<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Happy Tuesday! </p>
<p>From Dave Lutz of JonesTrading, here's a quick guide to what traders are talking about this morning:</p>
<p style="padding-left: 60px;">Good Morning! US Futures are breaking higher, with Russell, NDX and S&amp;P all adding 50bp early. The global rally started in Asia - Hong Kong's Hang Seng index rose 1.2% and the Shanghai Composite jumped 2.1% as President Xi Jinping signaled a nationwide expansion of free-trade zones. While Falling Ore weighed on Miners keeping Aussie in the red, and Nikkei fell 40bp despite stronger Retail Sales Data - India added 50bp on chatter reforms coming to boost growth. This shift in global sentiment is helping Europe recover, the DAX has added 1.3%, EuroStoxx 1% as the Banks recover yesterday's weakness - SX7E gaining 1.5%. Most EU markets are trading very light still, with volumes 30-50% below normal. Russian equities are bouncing and the Ruble rallying - helping sentiment in Europe. Keep an eye on Brazilian equities - EWZ is continuing yesterday's rally from lows, gaining 3% - PBR marked up 2% as the street covers shorts post election.</p>
<p style="padding-left: 60px;">The 10YY is higher here, mirroring a weakness in German paper as the Fed starts their 2day meeting - The DXY is continuing its rally - making gains against the Euro, and getting back upside 108 to the Yen. Keep an eye on Sweden's Krona - just took out 3Y lows against the $ as their Central Bank cuts to 0% to fight deflation. Despite the headwind from the stronger dollar - most commodities are well bid. Silver and Copper are rallying, while Brent/WTI are up 50bp despite headlines Iran saying no OPEC cut next month. Grains and Beans are popping as yields in Australia and Russia may drop because of extreme weather - this is another crowded short. Scheduled catalysts include Durable Goods Orders at <span class="aBn" data-term="goog_1196907543"><span class="aQJ">8:30</span></span>, S&amp;P CaseShiller at 9, at 10 we get Consumer Confidence and Richmond Fed, and finally at 1 we have a $29B, 2Y auction</p>
<p style="padding-left: 60px;">Focus remains on earnings today (TWTR off 10%, downgraded BofA, SF, Nomura, RBC) - we have AET, AMTD, CIT, CMI, DD, FCX, GLW, HOT, MMC, PCAR, PFE, and TRW pre-open and AFL, AJG, AMP, BXP, EA, FB, GILD, MAR, WDC, and X after the bell. I'll also be watching the Oil Service Stocks, OIH never recovered with the commodity yesterday. Brazil remains interesting, as EWZ has been a straight line higher since yesterday's down 10% opening - Despite lighter Eco data yesterday, the ITB (Builders) managed to rally above the 200dma, and close near 3M highs - With rates slightly higher, watch tailwinds in Fins - there was a massive liquidation <span class="aBn" data-term="goog_1196907544"><span class="aQJ">Friday</span></span> in the XLF, seemed tied to a hedge coming off in Options. Finally, Ebola headlines are fading, and the Airlines continue to rocket higher - UAL, AAL and DAL are all up double digits for October. </p>

What Are Traders Talking About Right Now? Russia, Oil, Earnings...

