Markets surge on increased deal possibilities
11 October, 2019
So another ‘fun-filled’ week in the saga that is Brexit.
We have learned (some already knew) that Boris just wants to point his finger of blame at anyone who takes a stance against him. If he fails in his ‘no-deal’ attempt, he can blame them for being difficult and creating obstacles, if he succeeds in his ‘no-deal’ escapades, then he managed it whilst being hampered at every turn by those who were not ‘on board with him’.
Speaking of being ‘on board’ Boris, new accusations came out last week and this, linking Mr Johnson to another ‘thick set Blonde’.
No need to explore here, as it is just another distraction that has no real bearing on Britain’s future in the economic and financial market place.
Yesterday there was a raft of economic data that was released with the two key ones being the Balance of Trade figures for August (also known as the trade deficit) and a speech given by Bank of England Governor, Mark Carney.
The trade figures for the month of August were ‘geared up’ to be particularly bad with forecasts coming in at £-3.8 billion. This was based on the back of Julys’ £-1.681 billion and coupled to the raft of ‘house-hold names’ that have been going to the wall recently.
However, they came in at a mere £-1.541 billion. How strange times are when a trading deficit showing we are £1,541,000,000 in the red is seen as ‘not too shabby’.
The speech by Governor Carney was much needed and really constructed to reassure an already nervous investment market that the Banks position of holding the Bank Rate at 0.75 percent (as per their September policy meeting) has not changed and repeated his promise of a gradual and limited rate rise under the assumption of a smooth Brexit.
As you are probably aware though, things are going anything but smoothly. The chances of a ‘no-deal exit’ still loom and the possibility of a General Election has greatly increased. All of which does nothing for Sterlings’ clout against other currencies.
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