FTSE stabilises after Brexit volatility
The FTSE 100 has rebounded a little this morning after two days of negative trading in the wake of Britain’s vote to leave the European Union, with every stock up in early trading.
The key index slumped 5.6 percent over the last two sessions but is currently up 2.04 percent (0900GMT). Bank stocks, which tanked over 16 percent on the outcome of the vote, are trading up over 3 percent.
Whilst many hope this marks a start on the road to post-Brexit stability, economic figures are still fragile; the pound remains low, trading at around $1.33, and Britain has had its economic rating slashed by two ratings agencies since the vote. Both Fitch and S&P have downgraded the country by one level.
Osborne to raise taxes and slash spending in the wake of Brexit
UK Chancellor George Osborne confirmed on Tuesday that taxes would be raised and public spending cut after the vote to leave the European Union, saying that he had to focus on providing “fiscal security”.
In his first interview since the result was announced, Osborne told the BBC that “we are going to have to show the country and the world that the government can live within its means.”
“I will do everything I can to make it work for Britain in the difficult weeks and months ahead.”
German carmakers say free movement is essential for single market
German carmakers have taken a hard line against Brexit, arguing that free movement of people is a necessity to maintain access to the single market.
Matthias Wissmann, from the German Automotive Industry Association, called free movement of people a “bitter pill” that would need to be swallowed in order to maintain its place in the single market. This goes against the theory peddled by Leave campaigners that Germany would push for a generous trade deal with the UK in order to help their car export industry.
Wissmann continued, “We don’t like to build new barriers… but any bid to secure full access to the single market would necessarily come with conditions. Everyone who negotiates on the British side will understand that.”
28/06/2016