Sterling close to its highest value against the Euro since the Brexit referendum. Markets appear to be rewarding the prospect of long term British political stability. Not something you’ve been able to say for a while.
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Just got to love 'political stability' when politicians don't understand how £s are created for government spending.
Some market acceptance this is! Smoke, mirrors and corrupt hedge funds. And lunatics in charge of the asylum.
But wait! Trump is almost in office! Better sell soon before it is too late to recover your investments. I apologize for the third of our population voting against their best interests, and not researching the assholes' background. We all tried to tell them, but they didn't want to hear it.
I like Lewis, but David Yelland was right… our political journos are economically illiterate. Which is partly why populist parties sling numbers around unopposed on the facts.
Just wait until the Farage monster takes over and he actually has to formulate real policy. Can he walk his talk? Tory /Reform coalition? Think it’s been bad so far? You have no idea…
Amazing what a little bit of stability (or even the sense of it) can do. People and businesses need stability in order to make commitments. Nobody in their right mind would make big spending commitments when the government is all over the place, constantly chasing populist headlines.
Or perhaps today's exchange reflects the twin effects of higher interest rates (brought about by market scepticism about the budget) and political stability. The ECB cut its rates today. If UK inflation is under control investors will receive a relatively better real return on their money in the UK
Currencies rise & fall depending on supply & demand. Factors like interest rates, inflation, economic growth, and political stability all play a part. A strong economy or high interest rates attract investment, boosting value, while instability or low demand weakens it. Market confidence is key too.
Wow, you're sharp! Spotting that trend is like finding a hidden treasure! The pound's doing a happy dance against the euro, and it's all thanks to (fingers crossed!) a bit more political calm. Let's see if this good feeling lasts?
Labour better talk about this non stop, all the time, constantly. We need to drill it into peoples heads that Labour is good for the economy because I’m sick of people falling for tories who say the opposite
It won’t matter. The US economy is in relatively great shape, yet believed the Right-wing. If you control the message, that’s all that matters. Labour will likely do OK, but all the press will say otherwise With the utterly awful Badenoch as leader, Farage, with his 100,000,000$ gift will walk it.
Ps the US economy was in a different place 4 years ago, and will be in another. It's over heating at the moment and can't sustain in isolation, either the global economy needs to rise too, or their bible will burst. Interconnectivity of global structures, not globalisation, and market forces
You seem to give people credit and smarts with money and everyone else as stupid. It's not blind faith that either answer will 'walk it'. 4.5years to play out, plenty of life to get in the way of best laid plans, DT will be out before Deform and their idiot treasurer can sort themselves out.
IMHO the "mini budget" under Liz Truss has helped damage any claim the Tories have to economic competence more than anything Labour or Tories bang on about.
In the Local Council elections since the General Election Labour have won/held 53 seats, Reform 4.
And this is when turnouts have been as low as 11% in some places.
Good job the General Election isn't for 4+ years then. Every government gets the unpopular stuff done early and usually build up a war chest to bribe voters nearer the election.
Also Reform tends to split Tory votes more than taking from Labour. I wouldn't be too worried.
The brand new government tanking in the polls, three parties polling in the 20's, the far right surging. If this is long term political stability, I'd hate to see what instability looks like...
About bloody time too. I'm paid in £ but spend in €. My disposable income plummeted after the referendum and hasn't recovered. You still wouldn't get me back there though. 😁
Not really seeing this being reported in the UK conservative owned media. Yet a few hundred posh boy tractors are supposed to indicate major problems. Stability plus planning reform isn’t yet priced in but it will be 👆👆👆
To be fair that was for a very short time. I remember it lasting about two months and being annoyed because I had changed money a few days before it jumped.
I think this needs to be the UK's strategy. Actively work to destabilise every other western country so our political situation looks stable by comparison. Genius!
& already the spin
It's greylands in the greenbelt - land already marginal & not actually greenbelt - light industrial estates from the 30s, derelict petrol stations, land in need of remediation. It's not unproblematic as some is on contaminated land, but... if only the English would embrace flats
Of course - light touch nature destruction...I believe the conservationists not the "we put people before barn owl brigade". Houses are needed but where will it end ?