<p><span><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>JonesTrading's Dave Lutz has a roundup of what traders are chatting about right now:</span></p>
<p style="padding-left: 30px;"><span>Good Morning!  US Futures are jumping higher, with the E-Minis rallying 1.6% from overnight lows to get back upside 200dma.   The rally has been propelled by strong US earnings (TXN and AAPL have NDX up 1%), and headlines that the ECB is considering buying corporate bonds.   We are having a strong session in Europe as Energy and Fins rally - The DAX has added 1.6%, but volumes remain light as many are on School Holiday in the Continent.   The FTSE is lagging, held back by Tech as ARM's shares are off 5% on #s.    Over in Asia, News of Russian-Ukraine progress in Natty talks has MICEX up 70bp - while Shanghai lost 70bp as China's GDP posts slightly light.   Tokyo gave back ½ of <span class="aBn" data-term="goog_1196121439"><span class="aQJ">Monday's</span></span> 4.4% gain, Autos weak globally as China revises down Auto demand - While Aussie managed a slight pop as the A$ shrugs off China on hawkish RBA minutes.  <span> <br /></span></span></p>
<p style="padding-left: 30px;">The Bid is coming out of German and US debt this morning, with US 10YY back upside of 2.2%, rallying 8bp from overnight lows.   The DXY is stronger, catching a bid against Euro and Yen - The $/Y cross nearing another 107 test.   With the Stringer Dollar, commodities have a headwind, but we are seeing Industrial metals like Copper in the green, while precious are holding a bid despite being off best levels of the overnight.  All eyes remain on the energy complex, where Brent and WTI are both bid up as China Implied Oil demand popped - but they have been coming quickly off overnight highs.    The worst performing commodity again is Coffee, as Ebola fears recede and the bean loses 12% over the last week.     Scheduled Catalysts include expiry of the VIX and WTI spot contracts - the Johnson Redbook Retail Sales Index at <span class="aBn" data-term="goog_1196121440"><span class="aQJ">8:55</span></span>, Existing Home Sales at 10 (ITB UP 5% in last 5 days), the week's biggest POMO at 11, and after the close we get API data for Crude, Gasoline and Distillates. <span> <br /></span></p>
<p style="padding-left: 30px;">There was Strong Growth Outperfromance yesterday, bulls would like to see followthrough in the face of light China data, and as Ebola headlines become less Dire - the Travel stocks are jumping again, with AAL, CCL and RCL all up 2%+ early.  Keep an eye on the Builders, with the ITB jumping this last week into Existing Home Sales later this morning.   Energy stocks will remain in focus, with XOP, OIH and XLE all starting to disconnect to the upside from the commodity.    Robin Hood continues today - Best Ideas presentations:  Robbins: <span class="aBn" data-term="goog_1196121441"><span class="aQJ">8:10am</span></span> / Meister: <span class="aBn" data-term="goog_1196121442"><span class="aQJ">8:30am</span></span> / Tilson: <span class="aBn" data-term="goog_1196121443"><span class="aQJ">10:30am</span></span> / Chopra: <span class="aBn" data-term="goog_1196121444"><span class="aQJ">11:30am</span></span> / Loeb: <span class="aBn" data-term="goog_1196121445"><span class="aQJ">1:45pm</span></span> / Tepper: <span class="aBn" data-term="goog_1196121446"><span class="aQJ">3:35pm</span></span>.  Other notable speakers:  Google's Schmidt: <span class="aBn" data-term="goog_1196121447"><span class="aQJ">11:15am</span></span> / Barry Sternlicht: <span class="aBn" data-term="goog_1196121448"><span class="aQJ">2pm</span></span> / Icahn, Lee Ainslie, Larry Fink at <span class="aBn" data-term="goog_1196121449"><span class="aQJ">4:10pm</span></span></p>

Here's A Quick Guide To What Traders Are Chatting About Right Now

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Getty</span></p><p class="caption">Boris Johnson</p></div><p></p></div></div></p><ul class="summary-list"><li>Britain is set to have a new prime minister after Conservative Party members elected Boris Johnson to replace Theresa May.</li><li>Former Foreign Secretary Boris Johnson won the contest, ahead of his successor Jeremy Hunt.</li><li>Johnson has a large in-tray of problems to deal with as Britain rapidly heads towards its latest deadline for leaving the EU on October 31.</li><li>Here are the 5 biggest problems facing Britain's new prime minister.