{"id":158088,"date":"2019-10-21T13:06:50","date_gmt":"2019-10-21T17:06:50","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=158088"},"modified":"2019-10-22T06:49:34","modified_gmt":"2019-10-22T10:49:34","slug":"brexit-speakers-refusal-wont-hit-pound-but-inflicts-more-uncertainty-on-business-and-economy","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/10\/brexit-speakers-refusal-wont-hit-pound-but-inflicts-more-uncertainty-on-business-and-economy\/","title":{"rendered":"Brexit: Speaker\u2019s refusal won\u2019t hit pound but inflicts more uncertainty on business and economy"},"content":{"rendered":"
October 21, 2019<\/div>
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By George Prior<\/strong><\/p>\n

The pound will experience a short-term relief rally, but John Bercow\u2019s refusal to allow a Meaningful Vote on the new Brexit deal will further weigh on the UK economy.<\/p>\n

This is the stark warning from Nigel Green, the CEO and founder of deVere Group, one of the world\u2019s largest independent financial advisory organizations.<\/p>\n

His analysis comes after the Speaker of the House of Commons says there will be no Meaningful Vote on Monday, saying it is the \u201csame matter\u201d and therefore cannot be put to MPs again.<\/p>\n

Mr Green comments: \u201cThe pound experienced a small knock to the downside, but barely. There was no major surprise.<\/p>\n

\u201cThis underscores that traders are waiting patiently because they expect the EU to grant an extension to Brexit in the coming days.<\/p>

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\u201cWhen this happens, we can expect sterling to rally more significantly.<\/p>\n

\u201cI also stand by my prediction that should the Prime Minister\u2019s deal be ratified, we can expect the pound to jump sharply.\u00a0 It would be likely to hit at least $1.35 as the prospect of a no-deal, and\/or months of further uncertainty ends.<\/p>\n

\u201cSentiment towards UK stocks would also rally, particularly given the attractive valuations of many UK companies.\u201d<\/p>\n

He continues: \u201cWhilst the pound remains largely unmoved, the decision by the Speaker could inflict further damage to the UK economy as the precedented uncertainty and chaos continue to drag on.<\/p>\n

\u201cWealth, jobs and opportunity-generating businesses \u2013 both in the UK and internationally- are crying out for certainty.<\/p>\n

\u201cBrexit uncertainty is seriously denting business investment and confidence in the UK \u2013 and the fallout of this has cost Britain three and a half years of lost opportunity and many tens of billions of pounds.<\/p>\n

\u201cIt could take a decade or so to recover, even if that recovery of certainty starts now.\u201d<\/p>\n

Mr Green adds: \u201cBritain is losing its edge in a competitive global economy with the Brexit deadlock and politicking.\u00a0 It is likely to underperform against peers for many years to come.<\/p>\n

\u201cAnd on top of it all, despite some reports to the contrary, there is still the risk of a no-deal Brexit which would further compound the less-than-idyllic current situation. The reason this risk remains is that the EU may not agree to an extension and parliament has not agreed the deal.\u201d<\/p>\n

The deVere CEO concludes: \u201cWhilst the pound, the so-called Brexit bellwether may not be impacted too significantly by the Speaker\u2019s refusal to allow a Meaningful Vote on Monday, the wider economy will be impacted due to the damaging ongoing uncertainty it creates.<\/p>\n

\u201cIt is perhaps therefore unsurprising that UK and international investors in UK assets are responding to the uncertainties posed by Brexit by considering removing their wealth from the UK.\u201d<\/p>\n

About:<\/strong><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior The pound will experience a short-term relief rally, but John Bercow\u2019s refusal to allow a Meaningful Vote on the new Brexit deal will further weigh on the UK economy. This is the stark warning from Nigel Green, the CEO and founder of deVere Group, one of the world\u2019s largest independent financial advisory […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-158088","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158088","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=158088"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158088\/revisions"}],"predecessor-version":[{"id":158089,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158088\/revisions\/158089"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=158088"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=158088"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=158088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}