Could we see a Sterling crisis?

Thumbs_Up

 "United we stand, divided we fall" ?

Thumbs_Up

John464 said:

The greatest celebration in the American calendar is the anniversary of the day America got rid of them.  So maybe it cheers them up to see what they no longer have to put up with?

I was going to let this go, but hey..I’ll put up 4 names and someone else can make the joke.

King Charles.

President Blair.

President Biden.

Queen Markle. 

Albermarle

masonic said:

MA260 said:

Important to note that gas prices have fallen significantly since the price cap announced after measures taken by the EU and UK in the markets.  So the energy package may be no where near the 150 Billion projected.

It's a bit of a mixed picture really, the season ahead pricing has fallen back to where it was at the start of August, while the day ahead auction price is already moving back up to the previous high. There's a question as to how much energy companies will be hedging, since the government has now stepped in to protect their profits. The detail of the plan will be very interesting. But you are right that estimating the cost at this point is nothing more than guesswork.

I have not seen too much detail, but I think the Govt (same as the EU is trying to do) is hoping that some electricity producers can drop their prices, so this will also help to bring the cost of the cap down significantly. It is a complex area, but I think in simple terms the price of electricity is linked to the gas price, but in areas like Nuclear Power and Windpower they are not affected by gas prices. So it should be possible for the Govt to pressure them not to increase their prices as much as first thought, even if they only do it kicking and screaming.

MichaelAP

steampowered said:

Sterling is already at its lowest value against the dollar in 37 years. 

If you voted for Brexit, you really do not get to complain about this. 

I was wondering when we would have someone put the blame on Brexit.

Frequentlyhere

Martin Wolf at the FT with a timely article which expresses my concern exactly. Which is that we seem to be on a path to tossing money around in a very loose and bad value way and somehow expecting it'll work to our advantage.

"The UK is not the US. The foreigners who finance it have to believe it is managed by sober and responsible people. With soaring inflation and fiscal loosening, the UK is now on trial. Kwarteng’s duty is to avoid its being found guilty."

Ooer.

mebu60

Looks like he's settled in quite well at Chelsea, no obvious crisis. 

sevenhills

Thumbs_Up said

Please explain what the relevance is with your comment about Brexit? The Pound and Euro have been poor against the dollar for many years!

It would be understood why the Euro is weak when the Nordstream gas pipeline has been shut off and German businesses fear power cuts.
The UK on the other hand have the Brexit bounce 🤣

Notepad_Phil

sevenhills said:

Thumbs_Up said

Please explain what the relevance is with your comment about Brexit? The Pound and Euro have been poor against the dollar for many years!

It would be understood why the Euro is weak when the Nordstream gas pipeline has been shut off and German businesses fear power cuts.
The UK on the other hand have the Brexit bounce 🤣

Hmm do you really think that Brexit should allow us to bypass the problems caused by the shortage of gas caused by Nordstream etc, or have you no answer to Thumbs_Up.

P.s. I voted Remain, but it's ridiculous the number of issues that simply get blamed on Brexit.

sevenhills

Notepad_Phil said:

Hmm do you really think that Brexit should allow us to bypass the problems caused by the shortage of gas caused by Nordstream etc, or have you no answer to Thumbs_Up.

P.s. I voted Remain, but it's ridiculous the number of issues that simply get blamed on Brexit.

My point is that Germany have severe problems because of Nordstream, the UK are just suffering from higher prices - yet Sterling is not surging ahead of the Euro.
Maybe there has been some movement, I don't know