</li></ul><h2>1. Renegotiating Brexit </h2><p><div class="KonaFilter image-container float_right"><div class="image on-image"><p class="source"><span>Samantha Lee/Business Insider</span></p></div><p></p></div></p><p>The most pressing issue facing Boris Johnson is the one that brought down Theresa May: Brexit.</p><p>The former foreign secretary has pledged to "look into the eyes" of EU leaders and renegotiate the Brexit deal that Theresa May agreed with the EU.</p><p>Crucially, he has pledged to rip up the controversial Northern Ireland "backstop" part of the agreement which is designed to prevent a hard border emerging between the UK and Ireland once Britain leaves the EU.</p><p>The EU's chief Brexit negotiator Michel Barnier, and multiple EU leaders have repeatedly said that this element of withdrawal agreement cannot be renegotiated and warned that Johnson's hardline stance is pushing Britain toward a no-deal exit.</p><p>Some Conservative members of parliament believe this is a bluff and are confident that Johnson can succeed where May failed. </p><p>"May never really tried to renegotiate the deal," one senior Brexiteer told Business Insider.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span><a href="http://www.gettyimages.com/license/803197042">Steffi Loos-Pool/Getty Images</a></span></p><p class="caption">German Chancellor Angela Merkel and French President Emmanuel Macron talk in the conference room during a meeting of EU Leaders before G20 Summit on June 29, 2017 in Berlin, Germany.</p></div><p></p></div></div></p><p>Others are more sceptical.</p><p>One Conservative MP who visited representatives of EU member states in Brussels last month told Business Insider that "not a single one indicated any likelihood of the withdrawal agreement being opened."</p><p>Even if Johnson is successful at renegotiating a deal, passing it through the Houses of Parliament will be incredibly difficult. May failed multiple times to pass her own deal through the Commons, and it is difficult to see how any new deal likely to be agreed to by the EU would fare much better.</p><h2>2. Preparing for a no-deal Brexit</h2><p><div class="KonaFilter image-container float_left"><div class="image on-image"><p class="source"><span>Samantha Lee/Business Insider</span></p></div><p></p></div>Because of this, the prospect of a no-deal Brexit is growing significantly, with Johnson insisting that he will take Britain out of the EU on October 31 "do or die."</p><p>The former foreign secretary said that Britain must prepare to leave the EU without a deal, both as a practical necessity, but also as a negotiating tactic.</p><p>Preparing for a no-deal Brexit will be very difficult, both logistically and politically.</p><p>As Business Insider <a href="https://www.businessinsider.com/no-deal-brexit-uncertainty-forces-uk-companies-to-plan-factory-shutdowns-2019-6?r=US&amp;IR=T">revealed earlier this year</a>, much of the warehouse space needed to prepare for a no-deal is no longer available.</p><p>The government departments in charge of Brexit preparations have also suffered an exodus of senior staff members in recent months.</p><p>Joe Owen from the Institute For Government think tank told Business Insider that the next prime minister will "come in and quickly realise the big risk is that we'll be less ready in October than we were in March."</p><p>Businesses could be reluctant to prepare again for no-deal after it was twice averted earlier this year.</p><p>"They've seen government cry wolf twice before," Owen told Business Insider.</p><p>"They'll be seeing Boris saying the odds of no deal are a million to one against and MPs saying they want to stop no deal - that's the stuff that will stick," Owen said.</p><p>"They are saying 'we've been here before and it didn't happen, why would we spend money again doing it?</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Ted S. Warren/AP</span></p><p class="caption">A general view of shipping containers seen from the bridge of the AAL Kobe cargo ship docked at Felixstowe Port in Britain. A no-deal Brexit could create chaos for importing an exporting goods.</p></div><p></p></div></div></p><p>It is also difficult to see how Britain's next prime minister could secure enough support from parliament to allow a no-deal Brexit.</p><p>An incoming prime minister could ultimately opt to suspend parliament, in order to force through Brexit. However, doing so would be politically explosive and may not even be possible.</p><p>Just last week, rebel Conservative MPs <a href="https://www.businessinsider.com/no-deal-brexit-mps-vote-block-boris-johnson-closing-parliament-2019-7?r=US&amp;IR=T">inflicted a heavy defeat on the government</a>, when they voted for an amendment designed to prevent the next prime minister from suspending parliament in order to force through a no-deal Brexit.