A UK small biz I follow posted that from tomorrow, they can’t sell to EU countries because they need a representative based in the EU to oversee compliance (GPSR). Not found a reasonably priced way around it yet. Will that make a difference?
I was thinking exactly this. Despite this being a positive thing on a national level (something all those patriots should revel in), not a word with be spoken of it because it, in turn, reflects well on a Labour government which the media cannot abide....
💁♀️
find a time range that fits your needs, ☑️
stretch/ suppress the y-axis so the difference looks as dramatic/ lame as you wish, ☑️
and, pro tip, reverse the y -axis, to symbolize a "rise" in whatever fits your agenda ☑️
I’m American and want to ask a question. Please don’t come at me, innocent question. Isn’t Brexit controlled by billionaires and after the Bilderberg meeting they pushed for Brexit and are working toward a New World Order? I have read several articles/watched a few videos on the subject. Not sure
There was a happy moment in 2003 when both the euro and the dollar were at 1.61. One calculation sufficed for both currencies and for kilometres to miles, plus real geeks could use Fibonacci ratios to work out instantly that £34 = $55.
And thank you Lewis for an accurate representation and not the one that Sky News put out implying by clever but deceitful use of language that
the £ had reached pre Brexit levels against the €, which of course is utter nonsense.
I guess this means people with all the money think that the UK is a good bet in the world right now? Not sure if I should be happy or worried by that lol
Oh... I'm not British.
I do have a British export though.
A Norwegian Blue tattoo.
Thats what you get for drinking tequila with brits in Thailand.(Another fine export)
I wish UK get's back on it is feet and re-unite as much as possible with EU countries again.
We have to support each other or we'll be crushed by RU/US/China/India
Absolute tosh - explain to me why a chicken + mushroom pot noodle cost me £1.99 several years ago in Portugal and now costs me £4.50? You can't, it doesn't make sense!!!
The recent budget will cause inflation but as long as we in (global) business see investment in productivity and a reduction a reduction in trade barriers then we are OK.
Predictably, stability and an educated and agile workforce will make the U.K. attractive.
There’s also increasing pessimism about EU political and economic prospects, especially in France and Germany so it all feeds in. ECB have dropped rates today. But trend is quite established now.
For the first time, in a long time I've seen the benefits of Westminster working as it's supposed to. When not forcing through bad policy decisions from referendums that the majority of MPs don't want, it is historically stable with limited scope for voting rigging or wildcard presidential figures.
Comments
Some market acceptance this is! Smoke, mirrors and corrupt hedge funds. And lunatics in charge of the asylum.
UK’s economy shrinks unexpectedly by 0.1% in October https://www.theguardian.com/business/2024/dec/13/uk-economy-october-gdp?CMP=share_btn_url
https://on.ft.com/4fi4Fa2
And this is when turnouts have been as low as 11% in some places.
Also Reform tends to split Tory votes more than taking from Labour. I wouldn't be too worried.
https://bsky.app/profile/lukecat666.bsky.social/post/3ld4d7mm4ps2m
It will help with inflation and with lower interest rates.
But will damage exports.
Hedging the pound!
It's greylands in the greenbelt - land already marginal & not actually greenbelt - light industrial estates from the 30s, derelict petrol stations, land in need of remediation. It's not unproblematic as some is on contaminated land, but... if only the English would embrace flats
🤣🤣🤣
💁♀️
stretch/ suppress the y-axis so the difference looks as dramatic/ lame as you wish, ☑️
and, pro tip, reverse the y -axis, to symbolize a "rise" in whatever fits your agenda ☑️
Get us to 1.25 or 1.3, THEN it gets interesting.
the £ had reached pre Brexit levels against the €, which of course is utter nonsense.
Proost
Your exports of sarcastic pundits and weirdos are famous!
And cheese, funnily enough.
I do have a British export though.
A Norwegian Blue tattoo.
Thats what you get for drinking tequila with brits in Thailand.(Another fine export)
We have to support each other or we'll be crushed by RU/US/China/India
Europe cut off.
(Canada now down to 3.25%, meaning we're screwed.)
Exchange rates are primarily driven by differential in interest rates between countries.
The recent budget will cause inflation but as long as we in (global) business see investment in productivity and a reduction a reduction in trade barriers then we are OK.
Predictably, stability and an educated and agile workforce will make the U.K. attractive.