Retail sales growth is unsurprisingly depressed.
The pound has fallen below $1.30 this morning.
Beyond the UK, the Fed is having problems making the idea of interest rate rises stick.
They’re just a banking fantasist’s pipe dream here.
And the FTSE 100 sales on at near record highs
The markets are trying to ignore reality.
Reality is biting back.
And its message is deeply uncomfortable. I do not see that changing. And sometime the markets will note.
An actual economist would note that 75% of revenues to FTSE 100 firms are from outside the UK and not in sterling. A declining pound therefore raises he £ value of such receipts and profits.
Actually, that in the absence of any other influences (you know, that ceteris paribus bit) the FTSE 100 and the sterling exchange rate are inversely correlated?
But then that would be an economist, no a Senior Lecturer in international political economy at the technical college of a London borough.
As we get from the comments, on 21 May we had:
The peak is because the pound is fallen. These are wholly connected variables. Because so many FTSE 100 companies earn their profits in anything but sterling if the pound falls the value of their profits (in sterling) rises and so does the share price.
Not one of their brightest moments.