Britain’s currency crisis may have an upside after all – at least for foreign investors, writes LiamWardProud
. That deal would have been agreed long before a recent collapse in sterling, prompted by Chancellor Kwasi Kwarteng’s so-called mini-budget, which pushed the pound down to $1.07. But it’s exactly the kind of purchase that will make more sense the lower the pound goes.
For stocks, bonds and other financial investments, whose values are based on a stream of cash flows, the benefits are nuanced. Prices go down in foreign-currency terms, but so do sterling earnings. And to the extent that future cash flows are denominated in dollars or euros, the sterling purchase price should rise.
It’s different for assets that either don’t generate any income or are worth owning for non-financial reasons, like country estates. The same may go for sports teams, prestigious London hotels and department stores. U.S. investors just bought
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Revolut Greenlighted to Provide Crypto Services in the UKThe UK's Financial Conduct Authority added Revolut to its crypto asset firm register.
Read more »
Treasury yields pull back from multi-year highs as market frenzy abatesTreasury yields move lower Tuesday as the sovereign bond sector steadied after savage selling of U.K. assets triggered broader market angst at the start of...
Read more »
UK's FCA approves Revolut for cryptoasset registerThe UK’s Financial Conduct Authority (FCA) added fintech unicorn Revolut to its cryptoasset firm register, bringing the list of companies permitted to carry out crypto asset activities in the country to 38.
Read more »
Breakingviews - UK swaps one cost-of-living crisis for anotherBritain’s energy-price crisis has eased after the government decided to consumer bills. But the budget plans of new Prime Minister Liz Truss and her Chancellor Kwasi Kwarteng may cause a world of pain for mortgage borrowers. Banks are unlikely to emerge unscathed.
Read more »
Here Are 10 TV Shows That I Love To Watch During The Fall SeasonGrab your pumpkin spice latte and get cozy!
Read more »
Riggleman book calls Meadows texts the 'crown jewels' of the Jan. 6 investigation'The Breach' by former Rep. Denver Riggleman claims that Trump's chief of staff received texts from 39 House members and five U.S. senators.
Read more »