Scottish Referendum Hurts Pound

Published / Last Updated on 07/03/2017

Scottish Referendum Hurts Pound.

Yet again today the FTSE 100 index rose on the back of a weak pound.

Additional pressure on the pound has been caused by ever increasing calls for a second Scottish referendum. Speculation is mounting that the Scottish government will call for another referendum and it is widely expected that Prime Minister Theresa May will come out later this week to defend the ‘union’ i.e. a United Kingdom.

Comment

Putting this in perspective, 1.6 million Scots voted to remain within the European Union and the voting region of Scotland is actually smaller than that of the "Yorkshire and Humberside" region that voted to leave by an even greater majority.  It is therefore hard to watch Nicola Sturgeon using the EU referendum voting share in Scotland as an argument to hold yet another Scottish referendum on the UK.

Should "Yorkshire and Humberside" have a vote to leave the UK? Perhaps even London, with an even greater voting population overall and with over 2.2 million Londoners voting to remain, does London have a greater claim to independence than Scotland?

We believe 100% in democracy but this is all a mess on both sides caused by political spin rather than what is in the best interests of the people of Scotland, England, Wales and Northern Ireland.

That said we must move on and let the ‘politicos’ get on with it.  The pound is weak which means it is good for the profits of FTSE 100 companies and good for British exports abroad although it is bad news for the consumer as imported goods will become more expensive and inflation will rise.

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