Breaking News

Trump talks, British pound drops

by AFP
16 January 2017 | 1901 Views
UK Prime Minister Theresa May won endorsement from US President-elect Donald Trump over her Brexit course but sterling plunged on Monday on fears that Britain could be on a collision course with its EU allies.

Trump said Britain leaving the EU would "end up as a great thing" and promised to work for a trade deal with post-Brexit Britain "quickly and done properly", speaking in an interview with The Times newspaper.

Britain's foreign minister Boris Johnson hailed the comments as he arrived at a meeting of EU foreign ministers in Brussels on Monday.

"I think it is very good news that the United States wants to do a good free trade deal with us and wants to do it very fast," he said.

Trump's comments did little to reassure investors, however, following reports in British media over the weekend that May is planning to announce a hard line on Brexit in a major speech on Tuesday.

Sterling plunged to $1.1986, its lowest level since October's "flash crash" that had sent it to a 31-year low of $1.1841, in morning trading.

"The market is now positioning for some fairly punchy rhetoric from Theresa May," said Chris Weston, chief market strategist at IG, an online trading company.

"This idea of 'hard Brexit' and a clean break from the single market seems increasingly likely, with the government making a bid to gain full control over immigration," Weston said.

Sterling "is an out-and-out political currency... and the prospect of volatility here is now very high" despite some positive macroeconomic data, he said.

Kathleen Brooks, research director at City Index, said: "It's all about market dynamics, and right now the balance of market participants are shorting the pound.

"It's a bit like a tipping point, once a trend gets critical mass, like the GBP downtrend, then news headlines can have big impacts, as they generate another wave of selling," she said.




- 'The full works' -

May has said she wants to cut down on EU immigration while retaining the "best possible" access for British companies to Europe's single market.

EU leaders have said these are incompatible and market access would only be granted in exchange for accepting the EU's rules on free movement of people.

In an interview with Germany's Welt am Sonntag newspaper over the weekend, finance minister Philip Hammond hinted at the new "hard Brexit" line.

Answering a question about whether Britain could become a tax haven, he said it would be forced to "change our economic model" to remain competitive if it is shut out from access to the single market.

May aims to launch two years of EU departure negotiations when she triggers the Article 50 exit process by the end of March, although a legal challenge is still pending before the country's Supreme Court.

She has been under pressure to reveal her proposals for the talks that will establish the future relationship between Britain and the EU.

Matching reports in several weekly newspapers said she was prepared to accept pulling out of the single market, the European customs union and the European Court of Justice, in order to regain control of EU immigration.

"She's gone for the full works. People will known when she said Brexit means Brexit, she really meant it," a government source was quoted as saying in The Sunday Telegraph.

Donald Trump Brexit post-Brexi

Source: AFP

Comments

Latest News

Zimbabwe lost $2 billion on 1:1 forex exchange rate

by Staff reporter | 22 February 2019 | 81 Views

Abusive Zanu-PF councillor sets wife alight - Zanu-PF Ward 9 councillo...

by Staff reporter | 22 February 2019 | 92 Views

Chamisa cries as his political career ends

by Dr Masimba Mavaza | 22 February 2019 | 454 Views

'Chamisa, Mnangagwa power-sharing not on the agenda'

by Staff reporter | 22 February 2019 | 68 Views

Ginimbi to 'tour' Australia

by Staff reporter | 22 February 2019 | 96 Views

Fake news rocks Zimbabwe military - Zimbabwe National Army has disowne...

by Staff reporter | 22 February 2019 | 211 Views

Caps United avert player strike over unpaid dues - HARARE giants Caps ...

by Staff reporter | 22 February 2019 | 36 Views

Mnangagwa courts Chinese

by Staff reporter | 22 February 2019 | 76 Views

Zimbabwe/South Africa officials to meet ahead of Ramaphosa visit

by Staff reporter | 22 February 2019 | 60 Views

MDC Alliance members run away with ballot papers - DIVISIONS in the MD...

by Staff reporter | 22 February 2019 | 102 Views

Woman arrested for obscene message to lover's wife - A 28-YEAR-OLD wom...

by Staff reporter | 22 February 2019 | 101 Views

Bulawayo takes deliberate affirmative action policy

by Staff reporter | 22 February 2019 | 44 Views

Two stabbed, axed in gold rush - AN illegal gold panner from Plumtree ...

by Staff reporter | 22 February 2019 | 44 Views

Bosso zero in on three for captaincy - HIGHLANDERS' technical bench ha...

by Staff reporter | 22 February 2019 | 28 Views

Zimbabwe approves 37 mbanje investors

by Staff reporter | 22 February 2019 | 53 Views

American starlet trialing with Bosso

by Staff reporter | 22 February 2019 | 49 Views

Cholera vaccine campaign begins in Harare

by Staff reporter | 22 February 2019 | 15 Views

Dating scam exposed - Efforts to find a lover on a local dating site h...

by Staff reporter | 22 February 2019 | 118 Views

Baby mama threatens to bewitch ex's wife - A VAINONA woman is living i...

by Staff reporter | 22 February 2019 | 47 Views

Callistus Ndlovu's body arrives in Harare

by Staff reporter | 22 February 2019 | 65 Views

Grace Mugabe sister's fraud trial hits a snag?

by newzimbabwe | 22 February 2019 | 246 Views

Opposition parties walk out of Mnangagwa's post-election dialogue meet...

by TimesLive | 22 February 2019 | 510 Views

Chiwenga aborts flight back to Zimbabwe

by newzimbawe | 22 February 2019 | 914 Views

Mnagagwa is a habitual liar - I am now forced to believe that the Pres...

by Don Chigumba | 22 February 2019 | 642 Views

'Propaganda' college for Chamisa's MDC - Opposition MDC Alliance has t...

by Ndou Paul | 22 February 2019 | 476 Views

Zimnat assists families of deceased miners - Zimnat, one of the leadin...

by Staff reporter | 22 February 2019 | 499 Views

MDC-T supports dialogue with Mnangagwa

by Linda Tsungirirai Masarira | 22 February 2019 | 1575 Views

EU lifted sanctions to join in looting of diamonds - not fooled by ele...

by Patrick Guramatunhu | 22 February 2019 | 2410 Views

Entertainment

TinTin suffers mental illness scare

by Mandla Ndlovu | 19 February 2019 | 4134 Views

Bulawayo artiste blasts Mnangagwa - BULAWAYO artiste Njabulo "SizFire"...

by Staff reporter | 18 February 2019 | 608 Views

Jabu features in nasty indecent tape - Studio 263 actor Jabu (real nam...

by Staff reporter | 18 February 2019 | 1471 Views

Omkhula lament lack of arts promoters in Zimbabwe

by Staff reporter | 17 February 2019 | 1057 Views

'Bulawayo artistes more popular outside Zimbabwe'

by Staff reporter | 17 February 2019 | 879 Views

Sex makes Zodwa Wabantu fat

by Staff reporter | 17 February 2019 | 3419 Views

HIFA 2019 cancelled

by Mandla Ndlovu | 15 February 2019 | 764 Views

WATCH: Jah Prayzah and Misred drop Kunerima video

by Mandla Ndlovu | 12 February 2019 | 5538 Views