3 days ago Pound to euro exchange rate: Sterling 'creeping higher' in positive news after BofE report. THE POUND to euro exchange rate enjoyed a boost. 11 hours ago It comes after sterling surged against the euro when market the week trending lower” experts have cautioned, should a report of the UK's . Pound to euro exchange rate: Sterling 'creeps higher' amid BofE report .. Pound to euro exchange rate: Sterling 'creeping higher' in positive news after BofE report. 3 days ago The start of the week was not such good news yet as the trading week rate: Sterling 'creeping higher' in positive news after BofE report.
BofE ‘creeping rate: in report after positive euro news exchange Pound to higher’ Sterling
Without increasing demand from the 'outside' world for our goods and services by a process of gradual devaluation of Sterling our industry and services sector could suffer from unemployment.
But if we did devalue Sterling we could reign in general spending without this having a profound effect on industry and services Isn't stagflation where the economy is heading? No one seems to be talking about it but surely that is where lower interest rates are going to take us?
Won't lower interest rates lead to a further devaluation of the pound and a further rise in inflation? You point out that the pound could fall in value, thereby cutting imports and improving exports. No doubt you are also aware that the BoE is predicted to have a significant cut to interest rates over , and we have already seen cable fall substantially over the past month.
Therefore the most realistic outcome is for the weakning currency to have an effect, which is a good thing, and is something the US is already benefitting from. It has been some time since my school economics days, but I am sure there is competing arguements out there about balance of payments deficits. Who is to say a deficit is a bad thing? Is a massive surplus a very positive thing for China right now or Japan in the 's? You are confusing facts and generating fear where it need not be when you start drawing comparisons between the deficits of the late 's and the recession.
I would like to see your proof that the deficit was a fraction of the cause perhaps changing property laws and sky high interest rates, neither of which are occuring today were! Please be less of a journalist by writing on fear and more an economist by providing fact, it will help your credibility. Has 'aunty' restricted you to one downside economic factor per day and banned the r word? Increasing trade balance deficits, unprecedented personal and corporate debt, property market slumped, government spent our surplus and borrowed billions, banks and building societies in unquantified crisis, predictions for inflation up and growth down, government incomes down and nothing left to tax, international financial institutions pumping billions into black holes, sterling too strong, etc.
The real problem is that most of the supposed wealthiest countries in the world have huge debts to the rest of the world. In most cases that can be considered OK in the normal events of business, but the largest debtor also happens to spend more on arms than the rest of the world combined. Who wants to push for repayment if they default? Add those in and we are truly shafted. When this hits home the squealing will be immense, because nobody is to blame for thie own actions anymore are they!
I just thought that I would point out that the word data is a plural. So your phrase "Well, the data is already old news. You should have higher editorial standards. Therefore interest rates set too low. Therefore people could afford to spend more on housing.
This will boost exports and cut imports. Mr Browns decade of spend spend spend to 'cure' public services HAS to stop - but that in itself will take cash out of the economy too. I am not convinced the Japan example quoted in a comment above is correct, I believe Japans rates are low to revive the stagnated economy - low rates were not the cause of that economy stagnating.
Things have changed yes, we all need to be more prudent but not lock ourselves away in a dark cupboard! Oh dear, is Evan becoming one of those doom mongers, so easily dismissed over the last few years?
Those 'amateur' economists who didn't know the front end to the back end of a boom or bust? The BBC and the media is general are complicite in the financial disaster in the making. No pressure brought to bear on Gordon Hamish Brown, the biggest economic sinmeister of all time, regarding his 'prudent' running of the economy.
Never did economics at school but have learnt over the years that you can't spend what you don't have - may be it was the seventies that drilled that into me! And that is exactly where we are right now - IMF bailout to come!
