INDEPENDENT NEWS

The pound could fall further on lack of Brexit clarity

Published: Wed 19 Jun 2019 12:58 PM
The debate between the five men vying to be the UK's next Prime Minister underscores that the pound and UK assets can be expected to fall further, affirms the boss of the world’s largest independent financial advisory organizations.
The comments from Nigel Green, founder and CEO of deVere Group, which has $12bn under advisement, comes following former Brexit Secretary Dominic Raab being eliminated in the second round of voting, ahead of a live televised debate between the remaining five: Boris Johnson, Jeremy Hunt, Michael Gove, Sajid Javid and Rory Stewart.
Unsurprisingly, Brexit dominated Tuesday evening’s debate.
Mr Green notes: “The debate between the five men vying to be the UK's next prime minister underscores that the pound can be expected to fall further.
“The chaos and uncertainty triggered by Brexit – which has recently intensified by the race to become the new Prime Minister – has put the pound on a considerable downward trajectory.
“An already battered pound has lost almost 5 per cent of its value against the U.S. dollar since the start of May. Similarly, it continues six straight weeks of falls against the euro.”
He continues: “The debate on Tuesday night – the first one in which Boris Johnson, the frontrunner, has taken part – underscores in the most dramatic way that there is still no single realistic way forward out of the Brexit quagmire.
“None of them could answer how they would get their version of Brexit over the line.
“As it stands, the facts remain that parliament will not back the deal as agreed with the EU; it will not back a no-deal scenario; and it will not back a second referendum.
“As such, there is still no path through this – and it has already been going on for three years.”
Mr Green goes on to add: “Against this backdrop of growing uncertainty and a looming deadline, the pound and UK assets will likely have further to fall.
“It is hardly surprising then that UK and international investors are responding to the Brexit-fuelled uncertainties by considering removing their wealth from the UK.”
The deVere CEO concludes: “The lack of real answers from the candidates on the most pressing issue for a generation will inevitably impact the pound and UK assets.
“Nothing has already been priced-in as there is, currently, nothing to price-in.”

Next in World

At UN, youth activists press for bold action
By: United Nations
Tongan PM 'Akilisi Pohiva dies, aged 78
By: RNZ
UK PM to Suspend Parliament; Queen's Speech
By: 10 Downing Street
Gordon Campbell on the Hong Kong protest movement
By: Gordon Campbell
4 days until intergenerational climate strike
By: School Strike 4 Climate
The Nation: Simon Shepherd Interviews James Shaw
By: The Nation
Coal use increasing under Labour-Green policies
By: New Zealand National Party
NZCTU calls on employers to release staff for Climate Strike
By: New Zealand Council of Trade Unions
Interim Climate Change Committee Call for evidence launched
By: Interim Climate Change Committee
Climate change is here - we all need to do our part
By: Citizens Environmental Advocacy Centre
Preventing climate change cheaper than dealing with damage
By: University of Queensland
Winners of 2019 Global Youth Video Competition
By: UNFCCC
Extinction Rebellion: Leaving it to the Students
By: Binoy Kampmark
Major IPCC report: ‘The climate crisis is an oceans crisis’
By: Greenpeace
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media