</p><p>The measure, which passed by a majority of 41, secured the support of large numbers of Conservative rebels, with several current government ministers also abstaining.</p><p>While the vote does not in of itself prevent a no-deal outcome, it is a clear signal of Parliament's intent to do whatever is required to prevent Britain's next prime minister from forcing through a no-deal.</p><h2>3. Getting ready for a general election</h2><p><div class="KonaFilter image-container float_right"><div class="image on-image"><p class="source"><span>Samantha Lee/Business Insider</span></p></div><p></p></div>The British Parliament has repeatedly voted against either leaving the EU with a deal, or leaving the EU without a deal.  </p><p>Given Johnson has promised to deliver Brexit no matter what, he may ultimately have little choice but to go back to the country and hold a general election.</p><p>But Conservative MPs really, really don't want to do that. The party is currently experiencing historic lows in the opinion polls and came in a disastrous fourth place in the recent European Parliament elections.</p><p>With so many voters who backed them at the last election fleeing to the Brexit Party and the Liberal Democrats, almost no Conservative MPs are keen to rush into another vote.</p><p>"We've only been in parliament for two years," one Conservative MP who was elected for the first time in 2017, told Business Insider.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Ian Forsyth/Getty Images</span></p><p class="caption">Britain's opposition Labour Party leader Jeremy Corbyn has said that Britain needs a General Election to decide the country's future.</p></div><p></p></div></div></p><p>"We want to fix Brexit first. The last snap general election didn't work out too well."</p><p>Another Conservative MP said an election would only happen if parliament brought a no-confidence vote against the next prime minister in order to prevent a no-deal Brexit. </p><p>Forced to choose between the risks of a chaotic Brexit or a general election, parliament may ultimately choose the latter.</p><p>"The only reason an election will happen soon is if the government falls," said the MP. "We cannot go to the electorate as a matter of choice before that."</p><p>Aside from low levels of support, a snap election would also present challenges for candidate selection and funding, especially as many donors have deserted the party over its failure to deliver on Brexit.</p><p>Johnson, for his part, has denied that he plans to call an election. "It would be absolutely crazy for any of us to think of going to the country and calling a general election before we get Brexit done," he said at a leadership hustings in June, insisting that parliament could agree on a deal.</p><p>However, it was <a href="https://www.businessinsider.com/boris-johnson-plans-snap-general-election-to-beat-jeremy-corbyn-2019-7?r=US&amp;IR=T">reported earlier this month</a> that Johnson's allies are preparing for an early election.</p><p>"You will need to get the party in fighting shape as early as possible," one campaign figure told The Times newspaper. "One of the reasons for the lack of success in 2017 was a lack of preparation. You need to pull things together."</p><p>And if the Conservative party experiences a surge in the polls following Johnson's election, the temptation to go back to the country could be too much to resist.</p><h2>4. Opening Britain's purse-strings</h2><p><div class="KonaFilter image-container float_left"><div class="image on-image"><p class="source"><span>Samantha Lee/Business Insider</span></p></div><p></p></div>When May first became prime minister, she pledged to tackle the "burning injustices" in the country such as income inequality, the lack of affordable housing and the crisis in social care.</p><p>But instead of dealing with these issues, her premiership was almost entirely dominated by Brexit, with little significant domestic legacy to speak of.</p><p>Johnson is determined not to make the same mistake and has already announced a range of bold, and expensive, domestic policies.</p><p>Johnson has promised to cut tax for high earners, do away with tax on sugar-sweetened drinks, and put 20,000 additional police officers on the streets by 2020. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Getty</span></p><p class="caption">Outgoing British Chancellor Philip Hammond pictured last October, standing outside 11 Downing Street before delivering his budget statement.