On Friday, 11th of January 2019, a few hours after the growing speculation that Brexit will be delayed beyond the originally set exit date of March 29, the Sterling was on the rise. Ravender Sembhy, Press Association City Editor of The Independent took to their website to make the news known when he said, “Pound became boosted by Brexit delay reports.”
The news of this increase continued to spread after it was reported by Belfast Telegraph carrying the same headline like the one on The Independent.
The British currency hits its highest since November 2018 at the London Market close, as currency traders pressed the British currency up by 0.6% to 1.282 US dollars. When compared with the euro, the pounds sterling also increased at the same rate of 0.6%, trading at 1.117.
Market analyst at CMC Markets, David Madden, said: “Great Britain Pounds Sterling/ United States Dollar experienced a volatile session after news that Brexit will be postponed beyond March 29 was all over the place, and shortly after, a representative for the Prime Minister made claims that the reports were false.
“Sterling has found a way to still hang on to a larger percentage of its gains. The pound has however traded higher than the highs it experienced in Late-December 2018, and reports say that if it can remain above that level, it might hit the 1.3000 area.”
The widely criticized Brexit deal by Theresa May will be put to a Parliamentary vote. At the parliamentary vote, it is expected to be rejected. Unfortunately, the rejection is believed to inflict further disgrace on her faltering government.
Despite the signs observed that Britain’s economy was on the descent, the increase was seen in the rate at which the pound was traded.
Three months to November 2018, it was recorded by the Office for National Statistics (ONS), that the GDP rose by 0.3% when compared with the previous quarter. On the contrary, a higher growth rate of 0.4% was recorded in the three months prior to October 2018. The Office for National Statistics said the chief downhill drag was a result of the fall in motor vehicle production of 4.3% which came amid factory closures. Furthermore, weaker by demand consumer for cars and the decline in diesel sales are additional reasons for the downhill observed. Meanwhile, the Financial Times-Stock Exchange Index 100 shed 24.69 points, or 0.36%, to close at 6,918.18 reported the Independent.
Connor Campbell, SpreadEx said, “What had been shaping up to stand as a decent little meeting unravelled as Friday went on, an undesirable start from the Dow Jones made sure the European indices couldn’t get back their early growth.” He continued to further say that “the current government shutdown seen in the United States, as well as Starbucks-refreshed worries relating to the Chinese economy, contributed.”
Talking about the lower tiers, shares in Flybe plummeted recently after Stobart Group and Virgin Atlantic swooped on the regional airline in a deal worth £2.2 million.
The companies, in unification with Cyrus Capital Partners, have however decided on an offer of just 1p per share for Flybe, which recently put itself up for sale late into 2018 in November. The firm’s stock fell by 77.1%, or 12.63p, to 3.75p at the close of the year. Following the elimination of the retailer’s chairman and Chief Executive by Mike Ashley a day earlier, shares in Debenhams were also found to be in freefall otherwise referred to as increasingly decline. Mike Ashley, the retail tycoon, who owns less than 30% of the department store chain through Sports Direct, liaised with fellow shareholder Landmark to discharge Sergio Bucher and Sir Ian Cheshire from the board.
Following the annual meeting observed by Debenhams Thursday, Mr Cheshire immediately stepped down as chairman. However, Mr Bucher will stay on to keep serving as the chief executive, but not as a director.
Shares dropped by 18.9%, or 0.91p, to 3.9p. In Europe, Germany’s DAX, blue-chip stock market index was down by 0.3% while France’s CAC (Cotation Assistée en Continu) 40 fell by 0.68%. In fact, a barrel of Brent Crude was selling at 60.8 US dollars, at a rate down by 0.7%. Although a lot of organizations seemed to suffer as analysis of several falls in shares have been above.
The largest risers on the Financial Times-Stock Exchange, FTSE 100 were Taylor Wimpey, Persimmon, Barratt Developments and IAG. Taylor Wimpey was up 7.15p at 156.05p, Persimmon up 92p at 2,203p, Barrat up 14.2p at 503.4p, and IAG was up 15.2p at 610p. The biggest fallers on the Financial Times-Stock Exchange, FTSE 100 were NMC Health, Smurfit Kappa, AstraZeneca and Melrose down. NMC Health was down 148p at 2,782p, Smurfit Kappa was down 102p at 2,142p, AstraZeneca was down 211p at 5,712p and Melrose was down 5.9p at 170.8p.