Sterling under pressure as UK government crumbles
After a fairly buoyant period for the UK currency we have seen falls for the third day in a row as the markets take stock of recent Cabinet resignations and the appalling figures expected from the local and European elections. There was also the concern that Gordon Brown could receive a significant leadership challenge over the coming days and weeks which would further destabilise the UK government and possibly impact upon the recovery of the UK economy.
After a disastrous 12 months for the UK currency there were signs of recovery just a few weeks ago as potential green shoots started to appear in relatively niche areas of the UK economy. However, much of the good work over the last few weeks has been undone with the ongoing turmoil in the UK government and a general election which could be called at any time. At the moment Gordon Brown is resisting calls for a general election despite the fact we stand on the precipice of a further downward lurch in the UK economy.
In all honesty it seems as though the UK government has lost the confidence of many markets and investors around the world, something which will be very difficult to reclaim in the relative short space of time left for the authorities.
Share this..
Related stories
Boris Johnson urged to use London's growing rubbish pile
A report by the London Assembly has confirmed that London produces around 22,000,000 tonnes of waste each and every year and only 22% of this waste is being recycled. The report suggests that non-recyclable waste could be reused, without emitting gases into the atmosphere, to power 2 million homes in the capital and provide heating for 625,000 houses. When you consider this would effectively be fr...
Read MoreUK manufacturing shows surprising strength
Despite the fact that the UK manufacturing base has been decimated over the last 20 or 30 years, there are signs that the recovery in the economy has spread through into the manufacturing sector. The Chartered Institute of Purchasing and Supply's purchasing managers index rose from 51.8 in November to 54.1 in December - with a figure of over 50 indicative of growth in the sector. There was also go...
Read MoreMoss Bros Rings Warning Bells For The High Street
The latest high street retailer to sound the warning bells for the UK economy is suit company Moss Bros, reporting a fall of 1.5% in like for like sales over the last 19 weeks. The company expect this situation to deteriorate further with forecasts of a near 4% drop in like for like sales for the full year. While many observers of the UK economy have been expecting a sudden fall in the UK econom...
Read MoreOctober lending to First Time Buyers was up by almost 50%
An annual report recently published by the Council of Mortgage Lenders (CML) showed that first time buyers returned to the housing market substantially during the month of October, with the value of loans rising by nearly 50% on 2012 figures. The CML report advised that loans to first time buyers during October totalled £3.7 billion, which showed a positive increase from September. Year on ye...
Read MoreUK Interest Rates Expected To Remain At 5%
The puzzle which is the future direction of UK interest rates is unlikely to become any clearer when the Bank of England meet later this month. A recent poll of 71 analysts saw a resounding 69 voice the opinion that rates will remain unchanged this month, with only 2 expecting a reduction in the headline rate. The main problem seems to be the continuing rise in inflation which is nudging towards...
Read More