Shadow chancellor John McDonnell said this morning that Labour's nationalisation programme will be "cost free".

Speaking on Sky News, McDonnell defended Labour's plans to take over key industries, repeating his claim that the policy will pay for itself.

Read more: John McDonnell slammed for refusing to cost Labour's nationalisation plans

The Labour party has pledged to nationalise the utilities, and the railways, when they come to the end of their franchises.

Morgan Stanley has warned that the Labour party's plan means a government led by Jeremy Corbyn would be worse for investors than Brexit, echoing concerns raised by the Confederation of British Industry, which has warned investors will be "running for the hills" if Corbyn is elected.

A report from the Morgan Stanley's European equity team read: "The UK is in the midst of a double whammy of uncertainty in the shape of Brexit and a fragile domestic political situation.

"Taken together, these two factors – which are interrelated to some degree – cast a long shadow over the policy backdrop and economic outlook of the UK."

Corbyn responded to Morgan Stanley on Twitter this week, releasing a video in which he said Labour was fighting against a "rigged" system.

"When they say we're a threat, they're right," Corbyn said.

When bankers like Morgan Stanley say we’re a threat, they’re right.

The next Labour Government is a threat to a damaging and failed system that’s rigged for the few.

— Jeremy Corbyn (@jeremycorbyn) November 30, 2017

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