Steve Foster
Well-known member
If only all Political threads were moved away from the main board - I would suspect that the number of users of NSC would increase, as well as it being a nicer, more welcoming forum
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[Politics] Liz Truss **RESIGNS 20/10/2022**
- Thread starter Ethelwulf
- Start date
And very shortly after, the BoE pours cold water on prospects of an immediate emergency rate rise. Markets had already priced that in, so the value of sterling (having recovered back to above $1.08 and even peaking just over $1.09 at one point) is now plunging again. Back down to $1.065 as I post this.
Pevenseagull
Anti-greed coalition
- Jul 20, 2003
- 19,803
I'm going with both.
mikeyjh
Well-known member
Lending to states. France, Germany, US, Mexico, Brazil, Australia, wherever you like. You aren't so naive as to think these funds and their investors favour a 'home' market?
beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 35,407
of course it goes anywhere. the point being it does go into investments here or abroad, and vice versa as every £ government is borrowing is coming from somewhere. the real fallacy is that money disappears. even in tax havens, funds are invested somewhere else. an awful lot of £ do go into £ denominated bonds to avoid exchange rate exposure.
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Charlies Shinpad
New member
I will leave this here
Sent from my CPH2195 using Tapatalk
Sent from my CPH2195 using Tapatalk
I will leave this here
Sent from my CPH2195 using Tapatalk
Yes, the USD is strong and has been for a while. What these charts don't show, however, is that the value of the pound has *plunged* in the last two trading days vs all the major currencies, not just the USD. The current GBP crisis has nothing to do with USD strength and everything to do with local factors. The fact those local factors are happening against the backdrop of a strong USD just makes matters worse.
Against the following, GBP is down vs 5 days ago:
USD - 5.4% (but it's bouncing around abit - when I first wrote this it was 5.3%
EUR - 3% (and worth noting due to proximity, the EUR has been dragged down as collateral damage)
YEN - 5% (currently closed, so no reaction to latest BoE news)
AUD - 2.9% (and the Aussie markets currently closed, so that's not had a chance to react to the latest BoE news)
CAD - 3.1%
And when I say vs 5 days ago, I've used that as it's easy to grab the numbers. Those losses are entirely since Friday morning's not-a-budget announcement.
Finally, comparing the strength of USD against GBP and the same 4 other major currencies:
GBP - down 5.4% (although this is jumping around a lot right now due to volatility from local factors)
EUR - down 2.2%
YEN - down 0.2% (and until very recently was actually up)
AUD - down 2.4%
CAD - down 2.2%
That GBP figure sticks out like a sore thumb. USD is strong, which accounts for maybe 2.1% to 2.3% worth of lost value. The rest is Kami-Kwasi's not-a-budget - at least 3%. And first thing this morning it was a lot worse. If the BoE remains shy about intervening, you can rest assured the value of the pound will continue to drop faster than the other currencies.
You're also forgetting that when financial traders sell off a currency, a high percentage of them will default to putting the proceeds into USD. USD is the "safe haven". So it's completely unsurprising that other currencies have also dropped against the USD - the exodus from GBP has strengthened USD further.
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deletebeepbeepbeep
Well-known member
- May 12, 2009
- 21,083
[tweet]1574434137917865990[/tweet]
More trouble - Virgin Money and Skipton Building Soc have announced that they are withdrawing their mortgage products from sale from later tonight. Halifax have withdrawn all their mortgages that include a fee.
All three are citing the volatility in the markets and increased cost of funding.
Gilts are spiking again as well.
All three are citing the volatility in the markets and increased cost of funding.
Gilts are spiking again as well.
- Jul 10, 2003
- 26,110
Machiavelli
Well-known member
It appears that the BoE are taking lessons from the fine example set. CX postpones a statement for two months amidst a run on the currency and gilts, while the BoE says 'we will not hesitate to change interest rates' while hesitating to change interest rates.
Da Man Clay
T'Blades
- Dec 16, 2004
- 16,269
Still, at least we don’t have chaos with Ed Miliband
mikeyjh
Well-known member
Such a damning indictment of a government that was trying to fuel the housing market (ridiculous idea) - I just hope people realise how dangerous and incompetent they are, not that they care.
Mackenzie
Old Brightonian
Are they doing as much damage as possible on purpose, knowing that this will be the last we see of them for three or so elections?
Wrong-Direction
Well-known member
- Mar 10, 2013
- 13,452
Horses Arse
Well-known member
They'll blame Labour in a few years time, this nation of thickos will believe them and vote them in again. It always happens
- Jul 10, 2003
- 26,110
We have now got to the position where the question 'Who has got their finger on the pulse, Robert Peston, Laura Kuenssberg or Jonathan Pie a completely satirical character' is no longer funny
I will leave this here
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Doesn’t really explain this, however…
[tweet]1574346355514167296[/tweet]
Randy McNob
Now go home and get your f#cking Shinebox
- Jun 13, 2020
- 4,527
is it poor people who cannot afford astronomic energy bills and forced to use food banks?
GT49er
Well-known member
Perhaps the ones that you like to deride as thickos are just happy to derail whatever plans superior beings like you would like to implement? I mean, it's not easy to be superior and liked, is it? Tough call for anybody to try and take that on - telling people they're thick and hoping they'll march to your tune. Kudos for anyone brave enough to have a go (although the Greek language could probably provide a more appropriae word than 'kudos', eh?)