Should Investors Prepare for GBP/USD Parity Next Year?
Brexit Secretary David Davis broke with government convention to say that he could see advantages to the British pound falling to a three-decade low, arguing the decline would help exporters. Former Bank of England Governor Mervyn King later echoed that view, telling Sky News the decline in the pound was a “welcome change.” Sterling has been this year’s worst performer among 32 major currencies tracked by Bloomberg. It has fallen 17 percent since the vote to leave the EU and 4.7 percent since Davis and Prime Minister Theresa May signaled on Oct. 2 that they might not prioritize membership of the single market. Algebris Investments Partner and Portfolio Manager Alberto Gallo discusses with Guy Johnson in London and Caroline Hyde in Frankfurt on "Bloomberg Markets: European Open."