Sterling holds near 30-month lows as Johnson's majority shrinks
August 3, 2019, 10:42 am

Sterling holds near 30-month lows as Johnson's majority shrinks

Sterling held close to 30-month lows against the dollar on Friday as a shrinking of Britain’s ruling Conservative Party’s majority in parliament added to worries over domestic politics three months before Britain is due to exit the European Union.

Britain’s pro-European Union Liberal Democrats won a parliamentary seat from the governing Conservatives, a blow to Prime Minister Boris Johnson in his first electoral test since taking office.

The loss reduces Johnson’s working majority in parliament to just one, ahead of an expected showdown with lawmakers over his plan to take Britain out of the European Union on Oct. 31 with or without an exit agreement.

“For those that think that general election risk, in one form or another, is there for the pound in the autumn, then this marginally adds to that key story,” said Simon Derrick, head of currency research at Bank of New York Mellon.

“I don’t think it’s a particular surprise that the pound is under pressure again today.”

In late afternoon trade in London, sterling was flat at $1.2128, not far from a 30-month low of $1.2080 hit on Thursday.

It was 0.2% lower against a broadly stronger euro at 91.61 pence.

For most of Friday, sterling flitted between positive and negative territory, lacking any clear direction.

“August trade is beginning to assert itself in terms of declining volumes and slightly lower volatility,” said Fiona Cincotta, senior market analyst at City Index.

Sterling has been pressured in recent days by a stronger dollar, renewed worries about a no-deal Brexit and reduced Bank of England forecasts for British economic growth.

Dour economic data continued to stream in, with activity in Britain’s construction industry shrinking for a third month in a row in July as Brexit worries hit building projects, amid concerns that the slowdown could soon spill over into other areas of the economy, according to a survey.

Sterling shed more than 4% of its value in July, its worst month since October 2016, following Johnson’s vow to leave the European Union on Oct. 31 whether or not a transition deal can be agreed with Brussels.

Bank of England Governor Mark Carney said on Friday that some major industries could become unviable if Britain leaves the European Union without striking a deal with the bloc, adding that this was now a real prospect.

The possibility of a no-deal Brexit has driven significant underperformance in UK equities and real estate, and saddled British companies looking to borrow overseas with a ‘Brexit premium’.

Nevertheless, some investment managers with long horizons are taking a second look and concluding that — at least on paper — some British assets look too cheap to ignore.

Reuters.

Trump: North Korean missile tests may defy U.N., but not his agreement with Kim Johnson's parliamentary majority almost gone as pro-EU party wins seat

BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.