</p></div><p></p></div></div></p><p>This string of expensive pledges has led to him coming under fire from across the political spectrum for making unrealistic spending promises.</p><p>Outgoing Chancellor Philip Hammond warned that the damage caused by a no-deal Brexit would leave no money to pay for such pledges, with the independent spending watchdog, the Institute for Fiscal Studies, also criticising the plans.</p><p>Passing such plans through parliament would also be difficult, given that the Conservative government currently has a tiny working majority of just five MPs.</p><p>As a result, there will almost certainly be a sizeable gulf between the next prime minister's campaign promises, and what they actually achieve once in power. </p><p>"What you're going to see is a lot of bold policies but less than bold legislation," one former Conservative Cabinet minister told Business Insider.</p><h2>5. Dealing with Trump</h2><p><div class="KonaFilter image-container float_right"><div class="image on-image"><p class="source"><span>Samantha Lee/Business Insider</span></p></div><p></p></div>Johnson has significant experience as foreign secretary dealing with US President Donald Trump and appears to have a decent personal relationship with him.</p><p>Trump has repeatedly praised Johnson, saying last week that he expects to have a "good relationship" with Britain's new prime minister.</p><p>Comparing him favourably to May, Trump said that it was "good" that Britain would soon be getting a new prime minister after the "mess" that May has made of Brexit.</p><p>Johnson has also praised Trump, insisting that the president has "many, many good qualities," and "talks sense." </p><p>The former foreign secretary is expected to make an early trip to the US in his new position.</p><p>However, Trump is highly unpredictable. His <a href="https://www.businessinsider.com/trump-calls-theresa-may-foolish-and-her-ambassador-to-us-a-very-stupid-guy-2019-7?r=US&amp;IR=T">recent attacks both on May and her ambassador</a> to the US Kim Darroch, have strained relations between the two countries and created a serious diplomatic crisis.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span><a href="https://www.gettyimages.com/detail/news-photo/president-donald-trump-walks-out-of-the-white-house-before-news-photo/1163026790?adppopup=true">Chip Somodevilla/Getty Images</a></span></p><p class="caption">President Donald Trump walks out of the White House before departing July 19, 2019 in Washington, DC.</p></div><p></p></div></div></p><p>On other foreign policy issues, the two countries are also at odds. The UK was at the forefront of efforts to bring Iran back into the <keyword id="6356001" type="UNKNOWN" weightage="60" keywordseo="international">international</keyword> community through the Iranian nuclear deal, whereas Trump has been instrumental in dismantling that agreement. </p><p>Rising tensions in the Gulf region, with the seizure of UK ships by the Iranians, could well escalate into Britain being dragged into a potential conflict by Trump.</p><p>Johnson has also made securing a trade deal with US, a key part of his post-Brexit plans. Any such deal would be hugely controversial, given that it would likely include provisions on food standards and the NHS</p><p>During his recent state visit <a href="https://www.businessinsider.com/donald-trump-says-nhs-must-be-on-the-table-in-brexit-trade-deal-with-uk-2019-6?r=US&amp;IR=T">Trump insisted</a> that the NHS must be "on the table" in talks, before later backtracking.</p><p>Whatever happens, managing Britain's relationship with Trump's White House will form a major part of the early days of any incoming prime minister.</p><p class="tagline">Our Brexit Insider Facebook group is the best place for up-to-date news and analysis about Britain's departure from the EU, direct from Business Insider's political reporters. Join <a href="https://www.facebook.com/groups/267178180471848/">here.</a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/john-mccain-brain-cancer-diagnosis-defended-barack-obama-good-man-2008-election2017-7">When John McCain ran against Barack Obama, he went out of his way to defend him as a 'decent family man'. Watch the viral video.</a></h3>        <div>                    </div>    </div>

5 big problems Boris Johnson has to deal with on his first day as prime minister

