Corbyn is more DANGEROUS to UK than any Brexit: Morgan Stanley issues warning on leader

JEREMY CORBYN becoming prime minister is a more serious threat to British business than any kind of Brexit, a leading investment bank has warned.

Morgan Stanley told investors another election in 2018 was likely because Theresa May’s Government will fail to secure the EU exit deal it wants, paving the way for Labour to take power.

Bt the US bank warned Britain under the leadership of the left-winger Jeremy Corbyn could trigger the nationalisation of key industries, higher taxes and a shift in spending priorities towards lower-income households, damaging the valuation of UK companies.

A shock report by Morgan Stanley’s European equity team said: “The UK is in the midst of a double whammy of uncertainty in the shape of Brexit and a fragile domestic political situation.

“Taken together, these two factors, which are interrelated to some degree, cast a long shadow over the policy backdrop and economic outlook of the UK.

Jeremy Corbyn

Jeremy Corbyn GETTY

Morgan Stanley warned Corbyn would be dangerous

“The UK is in the midst of a double whammy of uncertainty in the shape of Brexit and a fragile domestic political situation”.

Morgan Stanley

 

 

          “For the UK market, domestic politics may be perceived as a bigger risk than Brexit.

“From a UK investor perspective, we believe that the domestic political situation is at least as significant as Brexit, given the fragile state of the current government and the perceived risks of an incoming Labour administration that could potentially embark on a radical change in policy direction.

“Against this backdrop, even if we see good progress in the Brexit negotiations, the scope for UK sensitive assets to rally may be muted, unless we also see an improvement in the Government’s position in opinion polls.”

The bombshell report warned the UK could have a political shift back to the 1970s, as it raised concerns of political fragility.

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