The pound has been overvalued for to long, this will be a good thing for the country, if in doubt look at china currently doing everything it can to devalue much to the annoyance of America.
The pound has been overvalued for to long, this will be a good thing for the country, if in doubt look at china currently doing everything it can to devalue much to the annoyance of America.
The pound has been overvalued for to long, this will be a good thing for the country, if in doubt look at china currently doing everything it can to devalue much to the annoyance of America.
Pity we didn't have a Tory led government since 2010 who could have done something about the overvaluation several years ago.
It is slightly odd that pound drops and the FTSE goes up. However you need to look at the FTSE 100 companies the majority are international companies. The balance of that business is often outside of the UK such GlaxoSmithKline. Their business would be valued in US Dollars as the majority of their business is i the USA. Hence due to the dip in the pound those companies are worth more when converted back into sterling.
Low pound is good for exports but as we import far more than we export not the good news everyone thinks it is.
However I suspect the pound will recover the growth figures for the UK are up. I believe this will be a short term drop expect to see them recover a bit over the next view weeks. Longer we can expect this rocky road up and down while brexit is still going on.
The pound has been overvalued for to long, this will be a good thing for the country, if in doubt look at china currently doing everything it can to devalue much to the annoyance of America.
And what evidence at all do you have that the £ is overvalued, apart from "well the Chinese are doing it, so it must be good!"
Just a couple of opinions. But unfortunately we don't have vast reserves of natural resources like a country such as China does, so we need to import, just to feed ourselves for example.
Pound devaluation is good for big business, not so great for the average person on the street who sees the value of their savings fall and the price of imported goods rise.
Not entirely sure that's the picture the Brexit Bunch painted before the referendum but hey ho.
Pound devaluation is good for big business, not so great for the average person on the street who sees the value of their savings fall and the price of imported goods rise.
Not entirely sure that's the picture the Brexit Bunch painted before the referendum but hey ho.
Judge Brexit after a few days when things settle down.
fluctuation any amateur business student will tell you is bound to happen.
They did, they reduced interest rates and printed money, the pound fell.
But it recovered again because everyone else in the world was doing worse than we were.
Sterling was only being held up by confidence and asset sales, the trade deficit should have trashed the value years ago.
If this doesn't have an impact on inflation then it's basically a good thing for the UK economy in the long run. The consumer may have a short term hit in terms of paying more for imports but that will help encourage more UK production and exports. I honestly don't think we'll see the pound go back up to $1.50 in the next 10 years.
Pound devaluation is good for big business, not so great for the average person on the street who sees the value of their savings fall and the price of imported goods rise.
Not entirely sure that's the picture the Brexit Bunch painted before the referendum but hey ho.
The value of their savings will only fall if inflation increases. Otherwise they can still buy the same amount of goods and services as before.
Also - the 'average person on the street' doesn't have any notable savings.
FTSE is up because £ is down. Shares denominated in sterling are cheap. British compamies are dirt cheap at this time so expect takeover bids to come flying in. Telegraph article about this the other day. FTSE is actually down about 2.5% so far this year if you convert into dollars. In other words sterling has fallen more than FTSE has risen.
So confidence has gone and there's nothing else to flog off
Telegraph reporting that UK move away from deficit reduction is not liked by investors. Expect higher borrowing costs. It's more that UK is forced into this as they've lost control of economy. Business Investment is through the floor.
One reason the pound has fallen to a 31-year low against the dollar could be that the US currency is stronger.
The dollar is performing well because the markets think it's becoming more likely that the US Federal Reserve will raise interest rates in December, said Michael Hewson of CMC Markets. Traders are now giving it a 61% probability.
Other major currencies - including the Japanese yen and euro - have also fallen against the dollar this morning.
Telegraph reporting that UK move away from deficit reduction is not liked by investors. Expect higher borrowing costs. It's more that UK is forced into this as they've lost control of economy. Business Investment is through the floor.
Pound devaluation is good for big business, not so great for the average person on the street who sees the value of their savings fall and the price of imported goods rise.
Not entirely sure that's the picture the Brexit Bunch painted before the referendum but hey ho.
