Released on: September 3, 2008, 2:26 am

Press Release Author: Richard Drake

Industry: Financial

Press Release Summary: Cornerstone Worldwide are thought to be advising clients to
sell sterling in favor of euro and dollar

Press Release Body: Asian-based asset management firm, Cornerstone Worldwide is
rumored to be advising clients to “sell” sterling against the euro, the yen and the
US dollar.

Cornerstone Worldwide are reported to have suggested in a research note that
following a gloomy inflation report from the Bank of England and a precipitous fall
against the US dollar last week, sterling is likely to fall further against other
currencies as the extent of the headwinds facing the UK economy become more
apparent.

The pound slumped almost 3 percent against the dollar last week, its biggest
five-day loss since the period through July 1, 2005, after Bank of England Governor
Mervyn King said the housing market faces ``a significant adjustment\'\' as banks
ration loans for homebuyers.

Cornerstone Worldwide are thought to have advised clients to convert cash held in
sterling into Canadian dollars or Swiss Francs.

A source close to currency arbitrage traders at Cornerstone Worldwide said that it
was unlikely that the UK housing market would recover “any time soon” and that an
economy fairly reliant on heavily-indebted consumers as well as financial services
was facing a “double whammy” as the credit crunch would continue to hamper orderly
operation of the world’s financial markets.


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