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23 Feb 2016
GBP weakens as FTSE bosses jump on 'Remain in EU' bandwagon - Investec
Research Team at Investec, notes that the Downing Street has described the move of FTSE 100 Chairman and CEOs petitioning for the ‘Remain in the EU’ campaign as “unprecedented”.
Key Quotes
“If Friday gave us the relief rally in the Pound as UK PM Cameron agreed his new "special status" for the UK in the EU, then yesterday gave us the one-way sell off as markets began pricing in the event risk of the EU referendum. Now confirmed as the 23 June 2016, and with multiple senior Tory MPs announcing they will campaign to leave (including the ever-popular BoJo), the Pound dropped against the US Dollar from Friday's close above 1.4400 to trade in the 1.40s by yesterday afternoon. It seems reasonable that this is the beginning of further Sterling moves lower as opposed to the full reaction now priced in. Today's testimony from BoE Governor Mark Carney will carry particular importance to sentiment.
36 top bosses including BT, Marks & Spencer and Vodafone have written and signed a letter explaining how an EU exit would deter investment into the UK. There were 198 signatories from the business world which also featured chief executives of Heathrow and Gatwick Airport. A key statement was “Business needs unrestricted access to the European market of 500 million people in order to grow, invest and create jobs”.”
Key Quotes
“If Friday gave us the relief rally in the Pound as UK PM Cameron agreed his new "special status" for the UK in the EU, then yesterday gave us the one-way sell off as markets began pricing in the event risk of the EU referendum. Now confirmed as the 23 June 2016, and with multiple senior Tory MPs announcing they will campaign to leave (including the ever-popular BoJo), the Pound dropped against the US Dollar from Friday's close above 1.4400 to trade in the 1.40s by yesterday afternoon. It seems reasonable that this is the beginning of further Sterling moves lower as opposed to the full reaction now priced in. Today's testimony from BoE Governor Mark Carney will carry particular importance to sentiment.
36 top bosses including BT, Marks & Spencer and Vodafone have written and signed a letter explaining how an EU exit would deter investment into the UK. There were 198 signatories from the business world which also featured chief executives of Heathrow and Gatwick Airport. A key statement was “Business needs unrestricted access to the European market of 500 million people in order to grow, invest and create jobs”.”