FIRST AIRED: October 5, 2016

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>> UK stocks near record highs and economic data beating forecasts. The pound at its weakest since 1985, versus the dollar. So do the numbers point to a Brexit boom or bust? Reuters markets editor Mike Dolan says it depends who you ask.>> The Brexiteers would obviously point to the stock market and say everything is doing fine, that the economy hasn't fallen apart, there hasn't been a sudden stop or a shock and that it's been exaggerated, the impact of leaving the EU.
Others will point to the pound and say this an example of how inward investment in the UK could come to a sharp stop at some point over the next couple of years during negotiations.>> The stock and currency movement's really two sides of the same coin. The weak pound makes overseas earnings more valuable for big exporters.
That gives their stock values a boost. But weaker Sterling could also drive up inflation by making foreign goods dearer. That would hurt importers, consumers, and the broader economy.>> So this is the point at which the Bank of England tries to measure it. What point does this uncontrollable fall in Sterling, if it does become that, start to affect its inflation forecast, start to affect its monitory policy decisions and the expectation of the Bank of England may ease monitory policy again in November, may change if that were to continue very, very sharply.
>> Banks among firms worried that UK prime minister Theresa May plans a clean break with the EU, the so called hard Brexit. We should know more on that by the end of March. Mays deadline for beginning the departure process. Until then, it won't be hard to make the argument either way.