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| UK corporate confidence slumps after Brexit vote - business live | |
| (35 minutes later) | |
| 9.44am BST | |
| 09:44 | |
| More gloom. Two-thirds of companies who took part in Credit Suisse’s survey are planning to postpone or reduce spending in the UK in the next six months. | |
| And as this chart shows, Brexit has overtaken the Chinese economy and emerging markets as the most concerning issue for companies. | |
| 9.16am BST | 9.16am BST |
| 09:16 | 09:16 |
| Brexit hits UK hiring and spending | Brexit hits UK hiring and spending |
| Take note, Tim Martin. | Take note, Tim Martin. |
| A new survey of UK corporate chiefs has shown that - as feared - the Brexit vote has hurt business confidence, badly. | A new survey of UK corporate chiefs has shown that - as feared - the Brexit vote has hurt business confidence, badly. |
| Credit Suisse says that corporate sentiment has “deteriorated out of all recognition” since June 23rd. For the first time since 2013, more companies are expecting to cut than raise spending. | Credit Suisse says that corporate sentiment has “deteriorated out of all recognition” since June 23rd. For the first time since 2013, more companies are expecting to cut than raise spending. |
| The research shows that some firms have cut back on hiring and spending already. | The research shows that some firms have cut back on hiring and spending already. |
| And many others have put their plans on hold until they have clarity on the UK’s relationship with the European Union. | And many others have put their plans on hold until they have clarity on the UK’s relationship with the European Union. |
| Impact on hiring of #EUref | CS pic.twitter.com/dW35dIDoeC | Impact on hiring of #EUref | CS pic.twitter.com/dW35dIDoeC |
| Impact on corporate spending of #EUref | CS pic.twitter.com/BWSAUHM0hT | Impact on corporate spending of #EUref | CS pic.twitter.com/BWSAUHM0hT |
| Perhaps this is why Mark Carney warned that Brexit was the biggest single threat to UK financial stability?... | Perhaps this is why Mark Carney warned that Brexit was the biggest single threat to UK financial stability?... |
| 8.37am BST | 8.37am BST |
| 08:37 | 08:37 |
| Shares in discount chain Poundland have rocketed up after it agreed to be taken over by South Africa’s Steinhoff this morning. | Shares in discount chain Poundland have rocketed up after it agreed to be taken over by South Africa’s Steinhoff this morning. |
| The deal values Poundland at £597m, a chunky figure, but one that is worth about 10% less in global terms following the Brexit vote. | The deal values Poundland at £597m, a chunky figure, but one that is worth about 10% less in global terms following the Brexit vote. |
| Weak sterling makes UK companies more attractive to overseas buyers, so we could see a spike in mergers and takeovers. | Weak sterling makes UK companies more attractive to overseas buyers, so we could see a spike in mergers and takeovers. |
| .@Poundland soars...+12% in line with offer from Steinhoff 220p/share. M&A in UK as weak £ makes more appetising? pic.twitter.com/6L2oDRA9EK | .@Poundland soars...+12% in line with offer from Steinhoff 220p/share. M&A in UK as weak £ makes more appetising? pic.twitter.com/6L2oDRA9EK |
| Related: Struggling Poundland agrees to £597m takeover by Steinhoff | Related: Struggling Poundland agrees to £597m takeover by Steinhoff |
| Updated | Updated |
| at 8.58am BST | at 8.58am BST |
| 8.30am BST | 8.30am BST |
| 08:30 | 08:30 |
| Sterling lifted by Theresa May | Sterling lifted by Theresa May |
| The pound is pushing higher today, thanks to the prospect of Theresa May taking the reins of power. | The pound is pushing higher today, thanks to the prospect of Theresa May taking the reins of power. |
| Sterling rose above $1.33 against the US dollar for the first time in more than a week, extending its best rally in two (turbulent) months. | Sterling rose above $1.33 against the US dollar for the first time in more than a week, extending its best rally in two (turbulent) months. |
| Pound heads for longest winning run in 2 months as Theresa May prepares to become PM https://t.co/LLfx74pCRf pic.twitter.com/LR1JtPN7mK | Pound heads for longest winning run in 2 months as Theresa May prepares to become PM https://t.co/LLfx74pCRf pic.twitter.com/LR1JtPN7mK |
| May’s promise to make a success of Brexit has reassured investors, who fear years of uncertainty over the UK’s relationship with the EU. | May’s promise to make a success of Brexit has reassured investors, who fear years of uncertainty over the UK’s relationship with the EU. |
| But Britain still faces a lot of upheaval. | But Britain still faces a lot of upheaval. |
| Christopher Vecchio, a currency analyst at DailyFX, worries that businesses will cut back until the picture is clearer. | Christopher Vecchio, a currency analyst at DailyFX, worries that businesses will cut back until the picture is clearer. |
| Her leadership means a faster pace to Brexit and the triggering of article 50, but faster is a relative term. She will certainly be faster and more aggressive compared to Cameron, but she will still have to work through parliament to gain a majority vote to trigger article 50. And, while it is true that the majority of parliament is of her party [331 out of 650 MPs], there were many Tories who were not for Brexit. She would have to rally not just other parties, but hers as well. A difficult task ahead indeed, with 463 MPs having said they were for remain, versus the 150 MPs who said they were for leave ahead of the June 23 vote. | Her leadership means a faster pace to Brexit and the triggering of article 50, but faster is a relative term. She will certainly be faster and more aggressive compared to Cameron, but she will still have to work through parliament to gain a majority vote to trigger article 50. And, while it is true that the majority of parliament is of her party [331 out of 650 MPs], there were many Tories who were not for Brexit. She would have to rally not just other parties, but hers as well. A difficult task ahead indeed, with 463 MPs having said they were for remain, versus the 150 MPs who said they were for leave ahead of the June 23 vote. |
| Needless to stay, the path to Brexit is all but clear, even as May emerges from the UK political fracas as the next prime minister. The state and structure of the UK’s relationship in the EU won’t be clear for a long while, and businesses simply can’t afford to wait that long. Markets may be calmer today, but a lack of political clarity in the UK will weigh on the British pound, which now has implications for risk markets globally.” | Needless to stay, the path to Brexit is all but clear, even as May emerges from the UK political fracas as the next prime minister. The state and structure of the UK’s relationship in the EU won’t be clear for a long while, and businesses simply can’t afford to wait that long. Markets may be calmer today, but a lack of political clarity in the UK will weigh on the British pound, which now has implications for risk markets globally.” |
| Updated | Updated |
| at 8.58am BST | at 8.58am BST |
| 8.13am BST | 8.13am BST |
| 08:13 | 08:13 |
| Martin: Brexit is a new Magna Carta | Martin: Brexit is a new Magna Carta |
| City results statements are usually pretty dry. But Wetherspoon has bucked the trend today by including a long declamation from Tim Martin on the EU referendum. | City results statements are usually pretty dry. But Wetherspoon has bucked the trend today by including a long declamation from Tim Martin on the EU referendum. |
| Following his attack on the pre-referendum Brexit warnings, Martin outlines how the vote to leave the EU is a moment of democratic renewal, nay, a new Magna Carta (!) for the modern age that will see democracy reborn. | Following his attack on the pre-referendum Brexit warnings, Martin outlines how the vote to leave the EU is a moment of democratic renewal, nay, a new Magna Carta (!) for the modern age that will see democracy reborn. |
| For example ... | For example ... |
| Wetherspoons, headed by Tim 'Carney is an idiot' Martin, has issued "The New Magna Carta". I'm not joking. pic.twitter.com/4uJ3N4sj38 | Wetherspoons, headed by Tim 'Carney is an idiot' Martin, has issued "The New Magna Carta". I'm not joking. pic.twitter.com/4uJ3N4sj38 |
| On the specifics, Martin takes the familiar leave campaign line that Europe is bound to make a good trade deal with Britain as we are such a key customer. He also hopes that tariffs with non-EU countries will fall – apparently these are pushing up the cost of Wetherspoon’s wine. | On the specifics, Martin takes the familiar leave campaign line that Europe is bound to make a good trade deal with Britain as we are such a key customer. He also hopes that tariffs with non-EU countries will fall – apparently these are pushing up the cost of Wetherspoon’s wine. |
| He concludes by echoing George Orwell and Franklin D Roosevelt – not the usual FTSE 250 fare. | He concludes by echoing George Orwell and Franklin D Roosevelt – not the usual FTSE 250 fare. |
| Democracy, prosperity and freedom are inextricably linked. The EU is heading down an increasingly autocratic path, which has already caused severe economic problems in most of southern Europe, and risks further contagion on the continent. Brexit is a modern Magna Carta, reasserting democratic control in the UK. It is up to UK citizens now to participate in formulating policies based on free trade with Europe and the world, an enterprise economy and sensible immigration policies, with parliamentary control. | Democracy, prosperity and freedom are inextricably linked. The EU is heading down an increasingly autocratic path, which has already caused severe economic problems in most of southern Europe, and risks further contagion on the continent. Brexit is a modern Magna Carta, reasserting democratic control in the UK. It is up to UK citizens now to participate in formulating policies based on free trade with Europe and the world, an enterprise economy and sensible immigration policies, with parliamentary control. |
| As one US president said, ‘we have nothing to fear but fear itself’. But Big Brother in Brussels is no longer in charge. The world is our oyster, provided we think clearly, debate strongly and prevent the paranoia and hyperbole of the referendum process from clouding our judgement. | As one US president said, ‘we have nothing to fear but fear itself’. But Big Brother in Brussels is no longer in charge. The world is our oyster, provided we think clearly, debate strongly and prevent the paranoia and hyperbole of the referendum process from clouding our judgement. |
| Such oratory is wasted in the City. Perhaps Tim Martin should run for parliament ... | Such oratory is wasted in the City. Perhaps Tim Martin should run for parliament ... |
| Updated | Updated |
| at 8.55am BST | at 8.55am BST |
| 7.55am BST | 7.55am BST |
| 07:55 | 07:55 |
| JD Wetherspoon attacks Lagarde, Carney, Osborne ... | JD Wetherspoon attacks Lagarde, Carney, Osborne ... |
| Tim Martin, the chairman and founder of pub group JD Wetherspoon, has launched a stinging attack on the “doom-mongering” from economists and global organisations ahead of the EU referendum. | Tim Martin, the chairman and founder of pub group JD Wetherspoon, has launched a stinging attack on the “doom-mongering” from economists and global organisations ahead of the EU referendum. |
| Martin used his company’s latest financial results to dismiss warnings of economic disaster following the Brexit vote last month, which he claims were over the top. | Martin used his company’s latest financial results to dismiss warnings of economic disaster following the Brexit vote last month, which he claims were over the top. |
| He singles out the IMF managing director, Christine Lagarde, who reckoned that the consequences of Brexit would be “pretty bad, to very, very bad”, and the Bank of England governor, Mark Carney, who is facing criticism from leave-supporting MPs for voicing his worries about Brexit. | He singles out the IMF managing director, Christine Lagarde, who reckoned that the consequences of Brexit would be “pretty bad, to very, very bad”, and the Bank of England governor, Mark Carney, who is facing criticism from leave-supporting MPs for voicing his worries about Brexit. |
| Martin also criticises the chancellor, George Osborne, for threatening a punishment budget, concluding: | Martin also criticises the chancellor, George Osborne, for threatening a punishment budget, concluding: |
| “Unbeknown to most voters, one of the ‘architects’ of the remain campaign, which devised the above approach, was Peter Mandelson, who worked closely with Cameron, Osborne and others. | “Unbeknown to most voters, one of the ‘architects’ of the remain campaign, which devised the above approach, was Peter Mandelson, who worked closely with Cameron, Osborne and others. |
| In my opinion, the above individuals and organisations are either dishonest, or they have a poor understanding of economics, since democracy and prosperity are closely linked, and the EU is clearly undemocratic. By voting to restore democracy in the UK, I believe the UK’s economic prospects will improve, although it is quite possible that the unprecedented and irresponsible doom-mongering, outlined above, may lead to some kind of slowdown. | In my opinion, the above individuals and organisations are either dishonest, or they have a poor understanding of economics, since democracy and prosperity are closely linked, and the EU is clearly undemocratic. By voting to restore democracy in the UK, I believe the UK’s economic prospects will improve, although it is quite possible that the unprecedented and irresponsible doom-mongering, outlined above, may lead to some kind of slowdown. |
| In spite of the dire warnings above, Wetherspoon trade strengthened slightly in recent weeks and we consequently anticipate a modestly improved outcome for this financial year. Caution should be exercised in extrapolating current levels of sales growth for future years. | In spite of the dire warnings above, Wetherspoon trade strengthened slightly in recent weeks and we consequently anticipate a modestly improved outcome for this financial year. Caution should be exercised in extrapolating current levels of sales growth for future years. |
| Punchy stuff. I’d be wary, though, of using Wetherspoon’s trading figures as the definitive measure of economic conditions. There’s more to the economy than pints and curries. | Punchy stuff. I’d be wary, though, of using Wetherspoon’s trading figures as the definitive measure of economic conditions. There’s more to the economy than pints and curries. |
| For the record, Wetherspoon’s like-for-like sales are up by 4% in the past 11 weeks. | For the record, Wetherspoon’s like-for-like sales are up by 4% in the past 11 weeks. |
| Updated | Updated |
| at 8.52am BST | at 8.52am BST |
| 7.31am BST | 7.31am BST |
| 07:31 | 07:31 |
| Introduction: May day brings calm to the markets | Introduction: May day brings calm to the markets |
| Good morning and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| There’s a sense of stability in the City this morning, as the Brexit angst of recent weeks ebbs. | There’s a sense of stability in the City this morning, as the Brexit angst of recent weeks ebbs. |
| With Theresa May set to become Britain’s new prime minister by dusk, investors have a little more certainty about the UK’s political situation. So the pound is continuing to rally, while the FTSE 100 is expected to open near the 11-month high set this week. | With Theresa May set to become Britain’s new prime minister by dusk, investors have a little more certainty about the UK’s political situation. So the pound is continuing to rally, while the FTSE 100 is expected to open near the 11-month high set this week. |
| We’re also getting financial results from fashion group Burberry, pub chain JD Wetherspoon and building group Barratt Developments. | We’re also getting financial results from fashion group Burberry, pub chain JD Wetherspoon and building group Barratt Developments. |
| The Poundland discount chain is being acquired by South African retail group Steinhoff in a £597m deal. | The Poundland discount chain is being acquired by South African retail group Steinhoff in a £597m deal. |
| Discount chain #Poundland has agreed to a £597m takeover by South African retail group Steinhoff International | Discount chain #Poundland has agreed to a £597m takeover by South African retail group Steinhoff International |
| Updated | Updated |
| at 8.50am BST | at 8.50am BST |