How remarkable

Sterling falls again against the euro and the dollar

FTSE 100 and FTSE 250 equity indexes rise, near record highs

The connection being that 75% of FTSE100 revenues are not in sterling……

15 thoughts on “How remarkable”

  1. I am sure the Murphatolla will be able to explain why falling sterling is BAD and is a result of Neoliberalism and that rising FTSE indexes are also BAD and also as a result of Neoliberalism. Of course it would need to be born in mind that rising sterling and falling indexes are also BAD and caused by Neoliberalism.

  2. Luckily, Andrew, the economics experts of the Guardian tell us that neo-liberalism is just about dead. Phew!

  3. So Much For Subtlety

    Well it is obvious that a rising Footsie means worsening inequality. A small number of people who are paid in options or have a retirement fund invested in the market will become richer. The poor will have to spend more for their cheap vodka.

    Although why anyone would care escapes me.

  4. And when the German/Italian banks go we will see were the Euro is.

    And a little later the Dollar also given the fact that the Euro crash will ultimately expose the Yanks bankruptcy .

  5. @monoi

    “Whichever way you cut it, a weaker pound makes us all poorer, not richer.
    It is not a good thing”

    Except for those of us who get paid in UDS and spend in GBP.

  6. @JS,

    Self evidently! I trade in euros so the exchange rate increases my income, but we are still poorer in the big scheme of things.

  7. @ Ecks,

    I agree. That said, Carney lowering rates and printing money, coupled with Hammond thinking deficits are good things do not help.

  8. Carney needs to be gone with a large cloud to accompany him.

    Or for that matter a large crowd of his Keynesian fellow travellers.

  9. Bloke in Costa Rica

    John Square beat me to it. Dollar-pound parity works fine for me. I don’t live in the UK so there’re no caveats about this. Of course if it all goes Mad Max then that’s different.

  10. Everything IS going to go Mad Max–but that has fuckall to do with Brexit.

    The Keynsian/socialist/spend-borrow,borrow-spend.borrow-spend-borrow & print antics of Western govts is the cause. Brexit means that we could steer our own course back to sanity.

    If there was anybody sane at the top.

  11. <i.Whichever way you cut it, a weaker pound makes us all poorer, not richer.

    Not sure you are right there.

    The New Zealand Dollar has been floating very high for the last decade, and the general consensus from all the parties is that it is not making us richer. All the parties would like it to fall. It makes our products hard to sell overseas, and the reduced cost of imports, while nice, isn’t compensating enough (as well as killing any internal manufacturing).

    The rise is, in part, a sign that we are richer, but it is not causing that wealth, only reflecting it.

  12. Chester D,
    Presumably NZ “exports” housing, like the UK does. For example if I sell my mansion in Hampstead for a few £million and move into a retirement home, the effect on the balance of payments is the same as for an export. No export industry or industrial capital is created.

  13. Bloke n North Dorset

    Doesn’t a weak currency make it cheaper for foreign investors, especially in capital intensive sectors?

  14. Andrew M. Yes, we sell our housing to the Chinese. But not in big enough amounts to really matter.

    I believe our currency rose for other reasons. We had high interest rates, so the Japanese bought Kiwis to earn interest. The “carry trade” I believe it was called.

    Once our interest rates fell our dollar has remained high because no-one has any interest in lowering it. It “should” be lower. And we would be better off if it was lower.

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