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>REUTERS</span></p><p class="caption">Boris Johnson, a leadership candidate for Britain's Conservative Party, attends a hustings event in Wyboston, Britain July 13, 2019.</p></div><p></p></div></div></p><ul class="summary-list"><li>Britain will have a new prime minister at the end of this month after Conservative Party members elect a new leader to replace Theresa May.</li><li>Former Foreign Secretary Boris Johnson is the current overwhelming favourite to win the contest, ahead of his successor Jeremy Hunt.</li><li>Whoever wins will have a large in-tray of problems to deal with as Britain rapidly heads towards its latest deadline for leaving the EU on October 31.</li><li>Here are the 5 biggest problems facing Britain's next prime minister.</li></ul><h2>1. Renegotiating Brexit </h2><p><div class="KonaFilter image-container float_right"><div class="image on-image"><p class="source"><span>Samantha Lee/Business Insider</span></p></div><p></p></div></p><p>The most pressing issue facing Britain's next prime minister is the one that brought down Theresa May: Brexit.</p><p>Both candidates have pledged to renegotiate the Brexit deal that Theresa May agreed with the EU.</p><p>Johnson has said that he is confident of securing a new agreement. However, doing so will be incredibly difficult.</p><p>The EU's chief Brexit negotiator Michel Barnier has repeatedly said the withdrawal agreement will not be renegotiated, and Theresa May's own attempts to tweak the agreement earlier this year were mostly unsuccessful.</p><p>Some Conservative members of parliament believe the problem was May herself.</p><p>"May never really tried to renegotiate the deal," one senior Brexiteer told Business Insider.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>REUTERS</span></p><p class="caption">French President Emmanuel Macron and German Chancellor Angel Merkel meet on the sidelines of an EU summit in Brussels, Belgium on March 21, 2019.</p></div><p></p></div></div></p><p>For his own part Johnson has insisted that he will "look into the eyes" of EU negotiators and use the threat of leaving without a deal to force them into a new agreement.</p><p>However, others are more sceptical.</p><p>One Conservative MP who visited representatives of EU member states in Brussels last month told Business Insider that "not a single one indicated any likelihood of the withdrawal agreement being opened."</p><h2>2. Preparing for a no-deal Brexit</h2><p><div class="KonaFilter image-container float_left"><div class="image on-image"><p class="source"><span>Samantha Lee/Business Insider</span></p></div><p></p></div>Because of this, the prospect of a no-deal Brexit is growing significantly, with Johnson insisting that he will take Britain out of the EU on October 31 "do or die."</p><p>The Former Foreign Secretary said that Britain must prepare to leave the EU without a deal, both as a practical necessity, but also as a negotiating tactic.</p><p>However, preparing for a no-deal Brexit will be very difficult, both logistically and politically.</p><p>As Business Insider <a href="https://www.businessinsider.com/no-deal-brexit-uncertainty-forces-uk-companies-to-plan-factory-shutdowns-2019-6?r=US&amp;IR=T">revealed earlier this year</a>, much of the warehouse space needed to prepare for a no-deal is no longer available.</p><p>The government departments in charge of Brexit preparations have also suffered an exodus of senior staff members in recent months.</p><p>Joe Owen from the Institute For Government think tank told Business Insider that the next prime minister will "come in and quickly realise the big risk is that we'll be less ready in October than we were in March."</p><p>Businesses could be reluctant to prepare again for no-deal after it was twice averted earlier this year.</p><p>"They've seen government cry wolf twice before," Owen told Business Insider.</p><p>"They'll be seeing Boris saying the odds of no deal are a million to one against and MPs saying they want to stop no deal - that's the stuff that will stick," Owen said.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>REUTERS/Chris Radburn</span></p><p class="caption">A general view of shipping containers seen from the bridge of the AAL Kobe cargo ship docked at Felixstowe Port in Britain. A no-deal Brexit could create chaos for importing an exporting goods.</p></div><p></p></div></div></p><p>"They are saying 'we've been here before and it didn't happen, why would we spend money again doing it?</p><p>It is also difficult to see how Britain's next prime minister could secure enough support from parliament to allow a no-deal Brexit.