The pound soars !!

Author: **izzix** » May 6, 2009, 11:40 pm

Pound Soars On Jump In Manufacturing Activity And Rising Mortgage Approvals, Is the Recession Ending?
Friday, 01 May 2009 10:10:49 GMT

Previous Articles

* May 06 - Euro Maintaining Support Following Record Drop In Retails Sales, Pound Gains on Service Sector Strength
* May 05 - Euro Looking Past 22 Year Low In Factory Gate Prices, Pound Receives Boost From Strong Construction Activity
* May 04 - Euro Reverses On Weak German Retail Sales And Disappointing Investor Sentiment, Will ECB Cut Rates?
* May 01 - Pound Soars On Jump In Manufacturing Activity And Rising Mortgage Approvals, Is the Recession Ending?

The pound rallied over 100 pips following an increase in manufacturing activity and mortgage approvals. The manufacturing PMI reading improved to 42.9 from an upwardly revised 39.5 in March led by a jump in new orders to 46.3 from 39.4. Meanwhile, mortgage approvals rose to the highest level in 10 months to 39k from 38k as the BoE accommodative monetary policy begins to loosen credit markets.

Talking Points
• Japanese Yen: Unemployment Rises To 4 Year High
• Pound: Surges On Jump In Manufacturing Activity
• Euro: Choppy On Holiday Volume
• US Dollar: ISM Manufacturing On Tap

Pound Soars On Jump In Manufacturing Activity And Rising Mortgage Approvals, Is the Recession Ending?

UK NEWS
HOLIDAY CHEER AS YOUR POUND SOARS
Story Image

SUNNY: A surge in the pound could see hundreds slashed from holiday prices

Wednesday May 6,2009
By Mark Reynolds and Louise Barnett

BRITISH holidaymakers were handed a huge boost yesterday as the pound spectacularly bounced back in value against the euro and the dollar.

The knock-on effects for families could see hundreds of pounds slashed off the price of summer breaks.

On a day of a wealth of good news on the financial markets, share prices soared, the pound hit a five-month high against the dollar and cost of living rises slowed dramatically.

Business and consumer confidence shot up during the last month, according to the latest figures, with some experts predicting that the worst of the recession is now over.

The bounce-back by the pound saw sterling break back through the 1.5 dollar mark. It also clawed back value against the euro, rising by almost 1per cent alone yesterday, to 1.13 euros.

The fightback has seen the pound rise dramatically against the euro in recent weeks.

Hard-hit families holidaying abroad in Europe can expect to pay about 10 per cent less than the start of the year. Breaks in the US have similarly become better value.

According to travel association Abta, Spain, France and the USA are now the top three overseas destinations for Britons.

Abta spokeswoman Frances Tuke said: “Obviously this will give people a bit more optimism that they will have some more money in their pocket when it comes to buying things abroad. Hopefully it means people will have that little bit more to splash around when it comes to meals and shopping. This is a bit of bright news in the gloom.”

Mike Greenacre, managing director of The Co-operative Travel, the UK’s biggest independent holiday retailer, said: “We have been watching the currencies carefully for the last three months and it is very pleasing to see positive movement.

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“We anticipate this will have a very positive effect as we come into the late bookings market where our customers can see that their preferred destinations – over 40 per cent of our customers go to Spain – will be much more affordable.”

Yesterday’s good news for the travel industry instantly saw shares in British Airways surge 12 per cent while Thomson owner TUI Travel also saw theirs soar by 7 per cent.

Buoyed by trade abroad, the stock market rose 3 per cent with the FTSE passing the 4300 mark, adding £31billion to share prices. It ended the day at 4336.94, up nearly 100 points.

Market analysts were delighted at yesterday’s jump in trading which they described as very encouraging.

Tim Hughes, head of sales trading at IG Index, said: “The FTSE has remained positive throughout the day, although down from earlier highs. Today’s high has seen the FTSE trade at levels not reached since January 14 this year and represents a 1,000 point bounce-back from March lows.

“With more than a few people expressing this is the start of the next bull market, momentum has been positive over recent days, with investors piling in, worried about missing out on further recovery.”

There was also good news for hard-pressed families as the British Retail Consortium reported a fall in the rate of shop price inflation.

While annual food inflation remained historically high at 7.9 per cent last month, this was much lower than the 9 per cent in March thanks to a more stable pound, according to the BRC-Nielsen Shop Price Index.

Stephen Robertson, BRC director general said: “Heavy discounting left non-food goods nearly two per cent cheaper than a year ago and annual food inflation has slowed for the first time this year.

“With food cheaper than a month ago, the worst of food price inflation may be over, thanks to a more stable value for the pound.”

Clothing and footwear saw the biggest price falls in the non-food sector, down 7.1 per cent on a year ago, while electricals dropped 3.9 per cent.

In addition, consumer confidence rose at its fastest rate for two years during April as people felt more optimistic about the future of the economy, research showed today. Nationwide’s consumer confidence index rose by eight points to 50, the biggest monthly increase since May 2007.

