Commenting on the market reaction, Adam Seagrave, head of global sales trading at Saxo Markets, said: “The initial reaction has been weaker GBP but we are now seeing a rally to a new high. This is presumably the market interpreting the announcement as Boris wanting advisors who are more willing to back aggressive fiscal stimulus.”
First, we learnt that the economy overall expanded by 0.3 per cent in July, significantly faster than the 0.1 per cent expected, and better than most of our main rivals. Next, we found out that the trade deficit narrowed slightly as imports fell. Finally, we learned that employment was at record highs and that wages were still growing at record rates.
– Sterling surges to five-week high against dollar and euro after MPs defeat Government over no-deal
– China and US agree to continue negotiations next month, sending stock markets up
– German factory data shows continued slowdown
EUROPE’S largest economy Germany could crash into recession as car manufacturing growth plummets and Brexit cripples exports, its central bank has warned.
Bundesbank said that lower consumer spending and softer overseas demand has caused the economic downturn.
Is Boris Johnson the luckiest prime minister ever? This week, the Government can borrow money for ten years at 0.48 per cent and for thirty years at 1.16 per cent. At these rates, it would irresponsible not to borrow more.