</p><p>Rebel Conservative MPs are drawing up plans to team up with the opposition Labour party in October to prevent a no-deal, with a small handful indicating that they would be willing to take the extreme measure of voting to bring down their own government in order to prevent a no-deal.</p><p>Johnson could ultimately opt to suspend parliament, in order to force through Brexit. However, doing so would be politically explosive and he has so far insisted he would be very reluctant to do so.</p><p>John Bercow, the House of Commons speaker, has also said that he would attempt to block such a course of action, saying last month the idea that parliament could be sidelined was "for the birds."</p><p>"The idea that parliament is going to … be evacuated from the center-stage of the debate on Brexit is unimaginable. It is simply unimaginable," he told MPs.</p><h2>3. Getting ready for a general election</h2><p><div class="KonaFilter image-container float_right"><div class="image on-image"><p class="source"><span>Samantha Lee/Business Insider</span></p></div><p></p></div>The British Parliament has repeatedly voted against either leaving the EU with a deal, or leaving the EU without a deal.  </p><p>Given both Hunt and Johnson have promised to deliver Brexit no matter what, they may ultimately have little choice but to go back to the country and hold a general election.</p><p>Conservative MPs really, really don't want to do that however. The party is currently experiencing historic lows in the opinion polls and came in a disastrous fourth place in the recent European Parliament elections.</p><p>With so many voters who backed them at the last election fleeing to the Brexit Party and the Liberal Democrats, almost no Conservative MPs are keen to rush into another vote.</p><p>"We've only been in parliament for two years," one Conservative MP who was elected for the first time in 2017, told Business Insider.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>REUTERS/Toby Melville Britain's Chancellor of the Exchequer Philip Hammond stands outside 11 Downing Street before he delivers his budget statement in the House of Commons in London, Britain, October 29, 2018. REUTERS/Henry Nicholls</span></p><p class="caption">Britain's opposition Labour Party leader Jeremy Corbyn has said that Britain needs a General Election to decide the country's future.</p></div><p></p></div></div></p><p>"We want to fix Brexit first. The last snap general election didn't work out too well."</p><p>Another Conservative MP said an election would only happen if parliament brought a no-confidence vote against the next prime minister in order to prevent a no-deal Brexit. </p><p>Forced to choose between the risks of a chaotic Brexit or a general election, parliament may ultimately choose the latter.</p><p>"The only reason an election will happen soon is if the government falls," said the MP. "We cannot go to the electorate as a matter of choice before that."</p><p>Aside from low levels of support, a snap election would also present challenges for candidate selection and funding, especially as many donors have deserted the party over its failure to deliver on Brexit.</p><p>Johnson, for his part, has denied that he plans to call an election. "It would be absolutely crazy for any of us to think of going to the country and calling a general election before we get Brexit done," he said at a leadership hustings in June, insisting that parliament could agree on a deal.</p><p>However, it was <a href="https://www.businessinsider.com/boris-johnson-plans-snap-general-election-to-beat-jeremy-corbyn-2019-7?r=US&amp;IR=T">reported this week</a> that Johnson's allies are preparing for an early election.</p><p>"You will need to get the party in fighting shape as early as possible," one campaign figure told The Times newspaper. "One of the reasons for the lack of success in 2017 was a lack of preparation. You need to pull things together."</p><p>And if the Conservative party experiences a surge in the polls following Johnson's election, the temptation to go back to the country could be too much to resist.</p><h2>4. Opening Britain's purse-strings</h2><p><div class="KonaFilter image-container float_left"><div class="image on-image"><p class="source"><span>Samantha Lee/Business Insider</span></p></div><p></p></div>When May first became prime minister, she pledged to tackle "burning injustices" in the country such as income inequality, the lack of affordable housing and the crisis in social care.</p><p>However, instead of dealing with these issues, her premiership has been entirely dominated by Brexit, with little significant domestic legacy to speak of.