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.
GV PAN City of London street PAN TO Stock Exchange building
CU Sign "Throgmorton Street"
GV PAN DOWN Stock Exchange TO people in street
GV PAN Midland Bank overseas office
SV Visnews reporter seated with Mr. Vic Stevens
CU Mr. Stevens
REPORTER: "What effect is the slump sterling having on the British economy?"
STEVENS: "It's having an adverse effect. And if it continues the effect will grow, because -- remember -- in the final analysis we've got to import raw materials and goods that we pay for in foreign currencies, and then turn those into an exportable commodity. The cost of the import is going to go up and up and up, and if we're not careful we'll never be able to recoup the cost of the import in the export.
REPORTER: "Does the ???are the Bank of England's gloomy forecast about ??? ???usterity ahead?"
STEVENS: "The ??? that I've spoken to in the City are more inclined towards ??? viewpoint that it's not so bad in the future for us, although we would be at a loss to give you any absolute specifics. It's all more in the nature of a hunch."
REPORTER: "Mr. Stevens, thank you very much."
Initials AE/1.36 AE/2.01
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Background: 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: