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Pound under pressure as chancellor Hammond launches Wall Street charm offensive – business live

Discussion in 'Market News' started by Lily, Oct 6, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Sterling remains close to 31-year lows, as Philip Hammond flies to New York to reassure US banks about Brexit

    8.14am BST

    Ouch! Shares in easyJet have fallen by 8% at the start of trading, and the Brexit vote is party to blame.

    The British airline said currency movements would cost the company £90m in the full year, largely because of the the sharp fall in the value of the pound since the Brexit vote on 23 June.

    EasyJet reports in pounds but mosts of its costs are in dollars and euros. It buys fuel in dollars and on pays air traffic costs and landing charges on its many European routes in euros.

    8.07am BST

    The Wall Street Journal has a grim chart this morning, showing how the pound is close its weakest ever levels (when measures against a basket of currencies):

    Sterling is at a 31-yr low against the dollar. Trade weighted, it's worse: £ has barely ever been lower. https://t.co/FDxB4iCtes pic.twitter.com/Z76xW0cppC

    Looking at £/$ understated the huge depreciation of sterling over the last 35yrs. Down ~45% since 1981.

    8.03am BST

    London’s stock market has opened without drama, with the FTSE 100 index gaining 10 points to 7041. That’s around 63 points below its record closing level.

    Bank shares are among the risers, after officials from the International Monetary Fund tried to downplay worries about Deutsche Bank’s financial health yesterday.

    7.53am BST

    Chancellor Philip Hammond is scrambling to New York today, in an attempt to reassure America’s biggest banks about Brexit.

    One of Britain’s great strengths is the ability to offer and aggregate all of the services the global financial services industry needs. This has not changed as a result of the EU referendum result and I will do everything I can to ensure the City of London retains its position as the world’s leading international financial centre.

    “Whether it’s British employers or US firms who support thousands of highly-skilled jobs in the financial sector, we are listening and taking the time to understand the issues thoroughly, in advance of opening negotiations with the EU.

    Hammond travels to New York to reassure banks over #Brexit https://t.co/UpoepcqfiN via @johnainger pic.twitter.com/DRxJbUmK3H

    "So, when we said rootless global elite... we didn't mean you". https://t.co/2luddI0D1Y

    7.38am BST

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

    Concerns over Britain’s exit from the European Union continue to weigh on sterling this morning.

    PM May’s position substantially increases the possibility that the UK will give up its right to export financial and other services to EU markets in exchange for control over immigration – i.e., a “hard Brexit.”

    The UK’s exports of services to the EU account for over 4 percent of the UK’s GDP, so trade barriers to them would cause a serious negative shock to the British economy.

    Good morning from Berlin. Asia stocks up on solid US data & weaker Yen. Samsung at all-time high. Bonds & Gold hit by stimulus taper fears. pic.twitter.com/j9fnBxmQTX

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