Commissar SFLUFAN Posted May 31, 2022 Share Posted May 31, 2022 Cor blimey, gov! British pound is taking on 'emerging market' characteristics, Bank of America says WWW.CNBC.COM Sterling is in danger of becoming an "emerging market" currency as falling growth and growing risks cause investors to flee the pound, according to Bank of America. Quote Central to the gloomy outlook for the pound, Sharma noted, is that the U.K.’s Net International Investment Position has deteriorated in recent years as foreign investors hold a large stock of U.K. assets. The NIIP measures the difference between U.K. owned asset claims on non-residents and foreign-owned claims on U.K. residents, an important gauge of a company’s creditworthiness. “This carries with it two risks: overseas investors could repatriate part of this portfolio of U.K. assets on deteriorating confidence in the U.K. economy (asset allocation shift due to the end of negative interest rates elsewhere); or that the large stock of foreign holdings of U.K. assets will continue to weigh on the primary income balance,” Sharma said. “Whatever the reason, the external trade position will become an increasing focus for markets as the UK economy struggles under the weight of higher inflation and slower growth.” Quote Link to comment Share on other sites More sharing options...
ThreePi Posted May 31, 2022 Share Posted May 31, 2022 Would you say it's taking a.... pounding? 1 4 1 Quote Link to comment Share on other sites More sharing options...
Zaku3 Posted May 31, 2022 Share Posted May 31, 2022 17 minutes ago, ThreePi said: Would you say it's taking a.... pounding? I think it's a sign of how old we are now that some of our jokes steer offly close to dad jokes. Edit: To add. When Rule Brittania goes wrong. Quote Link to comment Share on other sites More sharing options...
TwinIon Posted May 31, 2022 Share Posted May 31, 2022 I have to imagine the long term impacts to the UK and London in particular are going to be severe. Quote Link to comment Share on other sites More sharing options...
Uaarkson Posted May 31, 2022 Share Posted May 31, 2022 19 minutes ago, Zaku3 said: I think it's a sign of how old we are now that some of our jokes steer offly close to dad jokes. Edit: To add. When Rule Brittania goes wrong. u WOT m8??? 1 Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted May 31, 2022 Author Share Posted May 31, 2022 14 minutes ago, TwinIon said: I have to imagine the long term impacts to the UK and London in particular are going to be severe. Potentially "catastrophic". However, I wouldn't be sitting particularly smugly if I was sitting on a large pile of euro-denominated assets either. Quote Link to comment Share on other sites More sharing options...
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