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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/jul/11/george-osborne-us-britain-brexit-stock-markets-sterling-business-live
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| FTSE 100 on brink of entering bull market – business live | FTSE 100 on brink of entering bull market – business live |
| (35 minutes later) | |
| 3.54pm BST | |
| 15:54 | |
| Here’s another sign that the Brexit vote has hurt the European economy. | |
| A new survey by Moody’s Analytics reports that: | |
| Global business confidence has slumped in the wake of the Brexit vote in late June. European sentiment continues to sink and is now consistent with an economy that is on the verge of stalling out. | |
| More than one-fourth of the survey responses by European businesses are negative, the highest that has been on a consistent basis since the European debt crisis. Encouragingly, sentiment in the United States and Pacific Rim haven’t been materially impacted by British exit vote. | |
| Global business confidence has slumped in the wake of the Brexit vote, Moody's Analytics survey finds. https://t.co/wWNdCmexUV | |
| Weak business confidence often leads to lower investment, and less new hiring, so it could be quite damaging.... | |
| Updated | |
| at 3.56pm BST | |
| 3.45pm BST | |
| 15:45 | |
| City traders are pleased that at least some of the political uncertainty sitting over Britain like a heavy fog is lifting. | |
| Connor Campbell of Spreadex explains: | |
| Theresa May is clearly the market’s preferred choice for Britain’s top job, as evidenced by the reaction that greeted Leadsom’s stand-down statement. May’s lack of interest in rushing to activate Article 50 and her relatively less contentious relationship with the EU when compared to her (now long gone) rivals, as well as the general cheer at the mere fact of the UK once again having a PM, is arguably responsible for the rise from the FTSE and pound, both of which improved on their morning performances. | |
| The former jumped by nearly 1%, sitting firmly at 2016 (and indeed 11 month) highs; the latter, meanwhile, managed to climb away from its earlier lows, even if the currency remains haunted by the spectre of a Bank of England rate cut on Thursday. | |
| 3.13pm BST | 3.13pm BST |
| 15:13 | 15:13 |
| The chancellor is watching events unfold from across the Atlantic, and tweets: | The chancellor is watching events unfold from across the Atlantic, and tweets: |
| Welcome news we have 1 candidate with overwhelming support to be next PM. Theresa May has strength, integrity & determination to do the job | Welcome news we have 1 candidate with overwhelming support to be next PM. Theresa May has strength, integrity & determination to do the job |
| The economy and businesses in UK and around the world need certainty so it is in everyone's interest Theresa takes over as PM in coming days | The economy and businesses in UK and around the world need certainty so it is in everyone's interest Theresa takes over as PM in coming days |
| The FT reckons that foreign secretary Phillip Hammond could become finance minister in Theresa May’s government.... | The FT reckons that foreign secretary Phillip Hammond could become finance minister in Theresa May’s government.... |
| 3.08pm BST | 3.08pm BST |
| 15:08 | 15:08 |
| London shares have extended their gains this afternoon, as Wall Street opened strongly on the back of Friday’s forecast-busting non-farm payrolls. The S&P 500 set a record high, while the Dow was up 92 points, or 0.5 percent, to 18,240 within the first half hour of trading, with banks leading the charge.“Reaching a new high may see money moving from the sidelines of safety trades, like Treasury bonds and gold, back into the equity markets,” Robert Pavlik, chief market strategist at Boston Private Wealth, told Reuters. “The emphasis of the markets will be how fast and how long the S&P remains above the record today.” By 3pm, the FTSE 100 had extended its gains to just over 70 points, or 1.1%, at 6664 points. | London shares have extended their gains this afternoon, as Wall Street opened strongly on the back of Friday’s forecast-busting non-farm payrolls. The S&P 500 set a record high, while the Dow was up 92 points, or 0.5 percent, to 18,240 within the first half hour of trading, with banks leading the charge.“Reaching a new high may see money moving from the sidelines of safety trades, like Treasury bonds and gold, back into the equity markets,” Robert Pavlik, chief market strategist at Boston Private Wealth, told Reuters. “The emphasis of the markets will be how fast and how long the S&P remains above the record today.” By 3pm, the FTSE 100 had extended its gains to just over 70 points, or 1.1%, at 6664 points. |
| 2.10pm BST | 2.10pm BST |
| 14:10 | 14:10 |
| Late lunchtime catch-up | Late lunchtime catch-up |
| A quick recap: | A quick recap: |
