cash

Experts have given their take on where the Pound is

Experts have urged Brits to buy holiday cash now as the Pound is expected to weaken over this week’s market chaos with a warning that “it’ll hit wallets immediately”. Bond yields have risen sharply, increasing the cost of government borrowing and renewing concerns about whether Britain’s growing public-debt burden is sustainable.

Although higher yields can sometimes support a currency by offering investors better returns, Sterling has weakened as markets focus instead on inflation, rising debt costs and the Government’s limited financial room ahead of the Budget. The Bank of England is expected to hold interest rates at 3.75% this month, leaving it caught between supporting economic growth and preventing higher energy and import costs from fuelling another wave of inflation.

For households, a weaker Pound could mean more expensive holidays, fuel, food and other imported goods. Rising gilt yields can also push up swap rates, placing further pressure on fixed mortgage pricing just as many borrowers prepare to refinance.

Dave Huggett, founder of Lucid Foreign Exchange, said there was no need to be patient when buying your holiday cash.

He added: “Higher gilt yields and worries about debt sustainability tend to weigh on the Pound. Not always straight away and not always by much, but it’s one more thing dragging on sentiment. When investors get nervous about a country’s finances, they usually want more reward to hold that currency, or they just move their money elsewhere.

“So what do you do? Buy it all now, or hold in the hope of a recovery. The answer to that always lies in the need, not the want. If you’re buying currency to go on holiday, you basically get what you’re given. ‘Getting it right’ on a few thousand Pounds still doesn’t really move the dial. But if the numbers are bigger, and the situation can afford a bit more patience, then zooming out and looking at the situation objectively often pays.”

Iain Thompson, director of Evolve Finance, said everything was affected by a weaker Pound.

He added: “A sliding Pound is a quiet inflation tax on everyday households. When the Bank of England holds interest rates down while government borrowing costs climb, currency markets lose confidence, causing Sterling to steadily weaken against the Dollar and Euro. For the average person, this isn’t just an abstract financial chart – it’ll hit wallets immediately.

“A weaker Pound means everything the UK imports, from petrol to supermarket groceries, becomes instantly more expensive, keeping domestic inflation sticky. Holidaymakers will feel the sting the fastest at the exchange bureau. If you have a trip planned over the coming months, waiting and hoping for a sudden Sterling recovery is a high-risk gamble.

“While predicting currency is never guaranteed, the downward pressure is real. If your holiday budget is tight, locking in half of your travel cash now protects you from worst-case rate drops, ensuring a sudden currency dip won’t derail your family holiday budget before you even pack your bags.”

Tony Redondo, founder of Newquay-based Cosmos Currency Exchange, said the Bank of England was between a rock and a hard place.

He added: “Rising UK gilt yields are a double-edged sword for the Pound. At first, they boost Sterling’s appeal, a fatter carry-trade return over rival currencies. But soon markets ask why yields are climbing: borrowing costs rising as investors fret over debt sustainability, with the UK’s debt pile racing toward £3 trillion.

“That leaves the Bank of England boxed in; raise rates to choke off the inflationary wave from Brent crude above $95 or hold rates down to protect growth. My money’s on Sterling grinding lower, toward $1.30 and €1.13 ahead of the 28 October Budget, as fiscal deficits erode investor confidence.

“For consumers, a weaker Pound means pricier holidays abroad and imported inflation with higher supermarket bills, fuel costs, and goods prices. Elevated yields also lift swap rates, pushing fixed mortgage pricing higher. Anyone with confirmed overseas costs should buy currency in tranches now, hedging against further falls without gambling on timing.”

Prem Raja, head of trading floor at Currencies 4 You, said people could save as much as €230.

He added: “The rise in gilt yields is not automatically good news for Sterling. UK 10-year borrowing costs reached 5.29%, their highest since 2007, but the Pound still fell below $1.35. Investors appear more concerned about inflation, debt costs and the Government’s limited room ahead of the October Budget than attracted by higher yields.

