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| Version 2 | Version 3 |
|---|---|
| Pound and property shares head lower | Pound and property shares head lower |
| (about 2 hours later) | |
| The pound has hit a fresh 31-year low against the dollar as markets remain edgy in the wake of the Brexit vote. | |
| The pound fell to $1.3113 against the dollar, before recovering slightly, and also dropped to €1.1787 against the euro, its lowest point since 2013. | |
| Shares in property firms and asset managers dropped sharply after Standard Life Investments suspended trading in its UK property fund. | |
| The company blamed "exceptional market circumstances" after the referendum. | |
| Mark Priest from ETX Capital said: "Investors are getting very nervous now as they fear Standard Life may not be the only fund that will close its doors. The last time we saw this kind of action was in the financial crisis. | |
| "Fears about the investment industry are leaching into the forex markets today, with sterling seeing heavy selling again after a few days of relative calm after the Brexit vote collapse. | |
| "Cable [the pound/dollar rate] is once again flirting with the $1.31 handle." | "Cable [the pound/dollar rate] is once again flirting with the $1.31 handle." |
| Property gloom | Property gloom |
| The FTSE 100 index was lower for most of the morning, but then gained ground after the Bank of England announced new measures to try to support the economy. | |
| The Bank of England has eased special capital requirements for banks, potentially freeing up £150bn for lending. | |
| Shortly before midday the FTSE 100 was up 30.37 points at 6,552.63. The FTSE 250 - which contains more UK-focused companies - was also off its lows for the day, but was still down 378.34 points, or 2.4%, at 15,738.36. | |
| Among property shares, housebuilder Persimmon fell 4.6% despite it reporting a rise in half-year revenues. | |
| The company said it was "confident" about its prospects, and that it was too early to say how the UK's vote to leave the EU would affect the sector. | The company said it was "confident" about its prospects, and that it was too early to say how the UK's vote to leave the EU would affect the sector. |
| But the news from Standard Life Investments cast a shadow across the entire property sector. Shares in Barratt Developments fell 4.4% while Land Securities dropped 4.3%. | |
| Standard Life Investments said the number of investors asking to withdraw their money had increased following the EU referendum vote. | Standard Life Investments said the number of investors asking to withdraw their money had increased following the EU referendum vote. |
| "The suspension was requested to protect the interests of all investors in the fund," it said in a statement. | "The suspension was requested to protect the interests of all investors in the fund," it said in a statement. |
| The £2.9bn fund invests in a mixture of commercial real estate in the UK, including office blocks, shopping centres and warehouses. | The £2.9bn fund invests in a mixture of commercial real estate in the UK, including office blocks, shopping centres and warehouses. |