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Fx Markets Reckon Gordon Has Resigned


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Reuters is flashing http://uk.reuters.com/article/ukPoundRpt/i...101359320090604

Stg, UK shares fall on UK political concerns

Thu Jun 4, 2009 1:18pm BST

LONDON, June 4 (Reuters) - Sterling fell sharply against the dollar while UK share prices tumbled on Thursday, on speculation British Prime Minister Gordon Brown would resign, which was quickly dismissed by his office.

The pound fell more than 1.0 percent on the day to a session low of $1.6082 <GBP=D4> before recovering to above $1.62.

Britain's FTSE 100 .FTSE was down 0.3 percent at 4,371.30.

Speculation in financial markets that Brown is resigning is "absolute nonsense", his office said on Thursday. (Reporting by London forex team)

Edit: 31 minutes ago it was up?

wallstreet460.jpg

Aaccording to what everyone thinks it should recover same as the UK downgrade.

Edited by Tom Peters
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PM's office says resignation talk is "nonsense"

Thu Jun 4, 2009 1:41pm BST

LONDON (Reuters) - Speculation in financial markets that Prime Minister Gordon Brown is resigning are "absolute nonsense," his office said on Thursday.

The pound moved sharply lower against the dollar in midday trade with dealers citing talk of Brown stepping down.

(Reporting by Kate Kelland. Editing by )

http://uk.reuters.com/article/topNews/idUKTRE5533J120090604

:blink:

Seems to be reverting to status prior to rumour

Edited by Tom Peters
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Guest KingCharles1st

It would be a mark of the man to resign unannounced, and not face up to the humiliation in public

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Political uncertainty is not going to help sterling in the very near term (but don't forget it's risen about 13% against the $ in a very short space of time), but my view is that a general election will be good for the pound as soon as it's out of the way. S&P has seen to that and put the incoming on notice to sort out the deficit as a matter of urgency. The uncertainty is whether a new labour PM would feel compelled to seek a mandate straight away or try and limp along till next May without. I think it would be hard to sell this to a jumpy electorate but you never know with this lot. Buy sterling on any pullback because the dollar looks worse and the Latvia situation is a going to be a big test for the Euro.

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http://ftalphaville.ft.com/blog/2009/06/04...ing-the-brownt/

Here’s a live example of “false news shock“ - the tendency of erroneous news to move markets even after it is proved to be wrong.

Just after 1pm on Thursday, Sterling jackknifed - falling from 1.64 to the dollar to a low of 1.61 and moving above 0.87 to the euro.

Someone called Sugardaddy posted this on Dealbreaker in New York at 8.04, EST - causing the “rumor†to be emailed across dealing rooms.

7041.jpg

It’s not true, of course.

Thursday was polling day in Britain, with 34 local councils holding elections along with European parliamentary elections. Whatever trouble Brown is in, it would be very odd indeed if he were to resign today.

Despite a firm denial from No10, who described the rumour as “absolute nonsense,†sterling only managed a partial recovery.

This entry was posted by FT Alphaville on Thursday, June 4th, 2009 at 13:43 and is filed under Capital markets, People. Tagged with currencies, gordon brown, sterling.

Edited by Tom Peters
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Surely, the point is that the rumour was believable. Had that not been the case it would never have taken wing.

It is that kind of uncertainty that markets hate and which can be so undermining of a currency - as if there were not already sufficient fundamentals to do the job.

Gordon Brown must step down if he has the interest of the country at heart.

Until he does, uncertainty will be the order of the day and it will be reflected in GBP. (And that doesn't stand for Gordon Brown Pounds, either, although it might just as well while he continues his dithering.)

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Political uncertainty is not going to help sterling in the very near term (but don't forget it's risen about 13% against the $ in a very short space of time), but my view is that a general election will be good for the pound as soon as it's out of the way. S&P has seen to that and put the incoming on notice to sort out the deficit as a matter of urgency. The uncertainty is whether a new labour PM would feel compelled to seek a mandate straight away or try and limp along till next May without. I think it would be hard to sell this to a jumpy electorate but you never know with this lot. Buy sterling on any pullback because the dollar looks worse and the Latvia situation is a going to be a big test for the Euro.

Sterling has not really been gaining much, it is more about the dollar collapsing in recent weeks.

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Surely, the point is that the rumour was believable. Had that not been the case it would never have taken wing.

It is that kind of uncertainty that markets hate and which can be so undermining of a currency - as if there were not already sufficient fundamentals to do the job.

Gordon Brown must step down if he has the interest of the country at heart.

Until he does, uncertainty will be the order of the day and it will be reflected in GBP. (And that doesn't stand for Gordon Brown Pounds, either, although it might just as well while he continues his dithering.)

Theres ya problem guvnor. :(

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