“The Bank of England is expected to hold rates at 3.75% this month. If markets scale back expectations of a later rise, Sterling could lose another 1-2% over the coming months. GBP/EUR is around €1.16-€1.17, but €1.15 is realistic if fiscal concerns grow. GBP/USD could retest $1.33-$1.34, although US developments matter too.

“Travellers would notice that: a 2% fall means roughly €230 less when exchanging £10,000. I would not tell everyone to buy everything now, but anyone with a confirmed Euro or Dollar requirement should consider securing part of it and staggering the balance. That limits the risk of further weakness without committing everything at one rate.”

Anita Wright, chartered financial planner at Ribble Wealth Management, said a weaker Pound arrived in people’s shopping baskets within weeks, not months.

She added: “Everyone will watch the Pound against the Dollar and Euro. That’s the wrong yardstick. Those currencies are run by governments with the same problem so the Pound can look stable at the bureau de change while quietly losing purchasing power where it matters the supermarket, the petrol station, the energy bill.

“The real test of a currency is what it buys at home, and on that measure Sterling has been slipping for some time. What’s actually going on is this. The BoE holds bank rate down while the gilt market demands 5% and more. That gap gets filled by the Bank buying gilts, which is printing money by another name.

“More Pounds chasing the same goods. Diesel is already tightening and Britain imports most of its energy and much of its food, so a weaker Pound arrives in your shopping basket within weeks, not months. On holiday money swapping Pounds for Euros just moves you from one leaking boat to another.”

Samuel Mather-Holgate, managing director and IFA at Swindon-based Mather and Murray Financial, said there was no point waiting for the Pound to get stronger.

He added: “Sterling is not staring at an instant cliff edge, but the warning lights are flashing. With 10-year gilt yields around levels last seen in 2008 and the Pound slipping below $1.35, markets are telling Britain the free lunch is over. Higher borrowing costs squeeze the Treasury, unsettle mortgage markets and make imported goods, fuel and holidays more expensive if the Pound weakens further.

“For families, this is felt at the airport exchange desk, in supermarket prices and in the next remortgage quote. I would not tell people to gamble on currencies, but anyone with a known Euro or Dollar cost in the next few months may prefer certainty over trying to outguess a very twitchy market. Waiting for a stronger Pound is starting to look like a heroic assumption.”

Nouran Moustafa, practice principal and IFA at Roxton Wealth, said the weak Pound could be seen in airports.

She added: “The Pound is being squeezed from both sides. UK borrowing costs are rising, but markets still expect the Bank of England to hold Bank Rate at 3.75% this month. Sterling has already slipped to around $1.35 and €1.16. For households, this becomes painfully real at the airport.

“A weaker Pound means your hotel, meals and spending money abroad quietly become more expensive without the price tag changing. But I would not tell somebody to panic-buy thousands of Euros today based on a currency forecast. Nobody can reliably call Sterling over the next few weeks.

“If you know you need €2,000 or $3,000 for a trip, buying it in stages is far more sensible than gambling your entire holiday budget on one exchange-rate prediction. The bigger warning is this: when markets lose confidence in government finances, ordinary people eventually feel it. The bond market may look boring. Its consequences absolutely are not.”

SAN DIEGO — José E. Feliciano, the new controlling owner of the San Diego Padres, lives in Los Angeles. You know, that place at the end of the Padres’ incessant “Beat L.A.” chants.

No worries, Padres fans. Feliciano is — make that was — a longtime New York Yankees fan.

“The good thing is,” he told me after an introductory news conference Monday, “rooting against the Dodgers comes naturally to me.”

It was only 18 months ago that Padres fans wondered whether the good times might come to an end, with the widow of beloved owner Peter Seidler suing his brothers for control of the team. For their part, the brothers said they had “no plans to sell the Padres.”

