Exchange rates
Pound bags on 1985
Almost a week after the Brexit-the decision of the British to follow through on the currency of the country. The British pound loses and loses and ends up on the lowest level in thirty years.
The pound has since lost the vote for an exit of Britain from the EU of around 15 percent against the Dollar. At times, a pound cost on Wednesday morning, only 1,2798 US Dollar. In the first days immediately after the decision, the pound was dropped first, to 1.31 dollars, was able to recover but then again something.
Nervous also the Japanese stock responded on Wednesday market. The Nikkei posted strong losses. The 225 values comprehensive Index, listed at the end of the morning trading 2.96% lower at 15.206 points. Also the other Asian markets recorded losses. Traders were concerned about the economic development in Europe after the Brexit vote responsible.
Worries about the global economy had on Tuesday, the Wall Street. On the mood of not only the fear of the consequences of Brexit, but also with the lower Oil prices squeezed. In the case of the return of U.S. investors from a long weekend, the Dow Jones Index fell by 0.6 percent on 17.841 points. “Investors are cautious,” said John Callany, chief economist at LPL Financial. You have the Brexit vote and its consequences in view, and did not lean obviously to far out of the window.
“Period of uncertainty”
Confirmed the economy were pessimists of the statements of the British Central Bank chief Mark Carney. He warned of serious consequences of Brexit for the economy on the island. “The UK is in a period of uncertainty and significant economic adjustments,” Carney said in London. The monetary authorities were ready to provide for the functioning of markets. As a reaction to the shock waves of the Brexit vote in the economic and financial world, the British Central Bank has switched to a crisis mode.
London: the Bank of England
In order to preserve the financial world from worse, loosened the Bank of England, with immediate effect, the capital rules for banks. You don’t have to for now put aside more money for worse times. The already approved special capital buffers remain suspended until at least June 2017, not hot, however, that the financial institutions were given more scope for higher dividends, Carney. Rather, lending to companies and households should be stimulated. “In case of emergency, we can provide enough liquidity”, – said Carney.
Care and control
Out of fear of a resumption of the global financial crisis, the ECB and other Central banks after the Brexit vote, have the trading rooms of large banks with control requests bombed. As Reuters insiders learned from the financial industry, gave the British and the US Central Bank and the ECB in a timely manner a comprehensive picture of the activities in the market, to be able to early on impending turbulence detect. A Banker said that never before had such control calls so often and so consistently. Apparently, there had been the concern, the surprising Anti-EU vote could lead to the financial markets to such serious problems as the collapse of US investment Bank Lehman brothers in the autumn of 2008.
The mood among the entrepreneurs on the island has deteriorated to the Brexit vote already solid. In the latest survey by the research Institute YouGov and the Centre for Economics and Business Research, 49 percent of the firms indicated to evaluate the General economic Outlook for the next twelve months are pessimistic. Before the Referendum, only 25 percent were of this view. And the British Department store chain John Lewis is the reluctance of consumers to feel: In the week after the Referendum, the revenues grew only by 2.1 percent. In the week before the start of the summer sales, the Plus still at 7.3 percent.
ar/hb (rtr, dpa, afp)