On June 29, 2024, the UK Day will focus on the following:
● Reuters issued an article to explain how the Labour Party's coming to power will affect the trend of the pound exchange rate
● Farage was shocked by discriminatory remarks by election aides from the British Reform Party
● In the past three years, the number of retirees paying personal income tax in the UK has increased by 2 million
● Zoopla: UK house prices were flat in May compared to a year earlier, and are expected to rise by 1.5% by the end of the year
● A new skyscraper in the City of London is about to be approved, or tied with The Shard for the tallest building
Reuters issued an article to explain how the Labour Party's coming to power will affect the trend of the pound exchange rate
Reuters recently published an analytical article explaining how the UK general election on July 4 (next Thursday) will affect the direction of the pound.
The article points out that, on the whole, the pound exchange rate has rebounded before the British election this year, but whether it will continue to strengthen in the future depends mainly on whether the next government (most likely the Labour government) can convince investors that its plan to solve the economic stagnation is credible.
The pound's trade-weighted exchange rate is now back at its highest level since the 2016 Brexit referendum, as investors widely believe that Labour's rise to power will usher in a period of political stability for the UK, with fewer divisions within the Labour Party than the Conservative Party, and Labour leader Starmo has pledged to improve relations between the UK and the EU.
However, the article points out that if Labour wins the general election on July 4, the Labour government will need to address the economic challenges that the Conservatives have failed to solve, while maintaining investors' trust in the UK, in order to maintain the long-term growth momentum of the pound so far this year.
Previously, Labour leader Starmer had pledged to spur housing and infrastructure investment. However, some analysts are concerned that in the long run, if the UK economy recovers, Labour's excessive fiscal policy (such as raising taxes and spending) could increase inflation, which could affect investors' long-term confidence and negatively affect the pound.
The article also mentions that if Labour follows a predictable policy that conforms to the laws of the market, it may reverse the current negative cycle of financial market stress and slowing economic growth caused by uncertainty about the UK's economic policy.
In addition, the interest rate decision of the Bank of England in the second half of the year will also have an impact on the direction of the pound exchange rate, with the probability of a rate cut by the Bank of England in August currently around 50%, and the victory of Labour on July 4 may further increase the probability of a rate cut in August and encourage investors to increase the total number of basis points expected by the end of the year.
The market is currently expecting two rate cuts in the UK in 2024, each by 0.25 percentage points.
As of this time (June 29), the latest exchange rates of the British pound are as follows:
Farage was shocked by discriminatory remarks from election aiders in the British Reform Party
According to British media reports, when Channel 4 reporters recently secretly visited Clacton, the Essex constituency where the founder of the British Reform Party Farage is located, they were shocked to find that Andrew Parker, the party's election assistant, frequently broke out discriminatory remarks.
Andrew openly told voters that illegal immigrants should be used as targets for army soldiers to practice shooting, and that Islamic mosques should be converted into bars. He even used racist terms to address Indian-British Prime Minister Rishi Sunak.
In addition to Andrew's unfriendly attitude, another British Reform Party election helper at the scene described the LGBT flag on the police car as "degenerate".
In response, Farage expressed shock in an interview with British media and admitted that the remarks were "very biased and very wrong". He claimed that those involved had only "come to help" and had nothing to do with the Reform Party, and promised that they would not participate in the election campaign in the future.
Subsequently, the person concerned, Andrew Parker, also quickly issued a statement saying that he very much wanted to apologize to Farage and the Reform Party if his personal views had a bad impact and discredited them, which was not his intention.
Over the past three years, the number of retirees paying personal income tax in the UK has increased by 2 million
According to The Times, the UK government has frozen the tax threshold for national pensions for the past three years, causing a surge in the number of retirees who need to pay personal income tax.
According to data released by HMRC, the number of retirees who need to pay personal income tax in the UK has increased by 2 million in the past three years, and in the past year alone, it has increased by 660,000, and the total has now reached 8.5 million.
However, the number of people receiving state pensions in the UK is 12 million. In other words, most retirees who receive state pensions are currently required to pay personal income tax.
Zoopla: UK house prices were flat in May compared to a year earlier, expected to rise 1.5% by the end of the year
British real estate portal Zoopla recently released the "UK House Prices Report for May", pointing out that although UK house prices in May were flat compared to the same period last year, they are expected to rise by 1.5% by the end of 2024.
According to Zoopla data, the average house price in the UK was £264,900 in May, up 0% year-on-year, and the Northern Ireland region led the country with an annual increase of 3.3%, followed by the North West of England (1.5%) and Scotland (1.3%).
The data also shows that the UK has seen a 6% increase in demand for homes and an 8% increase in sales this year compared to last year, and is still on track to record 1.1 million units sold in 2024, with 75% of transactions completed or being processed.
Richard Donnell, executive director of Zoopla, said: "The impact of the UK election on the property market has been limited, with both sales and homes for sale continuing to increase. The timing of the first cut in the benchmark rate is crucial and will boost sentiment and sales. We expect house prices to rise by 1.5% in 2024. ”
A new skyscraper in the City of London is about to be approved, or tied with The Shard for the tallest building
According to British media reports, the City of London is about to usher in a tallest building - 1 Undershaft.
The 309-metre-tall, 74-storey skyscraper, at the same height as The Shard across the River Thames, is planned to be built between a cheesegrater and a gherkin.
It is understood that officials in the City of London have recommended approval of the construction plan for 1 Undershaft, which will be discussed at the Planning Committee meeting next Tuesday (July 2). However, plans for the building are still subject to final approval from the Mayor of London, Sadiq Khan, and the new Secretary of State for Housing.
In 2016, plans for the construction of 1 Undershaft were first proposed, but were later cancelled due to too much opposition. Earlier this year, the architectural firm resubmitted a blueprint for 1 Undershaft, and the exterior of the building has changed significantly.