This has been along time coming but this problem was bound to arrive. Brown has been negligent in the way he has run the economy and neglected what ha should have been doing. Instead of overseeing a mad growth in government,bureacracy and red tape he should have been overseeing a growth in industry and production. All economies need recessions to create growth. For those in their 20's it will mean that they will be able to afford a property for their young family in years to come as house prices tumble.
The housing market had got to the point where their was no growth whatsoever and the only people keeping the prices ridiculously high, were property investors, but-to-lets. For those who get their fingers burnt, this will be an education to value money instead of spend spend spend. The government are to blame too, they have wasted billions of taxpayers money by red taping businesses and inefficient spending and recruiting in the public sector.
Instead of leaving business to its own devices they have meddled and interferred home information packs, for example thus the wheels of commerce are no longer slick but riddled with Red tape, they should be ashamed.
If we have a trade deficit it means we don't export enough to pay for the imports we need. Imports like food and energy - things we need to survive. Having a floating exchage rate doesn't help. If the pounds falls relative to other currencies it means we export more - but our imports become more expensive. And if you really want to work out what is about to happen to the economy - take a look at the M4 money supply figures.
They are dropping like a stone. However this deficit figure is only one snapshot at one given time and we need to see where this deficit is at this time next year before we can really pass judgement on the future of Sterling. As it is the overall accumaltive borrowing as a percentage of GDP, which is really important and not the rate that it is accumulating. If our total borrowing is more than the U. However this figure does not tell us that.
It just tells us about the speed at which we are borrowing. Although if this speed remains at this level, then you are right. However I still say that if you are right then rather than having a large devaluation, we will instead stumble upon the start of the end game for Sterling and by the master currency in the UK will be the Euro. The only question is at what level should sterling be fixed to the Euro.
I am betting Eur. And Callaghan said, "Crisis? Just like Brown is. I still have a 'Buy British' mug. Buying British then meant buying British Leyland. Where did they go? Pensioners on fixed incomes will be paying for it. Just like they did in Russia. Heaven help those poor souls on a fixed income". Well, here's the thing - you have spent too much time in the States.
The English pronunciation of 'wodge' is 'wodge'. The American East Coast pronunciation is 'wadge'. So 'keep it in the ballpark'. It isn't 'rocket science'. I hope you have a Happy Holiday and 'have a nice day. Anyone remember the ERM. This was the exchange rate mechanism which tied the currencies of the EU together within a fixed range before the Euro was adopted.
It tied the hands of central bankers. One day the pound sterling fell out of the ERM acceptable range and the government said it would not make an adjustment but the billionaire George Soros bet it would and won big taking the UK for a reported one billion dollars in one night. The Bank of England never verified that number. As dumb as the ERM was, joining the Euro would be even dumber. There, countries like France have NO recourse when disaster looms as it does now. The UK can, should, and almost certainly will inflate its currency devaluing it, bringing the pound down to size, making exports much cheaper for the outside world and imports much more expensive for Brits.
Learn to be more self reliant. There will be inflation and there could even be a slowdown or recession, the good times don't always roll. But first it will have to tear up any treaties which still restrict its ability to manipulate its currency monetary policy to compensate for its fiscal policy government spending deficits and possibly EU dreams with it.
The principle is to pay back expensive debt with cheaper currency by just printing more of it. That's how the US gets through every time and it will do it again. Or Britain could just go down the tubes with the rest of Europe. What will happen when the French government really has empty coffers as Sarkozy's ministers says it has and can't pay its workers or its debts? How many other nations will go down with it? When the bough breaks, the cradle will fall, and down will come Europe, China, and oil prices and all.
Afterwards, Europe will become very cheap. I'm thinking about buying the Czech Republic or maybe Slovakia. I wonder if I could get a subprime mortgage on one of them. BTW, once upon a time, the US had both substantial trade surpluses and a government budget surplus. And then the stock market crashed and the economy collapsed in the depression of There's a lot more to economics than meets the eye with a single number or two.
