Monday, 9 July 2018

Pound slides after Boris Johnson quits per BBC News who don't analyse completely

This BBC report misses a key piece of analysis:

'Sterling fell more than a cent against the dollar to trade at $1.3218. Against the euro, it fell back to €1.1253.

The pound had been in positive territory after investors bet Brexit Secretary David Davis's departure meant a "softer" Brexit was more likely.

But analysts warned sterling was likely to fall further if Mr Johnson launched a leadership challenge to Theresa May.

"The pound can handle ministerial resignations if that's the extent of it... if it means Johnson leaving and not launching a leadership challenge," ING strategist Viraj Patel said.

But he warned that a leadership bid by Mr Johnson would open up further uncertainty.

Simon Derrick, chief currency strategist at Bank of New York Mellon, agreed that traders were now likely to be "more cautious".

"They are now going to start focusing far more on the potential political risks, they will focus on the possibility of a leader challenge, on broader risks in parliament," he said.'

Those' broader risks' include, indeed mainly comprise the risk of a hard-left socialist government under Corbyn, Mcdonnell, Abbott and the rest of the cabal that leads the Labour Party. If the chances of the UK having a Labour government with the associated risk of exchange controls and massive taxation then a run on the pound is a certainty. This is not something that the Labour Party's propaganda arm, the BBC, will ever inform the public of, far better to let the electorate think the pound is slipping because of Brexit uncertainties. Expect interviews with Remoaners saying how much they have lost on their holiday money this summer holiday because of Brexit, expect the BBC to push that narrative. 

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