The first item in Theresa May’s in-tray: A Brexit-induced recession July 11, 2016 Theresa May will be the next UK Prime Minister, and sterling and the FTSE 250 rose almost immediately. Markets think that May will be more pro-EU than Andrea Leadsom, the tribune of the europhobic Tory grass roots. But don’t imagine that domestic political uncertainty was the only reason for the recent falls in the currency [...]
At the close: FTSE 100 charges into bull territory as investors cheer leadership certainty and the weak pound drives up profits July 11, 2016 Well, there it is. The FTSE 100 has swung from bear market territory to a bull market in just over six months. The twists and turns of the day's political events gave a fresh boost to the global FTSE 100, while the UK focused FTSE 250 also posted strong gains. Housebuilders, such as Barrat Developments and [...]
A free Scotland will need the free market July 11, 2016 Two areas have dominated debate since the EU referendum result: economics and politics. The former has been a justifiable preoccupation for many, with an undeniable uncertainty having taken hold in many corners of the City. Meanwhile, the political debate centred first on Labour's internal collapse before turning to question of the Tory leadership. But there [...]
Week ahead: Fashion retailers and builders are in the spotlight July 11, 2016 Alongside the Bank of England’s first meeting after the UK voted to quit the European Union it will be a busy week of corporate numbers. Bank of England officials announce their monetary policy decision on Thursday and many economists are expecting a loosening of interest rates. The FTSE 100 rose to its highest level in [...]
Coming To America: Osborne flies the flag for Britain on world tour as he seeks to bolster international trading relationships post-Brexit July 11, 2016 George Osborne is kicking off a post-referendum world tour with a declaration that “Britain will be a beacon for free trade…more open to the world than ever”. Writing in the Wall Street Journal ahead of visiting New York today, the chancellor says that he is determined “to build a more outward-looking, global-facing Britain, with stronger [...]
Over 1,000 barristers write to Cameron branding the Brexit outcome “not legally binding” July 11, 2016 The legal clamour against the result of the EU referendum is growing, with over 1,000 barristers branding the outcome “not legally binding” and demanding that leaving the EU be subject to an Act of Parliament. The barristers are writing to Prime Minister David Cameron this week to call for MPs to be given a free vote [...]
The discontinued Land Rover Defender (the Queen’s favourite car) could make a grand comeback July 10, 2016 Chemicals czar Jim Ratcliffe is gearing up to revive production of the Land Rover Defender, one of Britain’s most iconic cars. The Ineos owner is in talks with senior executives at the Tata-owned car manufacturer which stopped production of the 67-year old Defender in January this year after the vehicle could not keep up with [...]
Bank of England to cut interest rates next week according to financial markets July 10, 2016 Financial markets are expecting the Bank of England to slash interest rates when they meet next week, in a drive to stimulate the economy after the EU referendum. The Bank's rate-setting Monetary Policy Committee (MPC) will announce its latest decision on interest rates on 14 July – and markets put the chances of a cut at [...]
Moody’s warns political contagion from Brexit vote could threaten EU’s existence July 8, 2016 Moody's issued a stark warning that political spillovers from the Brexit vote could one day threaten the bloc's very existence and hit global economic growth. It came as the credit ratings agency downgraded the Eurozone's growth forecasts to 1.5 per cent from 1.7 per cent this year, and to 1.3 per cent from 1.6 per cent in [...]
US non-farm payroll numbers: Country added 287,000 jobs in June in turnaround from shock May figures July 8, 2016 The US added 287,000 jobs in June, driven by the leisure and hospitality and healthcare and social assistance sectors. The non-farm payroll data released today is a marked turnaround from the numbers published last month, which showed US employers added just 38,000 jobs in May. The greenback crashed after the May data, which showed the weakest jobs growth [...]