| MSNBC describing George Osborne simply as 'a member of the British parliament' pic.twitter.com/91TjrMuLqy | MSNBC describing George Osborne simply as 'a member of the British parliament' pic.twitter.com/91TjrMuLqy |
| George Osborne says Theresa May should be PM ‘in the next few days’ | George Osborne says Theresa May should be PM ‘in the next few days’ |
| In non-Brexit news: | In non-Brexit news: |
| 1.58pm BST | 1.58pm BST |
| 13:58 | 13:58 |
| Burberry names new CEO | Burberry names new CEO |
| Some non-Brexit news.... Fashion chain Burberry have just announced a new chief executive. | Some non-Brexit news.... Fashion chain Burberry have just announced a new chief executive. |
| It’s Marco Gobbetti, currently CEO of fashion chain Céline. | It’s Marco Gobbetti, currently CEO of fashion chain Céline. |
| This means that Christopher Bailey, Burberry’s creative mastermind, is moving to become president, after two years as CEO. He’ll be chief creative officer too - but effectively he’s losing day-to-day control of the company | This means that Christopher Bailey, Burberry’s creative mastermind, is moving to become president, after two years as CEO. He’ll be chief creative officer too - but effectively he’s losing day-to-day control of the company |
| It’s not a great surprise; City investors were concerned that Bailey couldn’t do both jobs, especially as trading has deteriorated in recent months. | It’s not a great surprise; City investors were concerned that Bailey couldn’t do both jobs, especially as trading has deteriorated in recent months. |
| Burberry shares have jumped 6%... | Burberry shares have jumped 6%... |
| Markets can be brutal. Burberry names a new CEO... pic.twitter.com/wbMqEv5U6E | Markets can be brutal. Burberry names a new CEO... pic.twitter.com/wbMqEv5U6E |
| Updated | Updated |
| at 1.59pm BST | at 1.59pm BST |
| 1.38pm BST | 1.38pm BST |
| 13:38 | 13:38 |
| Chancellor George Osborne has now landed New York, for his mission to reassure America that Britain is still open for business despite the Brexit vote (as we covered earlier). | Chancellor George Osborne has now landed New York, for his mission to reassure America that Britain is still open for business despite the Brexit vote (as we covered earlier). |
| He’ll be on US TV shortly, in an early-morning treat for America..... | He’ll be on US TV shortly, in an early-morning treat for America..... |
| About to be on @Morning_Joe on @MSNBC in New York re importance of an even stronger relationship between UK & US pic.twitter.com/Fcku0ST5la | About to be on @Morning_Joe on @MSNBC in New York re importance of an even stronger relationship between UK & US pic.twitter.com/Fcku0ST5la |
| 1.24pm BST | 1.24pm BST |
| 13:24 | 13:24 |
| Enjoy the pound’s rally while it lasts, says Jake Trask, currency analyst at UKForex. | Enjoy the pound’s rally while it lasts, says Jake Trask, currency analyst at UKForex. |
| He predicts that sterling will soon weaken again, possibly later this week when the Bank of England announces its interest rate decision | He predicts that sterling will soon weaken again, possibly later this week when the Bank of England announces its interest rate decision |
| “Sterling pushed higher today as pro-Brexit candidate Angela Leadsom pulled out of the contest to be the next prime minister. The pound pushed up through $1.30 against the US dollar on the news, but the rally is likely to be short-lived, as Mark Carney is expected to cut interest rates to a record low of 0.25% this Thursday. | “Sterling pushed higher today as pro-Brexit candidate Angela Leadsom pulled out of the contest to be the next prime minister. The pound pushed up through $1.30 against the US dollar on the news, but the rally is likely to be short-lived, as Mark Carney is expected to cut interest rates to a record low of 0.25% this Thursday. |
| “Should he decide to cut rates to zero, we will likely see another multi-year low for sterling as we head towards a probable recession in the second half of the year.” | “Should he decide to cut rates to zero, we will likely see another multi-year low for sterling as we head towards a probable recession in the second half of the year.” |
| Updated | Updated |
| at 2.06pm BST | at 2.06pm BST |
| 1.22pm BST | 1.22pm BST |
| 13:22 | 13:22 |
| FTSE 250 jumps 2.7% | FTSE 250 jumps 2.7% |
| Almost every company on the FTSE 250 index of medium-sized UK companies has risen today. | Almost every company on the FTSE 250 index of medium-sized UK companies has risen today. |
| Property companies are leading the rally, driving the FTSE 250 up by 2.7% right now. | Property companies are leading the rally, driving the FTSE 250 up by 2.7% right now. |
| Investment group St. Modwen Properties has jumped 9%, and British housebuilding company Crest Nicholson are up 7.6%. | Investment group St. Modwen Properties has jumped 9%, and British housebuilding company Crest Nicholson are up 7.6%. |
