This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/live/2016/jun/27/pound-shares-markets-brexit-crisis-osborne-lew-business-live
The article has changed 26 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Pound and shares hit again by Brexit crisis – business live | Pound and shares hit again by Brexit crisis – business live |
| (35 minutes later) | |
| 8.42am BST | |
| 08:42 | |
| Video: Osborne faces the music | |
| Here’s a video clip of George Osborne’s speech, for those who missed it 90 minutes ago | |
| 8.40am BST | |
| 08:40 | |
| George Osborne has managed to reassure the City by joining those arguing for a delay before starting the formal process of leaving the EU. | |
| Connor Campbell of SpreadEx explains: | |
| It seems that George Osborne’s appearance this morning, his first since before the referendum results were announced, has somewhat calmed investors’ fears, the Chancellor joining many of his Tory colleagues in claiming there is no rush to trigger the dreaded Article 50 despite increasing pressure from Europe. | |
| Updated | |
| at 8.40am BST | |
| 8.38am BST | |
| 08:38 | |
| European stock markets are also calmer this morning, after George Osborne’s appearance: | |
| 8.29am BST | |
| 08:29 | |
| It’s never nice to see a company’s share price tumble. | |
| But some people might make an exception for Foxtons, the notoriously aggressive London estate agent. Its shares have plunged by 20% this morning, after warning that Brexit uncertainty will hurt its profits. | |
| It's an ill wind... Foxtons shares hammered on Brexit-driven profit warning pic.twitter.com/4h69osoHnm | |
| Foxtons floated on the stock market at 230p per share. They are now worth just 109p. | |
| 8.21am BST | |
| 08:21 | |
| Budget airline easyJet is leading the fallers on the stock market this morning, down 8% after its profit warning. | |
| But mining companies are rallying, along with UK companies who earn most of their money abroad (such as consumer goods group Unilever and pharmaceuticals firm Shire). | |
| Here are the main risers and fallers: | |
| 8.15am BST | |
| 08:15 | |
| The pound has recovered some of its early losses following Osborne’s statement, but is still down against the US dollar. | |
| It is now trading around $1.345, a fall of 1.7% this morning - from $1.339 before the chancellor spoke. | |
| 8.09am BST | 8.09am BST |
| 08:09 | 08:09 |
| London stock market falls again | London stock market falls again |
| Shares in London are falling at the start of trading. But it’s a smaller selloff than feared last night. | Shares in London are falling at the start of trading. But it’s a smaller selloff than feared last night. |
| The blue-chip FTSE 100 index has lost 40 points in first few minutes of trading, a fall of 0.6%. | The blue-chip FTSE 100 index has lost 40 points in first few minutes of trading, a fall of 0.6%. |
| Housebuilders and banks are leading the fallers. Building firm Berkeley group has lost 8%, while Royal Bank of Scotland is down almost 6%. | Housebuilders and banks are leading the fallers. Building firm Berkeley group has lost 8%, while Royal Bank of Scotland is down almost 6%. |
| That takes the Footsie down to 6100 points. | That takes the Footsie down to 6100 points. |
| Overnight, the futures market had predicted that the FTSE 100 would fall by 2.8%. So perhaps George Osborne’s appearance this morning has calmed the situation a little. | Overnight, the futures market had predicted that the FTSE 100 would fall by 2.8%. So perhaps George Osborne’s appearance this morning has calmed the situation a little. |
| 7.59am BST | 7.59am BST |
| 07:59 | 07:59 |
| British airline easyJet has also warned that profits will miss expectations. | British airline easyJet has also warned that profits will miss expectations. |
| It blamed strike action by French air traffic controllers, runway and congestion issues at Gatwick airport and severe weather, as well as Brexit uncertainty. | It blamed strike action by French air traffic controllers, runway and congestion issues at Gatwick airport and severe weather, as well as Brexit uncertainty. |
| British airline easyJet warns on third-quarter profit https://t.co/QoNw1SWbEr | British airline easyJet warns on third-quarter profit https://t.co/QoNw1SWbEr |
| 7.58am BST | 7.58am BST |
| 07:58 | 07:58 |
| Foxtons issues Brexit profit warning | Foxtons issues Brexit profit warning |
| London estate agent Foxtons has issued a profits warning, after counting the cost of the Brexit vote. | London estate agent Foxtons has issued a profits warning, after counting the cost of the Brexit vote. |
| The company has warned the City that the uncertainty it was already suffering, due to the EU referendum, will continue for at least the next six months. | The company has warned the City that the uncertainty it was already suffering, due to the EU referendum, will continue for at least the next six months. |
