asterisk2a + gbp   9

Post-Brexit sterling slump costs Easyjet £40m, says boss
costs increase by £40m [...] Carolyn McCall told the BBC the drop had made fuel - which the firm pays for in US dollars - more expensive. She added that the increased cost of travelling abroad is deterring some British holidaymakers.
Sterling has lost more than 10% of its value against the dollar since Brexit.
Ms McCall's comments came as Easyjet released its quarterly results, which warned that the company is earning less from each passenger.
Brexit  GBP  Sterling  British  Pound  Forex  inflation 
july 2016 by asterisk2a
U.K. Faces Short Recession as Brexit Hammers Spending, EY Says - Bloomberg
The U.K. will fall into a “short, shallow recession” around the turn of the year as Brexit hits house prices, jobs and spending [...] it’s slashing its 2017 growth estimate to 0.4% from 2.6% & predicting the BOE will cut interest rates to zero by the end of 2016. Tax reductions are also a possibility [...] as the government scales back austerity to aid an economy reeling from the shock vote to pull Britain out of the [EU]. “We would expect a permanent reduction in the level of U.K. output and productivity.” Business investment will drop 2% next year and the jobless rate will reach 7.1 percent by 2019
GBP  Brexit  British  Pound  recession  ZIRP  QE  austerity  Theresa  May  Philip  Hammond  productivity  productivity  gap  output  output  gap  GDP  business  confidence  consumer  confidence  unemployment  economic  forecast  economic  history  budget  deficit 
july 2016 by asterisk2a
Brexit: Singapore bank UOB suspends London property loans
"With foreign exchange risks, even if the value of the overseas property rises, any gains will be eroded if the country's currency depreciates against the Singapore dollar," Mr Tok explained. // Chinese (and Asian) love their Betongold (most likely to be around 50% of their portfolio). Now in the hole because GBP lost 10%. But doesn't account for Yuan depreciation/devaluation.
Forex  GBP  devaluation  British  Pound  FX  Brexit  property  bubble  London  speculative  bubble  asset  bubble  asset  allocation  distortion  hunt  for  yield  Interest  Rate  Swap  Beton  Gold  Betongold 
june 2016 by asterisk2a
Firms plan to quit UK as City braces for more post-Brexit losses | Business | The Guardian
The IoD said a quarter of the members polled in a survey were putting hiring plans on hold, while 5% said they were set to make workers redundant. Nearly two-thirds of those polled said the outcome of the referendum was negative for their business. One in five respondents, out of a poll of more than 1,000 business leaders, were considering moving some of their operations outside of the UK. //&! The chief executive of Deutsche Bank – which employs 11,000 in the City – has played down the long-term impact. John Cryan, who is British, told Handelsblatt: “The financial centre won’t die but it will get weaker.” - bit.ly/28WkoMZ
Brexit  recession  City  of  London  European  Union  FDI  foreign  direct  investment  GBP  current  account  deficit  budget  deficit  fiscal  deficit  austerity  monetary  policy  fiscal  policy  BOE  ZIRP  NIRP  QE  distortion  inflation  targeting  inflation  expectation  business  confidence  consumer  confidence  British  Pound  uncertainty 
june 2016 by asterisk2a
‘The City’, by Tony Norfield - Banking as seen from the belly of the beast
[ current account deficit only affordable (thus also living standards) bc of City of London ] This is a man who writes without irony about “financial parasitism”. In The City: London and the Global Power of Finance, he seeks to document just how the UK and the US extract their pound of flesh from the rest of the world by dominating the financial flows that make international trade possible.