It's good for big business because it means they can sell more stuff as exports, this will create jobs in manufacturing and without endless cheep labour this will mean good paying job for the British people, also we are finally going to start training enough of our own people to become doctors and nurses without having to pillage the third world, great times ahead!
It's good for big business because it means they can sell more stuff as exports, this will create jobs in manufacturing and without endless cheep labour this will mean good paying job for the British people, also we are finally going to start training enough of our own people to become doctors and nurses without having to pillage the third world, great times ahead!
It's a good job that there will be more places for British students at medical schools as buying in foreigners has become far more expensive - as will a large portion of the equipment used in British hospitals as well as the fuel to power ambulances and run hospitals.
Dotheboyshall
Posts: 40,583
Comments
Somethings are much more important than money and that's why we voted to leave.
I agree, and it has further to fall.
Pity we didn't have a Tory led government since 2010 who could have done something about the overvaluation several years ago.
It is slightly odd that pound drops and the FTSE goes up. However you need to look at the FTSE 100 companies the majority are international companies. The balance of that business is often outside of the UK such GlaxoSmithKline. Their business would be valued in US Dollars as the majority of their business is i the USA. Hence due to the dip in the pound those companies are worth more when converted back into sterling.
Low pound is good for exports but as we import far more than we export not the good news everyone thinks it is.
However I suspect the pound will recover the growth figures for the UK are up. I believe this will be a short term drop expect to see them recover a bit over the next view weeks. Longer we can expect this rocky road up and down while brexit is still going on.
And what evidence at all do you have that the £ is overvalued, apart from "well the Chinese are doing it, so it must be good!"
http://www.telegraph.co.uk/finance/currency/12065157/Pound-is-most-overvalued-currency-in-the-world-analysts-claim.html
Just a couple of opinions. But unfortunately we don't have vast reserves of natural resources like a country such as China does, so we need to import, just to feed ourselves for example.
So why didn't the government do something about it? It's not as if they were elected a few months ago.
They did, they reduced interest rates and printed money, the pound fell.
But it recovered again because everyone else in the world was doing worse than we were.
Sterling was only being held up by confidence and asset sales, the trade deficit should have trashed the value years ago.
Yes, like getting our country back !
Not entirely sure that's the picture the Brexit Bunch painted before the referendum but hey ho.
Judge Brexit after a few days when things settle down.
fluctuation any amateur business student will tell you is bound to happen.
If this doesn't have an impact on inflation then it's basically a good thing for the UK economy in the long run. The consumer may have a short term hit in terms of paying more for imports but that will help encourage more UK production and exports. I honestly don't think we'll see the pound go back up to $1.50 in the next 10 years.
The value of their savings will only fall if inflation increases. Otherwise they can still buy the same amount of goods and services as before.
Also - the 'average person on the street' doesn't have any notable savings.
FTSE is up because £ is down. Shares denominated in sterling are cheap. British compamies are dirt cheap at this time so expect takeover bids to come flying in. Telegraph article about this the other day. FTSE is actually down about 2.5% so far this year if you convert into dollars. In other words sterling has fallen more than FTSE has risen.
A few days? It's already been three months and the 10% reduction in the value of the pound has held resolute.
A few years, maybe. But by then the decimation of the value of my savings is likely to be permanent.
So confidence has gone and there's nothing else to flog off
17% reduction this year according to Bloomberg yesterday.
Telegraph reporting that UK move away from deficit reduction is not liked by investors. Expect higher borrowing costs. It's more that UK is forced into this as they've lost control of economy. Business Investment is through the floor.
One reason the pound has fallen to a 31-year low against the dollar could be that the US currency is stronger.
The dollar is performing well because the markets think it's becoming more likely that the US Federal Reserve will raise interest rates in December, said Michael Hewson of CMC Markets. Traders are now giving it a 61% probability.
Other major currencies - including the Japanese yen and euro - have also fallen against the dollar this morning.
http://www.bbc.co.uk/news/business/markets/europe/lse_ukx
So the UK has lost sovereignty
It's good for big business because it means they can sell more stuff as exports, this will create jobs in manufacturing and without endless cheep labour this will mean good paying job for the British people, also we are finally going to start training enough of our own people to become doctors and nurses without having to pillage the third world, great times ahead!