While Britain’s economy, and related exchange traded funds (ETFs), may be relieved by a “stabilizing” housing market, British citizens are pained to see their favorite pub around the corner shut down.
The Royal Institution of Chartered Surveyors says the U.K. housing market is showing signs of “stabilizing” in May and subsequently the sterling pound advanced against the dollar, reports Yasuhiko Seki for Bloomberg. The pound also rose against 12 of 16 of the most-active currencies.
Last week, the sterling had its biggest weekly loss in three months as uncertainty racked Prime Minister Gordon Brown’s Cabinet and calls for him to quit.
Local British pubs are closing up shop, straining under market forces, higher taxes and lifestyle changes, writes Henry Chu for The Los Angeles Times. More than 2,000 taverns have closed down since March of last year, leaving 20,000 jobless.
Government rules allow big chains to buy up or control most pubs, which leaves tenants that lease them earning less and less of the overall profits. Supermarkets have also been selling cheaper alcoholic beverages and alcohol duties are also rising. Alehouses also lost customers after the smoking ban instituted in 2007.
- iShares MSCI United Kingdom Index (EWU): up 12.2% year-to-date
- CurrencyShares British Pound Sterling Trust (FXB): up 12.1% year-to-date
Read the disclosure, as Tom Lydon is a board member of Rydex Funds.
Max Chen contributed to this article.