He argues that London’s leading role in foreign exchange trading, derivatives and overseas lending is an extension of its imperialist past. Creating complex financial products and charging for them has enabled the sector to requisition for the UK and London — and, of course, bankers themselves — a disproportionate share of the benefits of global trade. [...] [ extracting value from around the world channelling it back ] &! Novara Media interview - bit.ly/297c6D3
Brexit  City  of  London  banking  business  investment  banking  current  account  deficit  GBP  derivatives  financial  product  financial  services  Global  Finance  British  Empire  Imperialism 
june 2016 by asterisk2a
CURRENT ACCOUNT DEFICIT ON THE BALANCE OF PAYMENTS: THE MOST DAMNING STATISTIC!
If you want to understand how an economy is performing and how sustainable its economic growth then look at the current account balance. Officially it is often ignored and there are attempts to play down its significance. After all it is always only just a few years away from an election so the very short term is considered much more important than the long term strength and economic health of the economy. Dire straits is not an underestimate of the current damaged state of the UK economy and indeed many other western economies. [ affordable only bc of City of London (Banking and Co.)! - bit.ly/297c6D3 - Novara Media - The City: In Conversation with Tony Norfield ]
UK  current  account  deficit  trade  deficit  fiscal  deficit  Brexit  western  world  secular  stagnation  inflation  targeting  nominal  GDP  targeting  austerity  aggregate  demand  USA  Manufacturing  industrial  policy  energy  policy  GBP  City  of  London  book  British  Empire  unitedkingdom  standard  of  living  living  standard  economic  history 
june 2016 by asterisk2a
George Osborne: A profile of the man behind the Budget - BBC Newsnight
// 70% of UK economy growth (GDP), 2015, was consumption. // and trade deficit/current account deficit for 2015, biggest ever on record ---- The UK's current account deficit widened to a record high in the final quarter of last year.
The deficit in the three months to December was £32.7bn, the equivalent of 7% of GDP, said the Office for National Statistics (ONS).
For all of 2015, it came to £96.2bn or 5.2% of GDP. Both figures were the highest since records began in 1948.
A current account deficit means the value of imports of goods, services and investment income exceeds exports.[...] "An obvious potential trigger for the markets losing confidence in the UK economy could be a vote to leave the EU in the 23 June referendum." [ harder to finance w weak Sterling and higher interest rates, rating agencies hinted at the case of a downgrade of UK's credit worthieness ] - bbc.in/1ZMEvAg
Budget2016  George  Osborne  Career  Politicians  austerity  economic  history  Tories  Conservative  Party  nasty  David  Cameron  Brexit  HS2  minimum  wage  living  wage  budget  deficit  trade  deficit  secular  stagnation  recovery  Toff  No  Representation  Privileged  Establishment  demographic  bubble  bank  bailout  Positioning  dogma  ideology  neoliberal  neoliberalism  spin  doctor  PR  disposable  income  discretionary  spending  wage  stagnation  squeezed  middle  class  consumer  debt  household  debt  credit  card  debt  Student  Loan  Generation  Rent  underinvestment  Richard  Koo  Japan  nominal  GDP  targeting  GDP  growth  of  income  shareholder  capitalism  crony  capitalism  current  account  deficit  GBP  Sterling  business  confidence  global  economy  fault  lines  ZIRP  NIRP  QE  BOE  Mark  Carney 
march 2016 by asterisk2a
Another Currency Runs Out: BOE Introduces "Collateral Term Repo Facility" To Deal With Sterling "Shortages" | ZeroHedge
When yet another central bank, in this case the BOE, proactively uses the word "shock" in relation to funding deficiency (in this case the GBP) if even with the phrases "contingency" and "there is currently no shortage" a brief week after the global central bank cartel did the same to assure the world of USD funding availability, it may be time to wonder i) just how bad is the global FX crunch in any currency (EUR most certainly included - see near record ECB deposit facility usage), ii) just how broken is the shadow banking system - as a reminder with Lehman it was money markets (a major component of shadow liquidity), now it is repo (smaller, but still critical component of shadow banking) that is failing and iii) when will this crisis escalate to the next logical step?
Euro  GBP  shortage  2011  currency  liquidity  BOE  ECB  Fed  shadowbanking 
december 2011 by asterisk2a

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