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 10 | Version 11 |
---|---|
Pound hits new 31-year low, as Brexit fears grip markets – business live | Pound hits new 31-year low, as Brexit fears grip markets – business live |
(35 minutes later) | |
1.49pm BST | |
13:49 | |
Larry Hatheway, chief economist at Swiss fund manager GAM, says investors are worrying that Britain’s economy could soon start shrinking. | |
“Against the backdrop of an already slowing UK economy, Brexit anxiety could precipitate a large enough reduction in consumer and business spending to tip the UK economy into recession.” | |
1.48pm BST | |
13:48 | |
Britain’s decision to vote to Leave the European Union has forced investors to tear up some long-held beliefs. | |
That includes the idea that major advanced European economies are safer than developing markets. | |
Julian Mayo, Co-CIO of Charlemagne Capital, a fund manager, says the investors can’t say “with a straight face that emerging market assets are riskier. | |
“The historical position that political risk is significantly higher in emerging markets (EM) than developed markets (DM) is comprehensively and possibly irreversibly blown out of the water, with implications for the relative pricing of assets. | |
Even if we manage a reasonable renegotiation with angry Europeans, the vote gives massive encouragement for disaffected groups both in the EU and beyond, including separatist movements. Whether it’s Sturgeon, Le Pen, divisions in Spain and Italy, renewed stress within the Eurozone or the increasing possibility of a Trump win, pricing of risk across DM should surely rise. | |
1.33pm BST | |
13:33 | |
America’s Treasury secretary Jack Lew has urged investors to remain calm following the Brexit vote. | |
In a CNBC interview, Lew said “there is an orderliness in the market reaction” to last week’s referendum. | |
He argued that banks are in a better position to handle the fallout than in 2008 (when many had to be bailed out), but warned that there will be a “long period of change” now, as new headwinds hit the global economy. | |
Sec. Lew: Best impact would have been for U.K. to remain, believe there will be headwinds https://t.co/ruTg22oDDo pic.twitter.com/oUEkORmpSb | |
1.16pm BST | 1.16pm BST |
13:16 | 13:16 |
Ireland’s stock market is suffering a major selloff today. | Ireland’s stock market is suffering a major selloff today. |
The Dublin bourse has shed 7.7% today, making it the worst-performing eurozone market. | The Dublin bourse has shed 7.7% today, making it the worst-performing eurozone market. |
Irish stocks now down almost 8%, Bank of Ireland down 18%, Ryanair -10%. Bigger drop than Friday's....double-ouch. | Irish stocks now down almost 8%, Bank of Ireland down 18%, Ryanair -10%. Bigger drop than Friday's....double-ouch. |
1.06pm BST | 1.06pm BST |
13:06 | 13:06 |
Lord King blasts government over Project Fear | Lord King blasts government over Project Fear |
Mervyn King, who steered the Bank of England through the last financial crisis, has criticised the government for trying to scare the public during the election campaign. | Mervyn King, who steered the Bank of England through the last financial crisis, has criticised the government for trying to scare the public during the election campaign. |
He was speaking to the BBC’s Laura Kuenssberg: | He was speaking to the BBC’s Laura Kuenssberg: |
Just spoken to Lord King - most important he says, don't panic, long term economic difference btw In and Out not that big | Just spoken to Lord King - most important he says, don't panic, long term economic difference btw In and Out not that big |
But King wades right into the politics-he says both sides in campaign exaggerated, blasts Treasury | But King wades right into the politics-he says both sides in campaign exaggerated, blasts Treasury |
And the former Governor says Osborne and PM treated people like 'idiots' by scaremongering and voters didn't like being treated that way | And the former Governor says Osborne and PM treated people like 'idiots' by scaremongering and voters didn't like being treated that way |
Lord King also says the emergency budget was the 'nadir' of the campaign | Lord King also says the emergency budget was the 'nadir' of the campaign |
Updated | Updated |
at 1.11pm BST | at 1.11pm BST |
12.57pm BST | 12.57pm BST |
12:57 | 12:57 |
The FTSE 100 index has now shed 130 points today, on top of Friday’s 199 point losses. | The FTSE 100 index has now shed 130 points today, on top of Friday’s 199 point losses. |
That means the index has lost £85bn since the referendum result, in a blow to small investors and pension funds. | That means the index has lost £85bn since the referendum result, in a blow to small investors and pension funds. |
For a party for pensioners the Tories really have engineered a bloody blow for the pension pot with these equity falls | For a party for pensioners the Tories really have engineered a bloody blow for the pension pot with these equity falls |
Updated | Updated |
at 12.58pm BST | at 12.58pm BST |
12.56pm BST | 12.56pm BST |
12:56 | 12:56 |