| Foxtons had been hoping that the market would pick up in the second half of this year. | Foxtons had been hoping that the market would pick up in the second half of this year. |
| But Nic Budden, Foxton’s CEO, has now told shareholders that conditions won’t improve for a while. | But Nic Budden, Foxton’s CEO, has now told shareholders that conditions won’t improve for a while. |
| “Whilst we had a strong start to the year, we said in our Q1 update that we expected the first half to be challenging ahead of the EU referendum. | “Whilst we had a strong start to the year, we said in our Q1 update that we expected the first half to be challenging ahead of the EU referendum. |
| Since then recent sales volumes have been slow as uncertainty and higher stamp duty has led many buyers and sellers to sit on their hands. The result of the referendum has increased uncertainty and is likely to mean that these trends continue for at least the remainder of the year. | Since then recent sales volumes have been slow as uncertainty and higher stamp duty has led many buyers and sellers to sit on their hands. The result of the referendum has increased uncertainty and is likely to mean that these trends continue for at least the remainder of the year. |
| Updated | Updated |
| at 7.58am BST | at 7.58am BST |
| 7.55am BST | 7.55am BST |
| 07:55 | 07:55 |
| Tweet of the morning.... | Tweet of the morning.... |
| I've had more comfortable dental appointments than that Osborne presser | I've had more comfortable dental appointments than that Osborne presser |
| 7.42am BST | 7.42am BST |
| 07:42 | 07:42 |
| Osborne speaks: instant reaction | Osborne speaks: instant reaction |
| Aengus Collins of the Economist Intelligence Unit wasn’t reassured by the chancellor’s comments: | Aengus Collins of the Economist Intelligence Unit wasn’t reassured by the chancellor’s comments: |
| If I had to take one thing from that presser, it would be how nervous Osborne looked and sounded. | If I had to take one thing from that presser, it would be how nervous Osborne looked and sounded. |
| Shorter Osborne: let's wait and see for a few months.Not sure that's a line that's going to last. | Shorter Osborne: let's wait and see for a few months.Not sure that's a line that's going to last. |
| Fiscal policy: no loosening, hints to tightening.Monetary policy: very little room for manoeuvre.This shock is going to hurt. | Fiscal policy: no loosening, hints to tightening.Monetary policy: very little room for manoeuvre.This shock is going to hurt. |
| City economist Sam Tombs disputes Osborne’s claim that the UK economy is in good shape to handle Brexit: | City economist Sam Tombs disputes Osborne’s claim that the UK economy is in good shape to handle Brexit: |
| £75B budget deficit ≠ roof fixed. #Osborne | £75B budget deficit ≠ roof fixed. #Osborne |
| Duncan Weldon of the Resolution Foundation says that Osborne is relying on the UK’s central bank to fight the crisis. | Duncan Weldon of the Resolution Foundation says that Osborne is relying on the UK’s central bank to fight the crisis. |
| Demand is being hit now, no fiscal policy response. Burden on Bank of England - not great for Sterling. | Demand is being hit now, no fiscal policy response. Burden on Bank of England - not great for Sterling. |
| 7.32am BST | 7.32am BST |
| 07:32 | 07:32 |
| Osborne: No emergency budget despite Brexit | Osborne: No emergency budget despite Brexit |
| Chancellor George Osborne is speaking now, outlining the government’s response to the Brexit crisis. | Chancellor George Osborne is speaking now, outlining the government’s response to the Brexit crisis. |
| He warns that it is “inevitable that the UK economy will have to adjust”, but claims that the economy is as strong as it could be to face the challenges ahead. | He warns that it is “inevitable that the UK economy will have to adjust”, but claims that the economy is as strong as it could be to face the challenges ahead. |
| My colleague Heather Stewart is watching at the Treasury. | My colleague Heather Stewart is watching at the Treasury. |
| "It will not be plain-sailing in the days ahead; but let me be clear, you should not underestimate our resolve," says Osborne. | "It will not be plain-sailing in the days ahead; but let me be clear, you should not underestimate our resolve," says Osborne. |
| Osborne says "unlike 8 years ago"' banks are well prepared and capitalised; making comparison with post-Lehman Brothers crash. | Osborne says "unlike 8 years ago"' banks are well prepared and capitalised; making comparison with post-Lehman Brothers crash. |