Central banks are scrambling to create and maintain liquidity, the grease which keeps economies spinning. One number to look at is GNP which considers the repatriation of profits from overseas investments. There may have to be some belt tightening by the government for awhile too.
Britain and the rest of the EU can point to America's lack of a complete social safety net but Europe's is far more expensive than it can afford and most of it doesn't even have to foot its fair share of military spending. But to suggest paring back that safety net in France or Germany is political suicide, the population refusing to accept the economic reality of their plight.
The weak US dollar compared to the Euro and the WTO rules which require opening domestic markets without the kind of protectionism Europe and other countries once enjoyed is America's economic war on the world and it is winning. Much of China's industry is owned by American corporations who were encouraged to invest there massivley decades ago. If the UK wants to tie its stars to the EU's economic fortunes, it will surely hang with them. Month after month more manufacturing and back office jobs are being moved to Eastern Europe and Asia, the remaining British companies are being sold off - and it's all one-way traffic.
If individuals collectively , businesses and the government are all spending more than they are earning, then how can anyone say the economy is doing well? No amount of mumbo jumbo and tinkering with interest rates can compensate for the fact that we have less and less left to sell to the rest of the world to pay for all the stuff we import i. What do you expect from socialism? Tax and spend and if you cant tax anymore borrow money from the banks, except the creditors are now foreign banks and sovereign wealth funds.
They cant wait for the UK's economy to start cracking up so they can buy up all of the nation's wealth just like what is happening in the US. When he said this we were in the largest credit boom ever, we are now entering the end of this boom. Due to socialist regulations and economic planning, the only thing keeping the UK alive is NOT independent businesses our services industry which is all we have left , its government spending which they borrow to "stimulate the economy".
Well all this central economic planning and increased attacks on our liberties ID cards, anti terrorist powers, nanny state blah blah reminds me of something from the recent past I would suggest people educate themselves, even if you dont agree with them at least you will be critially thinking try looking at some of the following authors you probably never heard of true free market capitalists and NOT the "phoney croney socialist" based system we have, which people think is capitalism when it isnt:.
You will soon see that socialism causes a lot of these issues yes, the USA is just as socialist as we are except they have different priorities. Also teach yourselves how our central banking system works and how money is created there isnt any gold in those vaults any more, check our the GATA website. You will see the things you dont learn in school and may even question why we need a central bank. And before you tell me the gold standard didnt work, have a read of those authors and you will see how government was manipulating the standard during British and then American imperialism and the eventual adoption of socialism.
These are conspirancy theories its just governments cannot help but tinker with the system and give handouts of polical gain.
The economy is taken for granted and seems to be viewed as something separate from politics when it is the only important thing in politics. So do we want a centrally planned economy giving into the whims of big banks with ever decreasing civil liberties or do we want to be left alone, free and without government intervention?
Ideology is not dead in politics and we are in a very dangerous turning point where we face freedom or debt salvery with government control. We need to return to TRUE capitalism without government made manopolies and free from government controls. Good summary of where we are now, Evan. It's a shame that so many of your corresponents demonstrate so much complacency about any of this mattering. It's a tribute to the spinning skills of New Labour that so many actually believe the GB has given us the perfect wrold with no business cycles and an endless supply of cheap credit.
The sad reality is that thre is no chance of having the biggest credit boom on history wothout it being folloed by the biggest credit bust in history. No government anywhere, ever, has managed to avoid this universal truth. Debt is REAL and must be paid back. New labour's debt is larger than any run up by any British government ever before, as is housing debt, as is consumer credit.
Many of the replies above seem to be relying on GB to bail us all out.. Now the spell is broken, we can expect the pound to slide and with it inflation to rise.
How exactly will the Bank of England then justify cutting rates to help those in need? The sad reality of the last ten years is that after all that money spent on education, nobody actually trained to do anything. So we now have a nation of amateur property developers who will have nowhere to go nopw the bubble is burstng. Manchester, Leeds, Liverpool, Birmingham city centres and others are full to busting with unsold two bedroom flats.
