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Pound under more pressure as City fears cost of hard Brexit – business live

Discussion in 'Market News' started by Lily, Oct 11, 2016.

  1. Lily

    Lily Forum Member

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    Sterling has dropped through the $1.23 mark, after leaked papers suggest leaving the single market could cost UK £66bn per year in lost taxes

    7.57am BST

    It’s looking like another bad morning for sterling, as the British currency continues to weaken in the face of Brexit worries.

    The pound has dropped by half a cent this morning to $1.229 -- which would be a 31-year low, if you ignored the flash crash that sent sterling tumbling on Friday.

    Leaked government papers suggest that leaving the single market and switching to World Trade Organisation (WTO) rules would cause GDP to fall by up to 9.5% compared with staying in the EU.

    The draft cabinet committee paper seen by the Times is based on forecasts from the controversial study into the predicted impact of quitting the EU published by George Osborne in April during the referendum campaign. Although the then chancellor faced widespread criticism over the report, the Treasury stands by its calculations, according to the Times.

    Related: Hard Brexit will cost Treasury up to £66bn a year, ministers are told

    Crucially, the Treasury has used the same figures for WTO Brexit from its controversial April pre-referendum report on longterm consequences

    Some Brexit gvt ppl are tonight attacking the Treasury for OTT scaremongering. There are few agreed facts on Brexit, even in government

    7.39am BST

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

    Coming up today....

    “We did have bigger plans for the London office, but after Brexit we are scaling them down and building them up elsewhere.

    “Our board will decide where by the end of the year.”

    The weakness of pound sterling (GBP) remains a major talking point in global markets after the GBP touched a new 1985 low vs. the USD pic.twitter.com/nxUKbvbdjX

    Related: Galaxy Note 7: Samsung suspends sales of phones, warning users to 'turn it off'

    Tuesday's FT:
    Ryan abandons Trump in sign of Republicans losing US vote hope#tomorrowspaperstoday #bbcpapers pic.twitter.com/8yajLfc6rh

    Our European opening calls:$FTSE 7076 -0.30%
    $DAX 10615 -0.09%
    $CAC 4494 -0.08%$IBEX 8678 -0.27%$MIB 16602 -0.18%

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