Soros – The pound will fall to parity with the Euro

George Soros has an op-ed out on the Brexit and as usual its a fun read. Here are some snippets and a link to the rest of the article.

This is wishful thinking. It would have at least one very clear and immediate effect that will touch every household: the value of the pound would decline precipitously. It would also have an immediate and dramatic impact on financial markets, investment, prices and jobs.

To start off, sterling is almost certain to fall steeply and quickly if there is a vote to leave– even more so after yesterday’s rebound as markets reacted to the shift in opinion polls towards remain. I would expect this devaluation to be bigger and more disruptive than the 15% devaluation that occurred in September 1992, when I was fortunate enough to make a substantial profit for my hedge fund investors, at the expense of the Bank of England and the British government. It is reasonable to assume, given the expectations implied by the market pricing at present, that after a Brexit vote the pound would fall by at least 15% and possibly more than 20%, from its present level of $1.46 to below $1.15 (which would be between 25% and 30% below its pre-referendum trading range of $1.50 to $1.60). If sterling fell to this level, then ironically one pound would be worth about one euro – a method of “joining the euro” that nobody in Britain would want.
Source: The Guardian

Stocks in the news (aeonts, bcp, bem, egco, fsmart, ifec, itd, mcs, mtls, rpc, sport, spa, tasco, thcom, tks, twz) 21.06.16

AEONTS
AEONTS expects 2016 loan growth to be better than last year. It plans to expand its credit card customer base by launching a marketing campaign. It targets to acquire 360,000 new cards. (Thun Hoon, 21/06/16)
BCP
BCP says oil sales in the first five months reached 2bn liters. It expects to reach 6bn liters this year driven by high demand from lower prices. It plans to open more filling stations in 2H16 and increase revenue from its non-oil business. (Thun Hoon, 21/06/16)
BEM
SRT plans to talk with BEM to become commercial area manager for MRT Purple Line (Bang Yai-Tao Poon). It expects this to be finalized in July. (Khao Hoon, 21/06/16)
Comment: To us it looks like its been in the bag for a while
EGCO
EGCO expects 930MW Kanom power plant to start up in June. This will boost long-term revenue. It expects 2016 revenue to grow 5% aided by power plants. It has budgeted Bt22bn to increase its capacity. (Thun Hoon, 21/06/16)
FSMART
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Comment: If they are clever about this, they have the network, they can cross sell anything with little cost and all straight to the bottom line.

Continue reading Stocks in the news (aeonts, bcp, bem, egco, fsmart, ifec, itd, mcs, mtls, rpc, sport, spa, tasco, thcom, tks, twz) 21.06.16