That sounds a lot like what Dodgers president Stan Kasten said Friday, amid a federal investigation into alleged financial improprieties among insurance companies controlled by Dodgers owner Mark Walter.

“The Dodgers are not being sold,” Kasten said. “They’re not going to be sold.”

What is true today might not be true tomorrow. What is true today, as potential bidders for the Dodgers lurk and coalesce amid L.A.’s turn at uncertainty, is that the Padres have an energetic and effervescent couple as their new principal owners.

Feliciano, a founder of Clearlake Capital in Santa Monica, took the mound at Petco Park on Monday afternoon, working out of a stretch and looking toward an invisible runner at second base before delivering a pitch. In spring training, he said, he stepped into the batting cage to try to hit simulated pitches from Padres All-Star closer Mason Miller.

His wife Kwanza Jones, an artist and entrepreneur, led her husband into the news conference amid the sounds of a song she co-wrote, she said, inspired in part by a catch made by Padres outfielder Fernando Tatis Jr.

“My only musical talent is my name,” Feliciano said. “I humbly ask you to please add my middle initial so I never get confused with the singer.”

As the couple looks for a home in San Diego, Jones appealed to fans to share what they love about their neighborhoods. Later, the couple took selfies along the first-base line.

New San Diego owners Kwanza Jones, center, and José E. Feliciano, right, speak at a news conference with Padres Chief Executive Erik Greupner at Petco Park on Monday.

(Greg Beacham / Associated Press)

Their enthusiasm bubbled forth as the news conference proceeded, as their sense of whether the Padres might finally win a World Series got more and more optimistic.

Feliciano, three minutes into the news conference: “We cannot promise we are going to win.”

Jones, two minutes later, riffing off her lyrics, her voice rising: “We gonna win! We gonna win! We gonna win — win it all!” And then a pause, to lower her voice: “We hope it’s sooner rather than later.”

Feliciano, two minutes later: “We need to win a World Series. It’s that simple. That’s what we’re going to do.”

Jones, one minute later: “Multiples.”

Feliciano, one minute later: “The impossible becomes possible when somebody does it. So let’s do it.”

This is not Feliciano’s first foray into professional sports. Clearlake Capital is the majority owner of Chelsea, the storied soccer club.

“I’m missing the first game of the Premier League right now,” Feliciano said.

He said he could not comment on reports Walter is looking to sell his stake in Chelsea. Two weeks ago, Walter announced an agreement to sell controlling interest in the Lakers at a $12.5-billion valuation, the cash from which could help repay loans under scrutiny. The Dodgers could command a similar valuation, industry sources not authorized to discuss the issue publicly told The Times, should Walter decide to sell.

As part of a search for cash, Puck reported last week, Walter had talked with Charter Communications about whether the company would be interested in paying a lump sum now to get out of its SportsNet LA contract — a money-losing deal for Charter, but the primary source of the Dodgers’ financial advantage over the other 29 teams in the major leagues.

The talks “went nowhere,” Puck reported. Kasten declined to address the matter, as did a Charter spokesman.

In 2011, with the Dodgers headed toward bankruptcy, former owner Frank McCourt found what he believed would be his financial lifeline in a television rights deal with Fox Sports.

In a withering letter to McCourt, then-commissioner Bud Selig rejected the deal, criticizing McCourt for proposing a financial structure that would have foreclosed the Dodgers from pursuing more lucrative options “because of your desperate need for immediate cash.”

That precedent could inform how Rob Manfred, the current commissioner, would evaluate any proposed restructuring of the Dodgers’ television deal. Under the owners’ current collective bargaining proposal, to which Walter agreed, the Dodgers’ annual television riches — more than $500 million per year by the end of the deal in 2038 — would be fully contributed toward revenue sharing among all 30 teams.

I asked Feliciano whether the Dodgers’ uncertainty might make this a particularly opportune time to buy the Padres.

“You’ve got to look at these things on a generational, multi-decade basis, honestly,” he told me. “It’s like trying to time a great investment in the market. You can’t.

