Brighter prospects for British industry today (Friday, January 18) at last halted the disastrous slide in the value of the pound sterling against the United States dollar.
Brighter prospects for British industry today (Friday, January 18) at last halted the disastrous slide in the value of the pound sterling against the United States dollar. Earlier in the week, with widespread industrial action and short-time working leading to speculation of an imminent election, the pound had plunged to a record low against the dollar.
Today, confidence in the pound immediately improved when the British government announced that full electricity supplies were being restored to the vital steel industry and that a four-day- work week -- instead of the current three-day week -- may soon be possible. But this will depend on the coal miners not stepping up industrial action beyond the present overtime ???.
As a result of this improvement in the industrial situation, the likelihood of an imminent election receded. And the uncertainty that has clouded the money markets all week was partly relieved.
But the shocks to the economy this week have also prompted long-term speculation about Britain's future as a manufacturing nation. Experts have been asking how long it will be before Britain, hard hit by the rising cost of raw materials, can pay her way again.
To get an expert opinion on these long-term prospects, Visnews reporter William L. Ward today interviewed Mr. Vic Stevens, the Divisional Manager of the Foreign Exchange division of a large British bank: