Osborne expresses confidence in UK economy
Chancellor George Osborne said this morning that the result of Thursday’s EU referendum is unlikely to have major effects on the economy, but if it should, Britain is strong enough to cope.
Osborne spoke publicly for the first time since the vote, echoing the opinion expressed by Bank of England governor Mark Carney on Friday that the UK economy is well-equipped to deal with future volatility.
He argued that the UK is currently in a “position of strength”, continuing:
“Our economy is about as strong as it could be to confront the challenge our country now facts.”
Global shares start the day mixed
Global shares are mixed after Friday’s volatility, with Asian shares split and the FTSE opening slightly down.
Both the Shanghai Composite and the Nikkei 225 finished the day on a high, up 1.45 percent and 2.39 percent respectively. European shares opened largely down, with the DAX down 0.45 percent and the FTSE down 0.88 percent.
UK housebuilders have taken the biggest hit since news of the referendum results broke, with Taylor Wimpey and Barratt Developments tanking. However, given Friday’s extreme volatility and dire warnings for the markets in the event of a Leave vote, this range is likely to be a sigh of relief for many.
British companies slow down hiring
British companies are planning to freeze hiring in the wake of the EU referendum, according to The Institute of Directors.
The IoD surveyed 1,000 of its members to find that a quarter planned to freeze recruitment in the near future, with just a third maintaining their current hiring place. 5 percent of members planned to cute jobs, with two thirds saying the outcome would have negative repercussions for their business.
Simon Walker, director general of the Institute of Directors, told the BBC’s Today programme: “Business leaders are very, very concerned. Nearly half of them expect the other member states to punish Britain.