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Author: **izzix** » May 6, 2009, 11:44 pm

26 million visit London in year as domestic tourism soars
Sri Carmichael
29.04.09

London welcomed more than 26 million tourists last year - and while the numbers from overseas fell, visitors from other parts of Britain more than made up the difference.

The increase in UK visitors comes after the recession and the fall in sterling's value against the euro and dollar deterred Britons from making overseas trips.

As a result, spending by tourists in the city hit a record £10.5billion.

The figures were released by Visit London today as it launched a global marketing campaign to attract people to lesser-known attractions. Only In London highlights 100 sights that even natives may not know.

In total, 550,000 more tourists visited the capital last year than 12 months earlier. The number of international visitors fell more than three per cent, to 14.8 million, but the number of Britons rose by more than 11 per cent to 11.3million.

The fall in overseas visits was particularly steep towards the end of last year as the downturn accelerated, with many business travellers staying away. But people from the eurozone, especially Italy and France have been flocking to London to buy designer fashion and eat in restaurants that are much cheaper for them because of the weak pound. There were fewer visits from the US and Japan, but more from Australia, Canada and Saudi Arabia.

Foreign visitors spent a total of £8.1billion in the capital last year, the same as the year before. But Britons spent seven per cent more, parting with £2.4billion. The Only In London campaign aims to highlight the capital's distinctiveness and its "hidden gems".

Among the attractions pinpointed are the giant Hindu temple in Neasden, the resting place of Karl Marx in Highgate Cemetery, Harrow School, Tooting Bec Lido and Walthamstow Market.

Some £2million has been spent on the PR drive, with the hope that it will generate an extra £60million from tourism. This week Camden, the City of London, Kensington and Chelsea and Westminster pledged a further £400,000 to the advertising fund. Mayor Boris Johnson said: "It shows London is weathering the downturn well and our investment in marketing our great city is paying off. Our latest innovative campaign will reap further rewards."

Visit London chief executive Sally Chatterjee said: "It is more important than ever that we continue to promote London to both domestic and international audiences."

More than a third of museums and galleries in Britain saw a rise in visitors in the last six months, a survey by The Art Fund found. But the majority of attractions have experienced budget cuts in the last six months, and nearly two thirds that receive public cash expect further cuts this year.
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I have traveled all over the Continent (every single European capital) and the U.S. and been to a few places in the Middle East, and in all honestly have not found any place more happening, more dynamic, with more energy or buzz than London. It has something to offer everyone, great museums, amazing theatre, awesome restaurants (despite the stereotype of there being no good food in England), simply the best gay night, period (gay or straight), you can find anything your heart desires, the transportation system is efficient more or less. Anytime I visit a different city, I feel like I could have just gone to London instead. I for one love the city, and it is like no other. The true center of the world, a the world capital.

- S C, Sialkot, Pakistan

Author: **JimboPSM** » May 7, 2009, 12:56 am

It rather depends on the point that you are measuring its value from as to whether it has soared or not.

For instance, compared to the beginning of January 2008, the GBP is substantially lower and today 6th May 2009 according to my records it is only:

From my perspective it has not soared; at best, it has recovered a little of what it lost.

Author: **Khun Paul** » May 7, 2009, 7:13 am

I agree the Poind is gaining slowly but oh so slowly, it has been muted that it will move nearer to the 60 baht rate rate , and then stay there.
The baht is still strong, why noone knows , many feared a baht devaluation following on from the Singapore dollar, but it hasn''t yet, but it would make Thai goods cheaper which would help this country in the short and long term.

Author: **JimboPSM** » May 7, 2009, 7:44 am

There is a strong perception (rightly or wrongly) in international finance circles that, relative to many other economies, Thailand has both its budget under control and a trading surplus with the rest of the world – both of these are major factors in short term Forex mathematics and are helping to keep the THB riding high.

The THB also benefits considerably as Thailand is one of the few countries not to have directly lost money by buying billions of dollars of toxic US securitised debt or by using US short term bank finance to finance its own banking operations (the UK has had a very painful experience in this respect).

Author: **rick** » May 7, 2009, 9:45 pm

Well, now it sinks again (down by 0.7 baht in 12 hours) after yet another £50 billion round of treasury quantative easing (throwing money away). Another £1,000 of debt created for everyone in UK. Well, i will try not to pay it back, because i did not spend it.

Author: **PhilR** » May 7, 2009, 11:33 pm

Just come back from Crete, Greece, and only 104 euro's to £100 there. That and all food and drink seemed double UK price or more as well. :ugly:

Mind you, went to pretty cashier to top up euro's at Gatwick Airport, got 100 euro's, cost me £101.50! :yikes:

Perhaps an ugly cashier'd been cheaper.

Although i suffered on this holiday, and sympathise with current expats, (something that seems furthur and furthur away for me with financial meltdown), i still feel it better that the pound remains weak at the moment. This allows cheaper exports, more tourist pounds to UK, and in the end will speed up, a full recovery with the pound bursting forth to new heights, eventually! But i do see green shoots, i do, i think UK recovery could be quicker than experts expect. Then, 60baht, 65baht to the pound. Gordon'll do it, what could go wrong? :wave: