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This site not work anymore .I have a new site and you can go there visit me. I dont go put more post here anymore ... If you like this blog go there .. I will be there for you ... Olá meus queridos amigos ... agora tenho um novo blog Este site nao funcionará mais , tive alguns problemas. Agora tenho um novo endereco de blog. Nao irei mais colocar post neste blog .. Todas as atualizacoes e novidades estarao no outro endereco .. Acessem... estarei lá pra vcssss Se vcs gostaram desse blog irao amar o outro .. mais atualizado e lindo ... Vamos láaaa .... visitem-me lá .. Beijinhos Lili

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sexta-feira, 26 de fevereiro de 2010

Stheeman sees no risk of UK debt crisis as sterling slides




http://www.telegraph.co.uk

Global investors still have sufficient faith in UK leadership to keep buying gilts even if there is a hung Parliament or when the Bank of England starts to unload its £200bn holdings of bonds, according the curator of Britain's public debt.


By Ambrose Evans-Pritchard, International Business Editor
Published: 5:42PM GMT 25 Feb 2010


Sterling tumbled two cents against the dollar to a nine-month low of $1.5253 on news that business investment fell 5.8pc in the final quarter of last year Photo: AFP/Getty Images

Robert Stheeman, head of the UK Debt Management Office, said the political elites are rising to the challenge, greatly reducing the chances of a gilts strike.

"Politicians of all colours are taking the situation very seriously indeed. Investors derive a lot of comfort that there is agreement across the spectrum that the deficit needs to be brought under control," he told the Euromoney bond congress in London. While a hung Parliament would create uncertainties, it might prove "less disruptive" than assumed.



The comments came as sterling tumbled two cents against the dollar to a nine-month low of $1.5253 on news that business investment fell 5.8pc in the final quarter of last year, heightening the risk of a double-dip recession. Howard Archer, UK economist at IHS Global Insight, said the data was a "horrible surprise".

Jim Rogers, the millionaire financier, went further warning that the pound could "collapse" within weeks, heralding a downturn worse than 2008/09 and in turn leading to a "global economic winter".

Mr Stheeman said the weak pound has acted as a shock absorber for UK gilts and made his job easier, an implicit suggestion that those countries such Greece, Italy, Spain, and Portugal without their own national currency face a harder task as the struggle with incipient debt deflation.

"Whenever sterling does appear to weaken from recent strengths, actually that tends to act as a catalyst for overseas interest. That's quite a significant factor," he said.

A floating currency is a double-edged sword. Devaluation can cushion downturns, but can also set off a self-feeding spiral if gentle falls turn into a disorderly rout. Bill Gross from the US bond fund Pimco said last month that gilts were sitting on a "bed of nitroglycerine", warning that UK debt levels posed a serious devaluation risk.

Mr Stheeman joked that he was "very comfortable" sitting on nitroglycerine. The markets have coped well so far with the Bank of England's pause in bond purchases, or quantitative easing, and were anticipating the return to normality in a "smooth way". The agency is counting on British banks to step in as major buyers under new regulations.

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