| Earlier today, Theresa May identified housebuilding as a key priority if she became prime minister (which now seems an imminent prospect). | Earlier today, Theresa May identified housebuilding as a key priority if she became prime minister (which now seems an imminent prospect). |
| FTSE 100 up 0.88%. But FTSE 250 up over 2.5% after Leadsom quits @BBCNews @@BBCWorld | FTSE 100 up 0.88%. But FTSE 250 up over 2.5% after Leadsom quits @BBCNews @@BBCWorld |
| 1.05pm BST | 1.05pm BST |
| 13:05 | 13:05 |
| Shares in house builders Taylor Wimpy, Barratt Homes, Persimmon, Travis Perkins & Berkeley all jump immediately after Leadsom withdrawal | Shares in house builders Taylor Wimpy, Barratt Homes, Persimmon, Travis Perkins & Berkeley all jump immediately after Leadsom withdrawal |
| 12.56pm BST | 12.56pm BST |
| 12:56 | 12:56 |
| This graph shows how shares in big companies on the FTSE 100 (red line) have roared back since the referendum, thanks to the slump in the pound. | This graph shows how shares in big companies on the FTSE 100 (red line) have roared back since the referendum, thanks to the slump in the pound. |
| Smaller UK companies are shown on the blue line (the FTSE 250), and Germany’s DAX is the pink line. | Smaller UK companies are shown on the blue line (the FTSE 250), and Germany’s DAX is the pink line. |
| #FTSE100 pricing in benefits of #GBP depreciation, whereas Europe + FTSE250 feeling the pain. Graphic via @fastFT WM pic.twitter.com/KaeUiLM3Om | #FTSE100 pricing in benefits of #GBP depreciation, whereas Europe + FTSE250 feeling the pain. Graphic via @fastFT WM pic.twitter.com/KaeUiLM3Om |
| 12.49pm BST | 12.49pm BST |
| 12:49 | 12:49 |
| In exquisite timing, confidence among small investors has hit its lowest level since the heights of the eurozone crisis in 2012 - just as shares keep rallying. | In exquisite timing, confidence among small investors has hit its lowest level since the heights of the eurozone crisis in 2012 - just as shares keep rallying. |
| Hargreaves Lansdown, the financial services firms, reports that its Investor Confidence Index has suffered its sharpest monthly fall in 5 years. | Hargreaves Lansdown, the financial services firms, reports that its Investor Confidence Index has suffered its sharpest monthly fall in 5 years. |
| The survey of retail investors took place on 30 June, a week after the EU referendum result, and asked them to give their view of the UK stock market over the next three years. | The survey of retail investors took place on 30 June, a week after the EU referendum result, and asked them to give their view of the UK stock market over the next three years. |
| The index fell from 92 points in May to 67 in June; the biggest one month percentage fall since June 2011. The index now stands at a four year low - in May 2012 it stood at a level of 61, as Greece looked like it might be on the brink of leaving the eurozone. | The index fell from 92 points in May to 67 in June; the biggest one month percentage fall since June 2011. The index now stands at a four year low - in May 2012 it stood at a level of 61, as Greece looked like it might be on the brink of leaving the eurozone. |
| Laith Khalaf, senior analyst at Hargreaves Lansdown, says confidence appears to have “collapsed” after the Brexit vote, among investors, consumers and businesses. | Laith Khalaf, senior analyst at Hargreaves Lansdown, says confidence appears to have “collapsed” after the Brexit vote, among investors, consumers and businesses. |
| The dwindling faith in the UK’s future financial prospects has the potential to become a self-fulfilling prophecy, if companies and individuals start to assume a bunker mentality, and delay or cancel spending and investment. | The dwindling faith in the UK’s future financial prospects has the potential to become a self-fulfilling prophecy, if companies and individuals start to assume a bunker mentality, and delay or cancel spending and investment. |
| Investors are naturally twitchy about what Brexit means for the future of the stock market in the coming months and years. However continued low interest rates will remain supportive of shares, not least because there is really nowhere else for investors to go for income. Commercial property is one other option, though we have seen problems that can arise for investors in that market over the last week or so. | Investors are naturally twitchy about what Brexit means for the future of the stock market in the coming months and years. However continued low interest rates will remain supportive of shares, not least because there is really nowhere else for investors to go for income. Commercial property is one other option, though we have seen problems that can arise for investors in that market over the last week or so. |
| 12.48pm BST | 12.48pm BST |
| 12:48 | 12:48 |
| FTSE 250 & pound climbing post-Leadsom. Relief we’ll have new PM sooner than later. And markets prefer May to Leadsom (more EU-friendly) | FTSE 250 & pound climbing post-Leadsom. Relief we’ll have new PM sooner than later. And markets prefer May to Leadsom (more EU-friendly) |