
Sanctions against other companies lacking in a “spirit of citizenship” and engaging in practices to the detriment of their employees could lead to further effects, but since the Prime Minister has yet to reveal a specific plan (other than forcing them to meet their legal obligations, which can probably be assumed) it is hard to say what further consequences there will be.