UK: Theresa May expected to be in place as new PM by the end of Wednesday – RBC CM

Elsa Lignos, Senior Currency Strategist at RBC CM, notes that David Cameron chairs his last cabinet meeting today and will formally resign to the Queen tomorrow with Theresa May expected to be in place as new PM by the end of Wednesday.

Key Quotes

“Political commentators in the UK expect her to spend the next two months preparing the UK’s options and negotiating position. These are the next political milestones: The Conservative Party conference is in early Oct (2-5th). Until then Parliament is mostly in recess; summer recess runs from July 21 until Sept 5 and then it is back in session for only ten days until the Conference season recess (15 Sept-10 Oct).

On the EU side, the remaining 27 member states will hold a summit in mid-September to discuss their position, while May’s first EU Summit as new PM will be in late October (20-21st) by which point she will likely be expected to have outlined her position on UK exit – an outline of the post-EU relationship sought by the UK and when she plans to trigger Article 50. So expect most of the work on UK exit to now take place behind the scenes until October.”