The buy to regret money has run out because it has no economic return anymore. This is the only truth that the dreamers of GB's golden economic miracle need to remember.. Anything else needs a premium to attract investors and buy to regret at a yield below government bonds is totally unsustainable. The speculative element is creeping in! Therefore in addition to exporting physical goods or financial services to reduce the deficit, it is helped by tourism and education too.
As a born Londoner now entering the twi-light years,I was always fascinated by the art of "making things". Seeing bits and pieces magicly composed into a constructed item-be it knife and fork,table or car.
Yet,over all the years, sadly decades ,only 2 times was I ever able to watch such skill in practice with my own eyes. These on tourists visits to Murano off Venice and in the 's Waterford Crystal's factory for similar glass making near Waterford. On one occasion I especially went to Stafford to see a pottery making household jugs and colourful things, a household name ,to be informed by my taxi driver-an ex potteries worker,the factory was closing and moving to Malaysia.
I live within the shadow of the city of London sky scrappers-where presently the sky line is dominated by cranes and new construction scaffolding. My own job, now being out sourced to India ,being a PC based service industry one. The share price of the company I work for has continually fallen, it's in the top 30 FTSE ,and I expect within 2 or 3 years will be bought by an overseas foreign group. Yes,the economic miracles of the UK have certainly defied my simple logical understanding.
A time poor busy nation-over taxed, that produce so little. Yes,I think life for the young will be a daunting challenge in the years ahead-shuffling thin air to live and fund an ever hungry treasury and somehow keep the sky line of the city expanding ever upwards on mountains of cash? I've now moved on to a new job, presenting Radio 4's Today programme. Evanomics will continue to exist in some form, as yet undecided. Accessibility Links Skip to content Skip to bbc. Skip to main content Access keys help.
Evanomics Figuring out real life, by Evan Davis. In that sense, the deficit is reminding us of a problem we have already known about.
The question is how the eventual adjustment will shift to a smaller deficit will come about. One or both of these look likely over the next couple of years. How does this play into the already fragile state of our economic nerves at the moment?
The UK looks it has had more in common with the US than we thought. Hi Evan, In the context of the pound falling so investing in the UK being less rewarding , Government debt rising, and other debt guaranteed by the Government eg Northern Rock rocketing, is it likely that it will become significantly more expensive for the Government to borrow?
You're absolutely right - we do have a lot in common with the US. Evan, you are never happier than when you state the obvious and of course bad news. Uunsustainable currency, country and people more like. Just to let you no mike im 17 an have a good understanding of the balance of payments: Anyway, all this talk of hard times ahead will be a self fulfilling prophecy won't it? Thankfully, recessions usually lead to 'regime change'.. How is the Eurozone doing on this measure?
With regard to house price stability - or shall we say instability as more appropriate ; the RICS have commented today that they do not foresee a sharp slow down in prices! These strengths allow the US to overcome weaknesses related to its macroeconomic imbalances" And herein lies the real problem. I think this article has some truths, but also paints some pretty scaremongering comments.
Evan, Has 'aunty' restricted you to one downside economic factor per day and banned the r word? Please help me, Is this a r or not? This is a serious issue. Shouldn't it be "wodge"? Iron Chancellor - I think we may have to rethink our views od the econony Mr Brown built. Hello Criteria for measuring inflation did not include relevant things such as Coun cil Tax etc. The way that I see it is as follows.
There is likely to be a massive reaction, particularly for sterling, whichever way the vote goes. A vote for Scotland to remain in the UK is likely to lead to a significant relief rally for the pound and we could see a slight gain from the current trading levels.
If you are looking at buying or selling the AUD against the pound it may be wise to inform me of your requirement and I can explain the options available to you to help you minimise your risks to the market. You may email myself Ben Amrany at bma currencies. Sterling has continued its strong rally against the Australian dollar having shifted 10 cents in last 10 days 5.
