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Here we go again: will they? wont they?, a “Grexit” on the cards again? as is a default to the IMF and EU amongst others? Is this ever going to be resolved? Which other EU countries will be affected?
All this creates is uncertainty and increasing volatility, good for traders but not so good for companies, governments and individuals. This makes it all the more important to identify and manage your exposures and risks.
After a brief expedition into negative territory, we are now back into +ve inflation…. just, but at 0.1%, the first increase since October 2014. I’m not a statistician but you would have thought there has to be some statistical margin of error? Still it’s a long way off the BofE 2.0% target, so this should reel in the interest rate increase expectations again.
It still rumbles on, the austerity required by the EU and the anti-austerity Greek government are at loggerheads again, or should I say still. Greece needs to unlock the bailout funds and EU is holding firm on its austerity conditions. Is this ever going to be resolved? You have to think that at some stage somebody will have to moderate and accede in order to make progress. It feels like a very high stakes game of poker, waiting for the first player to fold!
Create a policy framework to identify and cover all the treasury functions and exposures, and hence manage the treasury risks of the company to protect margins and the competitiveness. The policies range from expected FX, banking & payments, to counterparty exposures and delegated authorities.
The referendum, in or out, just the way to put off foreign direct investment, or at least make them look at alternatives.
Inflation falling (still) as the April numbers show negative inflation (-0.1%), for the first time in more than half a century. Negative inflation is the reflection of underlying weakness in the economic recovery! Some inflation is necessary in an economy, deflation raises the prospects of negative interest rates and funds chasing returns and potentially sidelining risk as the most important consideration from investment decision making process.
Well so much for the polls, they all showed a dismal ability to get anywhere near the actual result. Back to the drawing board we would hope for the polling companies. How fast can their leaders resign? I doubt as quickly as the leaders of the defeated political parties.
Good weather today so should be a good turnout, but who knows which party will benefit the most from that… just got to decide how long to stay up watching the results, (and who is doing the school run in the morning!).
Whatever your political views, the opposition parties Economic plans are not getting good press comment, and some commentators views of their abilities and agendas for the business community are less than complimentary to say the least.
Looks like a hung parliament and another election in 12 months or less. The uncertainty is not good for decision making, either by Government, the BofE (Bank of England), companies or individuals. That has got to be negative for the British economy.
Solutions Edge 
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