Stable UK eyed as haven vs heightened uncertainty elsewhere
UK listings and inflows revival likely bankers
But haven status needs solid longterm growth investors
LONDON, July 12 Reuters Investors are looking at UK markets as a potential haven as political uncertainty rises in the U.S. and elsewhere in Europe, in what could mark a stunning turnaround for a country that appeared to have lost its traditional appeal to global capital.
A landslide election victory for Britain39;s centreleft Labour government last week offers the prospect of predictable policy and improved trade with the European Union to reboot an economy that has struggled since the 2016 Brexit vote.
Meanwhile, parliamentary gridlock in debtladen France has stirred memories of previous euro zone crises, and investors are scrambling to guess what former U.S. President Donald Trump regaining the White House might mean for markets.
Britain39;s economy is picking up, and some bankers expect a revival for UK stock markets shrivelled by relentless selling during years of turbulence under successive Conservative governments.
BlackRock Investment Institute, a research arm of the world39;s largest asset manager, said on Tuesday it was bullish on UK stocks, potentially heralding a mood shift among major global institutions that have cooled on Britain since 2016.
But even those moving funds into the UK warned that its haven appeal may be short lived unless new Prime Minister Keir Starmer pulls off a bold plan…