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Breakingviews: Cameron deserves AAA sympathy

Monday, February 25, 2013 - 03:59

Feb. 25 - Does British Prime Minister David Cameron deserve any sympathy for losing the triple-A rating? And how much currency gain can be had from the downgrade asks Breakingviews.

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And also the -- for the UK are breaking news has two pieces about lists the first one. About the effects on. -- stunning we've seen a pullback of course a little bit. What does that do for GDP the other -- is a political piece. And I mosques or whether Cameron deserves some sympathy. Now on the back of this -- had us joins me now what are we kick off without actually Edward. -- you view and Crist wrote this piece on -- today. I'm why you why would he deserve sympathy army it it was it was it was -- and all of -- crazy put Netflix and am owls when they. When they basically. Yes they claim that this it's defending the triple -- rating was number one and -- and you know for them. And that if they lost AAA rating god knows what would happen to the United Kingdom. The queen might be sold for ransom or something. And and of course they haven't managed growth has been disappointing we slow deficit -- disappointing Lehigh. And Moody's is the first of the agencies to recognize that when official downgrade the markets have been expecting this pretty much it's not quite since pounced on. But what's really happened here is that camera on and I think he does is a little bit of sympathy. He got stuck in the trap where. He actually believed the economists who said that austerity would work if -- don't blame the economy -- and passion to believe that. -- the point of the piece is that the UK's record isn't great but depending on how you counter where you do it's not that that it's not much worse than any other country. No one has figured out how to you two. Solve this problem of in heavily indebted countries and a very slow stagnant environment -- unacceptably high unemployment. The US Japan all the countries in Europe with the possible exception of Germany are stuck on the same treadmill. And the UK isn't exceptional is just exceptional in its politicians made a stupid claim. I only fifteen countries left for the AAA from -- yes that's right. Horrible to see you comes next let's let's let's move on to the next piece -- -- the the the the reaction. From the aircraft from the thanks markets. I mean let's face it -- has been pounded anyway yes I'm. Most people are looking at 150. Even -- that someone today saying 14146. I mean that's that's she -- pretty good progress. Well we hope and we've written a piece of mind my colleague Ian Campbell's written piece saying that. British industry has been looking up and British export has been a bit of a weak point and so the weaker pound should and have that effect. Certainly the weaker yen as having that effect in Japan but in Japan as much stronger export oriented industries in the UK does. But. It does have been the necessary effect through the precondition to you -- strong exports is to have a currency that's got to value that's competitive. The next point is of course that. -- -- -- Growth does start to appear a little bit. And the pound is already weak then the temptation to truly reckless monetary easing may be reduced. And we think that's a good thing also also in the sense of self limited the pound's fall maybe self limiting. My car has got his work cut out for. Well this comes news that I had as I said George Osborne and David Cameron haven't figured out how to get out of this no Central Bank has it figured out. I'm the -- that Mark Carney can do -- are pretty limb slim but you know good luck to -- he's -- being paid well enough to is to try. This fact true all right David thanks -- -- -- -- -- at Madison bring beast more generous heading into what's our US show everyday talk that -- -- 1730 GMT. I'm -- problems is --

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Breakingviews: Cameron deserves AAA sympathy

Monday, February 25, 2013 - 03:59

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