Pound news - LIVE: Sterling set to hit new 10-year low within weeks, says major forecaster ING
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The pound is set to hit its lowest level since the height of the financial crisis in January 2009 within weeks, bank analysts have forecast.
Dutch bank ING predicts sterling could go to 95p per euro from its current level of 93p and said there was now a one-in-four chance of a no-deal Brexit.
The pound went as low as 98p against the euro in December 2008 in the aftermath of the collapse of Lehman Brothers and the £45bn bailout of RBS.
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"Deal or no-deal a general election looks increasingly likely," says James Smith, economist at ING, one of Europe's largest banks.
"There's a 40 per cent probability of a general election coupled with an Article 50 extension."
ING says sterling could drop to 95p per euro this quarter from 93p now.
Six out of 10 investors are now actively seeking to move assets out of Britain according to a new poll.
The survey of more than 740 clients carried out by financial advisor deVere Group, comes as the pound hovered at a decade-low against the euro.
Nigel Green, chief executive and founder of deVere Group, says:
“There is a legitimate and growing sense among those who were polled that in order to build and safeguard wealth, assets should be moved outside of the UK. “It comes amid a slew of negative official data and public sentiment regarding Britain’s economic outlook over the next few years. “Clients have expressed that they feel there’s a closing ‘window of opportunity’ to transfer their UK-based financial assets within the next few months.” “Investors are seeing a perfect storm brewing: the UK’s slowing economy, weak global economic growth, the pound at a 10 year-low, the increasing possibility of an interest rate cut and the risk of a no-deal Brexit pushing the UK into a recession."
The pound's recent falls mean tourists heading away can expect to get just €1.03 per pound on average.
According to Mone.co.uk the best rate available is €1.066 at Travel FX Travel Money.
M&S Bank is not far behind with €1.061.
More than 50 major UK retailers have demanded action from the Government to fix the “broken” business rates system, the Press Association reports
Bosses from companies such as Asda, Sainsbury's and Marks & Spencer have written to Chancellor Sajid Javid calling for “fundamental” reforms to the taxes paid by businesses on the properties they occupy.
It comes the day after new figures showed the number of empty shops in town centres had risen to its highest level since 2015, with the vacancy rate hitting 10.3% last month.
Helen Dickinson, chief executive of the British Retail Consortium, which co-ordinated the letter, described the current business rates system as “broken”, adding that it “holds back investment, threatens jobs and harms our high streets”.
“The fact that over 50 retail CEOs have come together on this issue should send a powerful message to Government,” she said.
“Retail accounts for 5 per cent of the economy yet pays 25 per cent of all business rates - this disparity is damaging our high streets and harming the communities they support.”
Unemployment in Britain grew by 31,000 to 1.3 million between April and June and the rate rose to 3.9 per cent, according to official data.
Total pay, including bonuses, increased 3.7 per cent compared with a year earlier, while regular pay, which excludes bonuses, rose 3.9 per cent, the Office for National Statistics said on Tuesday.
Full story here:
Poundland is trialling out a range of products that are priced at less than, and more than, £1.
The pilot will also include trials of items priced at £1.50, £3 and £4, adding to £2 and £5 products that began going on sale in 2017.
In what looks suspiciously like corporate spin, Poundland said it was moving from being a "single-price retailer" to a "simple-price retailer".
The worldwide grounding of the Boeing 737 Max, following two tragedies that claimed 346 lives, is set to cost Europe’s biggest holiday company up to £278m between March and September.
Tui’s third-quarter results, covering the three months from April to June, warn that full-year profits will fall by around one-quarter to €1,177m (£1,092m).
The firm says: “We anticipate 737 Max-related costs of approximately up to €300m [£278m] for the current financial year.”
Travel Correspondent Simon Calder with the full story:
Sterling basically flat against the dollar and euro so far today, up 0.05 per cent to $1.207 and 0.09 per cent to €1.078.
Housebuilder Persimmon is currently undergoing an independent review to get to the bottom of complaints about poor build quality, profiteering from the government's Help to Buy scheme and excessive executive pay.
More details:
Concerning news for sterling from the FT which reports that short positions against the currency (bets that it will fall) have risen to their highest in more than two years.
Companies have become more pessimistic about the future of the pound as the likelihood of Britain leaving the EU with no deal has increased.
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