News: United Kingdom: Historical fall in British currency and fears of a recession

Northern Ireland: For the first time, Catholics more numerous than Protestants

 Northern Ireland: For the first time, Catholics more numerous than Protestants © AP - Peter Morrison A campaign poster of the Sinn Fein party, in Belfast, Northern Ireland, May 3, 2022. The results of the last census were published Thursday, September 22. If religion should not always be associated with political ideas, these results obviously have a very symbolic meaning in the British province. With our correspondent in Belfast, Laura Taouchanov is the first time in 101 years that Protestants have not been in the majority in Northern Ireland.

La livre sterling britannique historiquement au plus bas le 26 septembre 2022. © AFP - Justin Tallis The British sterling book historically at the lowest on September 26, 2022.

The British economy is not at best Its form, as evidenced by the impressive fall in the pound sterling, which approached on Monday of the lowest level of its history against the dollar. This uninterrupted depreciation feeds speculation on a possible intervention by the Bank of England, in an attempt to counter the impact on the confidence of investors in massive tax cuts announced by the new government.

The Sterling Book reached, Monday, September 26, its lowest level against the dollar, the London budgetary ads, worrying, the Investors of British Public Finance, in a country perhaps in recession.

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The pound sterling went down to $ 1.0863 for the first time since 1985, not far from the absolute record recorded that year, or 1.0520 dollars. The British motto has lost more than 7 % in ten days, a very rare movement on the foreign exchange market.

Investors diverted themselves from the book after the announcement of the new government of Liz Truss, which unveiled on Friday, a series of budgetary recovery measures . They include in particular the management of part of the household energy bill and the renunciation of a series of tax increases.

Towards an intervention by the Bank of England?

This uninterrupted fall of the Sterling book feeds speculations on a possible intervention by the Bank of England (BOE), in an attempt to counter the impact on the confidence of investors of the Massive tax cuts announced on Friday by the government of Liz Truss , in which many investors see above all a danger for British public finances.

Gas: Poland signs an important supply contract with Norway

 Gas: Poland signs an important supply contract with Norway © provided by Tribune secure Poland 15 % of its gas needs with Norway. Norway confirms its new status as the first gas supplier in Europe. The Norwegian energetician Equinor has just signed an important long -term agreement with the Polish Gassier PGNIG for the supply of gas to Poland via a gas pipeline which is about to be inaugurated, and with a capacity of 10 billion M3 per year. The contract relates to 2.4 billion m3 of gas per year for ten years, the equivalent of 15 % of the annual Polish

"The BOE will have to take action today, it is certain, which will lead to a massive increase in interest rates to try to stabilize the sterling," said Michael Every, Rabobank strategist in Singapore.

The situation is such that the Bover now evokes the hypothesis of an emergency meeting of the BOE, with an increase in early rate, quoted by Erik Nelson, of Wells Fargo.

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The whole should force the United Kingdom to borrow 72 billion additional pounds on the markets, which worries the operators.

"The pound sterling is in danger"

"between Brexit, the delay of the Bank of England to raise its rates and now fiscal policy, I think that the United Kingdom will remain in history as one of the worst management Macroeconomics of a large country, "said former US Treasury Secretary Larry Summers, who thinks that the book can reach the level of the dollar.

"The pound sterling is in danger," warned George Saravelos, analyst at Deutsche Bank, who notes that the currency falls, even though the borrowing rates of British debt increase, "which is very rare in a developed economy ". "We are concerned about seeing investors' confidence in the United Kingdom is growing quickly," he adds.

If it was particularly abused, the pound sterling was not the only one to suffer. The euro fell on Friday for a new floor for twenty years, at $ 0.9681 for one euro. This Monday, the European currency also affected a level of twenty years against the dollar at 0.9569, the results of the Italian legislative elections added to the fears of recession.

with AFP

British government does not want to prefer a budget .
Birmingham. British media first report that the government wanted to prefer its budget to regain trust. The markets react positively. But then the finance minister contradicts. © Oli Scarff The British finance minister Kwasi Kwarteng speaks during a meeting of the annual party congress of the conservatives in Birmingham. The British finance minister Kwasi Kwarteng has contradicted reports that he wants to prefer to present his budget.

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