Sterling could come under pressure after the election
In what could be a very difficult and traumatic period for the UK economy the futures markets in bonds and sterling have announced plans to open up at 1 AM on Friday after voting is over in the UK. There is speculation that many investors will be looking to sell sterling if as expected we see a hung parliament and potentially days of negotiations between the various political parties.
There is serious concern that many influential investors are looking to make the UK pay for a potential hung parliament and the problems this could bring to the economy. This is a situation which David Cameron has been warning of for some time now and he is likely to feel vindicated if as expected there is a run on the UK pound.
The problems with the Greek budget deficits and Greek national debt have seen many investors looking around for the next potential target. While the activity of some speculative investors will infuriate governments around the world, in reality these are free markets and if a share price, bond price or currency is too low then investors will return at some point. However in the short-term it looks as though uncertainty is the name of the day and we could get that in abundance after Thursday!
Share this..
Related stories
Illegal Polish only job adverts to be investigated
The Equality and Human Rights Commission has today stepped forward after receiving various complaints that a meat manufacturer in the UK which gave the go-ahead to advertise for employees who must "speak Polish". While we regularly see UK based companies criticised and prosecuted for following Gordon Brown's "British jobs for British workers" campaign this is the first time we have seen a high-pro...
Read MoreShop price inflation hits 1.7%
The British Retail Consortium has confirmed that food prices were behind the 1.7% increase in shop prices in August compared to the same period in 2009. This is an increase from the 1.5% annual rise seen in July although the 3.8% increase in food prices in August is as a direct consequence of problems in the commodities market where the Russian export ban on wheat is beginning to hit home. The...
Read MoreUK authorities set to announce £200 billion bank bailout
As speculation continues to mount about the forthcoming UK government bank bailout part two we are starting to see some of the terms and conditions leaked into the press. By all accounts the deal should be announced tomorrow after a late-night meeting yesterday between the government and the UK's banking leaders. This will be Gordon Brown's hardest sale yet as taxpayers will take on a liability ap...
Read MoreTullet Prebon announces plans to move staff overseas
Financial trading outfit Tullet Prebon has announced plans to give London based staff the option of moving overseas in order to avoid the UK banking bonus tax which was announced by Alistair Darling last week. In a move which many had predicted, it seems that Alistair Darling's plans to hit the UK banking system with extra taxes may well have backfired. So what is happening? While the headline...
Read MoreWill the UK economy tread water until the election?
As we approach the general election, which is expected either at the end of this year or in the first half of 2010, there are worries that the UK economy may tread water between now and voting day. The worry is that an increase in confidence, which is by far and away the most important element of any recovery, is some way off and the ongoing concerns regarding MPs expenses are causing significant...
Read More