He goes on to add: "Johnson's impotency, which is fuelling a looming hard break from the EU, will not only work politically, but if it goes to plan, it could also work economically for the UK.
"Whilst it is a huge gamble - and one he seems willing to embrace - a quicker and cleaner exit from the EU could indeed deliver an unexpected boost for the pound and the UK economy as international and domestic investors get the clarity they crave before stepping off the sidelines and investing in Britain," he added.
A Johnson victory and hence a higher risk for a no-deal Brexit have been largely reflected in UK asset prices over the last few weeks. This is particular true for GBP which has depreciated both against the EUR (from 0.85 to 0.90) and the USD (from 1.32 to 1.24) over the last few weeks, Deutsche Bank said.
We will hear what the new prime minister has to say when he comes to Brussels"
"If Johnson really goes for a no-deal Brexit such an outcome could further darken the outlook for the UK economy next year, likely already pulled down by negative sentiment on consumption, investment and trade in the aftermath of a hard Brexit," it added.
For Schroders, the "do or die" Brexiteer will face enormous challenges from the outset as the UK's new prime minister.
"In any case, we highly doubt that Johnson will succeed in securing any significant changes in the time that he has. Both Parliament and much of Europe are about to break for summer recesses, which will then be followed by party conference season in September. In reality, there are a mere few weeks for Johnson's team to complete negotiations before the 31 October Brexit deadline," Azad Zangana, senior European Economist at Schroders said.
Zangana added that the deadlock is set to persist: "While at some level it makes sense for Johnson to use the threat of no-deal as a negotiation strategy, the fatal flaw is that the parliamentary maths has not changed, and does not support the strategy."