- May looks to cut corporate tax
- Suggests Brexit should be a ‘transitional’ phase
- Commits to science and technology funding
- Tony Blair to return to politics?
Another busy week on the Brexit front with yet another apparent u-turn from the New Tory Government and Philip Hammond’s Autumn statement. Pound Sterling exchange rates have fallen from last week’s high of 1.172 but remains range bound around 1.16 against the Euro.
Similarly with the US Dollar, the Pound has fallen to the mid 1.23 range following the surprise Trump victory 2 weeks ago.
But given the latest developments this morning the Pound has not yet recovered throwing in doubts as to whether Theresa May has a handle on the Brexit position. Her apparent change in direction signals uncertainty which bodes negatively for markets. Her latest announcement to cut corporate tax may sit nicely amongst the corporate elite but has been heavily critisised by Labour, stating that almost 2 million working citizens are already experiencing Universal credit cuts. It would seem from the point of view of some, that Theresa May is doing little to help the poorest families.
Perhaps her promise for a transitional Brexit and £2bn funding for science may begin to settle markets? Her apparent u-turn from a Hard-Brexit stance and non-committal to EU citizens rights should be enough to comfort markets one would assume? But her toing and froing has provided little reassurance and Pound Sterling exchange rates reflect this, with little to no movements during this morning’s trading session.
Markets want to see action, given that it has now been 5 months since the historic vote its surprising to see little to no plan from the Government. There is however, one politician that claims to have all the answers to this post-Brexit chaos, the Former Labour Prime Minister Tony Blair.
Tony Blair to return to politics?
Tony Blair is engineering a comeback to British politics amid fears that Theresa May will not deliver a good deal and accused Jeremy Corbyn of being a nutter. The controversial former PM believes he can fill a Brexit vacuum.
This has undeniably played into the hands of Eurosceptics, the damning Chilcot Inquiry that was released 2 weeks after the UK’s vote has raised alarm bells amongst Tory backbenchers, insisting that Blair’s come back will benefit the Leave campaign.
The Chilcot Inquiry, raises doubts as to whether Iraq had weapons capable of mass destruction and questions whether Blair should have taken the UK to war in 2003.
Will the Pound go up?
It remains unseen but if Theresa May is able to follow through with the latest promises, ensuring Brexit is a transitional withdrawal, the Pound could find further support as investor confidence widens. There are, further reasons to believe the Pound may find further support in the weeks ahead. If Parliament are unable to agree over Brexit plans this could halt Brexit entirely ahead of the European elections.
The political landscape could be set to change next year with the French National Front set for its biggest climb in the polls. Marine Le Pen has already stated that she plans to take France out of the EU if elected, which could lead to the breakup of the EU.
I would however, err on the side of caution ahead of Wednesday’s Autumn statement from the Chancellor Philip Hammond, there has been reports of huge financial holes following the UK’s vote in June.