Tim Focas discusses the Financial Markets in the Daily Express

Monday 29th January 2018

Today, Parliament Street’s Director of Financial Services and the City of London gave an exclusive interview to the Daily Express about the state of the financial markets.

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“Brexit is not a disaster’ UK business take advantage of pound’s rise

THE POUND’S return to above 1.43 against the dollar last week has prompted a number of economic experts to herald the rise as evidence of renewed confidence in the UK’s post-Brexit future.


The Pound had a week to remember against the USD

At the end of last week the pound climbed even further against falling dollar after enjoying its best week since September and its sixth weekly rise in a row.

The pound has enjoyed a strong rally so far this year and is up around 5 percent against the falling greenback.

The money markets are changing and some of the world’s biggest investors have now bought into the notion that sterling will head north, riding the renewed optimism in Britain securing better terms for the City of London when leaving the European Union.

Although the dollar’s fall from grace should be acknowledged, many feel that the increased optimism around Brexit has kicked-started a new way of thinking over Brexit, a view that was supported by former Remain chief and Prime Minister David Cameron’s admission that Brexit was a “mistake but not a disaster”, adding, “it’s turned out less badly than we thought.” 

However, two leading London think tanks say the Government is still sending out the wrong message.

Professor Graeme Leach, a member of Economists for Free Trade, told Express.co.uk that there is now a dawning realisation that Brexit could be very good for the UK economy, and as this realisation strengthens, so too could the Pound.

He said: “The more the Government articulates an exciting post-Brexit vision, taking advantage of our future economic freedom, the stronger the pound could become.

“The problem is that the Prime Minister seems unable to do this.”

Many thought that Brexit would bring years of economic downturn
Tim Focas, director of financial services at think tank Parliament Street agrees the noises coming from the Government are still far from positive. 

Mr Focas said: “One could look at Sterling’s rebound as sending a negative message to the world about the economic credibility of the UK Treasury.

“Former chancellor George Osborne’s politicised ‘economic analysis’ into the impact of Brexit on the UK economy claimed businesses would reduce investment and cut jobs.

“Instead, UK labour market figures for the 3-months through November have come in ahead of market expectations – highlighted by pound-dollar hitting a new post-Brexit high of 1.41.”

An example for this renewed confidence comes from private Equity firm Isher Capital and their investment of £20 million in acquiring contact centres across the UK.”

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