What’s behind the rise of anti-establishment politics? From Brexit to Trump and Bernie Sanders, frustration at inequality is rising – and some experts think central bank policies are to blame June 28, 2016 Anti-establishment sentiment is growing, with political leaders seen as “alternative” drawing support across the Western world – from the rise of Bernie Sanders and Donald Trump in the US, to France’s National Front, Germany’s AfD, Italy’s Lega Nord and Syriza in Greece. The surprise triumph of the Brexit movement falls into this camp too. And a [...]
Mervyn King says Treasury’s exaggerated Brexit claims backfired June 27, 2016 The former governor of the Bank of England yesterday slammed George Osborne and his Treasury team over their Brexit campaign. And Lord Mervyn King said they would now need to row back from exaggerated claims that left him “baffled”. “I think the government said things it is not easy to sustain or support. If the [...]
Oil prices fall as Brexit vote roils the market June 27, 2016 Oil prices gave up earlier gains this afternoon as the dollar rallied and traders continued to digest the fallout from last week's Brexit vote. Brent crude, the global benchmark, fell 3.28 per cent to $46.82 a barrel this morning, while West Texas Intermediate crude, the US benchmark, slumped 1.05 per cent to $48.85. Read more: Oil [...]
Mixed fortunes for London-listed miners amid Brexit vote fallout June 27, 2016 The fallout from the UK's Brexit vote was a boon for precious metals miners as investors sought safe-havens today, but this wasn't the case for the whole sector. Mexico's Fresnillo finished up seven per cent to 1,483p per share, while Rangold Resources added 9.02 per cent to 8,035p and gold miner Centamin swelled 8.15 per cent to 130.10p. Read more: Texas "frack master" accused [...]
S&P and Fitch downgrade UK after “seminal” Brexit vote June 27, 2016 Standard and Poor's and Fitch downgraded the UK's credit rating on Monday evening after last week's Brexit vote. S&P downgraded the UK's rating by two notches, from AAA to AA, with a negative outlook, describing the Brexit vote as "a seminal event". Fitch also downgraded the UK, from AA+ to AA with a negative outlook. "The UK vote to leave the [...]
At the close: Markets take a clobbering as sterling slides and uncertainty reigns June 27, 2016 Traders and investors were left bloodied by a volatile session on the markets today. The FTSE has closed down 2.55 per cent at 5,982.20, with a fifth of FTSE 100 companies racking up double digit price falls. The internationally focused blue-chip index outperformed mid-caps however as the FTSE 250 – mostly made up of companies that trade in the [...]
UK bond yields fall to a new record low, despite looming debt downgrades June 27, 2016 Borrowing costs for the UK government have dropped to their lowest on record as investors flock to the safe haven of government debt in the midst of Brexit uncertainty. Yields on the benchmark 10-year Treasury bonds plunged to 0.94 per cent, down an unprecedented 0.14 percentage points – or 14 basis points – since yesterday. It is [...]
Miner BHP Billiton swims against the tide with spending boost June 27, 2016 The battered mining sector could be on the tip of a pick up after BHP Billiton unveiled plans to boost how much it spends on finding oil and copper. Speaking during a presentation to Citigroup investors, BHP said it will raise exploration spending by nearly 30 per cent over this financial year, from $700m (£530m) to $900m. Read [...]
Demolition derby: Housebuilders trigger circuit breaker as their shares head for a second day of falls June 27, 2016 Shares in all the FTSE 100-listed housebuilders were suspended from trading for five minutes this morning as housebuilders fell for the second consecutive trading day. Taylor Wimpey was the first to trigger the London Stock Exchange's so-called circuit breaker by falling more than eight per cent on its opening price, causing it to be suspended for five minutes, as investors showed their nerves over [...]
Trading suspended in Barclays and RBS as European bank shares crash June 27, 2016 Trading in bank shares was temporarily suspended on multiple occasions today as the value of European lenders tumbled in response to the vote to leave the EU. Financial giants Barclays and Royal Bank of Scotland (RBS) both fell more than 18 per cent by lunchtime as markets increasingly turned on stocks perceived to be most at risk from prolonged uncertainty [...]