</p><p>Both Johnson and Hunt are determined not to make the same mistake and have announced a range of bold, and expensive, domestic policies.</p><p>Johnson has promised to cut tax for high earners, do away with tax on sugar-sweetened drinks, and put 20,000 additional police officers on the streets by 2020. </p><p>Hunt meanwhile has said he will slash corporation tax from 19% to around 12.5%, increase spending on defence, and award tax breaks to people who care for elderly relatives.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>REUTERS/Henry Nicholls</span></p><p class="caption">Britain's Chancellor of the Exchequer Philip Hammond stands outside 11 Downing Street before he delivers his budget statement in the House of Commons in London, Britain, October 29, 2018.</p></div><p></p></div></div></p><p>This string of expensive pledges has led to both coming under fire from across the political spectrum for making unrealistic spending promises.</p><p>Chancellor Philip Hammond warned that the damage caused by a no-deal Brexit would leave no money to pay for such pledges, with the independent spending watchdog, the Institute for Fiscal Studies, also criticising the plans.</p><p>Passing such plans through parliament would also be difficult, given that the Conservative government currently has a tiny working majority of just five MPs.</p><p>As a result there will almost certainly be a sizeable gulf between the next prime minister's campaign promises, and what they actually achieve once in power. </p><p>"What you're going to see is a lot of bold policies but less than bold legislation," one former Conservative Cabinet minister told Business Insider.</p><h2>5. Dealing with Trump</h2><p><div class="KonaFilter image-container float_right"><div class="image on-image"><p class="source"><span>Samantha Lee/Business Insider</span></p></div><p></p></div>Both Johnson and Hunt have significant experience as Foreign Secretary dealing with President Trump and appear to have a decent personal relationship with him.</p><p>During his recent state visit to the UK, <a href="https://www.businessinsider.com/donald-trump-praises-boris-johnson-and-nigel-farage-ahead-of-uk-visit-2019-5?r=US&amp;IR=T">Trump praised both men.</a></p><p>Comparing them favourably to May, Trump tweeted in early July that it was "good" that Britain would soon be getting a new prime minister after the "mess" that May has made of Brexit.</p><p>Johnson has also praised Trump, insisting that the president has "many, many good qualities," and "talks sense." </p><p>The former Foreign Secretary is expected to make an early trip to the US should he become prime minister.</p><p>However, Trump is highly unpredictable. His <a href="https://www.businessinsider.com/trump-calls-theresa-may-foolish-and-her-ambassador-to-us-a-very-stupid-guy-2019-7?r=US&amp;IR=T">recent attacks both on May and her ambassador</a> to the US Kim Darroch, have strained relations between the two countries and created a serious diplomatic crisis.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>REUTERS/Kevin Lamarque/File Photo</span></p><p class="caption">U.S. President Donald Trump meets with China's President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, June 29, 2019.</p></div><p></p></div></div></p><p>On other foreign policy issues, the two countries are also at odds. The UK was at the forefront of efforts to bring Iran back into the <keyword id="6356001" type="UNKNOWN" weightage="60" keywordseo="international">international</keyword> community through the Iranian nuclear deal, whereas Trump has been instrumental in dismantling that agreement. </p><p>Both Johnson and Hunt have also made securing a trade deal with US, a key part of their post-Brexit plans. </p><p>However, any such deal would be hugely controversial, given that it would likely include provisions on food standards and the NHS</p><p>During his recent state visit <a href="https://www.businessinsider.com/donald-trump-says-nhs-must-be-on-the-table-in-brexit-trade-deal-with-uk-2019-6?r=US&amp;IR=T">Trump insisted</a> that the NHS must be "on the table" in talks, before later backtracking.</p><p>Whatever happens, managing Britain's relationship with Trump's White House will form a major part of the early days of any incoming prime minister.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/america-is-the-land-of-opportunity-robert-herjavec-2016-3">'Shark Tank' star Robert Herjavec explains what makes America great</a></h3>        <div>                    </div>    </div>

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