No Brexit deal means ‘10% drop in sterling’

No Brexit deal means ‘10% drop in sterling’

Sterling could relapse by almost 10% against the dollar if a “no deal” Brexit becomes likely, keeping investors wary of buying UK assets, Northern Trust Asset Management said.

Northern Trust’s EMEA and Asia-Pacific chief investment officer, who helps manage around €857m in assets, told the Reuters Global Investment Outlook Summit the UK crashing out of the EU without a trade deal in place could mean sterling would be hit again.

Against the euro, sterling fell 0.65% to almost 90 pence at one stage as investors worried about the stability of UK prime minister Theresa May’s government.

She needs to speed up negotiations with the EU, business leaders from across Europe, including Ibec’s Danny McCoy, told her at Downing Street amid concern Britain will crash out the world’s biggest trading bloc without a deal. “Business is extremely concerned with the slow pace of negotiations and the lack of progress,” said Emma Marcegaglia, president of BusinessEurope, a lobby group for companies in European countries, including Britain.

“The message to the UK government was clear, business is increasingly frustrated and concerned at the lack of progress in negotiations.

“To move past the first phase of talks, which covers Ireland, the financial settlement, and citizens’ rights, we need practical solutions and firm commitments, not just rhetoric,” Mr McCoy said.

British shoppers reined in their spending by the most in more than four years in October, according to a survey by Visa which added to other signs that the squeeze on UK incomes is hitting consumer spending.

Reuters and Irish Examiner


More in this Section

Aer Lingus owner won't say whether it has plans to sue Ireland over Covid-19 quarantineAer Lingus owner won't say whether it has plans to sue Ireland over Covid-19 quarantine

Warning over 'two speed' Irish economy when Covid-19 crisis endsWarning over 'two speed' Irish economy when Covid-19 crisis ends

Hairdressers want further trimming of shortened reopening roadmapHairdressers want further trimming of shortened reopening roadmap

Bank bosses warned over treatment of customers when pandemic payment breaks endBank bosses warned over treatment of customers when pandemic payment breaks end


Lifestyle

Eve Kelliher consults a Munster designer to find out what our future residences, offices and businesses will look likeHow pandemic life is transforming homes and workplaces

Nidge and co return for a repeat of a series that gripped the nation over its five seasons.Friday's TV Highlights: Love/Hate returns while Springwatch looks at rewilding

A family expert at the charity Action for Children advises how parents can maintain contact with kids after separation if there’s an access problem.My ex won’t let me see my child because I haven’t paid maintenance during lockdown. What can I do?

THREE years ago, when radio presenter Daniella Moyles announced that she was quitting, few could have guessed from her upbeat Instagram post the inner turmoil she’d been enduring.Daniella Moyles on how she beat anxiety

More From The Irish Examiner