Now that the FT feels sufficiently reassured that it has ensured a win for its favourite candidate in the US Presidential elections, it has chosen its next target: Theresa May.
In two forex related stories, FT journalists have decided that the crash of the pound sterling is a warning to Theresa May and that she would back down. Sample these:
The rand and sterling. One is a beaten-up, illiquid currency, bumped around daily by chaotic politics but with the potential to force national leaders to rethink tough stances. The other is the national currency of South Africa.Sterling has fallen by about 24 per cent against the rand so far this year, despite South African debt teetering close to junk status with the key rating agencies. [Link]
The sharp sell-off in sterling in many ways represents a challenge by the forex markets to the UK government; it is possible that the government will back down.[Link]
Why,the same ‘market’ until a day or two ago, pushed up UK stocks to record highs! Suddenly, the stock market is less important than the currency market! I suppose it does not fit a preconceived narrative that the newspaper wants to put out.
Politicians may and do get it wrong but markets get it wrong more often and cause more damage. Indeed, whatever is happening now is, due in large measure, to what the market did and market participants did before and after 2008.