Investors are hammering the pound and the stock market because they have no real idea what the next plot twist in the astounding Brexit drama might be. | Investors are hammering the pound and the stock market because they have no real idea what the next plot twist in the astounding Brexit drama might be. |
Joshua Mahoney of spread-betting firm IG explains: | Joshua Mahoney of spread-betting firm IG explains: |
For all of the statements of intent on both sides pre-referendum, it seems that much of it holds little basis in reality. First Farage admitted that the £350 million weekly NHS funding claim was a mistake and now Osborne has stepped back from his pledge to impose an immediate emergency budget. | For all of the statements of intent on both sides pre-referendum, it seems that much of it holds little basis in reality. First Farage admitted that the £350 million weekly NHS funding claim was a mistake and now Osborne has stepped back from his pledge to impose an immediate emergency budget. |
The name of the game now is stability and for that reason Osborne is crucial despite his previous support for the remain camp. Amid all the calls for Corbyn’s head and the clamour for the new PM role, financial markets are trying to ascertain what this will truly mean for the UK, the European Union and global stability. | The name of the game now is stability and for that reason Osborne is crucial despite his previous support for the remain camp. Amid all the calls for Corbyn’s head and the clamour for the new PM role, financial markets are trying to ascertain what this will truly mean for the UK, the European Union and global stability. |
Many traders have concluded that Britain’s housing industry is heading into a downturn, sending shares in builders and estate agents slumping (not helped by Foxton’s profit warning today) | Many traders have concluded that Britain’s housing industry is heading into a downturn, sending shares in builders and estate agents slumping (not helped by Foxton’s profit warning today) |
Housebuilders really hurting now ... #Brexit pic.twitter.com/eGweANf2a1 | Housebuilders really hurting now ... #Brexit pic.twitter.com/eGweANf2a1 |
12.49pm BST | 12.49pm BST |
12:49 | 12:49 |
Ouch. The pound just hit $1.316, a new post-1985 low. | Ouch. The pound just hit $1.316, a new post-1985 low. |
1.316 - so the pound is stable, eh Bojo ? GLWT. | 1.316 - so the pound is stable, eh Bojo ? GLWT. |
Sterling getting beaten like it owes money. | Sterling getting beaten like it owes money. |
12.46pm BST | 12.46pm BST |
12:46 | 12:46 |
Chris Saint, senior currency analyst at Hargeaves Lansdown, has warned that the pound could suffer large losses in the weeks ahead: | Chris Saint, senior currency analyst at Hargeaves Lansdown, has warned that the pound could suffer large losses in the weeks ahead: |
“It’s a sea of red for sterling again this morning as investor sentiment continues to sour after the UK’s vote to leave the EU. The pound has slipped below €1.20 against the euro this morning for the first time in more than two years. It has also fallen to fresh lows under $1.32 against the US dollar – the lowest level since 1985. | “It’s a sea of red for sterling again this morning as investor sentiment continues to sour after the UK’s vote to leave the EU. The pound has slipped below €1.20 against the euro this morning for the first time in more than two years. It has also fallen to fresh lows under $1.32 against the US dollar – the lowest level since 1985. |
Exchange rates will inevitably remain very volatile in the coming days and weeks as currency markets digest the far-reaching implications of the referendum result. | Exchange rates will inevitably remain very volatile in the coming days and weeks as currency markets digest the far-reaching implications of the referendum result. |
Further significant losses for sterling aren’t out of the question, especially if incoming data confirms the UK economy’s slowdown and lifts the likelihood of further Bank of England stimulus to support growth. | Further significant losses for sterling aren’t out of the question, especially if incoming data confirms the UK economy’s slowdown and lifts the likelihood of further Bank of England stimulus to support growth. |
Pound now down versus the dollar around 12 per cent since Thursday night: pic.twitter.com/KReBjMbNSx | Pound now down versus the dollar around 12 per cent since Thursday night: pic.twitter.com/KReBjMbNSx |
12.43pm BST | 12.43pm BST |
12:43 | 12:43 |
This tweet from the FT shows how smaller UK companies have been hit extra-hard by Brexit. | This tweet from the FT shows how smaller UK companies have been hit extra-hard by Brexit. |
Sterling weakness shields FTSE 100, but UK-centric FTSE 250 feels the Brexit burn. https://t.co/KHhOEthGl4 pic.twitter.com/RNzj6PzNLU | Sterling weakness shields FTSE 100, but UK-centric FTSE 250 feels the Brexit burn. https://t.co/KHhOEthGl4 pic.twitter.com/RNzj6PzNLU |
The purple line shows the FTSE 250 index, which has dropped more sharply than the FTSE 100 (which includes multinational companies who will benefit from the weak pound). | The purple line shows the FTSE 250 index, which has dropped more sharply than the FTSE 100 (which includes multinational companies who will benefit from the weak pound). |