The Pound is going down the Toilet

[cronus]

Brexit has been kicked into the very long grass and nobody can be bothered to go and find it. Art 50 will never be triggered. Everybody with at least two brain cells knows Brexit was based on lies and misrepresentations. May wants it to die without trace and is just going through the motions.

I hope your right for all our sake's...

[rainbow]

http://www.telegraph.co.uk/business/201 ... st-rate-c/

Pound plunges as Bank of England cuts interest rates for first time since 2009

http://www.bloomberg.com/news/articles/ ... -boosts-qe

[Brian Peacock]

I suspect the BoE will now embark on a fresh round of QE, borrowing more from future generations to mitigate the economic failures of the present.

Brexit has been kicked into the very long grass and nobody can be bothered to go and find it. Art 50 will never be triggered. Everybody with at least two brain cells knows Brexit was based on lies and misrepresentations. May wants it to die without trace and is just going through the motions.

Unfortunately the referendum vote represents a political imperative. For article 50 to not be triggered requires the building of a new national consensus - at the moment there is no movement on this.

[Rum]

There are sheepish looking Brexiteers wandering around going 'who me?' As we speak..

[Scot Dutchy]

I suspect the BoE will now embark on a fresh round of QE, borrowing more from future generations to mitigate the economic failures of the present.

Brexit has been kicked into the very long grass and nobody can be bothered to go and find it. Art 50 will never be triggered. Everybody with at least two brain cells knows Brexit was based on lies and misrepresentations. May wants it to die without trace and is just going through the motions.

Unfortunately the referendum vote represents a political imperative. For article 50 to not be triggered requires the building of a new national consensus - at the moment there is no movement on this.

It is a non-binding result which is why May is not rushing. Where are the three stooges and Farage these days? No sign.

[Brian Peacock]

It's not non-binding, but it's also not not non-binding. The problem that faces the government and the political process is the damage that will be perceived to be done if the referendum vote is simpky ignored or put aside for another day.

[Animavore]

I've heard of spending a penny, but never a pound. IS that the slang for number 2?

[JimC]

Brian Peacock wrote:

It's not non-binding, but it's also not not non-binding.

How very, very quantum!

[Rum]

It's not non-binding, but it's also not not non-binding. The problem that faces the government and the political process is the damage that will be perceived to be done if the referendum vote is simpky ignored or put aside for another day.

It won't be 'put aside', but the devil will be in the detail when Article 50 is proceeded with.

In the interim interest rates are now 0.25% which means that saving your money is a shit prospect.

[DaveDodo007]

You've been importing stuff from well before the industrial revolution. Well, plundering and stealing it. Let's not go back to those days, please.

Don't worry as we have enough potatoes thanks very much, you're safe.

[DaveDodo007]

Yay, we might remember how to make stuff again rather than importing it. The one country to start the industrial revolution and forget it completely, so lets Make Britain Great Again.

You can't even make your own dildos, and your beer tastes like dishwater.

Fine as I don't use them, I'm also a real ale bore so I will get by.

[DaveDodo007]

Less than half a % fall is not exactly going down the toilet...

It does add up. The problem being is that the UK has lost its industrial base and has to import very basic stuff, that is now going to be more expensive. That will put pressure on increasing wages, and then inflation.
With investments based on a decreasing currency and giving low yield, there will be capital flight, and the pound will come under more pressure.

Being able to import stuff for the Indian subcontinent and China again is going to bankrupt us. (Its not.)

[DaveDodo007]

Bastard exiteeres. Sadly 'I told you so' won't make any difference whatsoever.

http://www.bbc.co.uk/news/business-36962059

The UK economy is contracting at its fastest rate since the financial crisis, making an interest rate cut "a foregone conclusion", according to financial data company Markit.

The Markit/CIPS purchasing managers' index that showed activity in the UK's dominant services sector saw its sharpest fall in seven years.

It follows falls in both construction and manufacturing in July.

The index fell from 52.3 in June to 47.4 in July, indicating contraction.

The figure confirmed an earlier initial estimate of service sector output.

Taken together with the manufacturing and construction data, Markit said a cut in interest rates by the Bank of England - expected following Thursday's meeting of the Monetary Policy Committee - was a foregone conclusion.

Policymakers are widely expected to reduce rates from the current 0.5% to a new low of 0.25%.

Earlier, economic think-tank the National Institute of Economic and Social Research (NIESR) said the country would go through a "marked economic slowdown" this year and next.

But it stopped short of forecasting a recession, saying the chances of the UK economy suffering a downturn in the next 18 months were 50/50.

It says inflation will also pick up, rising to 3% by the end of next year.

Analysis: Kamal Ahmed, BBC economics editor:

For those hunting for poor economic data since the referendum result, today's purchasing managers' index for the crucial services sector certainly provides significant pickings.

