The pound will face a 'nightmare scenario' if  Corbyn becomes the PM, warns boss of US exchange

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The owner of the New York and Chicago mercantile exchanges has warned the pound could face a ‘nightmare scenario’ if Jeremy Corbyn becomes prime minister.

CME Group told investors and businesses that Theresa May’s Tory government had a weak grip on power and would probably be defeated if a poll was held.

Last week, Morgan Stanley said a Corbyn victory would threaten the economy.

Jeremy Corbyn: CME boss believes if Labour Party leader becomes PM the pound will face 'nightmare scenario'

Erik Norland, CME executive director and senior economist, said the Government was ‘hanging by a thread’, adding: ‘Markets should probably be thinking carefully about the next prime minister.

‘In the event the UK takes a hard Brexit followed by a Labour victory, it could see Britain transform into a more socialist, centrally controlled economy – just one that happens to be outside the EU. This is the nightmare scenario for the pound.’