Data from Australia has been relatively light this week highlighting how dominant sterling has been and just how the Scottish independence vote is influencing the value of the pound. With voting having started this morning and the results scheduled for Overnight the RBA bulletin gave little insight as to future monetary policy but I still believe the RBA will be uncomfortable with the value of the dollar and this 10 cent shift will have been a welcome move.
Figures expected to improve from 0. The Aussie was weakened once again by Chinese data earlier this week, all eyes are now of course firmly on the referendum for Scotland to see just how that will pan out. I expect we could see some strong moves on the markets of up to 1 or 2 cents higher if the vote is NO, cents lower if it YES. If you need to move any funds abroad this referendum is presenting a great opportunity. To learn more about the forecast and discuss strategies please contact me Jonathan directly on jmw currencies.
Despite comments from the RBA Governor Stevens that he felt the Australian Dollar was overvalued at present and news from China that we could well see a change in fiscal policies and potentially some stimulation measures to be put into place in the near future.
Chinese data can have quite an impact on the value of the Australian Dollar as they use so many raw materials and import a lot from Australia. The building boom in China has had tongues wagging for a while as to how long it can last and when we may see a slow down over there and it appears it may be coming. My personal view on the Australian Dollar at present is that there is a much higher chance of it getting weaker over the coming months than stronger, if you are looking to sell Australian Dollars and exchange them into Sterling, Euros or Dollars then it may be prudent to act sooner rather than later, although of course you never know for sure exactly what may happen as a lot of surprises to pop up on the currency markets.
For anyone with an interest in Sterling you may wish to keep a keen eye on the pending Scottish referendum as this could also have a big impact on the Pound in the next 48 hours. If you do have the need to exchange foreign currency in the near future and you wish to achieve better exchange rates than you are currently being offered either by your broker or bank then it is well worth getting in contact with me Daniel Wright directly.
The company I work for has won awards for our rates of exchange and customer service so I would be confident that i would get you more for your money. Feel free to email me on djw currencies. The recent Reserve Bank of Australia RBA minutes, coupled with poor data from China has hit the AUD hard just as it seemed it was gaining some momentum after a difficult 12 months against most of the other major currencies.
In fact we have even seen a positive move for the AUD today due to mixed inflation data for the UK, which has helped push the currency pair back under 1. We also have the latest RBA report and annual bulletin overnight on Thursday so expect further movement following these releases.
If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements , or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv currencies. The currency has also declined by over 4 cents against the USD which is a six month low and we have seen a similar theme against the Euro. Last night the RBA released their latest minutes from their interest rate decision.
The overall theme for AUD buyer and sellers was that the RBA felt that the currency was still overvalued which could lead to further falls for the currency over the coming months.
In the near term for clients buying or selling the Aussie Dollar with the pound the Scottish referendum is dominating proceedings at the moment. We will learn on Friday the outcome of the voting and if the Yes campaign are victorious we will expect a big fall for the pound but if as expected teh NO campaign win the vote then the pound could just push on further against the AUD.
Chinese factory output grew at the weakest pace in nearly 6 years and growths in other sectors have also cooled. This could lead to fresh stimulus in China which should cause further declines for the AUD.
If you require buying or selling the AUD please feel free to contact myself Ben Amrany at bma currencies.
Pound to euro exchange rate: Sterling climbs higher against the euro
3 days ago Pound to euro exchange rate: Sterling 'creeping higher' in positive news after BofE report. THE POUND to euro exchange rate British Pound Forecast to Rise Above Euros: Analyst Polls. Pound to Euro exchange rate. Pound to euro exchange rate: Sterling 'creeping higher' in positive news after BofE report Pound to euro exchange rate: Sterling 'recovered' – but BofE news could send pound down. 3 days ago HomeTravelPound to euro exchange rate: Sterling 'creeping higher' in positive news after BofE report. Pound to euro exchange rate: Sterling.