British PM mistrust strikes again, minister resigns, pound dollar lower

Under the impact of the strong US dollar, the pound against the US dollar also fell rapidly, and to make matters worse, the British Minister of Finance and Health announced his resignation on the same day. The lowest point was 1.1899. Some analysts say that when the British finance and health ministers resign, it often means that it is only a matter of time before the prime minister steps down. While the resignation of cabinet ministers will not have a big impact on the pound in the short term, political instability could have a big impact in the coming weeks.

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Rumor has it that Jensen will hold an election to gain a new mandate from the state. A poll by British Elects showed Labour would be the largest party if a vote were held today - although not a majority (326 seats required). Labour, led by Keir Starmer, is expected to gain 306 seats, compared with 245 for the Conservatives. The findings also predict that Prime Minister Jensen will lose his seat, as will Deputy Chancellor Raab, senior backbenchers Iain Duncan Smith and Theresa Villiers.

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Education Secretary Will Koons resigns. This is the third heavyweight cabinet member of the British government to announce the resignation since the resignation of the British Minister of Health and the Chancellor of the Exchequer on the 5th. In addition, British Department of Transport Secretary Laura Trotter also announced her resignation on the 6th. According to Sky News statistics, since Javid and Sunak resigned, a total of 12 government officials announced their resignation. Although several junior ministers have resigned, only the UK Chancellor of the Exchequer Sunak and Health Secretary Javid have left the cabinet so far.

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British MP CHRISSKIDMORE submits a letter of no confidence in British Prime Minister Jensen. In addition, British Conservative MP LEEANDERSON issued a statement criticizing British Prime Minister Johnson. Under the rules, the 1922 Committee received 54 letters of no confidence to trigger a vote on the Conservative Party leader. However, Jensen has won a vote of no confidence before, and he will be exempt from another challenge of no confidence within a year.

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UK construction activity slowed sharply last month, with the smallest increase since September 2021, as concerns over the economic outlook pushed some measures of homebuilding into contractionary territory for the first time since the early days of the coronavirus pandemic. Tim Moore, head of global economics at S&P, said a bleak business outlook in the U.K. and deteriorating consumer demand due to the cost of living crisis combined to dampen construction growth in June.

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Affected by the rising risk of "stagflation" in the euro area and the strength of the dollar, the exchange rate of the euro against the dollar fell to 1:1.0265 on July 5, the lowest level in nearly 20 years. The euro has fallen more than 9 percent against the dollar so far this year, according to European Central Bank data. According to data from the Bloomberg Options Pricing Model on the 5th, the possibility of parity between the euro and the dollar by the end of the year rose to 60% from 46% a day earlier. The weakening of the euro exchange rate was mainly due to the recent slowdown in European economic growth, and the market continued to lower expectations for the European Central Bank to raise interest rates. In addition, the market's expectations for a larger rate hike by the US Federal Reserve at the end of July strengthened, leading to a strengthening of the US dollar exchange rate.

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With the recent outbreak of the seventh round of the epidemic in France, the mayor of Nice, France, Estosi said that he will require the public to wear masks in public transportation through an executive order, which will be officially implemented on July 11. Nice will also be the first city in France to resume the mask mandate on public transport.

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EU lawmakers have voted down a proposal against classifying gas and nuclear as green energy, removing the last major hurdle for the industry to be able to secure potentially billions of euros in funding from environmental investors. The vote means that new gas-fired power plants will be able to receive fresh funding from ESG investors, albeit with time constraints, and only if these facilities replace coal-fired power plants. It would also provide a boost to Europe's troubled nuclear industry. Countries such as France see nuclear energy as a low-carbon energy source vital to replacing Russia's fossil fuels.

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From July 7th to 8th, the G20 Foreign Ministers' Meeting will be held in Bali, Indonesia. The theme of the conference is "Building a More Peaceful, Stable and Prosperous World Together" and will discuss strategies for global recovery efforts. This meeting will consist of two things. The first is to strengthen multilateralism. At this meeting, UN Secretary-General António Guterres and Columbia University professor Jeffrey Sachs will speak, and they will discuss the strengthening of multilateral principles in the current geopolitical situation. The second is about the food and energy crisis, where the meeting will discuss how to overcome the food crisis, fertilizer shortages and rising global commodity prices.