Theresa May's government has proposed for a new UK-EU 'free trade area'. REUTERS/File Photo
Theresa May's government has proposed for a new UK-EU 'free trade area'. REUTERS/File Photo

Analysts bullish on the pound following May's Brexit plan



Theresa May’s Brexit blueprint has given pound bulls some much-needed comfort.

The UK prime minister’s push for a so-called soft Brexit, which envisions maintaining a close economic partnership with the European Union, is good for sterling, according to Deutsche Bank AG. The prospect of an interest-rate increase as early as August by the Bank of England will add support for the British currency, said Oliver Harvey, a strategist in London at the German bank.

Even as sterling fumbles for a clear heading not far from an eight-month low, Deutsche Bank is keeping its forecast for sterling to appreciate 6.6 per cent to $1.41 by year-end. That is more optimistic than the median estimate for $1.34 in a Bloomberg survey of analysts.

“It is an important positive step,” Mr Harvey said in emailed comments, referring to May’s 'white paper' on Brexit released Thursday. The bank is bullish on the pound “based on the movement toward a soft Brexit from May, the lack of effective challenge from the Brexiteers and a Bank of England hike in August.”

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At the heart of the 98-page government document is a proposal for a new UK-EU “free trade area,” with interlinked customs regimes, and identical regulations for industrial goods and agri-food. While there would be “no tariffs on any goods,” the U.K.’s vast services sector will suffer significant disruption.

The pound was around $1.32 as of 4:15 pm in London Thursday. It fell 5.8 per cent in the last quarter, the worst loss in two years, and touched $1.3050 on June 28, the lowest level since November.

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
 
 
 
 
 
 
 
Scoreline

Arsenal 3
Aubameyang (28'), Welbeck (38', 81')
Red cards: El Neny (90' 3)

Southampton 2
Long (17'), Austin (73')
Red cards: Stephens (90' 2)

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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)

Company%20Profile
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TICKETS

For tickets for the two-day Maharlika Pilipinas Basketball League (MPBL) event, entitled Dubai Invasion 2019, on September 27 and 28 go to www.meraticket.com.

Company%20profile
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The bio

Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.

Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.

Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.

Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.

The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Power: 268bhp / 536bhp
Torque: 343Nm / 686Nm
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
On sale: Later this year
COMPANY%20PROFILE%20
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Newcastle United 0 Tottenham Hotspur 2
Tottenham (Alli 61'), Davies (70')
Red card Jonjo Shelvey (Newcastle)


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