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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
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| Version 3 | Version 4 |
|---|---|
| Pound and shares hit again by Brexit crisis – business live | Pound and shares hit again by Brexit crisis – business live |
| (35 minutes later) | |
| 9.41am BST | |
| 09:41 | |
| Signs of angst in the markets... | |
| *BARCLAYS HALTED IN LONDON ON VOLATILITY AFTER SHRS FALL 11.5% | |
| 9.37am BST | |
| 09:37 | |
| The Osborn relief may be fading fast.... the FTSE 100 index is now down 80 points at 6060, its lowest point of the day. | |
| 9.36am BST | |
| 09:36 | |
| UK borrowing costs hit fresh record low | |
| In another historic development, the interest rate on UK 10-year bonds has fallen to just 1%, for the first time ever. | |
| That means that worried investors are piling into ‘safe haven’ government debt, in case the Brexit crisis worsens further. | |
| [The interest rate, or yield, on government bonds fall when prices rise] | |
| Cheap borrowing costs are usually a good thing; in this case, though, it’s a sign of how anxious the financial market are. | |
| UK 10 year gilt yield drops below 1% for the first time on record. And records go back to 18th century(!) pic.twitter.com/nCgWoH2ba2 | |
| This is SIMPLY EXTRAORDINARY as the UK 10 year yield reaches 1% as prices surge! Cheap borrowing #GBP #BoE https://t.co/IkwQeQGkih | |
| 9.32am BST | |
| 09:32 | |
| My colleague Katie Allen says that the chancellor covered the right ground this morning, by insisting that the UK economy could survive the Brexit storm. | |
| However, the relief may not last for long.... | |
| In a classic British understatement, the chancellor opined: “It will not be plain sailing in the days ahead.” | |
| He also rowed back on the emergency budget he had threatened in the event of a leave vote. Now Osborne is saying the Treasury response to Brexit will not come until the autumn when the fiscal watchdog, the Office for Budget Responsibility, has had a chance to assess the economy and a new prime minister is in place. | |
| In short, Osborne ticked a lot of boxes. So far the pound has steadied and theFTSE 100 is not down as sharply as it might have been. But the UK is facing a political crisis and an unprecedented process of untangling from the EU. The chancellor’s soothing words are unlikely to provide anything but a short-term tonic to nervous households, businesses and investors. | |
| Related: Market turmoil: Osborne said all the right things, but relief will be temporary | |
| 9.22am BST | |
| 09:22 | |
| Here’s our news story about George Osborne’s attempts to reassure the financial world today: | |
| Related: George Osborne seeks to calm markets amid Brexit turmoil | |
| It begins... | |
| George Osborne has sought to reassure financial markets by insisting Britain’s economy is in a strong position to adjust to life outside the European Union. | |
| Breaking his silence in a statement at the Treasury, the chancellor said he “did not resile” from the dire predictions made during the referendum campaign that Brexit could plunge Britain into recession and cost hundreds of thousands of jobs. | |
| “It is inevitable, after Thursday’s vote, that Britain’s economy is going to have to adjust to the new situation we find ourselves in,” he said. | |
| But in a phrase reminiscent of Gordon Brown’s language in the early days of the 2008 crisis, he repeatedly insisted that the “fundamentals” of the British economy were strong. | |
| Click here for more | |
| 9.18am BST | 9.18am BST |
| 09:18 | 09:18 |
| Sterling is also losing ground against the euro this morning, in another blow to UK holidaymakers. | Sterling is also losing ground against the euro this morning, in another blow to UK holidaymakers. |
| The pound has dropped 1.2%, or one and a half eurocents, to €1.212. | The pound has dropped 1.2%, or one and a half eurocents, to €1.212. |
| Back on referendum day, it was worth €1.30. | Back on referendum day, it was worth €1.30. |
| Journey towards parity? British Pound drops vs Euro to 1.2130 amid post-Brexit turmoil. pic.twitter.com/0z0Z64OobP | Journey towards parity? British Pound drops vs Euro to 1.2130 amid post-Brexit turmoil. pic.twitter.com/0z0Z64OobP |
| 9.05am BST | 9.05am BST |
| 09:05 | 09:05 |
| City firms are scrambling to slash their forecasts for the pound, following the referendum result. | City firms are scrambling to slash their forecasts for the pound, following the referendum result. |