| Osborne says he favours delaying triggering Article 50 -- to start the process of leaving the EU – until it’s clear what the terms would be. | Osborne says he favours delaying triggering Article 50 -- to start the process of leaving the EU – until it’s clear what the terms would be. |
| That might alarm EU leaders, who want Britain to exit the building sharpish. But it might calm the City, as it gives some breathing space for the political crisis raging in Britain to calm down. | That might alarm EU leaders, who want Britain to exit the building sharpish. But it might calm the City, as it gives some breathing space for the political crisis raging in Britain to calm down. |
| And he also indicates that there will NOT be an emergency ‘punishment’ budget to tackle the consequences of Brexit. Instead, action will be taken in the autumn (when a new prime minister will have been chosen). | And he also indicates that there will NOT be an emergency ‘punishment’ budget to tackle the consequences of Brexit. Instead, action will be taken in the autumn (when a new prime minister will have been chosen). |
| That’s a u-turn from Osborne, who had threatened tax rises if Brits defied the government and voted to leave the EU. | That’s a u-turn from Osborne, who had threatened tax rises if Brits defied the government and voted to leave the EU. |
| Q: Will there be a recession, chancellor, as you warned before the referendum? | Q: Will there be a recession, chancellor, as you warned before the referendum? |
| Osborne ducks the question, saying only that there will be an ‘adjustment’..... | Osborne ducks the question, saying only that there will be an ‘adjustment’..... |
| Treasury response to Brexit will not come until the autumn, when Office for Budget Responsibility has made new assessments, says Chancellor. | Treasury response to Brexit will not come until the autumn, when Office for Budget Responsibility has made new assessments, says Chancellor. |
| Osborne keeps repeating that Brexit will require an "adjustment' in the British economy. | Osborne keeps repeating that Brexit will require an "adjustment' in the British economy. |
| Our politics liveblog has full details: | Our politics liveblog has full details: |
| Related: Brexit live: George Osborne tries to calm markets with early-morning speech | Related: Brexit live: George Osborne tries to calm markets with early-morning speech |
| 7.19am BST | 7.19am BST |
| 07:19 | 07:19 |
| Pound pummelled in early trading | Pound pummelled in early trading |
| Sterling has begun the week with a serious bout of Monday morning blues. | Sterling has begun the week with a serious bout of Monday morning blues. |
| Heavy selling in Asia has pushed the pound down by almost three cents, or 2%, against the US dollar, to $1.3394 this morning. | Heavy selling in Asia has pushed the pound down by almost three cents, or 2%, against the US dollar, to $1.3394 this morning. |
| And there’s no relief from City traders, who have now returned to their desks. | And there’s no relief from City traders, who have now returned to their desks. |
| Pound still under pressure amif political turmoil post #Brexit. pic.twitter.com/JYbxMhuzhm | Pound still under pressure amif political turmoil post #Brexit. pic.twitter.com/JYbxMhuzhm |
| The pound is now only 1.5 cents away a new 31-year low. Remember, it was trading around $1.45 in the run-up to the referendum. | The pound is now only 1.5 cents away a new 31-year low. Remember, it was trading around $1.45 in the run-up to the referendum. |
| Kit Juckes, foreign affairs expert at Societe Generale, explains why the pound is so weak: | Kit Juckes, foreign affairs expert at Societe Generale, explains why the pound is so weak: |
| With recriminations, two main parties in turmoil and nothing but questions and uncertainty as far as the eye can see. I see no reason to buy the dip. | With recriminations, two main parties in turmoil and nothing but questions and uncertainty as far as the eye can see. I see no reason to buy the dip. |
| 7.11am BST | 7.11am BST |
| 07:11 | 07:11 |
| Investors are expecting shares in London to fall sharply at the start of trading, at 8am BST. | Investors are expecting shares in London to fall sharply at the start of trading, at 8am BST. |
| IG, the spread-betting firm, is predicting that Europe’s main stock markets will fall by around 2%: | IG, the spread-betting firm, is predicting that Europe’s main stock markets will fall by around 2%: |
| Our European opening calls:$FTSE 5980 down 159$DAX 9393 down 164$CAC 4029 down 78$IBEX 7837 up 49$MIB 15415 down 309 | Our European opening calls:$FTSE 5980 down 159$DAX 9393 down 164$CAC 4029 down 78$IBEX 7837 up 49$MIB 15415 down 309 |
| Updated | Updated |
| at 7.11am BST | at 7.11am BST |
| 7.06am BST | 7.06am BST |
| 07:06 | 07:06 |
| The agenda: Market mayhem to continue | The agenda: Market mayhem to continue |
| Good morning. | Good morning. |
