Following the highs seen at the end of August, the trend during September has been downward and today the market sits around 1432, which is £200 off the start. This easing has largely been due to a calmer situation with less negative rumours/opinions about deficits and disease etc. In West Africa, the Main crop harvest season has commenced and with hopefully a better structure for the Cocoa Industry in the Ivory Coast replacing the fragmented and corrupt organisations, together with higher prices being paid to Ghanaian farmers, we hope to see a more realistic and measured view of crop size over the coming weeks.
After the ‘blip' when sterling dived towards the end of August, it steadily strengthened back to the c.1.26 level by mid September. Since then and during the unprecedented situations in financial markets worldwide, Sterling remained within fairly wide range, although has now strengthened again to around 1.275, which is a high rarely seen since March.
Widely publicised problems etc in the Financial Markets leave most of us wondering in what way this will impact on us. Apart from the obvious losses for investors who owned some of the so called safe Blue Chip Banking shares and a loss of confidence for many savers, the biggest impact on business is probably yet to come – ie Interest Rates for borrowings.
So those of you that rely on either an Overdraft or Commercial Financing (as we do) will no doubt be facing higher charges from the banks in coming weeks or months. A good time to shop around and get some competitive quotes so you at least have some background for the negotiation!
Tony Mycock – 3.10.08