Freaky Friday Fears Give City Nightmare on Threadneedle Street*

London’s financial futures exchange will, in an unprecedented move, open at 1 a.m. on Friday to allow investors to trade gilts as the election results come in.  Investment banks and hedge funds will be at their desks overnight.  Given the closeness of the race if key results are not counted until lunchtime market uncertainty will cause volatility.

The gilt market determines long term interest rates, which fix mortgage rates.  Labour losing the election is priced into the market, consequently gilt yields have dropped below the psychological 4% interest rate as the prospect of a change of government with a focus on bringing down the deficit has buoyed debt and currency markets.  If traders sense a re-run of the 1974 Lib-Lab pact is on the cards they will sell sterling and gilts to the floor.  The pound will be devalued by morning and the gilt yields which determine long term mortgage rates will rocket. It would be a nightmare on Threadneedle Street…

The price of a Labour government will be higher mortgage payments and higher inflation imported by a devalued pound.  If it goes wrong on Freaky Friday it will f**k the economy before the day is out…

*Threadneedle Street is the location of the Bank of England.




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

According to the Mail, when Tory MP Marcus Fysh called Venezuela a ‘socialist experiment gone wrong’ at PMQs, Jeremy Corbyn mouthed:

“What a complete w*nker.”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
Snow Storm: Anchor Called Out on Live TV Snow Storm: Anchor Called Out on Live TV
Snow Such Thing as Impartiality Snow Such Thing as Impartiality
Lefties Duped by ‘Why Socialism Works’ Lefties Duped by ‘Why Socialism Works’
Select Committees Runners and Riders Select Committees Runners and Riders
Meltdown After Nuclear Power Plant Holds Bikini Contest to Choose Interns Meltdown After Nuclear Power Plant Holds Bikini Contest to Choose Interns
DUP Deal Signed DUP Deal Signed
Watch: McDonnell on Grenfell ‘Murder’ Watch: McDonnell on Grenfell ‘Murder’
Sunday Shows Sunday Shows
The Economist’s Lack of Intelligence Unit The Economist’s Lack of Intelligence Unit
Happy Independence Day! Happy Independence Day!
Sun Cleared by Hospital Sun Cleared by Hospital
Exporters Order Books at 29 Year High Exporters Order Books at 29 Year High
Corbyn Refuses to Bow to The Queen Corbyn Refuses to Bow to The Queen
McDonnell Repeatedly Backed Far Left ‘Day of Rage’ Group McDonnell Repeatedly Backed Far Left ‘Day of Rage’ Group
“Soft” and “Hard” Brexit Terms Obsolete “Soft” and “Hard” Brexit Terms Obsolete
Hammond’s “Sound Money” Speech Sadly All Spin Hammond’s “Sound Money” Speech Sadly All Spin
Tommy Robinson Called British Muslims “Enemy Combatants” Tommy Robinson Called British Muslims “Enemy Combatants”