| After three of the most dramatic days of British political drama in living memory, the financial world is bracing for more turmoil this week. | After three of the most dramatic days of British political drama in living memory, the financial world is bracing for more turmoil this week. |
| Britain’s decision to vote to leave the EU has left investors in a state of shock, and likely to send shares sliding across Europe again. | Britain’s decision to vote to leave the EU has left investors in a state of shock, and likely to send shares sliding across Europe again. |
| Friday’s sharp selloff, which wiped $2trillion off global markets, looks like the start of months of upheaval. | Friday’s sharp selloff, which wiped $2trillion off global markets, looks like the start of months of upheaval. |
| Both UK major political parties are in a state of crisis – with the Conservatives looking for a new prime minister, and some senior opposition Labour party members trying to force leader Jeremy Corbyn out. | Both UK major political parties are in a state of crisis – with the Conservatives looking for a new prime minister, and some senior opposition Labour party members trying to force leader Jeremy Corbyn out. |
| http://www.theguardian.com/politics/2016/jun/26/corbyn-to-hold-crisis-talks-as-labour-mps-try-to-force-him-out | http://www.theguardian.com/politics/2016/jun/26/corbyn-to-hold-crisis-talks-as-labour-mps-try-to-force-him-out |
| So with uncertainty everywhere we look, there’s little reason for traders to pile into the pound either. So sterling could well head back towards 31-year lows this morning. | So with uncertainty everywhere we look, there’s little reason for traders to pile into the pound either. So sterling could well head back towards 31-year lows this morning. |
| Overnight, Chinese premier Li Keqiang has warned that Britain’s vote to leave the European Union has increased uncertainly in the global economy. | Overnight, Chinese premier Li Keqiang has warned that Britain’s vote to leave the European Union has increased uncertainly in the global economy. |
| In London, chancellor George Osborne is about to deliver an emergency statement outlining the government’s response to the referendum vote. | In London, chancellor George Osborne is about to deliver an emergency statement outlining the government’s response to the referendum vote. |
| Awaiting arrival of the Chancellor. Statement "to reassure" the markets at 7am. #Brexit pic.twitter.com/lYJpYteVcz | Awaiting arrival of the Chancellor. Statement "to reassure" the markets at 7am. #Brexit pic.twitter.com/lYJpYteVcz |
| Mark Carney, Bank of England governor, has been due to attend an event in Portugal today. | Mark Carney, Bank of England governor, has been due to attend an event in Portugal today. |
| But that trip is off, with Carney staying in London - presumably to co-ordinate the Bank’s response to the crisis. | But that trip is off, with Carney staying in London - presumably to co-ordinate the Bank’s response to the crisis. |
| Carney set to pull out of appearence this week at @ECBForum in Portugal. Was due to be on panel with Yellen https://t.co/AD9PvgUQBe | Carney set to pull out of appearence this week at @ECBForum in Portugal. Was due to be on panel with Yellen https://t.co/AD9PvgUQBe |
| The prospect of a new financial crisis is already alarming policymakers around the globe. | The prospect of a new financial crisis is already alarming policymakers around the globe. |
| Christine Lagarde, head of the IMF, has pointed out that markets were wrongfooted by the Brexit vote. | Christine Lagarde, head of the IMF, has pointed out that markets were wrongfooted by the Brexit vote. |
| But she also argues that the Bank of England et al have done the right thing: | But she also argues that the Bank of England et al have done the right thing: |
| “But there was no panic and the central bankers did the job that they were prepared to do just in case, which was to put a lot of liquidity on the markets.” | “But there was no panic and the central bankers did the job that they were prepared to do just in case, which was to put a lot of liquidity on the markets.” |
| America’s top finance official, Jack Lew, is due to give his take on the crisis later today. | America’s top finance official, Jack Lew, is due to give his take on the crisis later today. |
| Tomorrow at 8a ET » @SteveLiesman sits down exclusively with Treasury Sec. Lew for his first post-Brexit interview. pic.twitter.com/cbnZNRPHSx | Tomorrow at 8a ET » @SteveLiesman sits down exclusively with Treasury Sec. Lew for his first post-Brexit interview. pic.twitter.com/cbnZNRPHSx |
| We’ll be tracking all the financial action through the day..... | We’ll be tracking all the financial action through the day..... |
| Updated | Updated |
| at 7.20am BST | at 7.20am BST |