| Goldman Sachs now expects sterling to still be around $1.32 in three month’s time, not $1.47 as previously expected. | Goldman Sachs now expects sterling to still be around $1.32 in three month’s time, not $1.47 as previously expected. |
| Bank of America Merrill Lynch now expects the pound to be worth just $1.30 at the end of 2016, compared to $1.59 before. | Bank of America Merrill Lynch now expects the pound to be worth just $1.30 at the end of 2016, compared to $1.59 before. |
| Updated | Updated |
| at 9.06am BST | at 9.06am BST |
| 9.00am BST | 9.00am BST |
| 09:00 | 09:00 |
| Ana Thaker, market economist at PhillipCapital UK, thinks the chancellor has helped to stop a sterling rout - for the moment, anyway. | Ana Thaker, market economist at PhillipCapital UK, thinks the chancellor has helped to stop a sterling rout - for the moment, anyway. |
| She writes: | She writes: |
| Notably, the currency remained steady following George Osborne’s speech this morning that reassured markets that the Treasury had engaged with global central banks and financial institutions to arrange contingency plans. | Notably, the currency remained steady following George Osborne’s speech this morning that reassured markets that the Treasury had engaged with global central banks and financial institutions to arrange contingency plans. |
| Moves in Sterling remains subject to any guidance from the government as to what the next stages may be with strong downside risk. | Moves in Sterling remains subject to any guidance from the government as to what the next stages may be with strong downside risk. |
| 8.58am BST | 8.58am BST |
| 08:58 | 08:58 |
| Big fallers on the FTSE 250 this morning include many significant UK companies, such as challenger bank Virgin Money (-9%), recruitment firm Hays (-9%), engineering firm Balfour Beatty (-8%), online supermarket group Ocado (-7.9%) and building group Redrow (-7.7%). | Big fallers on the FTSE 250 this morning include many significant UK companies, such as challenger bank Virgin Money (-9%), recruitment firm Hays (-9%), engineering firm Balfour Beatty (-8%), online supermarket group Ocado (-7.9%) and building group Redrow (-7.7%). |
| 8.48am BST | 8.48am BST |
| 08:48 | 08:48 |
| FTSE 250 down 2% | FTSE 250 down 2% |
| Sky News’s Ed Conway agrees that the markets are calmed than feared. | Sky News’s Ed Conway agrees that the markets are calmed than feared. |
| FTSE 100 down 0.7% this morning. Much better performance than the 3% fall many expected. The Osborne effect, or is project fear over? | FTSE 100 down 0.7% this morning. Much better performance than the 3% fall many expected. The Osborne effect, or is project fear over? |
| However, the FTSE 250 index – which contains smaller UK firms – is down 2% this morning. | However, the FTSE 250 index – which contains smaller UK firms – is down 2% this morning. |
| Updated | Updated |
| at 8.49am BST | at 8.49am BST |
| 8.42am BST | 8.42am BST |
| 08:42 | 08:42 |
| Video: Osborne faces the music | Video: Osborne faces the music |
| Here’s a video clip of George Osborne’s speech, for those who missed it 90 minutes ago | Here’s a video clip of George Osborne’s speech, for those who missed it 90 minutes ago |
| 8.40am BST | 8.40am BST |
| 08:40 | 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. | 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: | 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. | 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 | Updated |
| at 8.40am BST | at 8.40am BST |
| 8.38am BST | 8.38am BST |
| 08:38 | 08:38 |
| European stock markets are also calmer this morning, after George Osborne’s appearance: | European stock markets are also calmer this morning, after George Osborne’s appearance: |
| 8.29am BST | 8.29am BST |
| 08:29 | 08:29 |
| It’s never nice to see a company’s share price tumble. | 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. | 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 | 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. | Foxtons floated on the stock market at 230p per share. They are now worth just 109p. |
| 8.21am BST | 8.21am BST |
| 08:21 | 08:21 |
| Budget airline easyJet is leading the fallers on the stock market this morning, down 8% after its profit warning. | 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). | 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: | Here are the main risers and fallers: |