JEREMY CORBYN faced a double blow today as experts warned he poses a huge danger to Britain’s wealth and security.
Banking giant Morgan Stanley said a Labour government would cause a market crash, adding that business should be more worried about the hard left than Brexit.
PA:Press Association Jeremy Corbyn has been blasted by two reports out today
And think-tank Bicom said Britain’s trade and security influence would be destroyed by the Labour boss’s “overt sympathy towards Iran, Hamas and Hezbollah”.
In a note to clients, analysts at Morgan Stanley suggested there is a high chance of another snap election next year if Brexit talks continue to be chaotic.
They added that if Labour came to power, it would be the biggest upheaveal since the Thatcher revolution in the 1970s.
The bank said: “We could see the biggest shake-up in the political backdrop since the Seventies. This is much more scary from an equity perspective than Brexit.”
Reuters Morgan Stanley said that if Labour came to power it would cause a market crash
Analysts warned investors would be hit by Mr Corbyn’s anti-business agenda, with utilities, telecoms firms and travel companies facing a crash in their share price.
Bicom wrote in its report that the Labour leader’s “reluctance to commit UK assets” to destroying IS would “jeopardise security cooperation and intelligence sharing.”
They hit out: “This could ultimately impair efforts in the UK to prevent terrorist attacks.”
The scathing document says Labour plans for “reorientation away from traditional allies Israel, Saudi Arabia and the Gulf states could have a serious impact on bilateral trade, inward investment and cause UK job losses at a time when Britain is looking to strengthen trade ties beyond the EU.”
Bicom boss James Sorene blasted: “Labour’s foreign policy is an issue of deep concern to many of Britain’s closest allies in the Middle East, and around the world.
Alamy A think-tank said Mr Corbyn might not be committed to the fight against ISIS
“Decades of intelligence and defence cooperation are at risk. Booming bilateral trade, inward investment and job creation could be in peril, precisely when we need them the most as we leave the EU.”
He went on: “If Labour move too close to Iran, and Hamas and Hezbollah then this will also undermine international efforts to fight terrorism and even limit the sharing of vital intelligence that saves British lives.”
Israel’s opposition leader Isaac Herzog, an MP for the country’s Labour party, said: “Israelis committed to seeking peace with the Palestinians need third parties like Britain to understand the concerns of both sides, and to remain firmly committed to confronting Islamist extremists who want Israel’s destruction.
“Any shift in UK policy to an unbalanced approach would be cause for concern, threatening not only UK-Israel relations, but Britain’s ability to play an effective diplomatic role, and its wider regional influence.”