Re: 1.26 and falling
 

Here's hoping :fingerscrossed:

The state of affairs in the UK could do with some positives, less it devolves into a globally insignificant subjectified union destined for a break up and relative reduction in living standards.

Re: 1.26 and falling
 

Well that might also happen, but I doubt it - given that everyone else is starting to go down the protectionism route too.

I saw yesterday that while GDP growth in the UK has been one of the highest in the EU for a while, GDP per capita growth was some of the lowest and even behind Spain.

Think about that... it means two things (i) we grew richer a lot slower than everyone else, (ii) our economic growth was driven mostly my imported labour expansion.

As GDP also includes internal consumption, this is a very poor position to be in. Some export growth due to a low currency will do us well.

Re: 1.26 and falling
 

Question for Millhouse:

There's talks in the papers that certain banks are saying if the UK doesn't retain access to the single market then they would transfer some staff - not to the EU - but to places like New York.

Can you explain that for me? I can understand transferring staff to the EU for passporting reasons but why New York? Or any other non-EU city? What kind of staff would be affected? It's all a bit byzantine to me.

Re: 1.26 and falling
 

I wish I could explain that one.

If passporting rights are lost, then you'd have to move bankers to Europe - not NY. It won't happen though - no one in their right mind would even think of moving their staff to the EU (inflexible labour laws, bonus caps, language issues etc) and the euro-work will still happen in London.

I can only imagine that they are thinking that if London becomes a backwater, then they will move their people to NY. A decision they were probably going to do anyway - That said, if the currency stays this weak, then it may also make sense to keep them in London.

Re: 1.26 and falling
 

So it's likely an example of irrational overreaction? I wouldn't be surprised if it partly has to do with the extraordinarily high COL in London and NYC is now somewhat cheaper, and the bankers are using this as an excuse.

Personally, I don't mind if the City takes a bit of a hit. It has disproportionate influence over the rest of the UK and a slight weakening of the City's influence and wealth will (ideally) cause the country to bolster other industries (manufacturing). Never good to have too many eggs in one basket.

Re: 1.26 and falling
 

More like positioning and threats to get what they want later (which will be tax breaks and easy regulation).

COL in UK has dropped significantly in most bank's reporting currency.

Re: 1.26 and falling
 

The papers were full this week of Brexit costing the UK £66 billion a year which interestingly is the exact amount the city of lLondon paid in taxes in 2015

Coincidence?

£ starting to slide again

Re: 1.26 and falling
 

or it could mean that the GDP was growing but the large levels of immigration meant that it was forcing down the level of GDP per capita. So it could be argued that too many immigrants were adding too little to the GDP.

Re: 1.26 and falling
 

before the Brexit vote all the banks were talking about moving staff out of the UK if the EU Financial transaction taxes come into force. With the UK out of the way the EU federalists will no doubt push those taxes through.

Re: 1.26 and falling
 

1.217 and sliding.

The whole world is short sterling, the manipulators have got their teeth into this and barring any policy change or BoE interest rate play this will go 1.15 at least.

Shouldn't compare but we are now on the cusp of £10 a pint here.

Oh and that 500 dirham note in your pocket is now worth 111 quid !!!!!

Re: 1.26 and falling
 

100 quid is 450 aed! Ouch! 30 mins is now over 200 quid!!!!

Re: 1.26 and falling
 

£ per pint has always been my yardstick. After a few I'm not capable of recognise the value of QAR/AED.

A rate rise?

Re: 1.26 and falling
 

Tell him to speed up a bit Iggle

Re: 1.26 and falling
 

They are going to have to do something. Whilst a weaker £ is desirable, any country seen to not be in charge of their own currency valuation is seen as high risk for investment.

A 0.25 rise would stop the speculators in their tracks. The country could cope with it, may even need it to head off upcoming inflation.

I am not talking about a Lamont style balls up.

Re: 1.26 and falling
 

But currently up a touch over 1pct against the Euro on the day.