This morning Sterling has looked friendless in the ring. It has drifted down to $1.2253 against the Greenback. Firstly markets dislike uncertainty with a vengeance and in the case of Mrs May’s government there has been a lack of clarity over hard/soft BREXIT plus some dangerous prevarication over an acceptable immigration policy. PM May has not been helped by some initial tough talk by Home Secretary Amber Rudd, who seemed unclear about the future status of overseas personnel, who have generally contributed to society and to growth and made the UK their home. There is no need for open registers or any discriminatory feelings whatsoever. That is offensive.
At last I think we have just about got there but it has been a real tortuous struggle. It should not have been like that. This indecision has driven wedges of unnecessary dissent and division in our society. Control of immigration for the past decade has been short of the mark. On the whole immigration has been very positive for UK PLC. Consequently those contributing must be allowed to stay unequivocally. That should have been made clear from the outset. All that is required going forward is sensible policing. I think a less abrasive approach may help the tone of the ensuing negotiations. Perhaps I am being naïve, but being obstreperous does not help. The only way the run on the Pound is going to stop is when we have an idea of a cohesive plan.
It was good to hear Lord King, the previous governor of the BOE shovel in his pragmatic two cents worth. He believes a lower Pound will not be too damaging and he does not subscribe that the UK faces financial perdition.
The longer we experience vacillation the more the ‘Remainers’ will attempt to mass their troops by sending out messages of doom and gloom just like the one promulgated in the Times that the UK will lose £66 billion worth of business as a result of BREXIT.
At 1.13pm the FTSE is up 10 at 7107, having been up at record intraday level of 7129 thanks to a continuing strong Dollar. Oils and mining are just below the Plimsoll line. Dollar related stocks such as Reckitt Benckiser +1.5%, Unilever +1% and BATS +1% have performed with aplomb. M&S is up 4% – news of better sales and strong tourism. The same applies to NEXT +4%. South 32 is up 4% and Whitbread is enjoying a decent run on the rails – +3.3%. Of those companies posting results – PageGroup +4.36%, Ted Baker +5.84 and McCarthy & Stone +8.2% all put in stellar performance. DOW futures are down 40 points.