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Pound could 'hit parity with dollar' unless politicians get a grip on Brexit – business live

Discussion in 'Market News' started by Lily, Jul 7, 2016.

  1. Lily

    Lily Forum Member

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    Mohamed El-Erian of Allianz warns that sterling could hit record lows unless UK government come up with a credible plan

    7.42am BST

    The British pound could slump to parity with the US dollar unless UK politicians get their act together over the Brexit vote, one of the most influential voices in finance has warned.

    “After the Brexit referendum, the UK has to urgently get its political act together, including a new Prime Minister who can negotiate effectively with the EU.

    Plan B depends on the politicians in London and across the Channel, but so far they have not stepped up to their economic governance responsibilities.”

    Related: Gove and Leadsom under pressure as leadership vote picks final two – live

    The future value of sterling is a function of how and how quickly the structural uncertainty is resolved – if Plan B is delayed and/or it doesn’t involve much of a free trade setup with the EU, it is not inconceivable for sterling to head to parity with the US dollar.

    There you go…*EL-ERIAN SAYS STERLING MAY FALL TO PARITY W/ USD DOLLAR: RTRS

    7.15am BST

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    Coming up today... we’ll be looking at the impact that Britain’s Brexit vote is having on the UK’s economy, and beyond.

    Related: More property funds suspended as Brexit tremors continue in the City

    Related: Scorn for Morrison's numbers triggers Standard and Poor's negative outlook

    UK companies posting numbers today - AB Foods, M&S, Sports Direct, Bovis Homes, Great Portland Estates - US - Costco & PepsiCo

    Continue reading...
     

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