And it builds on pretty poor figures from the construction and manufacturing sectors.

It is now clear from the data that has been published that economic activity slowed markedly in the weeks following the referendum.

Of course, part of that is down to uncertainty about the shape of the economy as the UK negotiates its way out of the European Union.

Markit said incoming new business volumes fell for the first time since the end of 2012.

The pace of contraction was comparatively sharper than that seen for total business activity, and the fastest since March 2009, it added.

Moreover, companies widely reported the outcome of the EU referendum had weighed on new business inflows during the month.

Chris Williamson, Markit's chief economist, said the service sector data taken together with the construction and manufacturing data pointed to the UK economy shrinking by 0.4% in three months to September, a fall not seen since early 2009, when the Bank last cut interest rates.

"The unprecedented month-on-month drop in the all-sector index has undoubtedly increased the chances of the UK sliding into at least a mild recession," he said.

Markit said it was too early to know if the PMIs would stay as weak as they are now, but it said confidence about the year ahead was at its lowest since February 2009 among firms in the services sector, which accounts for nearly 80% of UK economic output.

"A quarter-point cut in interest rates therefore seems to be a foregone conclusion, " Mr Williamson added, "though the extent and nature of other non-standard stimulus measures remains a far greater source of uncertainty."

The reason to vote leave was not an economic one as we would like less Americans murdered on our streets and the stabbing of Australians and Israels. Also not stabbing fellow Brits or killing or trying to kidnap our own military people would be nice.

[DaveDodo007]

Brexit has been kicked into the very long grass and nobody can be bothered to go and find it. Art 50 will never be triggered. Everybody with at least two brain cells knows Brexit was based on lies and misrepresentations. May wants it to die without trace and is just going through the motions.

I have two nouns for you, David Davis.

[Brian Peacock]

Bastard exiteeres. Sadly 'I told you so' won't make any difference whatsoever.

http://www.bbc.co.uk/news/business-36962059

The UK economy is contracting at its fastest rate since the financial crisis, making an interest rate cut "a foregone conclusion", according to financial data company Markit.

The Markit/CIPS purchasing managers' index that showed activity in the UK's dominant services sector saw its sharpest fall in seven years.

It follows falls in both construction and manufacturing in July.

The index fell from 52.3 in June to 47.4 in July, indicating contraction.

The figure confirmed an earlier initial estimate of service sector output.

Taken together with the manufacturing and construction data, Markit said a cut in interest rates by the Bank of England - expected following Thursday's meeting of the Monetary Policy Committee - was a foregone conclusion.

Policymakers are widely expected to reduce rates from the current 0.5% to a new low of 0.25%.

Earlier, economic think-tank the National Institute of Economic and Social Research (NIESR) said the country would go through a "marked economic slowdown" this year and next.

But it stopped short of forecasting a recession, saying the chances of the UK economy suffering a downturn in the next 18 months were 50/50.

It says inflation will also pick up, rising to 3% by the end of next year.

Analysis: Kamal Ahmed, BBC economics editor:

For those hunting for poor economic data since the referendum result, today's purchasing managers' index for the crucial services sector certainly provides significant pickings.

And it builds on pretty poor figures from the construction and manufacturing sectors.

It is now clear from the data that has been published that economic activity slowed markedly in the weeks following the referendum.

Of course, part of that is down to uncertainty about the shape of the economy as the UK negotiates its way out of the European Union.

Markit said incoming new business volumes fell for the first time since the end of 2012.

The pace of contraction was comparatively sharper than that seen for total business activity, and the fastest since March 2009, it added.

Moreover, companies widely reported the outcome of the EU referendum had weighed on new business inflows during the month.

Chris Williamson, Markit's chief economist, said the service sector data taken together with the construction and manufacturing data pointed to the UK economy shrinking by 0.4% in three months to September, a fall not seen since early 2009, when the Bank last cut interest rates.

"The unprecedented month-on-month drop in the all-sector index has undoubtedly increased the chances of the UK sliding into at least a mild recession," he said.

Markit said it was too early to know if the PMIs would stay as weak as they are now, but it said confidence about the year ahead was at its lowest since February 2009 among firms in the services sector, which accounts for nearly 80% of UK economic output.

"A quarter-point cut in interest rates therefore seems to be a foregone conclusion, " Mr Williamson added, "though the extent and nature of other non-standard stimulus measures remains a far greater source of uncertainty."

The reason to vote leave was not an economic one as we would like less Americans murdered on our streets and the stabbing of Australians and Israels. Also not stabbing fellow Brits or killing or trying to kidnap our own military people would be nice.

If the coming economic turmoil is, somehow, all part of the Brexiteers master plan, or at least a price worth paying, then I fear they have fallen to the Apocalyptic wish-fulfilment fantasies of the perpetually depressed. Who in their right mind is eager for oblivion other than those in terminal decline?