“What I can tell you is that this is the good time — the best time — for us. I think it also coincides with Peter’s legacy: The team is in a great place, the city is in a great place.”

The Dodgers’ revenue advantage remains significant, not just because of their SportsNet LA deal but because they fill the largest stadium in the majors almost every night and employ Shohei Ohtani.

In San Diego, however, where ticket sales represent the largest source of team revenue, the Padres sell more tickets than any major league team besides the Dodgers. Petco Park already is a year-round concert venue and event center, and the Padres could rekindle plans to develop a large parking lot near the ballpark.

And, if owners emerge from collective bargaining with a salary cap or other restraint on the Dodgers’ spending, that would be a win for San Diego.

On the field, the Padres entered play Monday with 21 victories in their past 28 games. The Padres acquired Robbie Ray and Casey Mize at the trade deadline to bolster a patchwork rotation, and they retained Miller and Adrian Morejon rather than break up a mighty bullpen. Tatis leads the National League with 12 home runs since the All-Star break; outfielder Jackson Merrill has 11.

“As we have seen the last few weeks, we are very competitive. I feel we are one of those teams — us and the Phillies, probably — that nobody wants to play,” Feliciano said.

“We want to keep it that way.”

The Phillies entered play Monday on a nine-game winning streak, in position for one of the National League wild cards. The Padres also are in position for an NL wild card, keeping alive the possibility that the Dodgers and Padres could meet in the NL Championship Series.

If that happens, it won’t matter how many games the Dodgers finished ahead of the Padres during the regular season.

“We’d just need to win four,” Feliciano said.

Beat L.A., indeed.

Holidaymakers are being warned of new rules around spending cash in popular hotspots which are set to be implemented by next summer

While many Brits use debit, credit, or travel money cards when they go on holiday, for some, cash is still king no matter where they go in the world.

But new plans from the European Central Bank (ECB) could see a digital equivalent to physical cash being introduced, and the first step, a cash payment limit in Euros, is set to be enforced as of next summer.

As reported by Majorca Daily News, as part of the move to a digital Euro, the cash payment limit of €10,000 (about £8,500) will be introduced in Spain as of July 10, 2027. It’ll apply to all commercial transactions for goods and services, and can’t be bypassed by making lots of smaller transactions, as linked cash payments will be treated as a single payment under the law.

For transactions between €3,000 and €10,000, merchants will be obliged to verify the customer’s identity before they pay in cash. This ensures that all financial transactions can be linked to individuals, even if cash is used, and aims to prevent money laundering. This could affect Brits looking to pay for hotels or car hire in cash.

EU countries will be able to set their own limits, and France has already confirmed for its own taxpayers the maximum amount will be just €1,000, but for holidaymakers it’ll be €15,000, about £12,800.

Banks in the EU will continue to monitor unusual deposits at cash points, and will also need to report transactions of over €3,000 where large banknotes are used. While it’s unlikely that the average tourist would ever carry this amount, there is also a limit on the amount of cash someone can carry in public when in Spain which is €100,000, about £85,500. which is to deter criminal activities and terrorism.

If you’re travelling between countries, even if you’re within the Schengen area, you’ll need to declare any amounts over €10,000 to customs when you arrive.

The digital Euro plan would create a central bank digital currency (CBDC) overseen by the ECB. It would offer a digital alternative to physical cash, and mean people could make on and off-line purchases free of charge with their Euros stored on a card or mobile app.

A rollout is planned for 2029, and aims to reduce reliance on US payment systems such as Visa and Mastercard. In Russia, huge numbers of people were left unable to make payments when the firms pulled out of the country due to the war with Ukraine, and Europe wants to avoid using US firms for banking functions in a time of political instability.

European Central Bank President Christine Lagarde claimed in a Euronews interview that the move to a digital Euro isn’t about scrapping cash and coins or monitoring citizens, saying: “Cash will not go away, it will be rejuvenated”.

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