Vodafone HQ may move elsewhere after Brexit

Telecoms giant Vodafone has warned that it may move its headquarters out of the UK, if a post-Brexit agreement with the EU is unfavourable to business.

In an emailed statement the company highlighted the importance of the EU’s free movement of capital and goods, saying it would take “whatever decisions are appropriate” once an agreement has been reached.

However, it said it was too early to “draw any firm conclusions regarding the long-term location for the headquarters”. The loss of Vodafone from the UK would have a significant impact on business sentiment, as well as British jobs; the company currently employs 13,000 people, with an operating division at Newbury, Berkshire, and a headquarters in London. FTSE opens higher for second day straight Britain’s top share index opened higher again this morning, as worry over an immediate exit from the EU recedes. The FTSE 100 index is currently up 1.68 percent (0932GMT), in positive territory for the second day in a row after crashing on Friday post-Brexit. Investor sentiment has been calmed by Prime Minister David Cameron’s comments yesterday that he was unlikely to trigger Article 50 until a new Prime Minister in place, possibly in several months time. Banks have started to recover losses, with the UK banking index and the life insurance index rising 2.3 percent and 2.8 percent respectively. Toyota recalls 4 million cars Japanese carmaker Toyota has announced the recall of over 4 million of its vehicles, due to possible faults with both the fuel emissions control units and airbags. 2.87 million vehicles worldwide may be affected by a fault with their evaporative fuel emissions control unit, covering vehicles made between 2006 and 2015. The Prius model, the Auris compact hatchback and Corolla compact models may all have issues. Earlier the same day, Toyota also announced the need to recall 1.43 million Prius and Lexus models worldwide due to a possible defect with the airbag inflator.

29/06/2016

Yesterday the UK lost its top AAA credit rating from Standard & Poors and Fitch as a result of the vote to leave the European Union. The decision arrived shortly after Chancellor George Osborne said that the UK is “about as strong as it could be” to confront future economic challenges. The ratings agency Standard & Poor said: “In our opinion, this outcome is a seminal event, and will lead to a less predictable, stable, and effective policy framework in the UK,” “The negative outlook reflects the risk to economic prospects, fiscal and external performance, and the role of sterling as a reserve currency, as well as risks to the constitutional and economic integrity of the UK if there is another referendum on Scottish independence,” Rival agency’s Fitch and Moody’s also downgraded the UK’s rating from AA to AA+ having already removed Britain’s status as an AAA rating before the referendum campaign started. In a statement released yesterday Fitch said: “Fitch believes that uncertainty following the referendum outcome will induce an abrupt slowdown in short-term GDP growth, as businesses defer investment and consider changes to the legal and regulatory environment.” “Medium-term growth will also likely be weaker due to less favorable terms for exports to the EU, lower immigration and a reduction in foreign direct investment. An adjustment in the value of sterling and changes in the business environment could also affect growth.” The loss of a Triple – A rating is the latest in a number of blows to the economy as sterling recently plunged to its lowest point in 31 years following the Brexit vote while the equity markets try to overcome the crisis. The decision means that Britain’s position on the international market is at a greater risk as the move will inevitably effect how much the government can borrow on the international stage. 28/06/16

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

The majority of business leaders called for a remain vote and the shock outcome of Thursday’s Referendum result has left many feeling anxious about the future of their businesses and investment plans. HSBC has recently announced that it will move a portion of its 48,000 UK based employees into Paris if the UK leaves the single market in post Brexit negotiations. Furthermore, financial giants such as Morgan Stanley, JPMorgan and BNP Paribas are reported to have already begun plans to reduce the size of their companies in the UK following the vote as fears over London’s status as the main financial capital in the world grow. Amidst the uncertainty and a market, Chancellor George Osbourne made a public speech before markets opened this morning in an attempt to calm investors in the capital. “Britain is ready to confront what the future holds for us from a position of strength. Growth has been robust and employment is at a record high. Our economy is now about as strong as it could be to confront the challenge the country now faces,” he said His speech follows the release of a poll this morning conducted by the Institute of Directors (IoD) which began on Friday immediately after the result that has since polled over 1000 business leaders. The results from the poll show that 64% of business leaders around the country feel that a Brexit vote will harm their business as results show that post Brexit plans are already on the table with 24% of members planning on freezing recruitment and 5% of companies saying they will make redundancies. Simon Walker, director general of the Institute of Directors, said: “Businesses will be busy working out how they are going to adapt and succeed after the referendum result. But we can’t sugar-coat this, many of our members are feeling anxious. A majority of business leaders think the vote for Brexit is bad for them, and as a result plans for investment and hiring are being put on hold or scaled back.” The concluding outcome of the poll showed that three quarters of Iod members said their top priority is to protect the British economy following the reaction of the financial markets that has seen the pound drop to it’s lowest since 1985. 27/06/2016

Labour leader Jeremy Corbyn now heads a party in crisis, with nearly half of his shadow cabinet walking out in protest against his handling of the EU referendum. The Labour leader stood defiant in his position on Monday, despite criticism of his weak leadership during the referendum campaign. Shadow health secretary Heidi Alexander resigned yesterday, with prominent frontbencher Stephen Kinnock following her lead this morning. In a statement, Kinnock expressed his respect for Corbyn as a leader, before saying that his “half-hearted and lacklustre role” in the referendum led him to the “conclusion that [Corbyn is] no longer able to lead our party.” These resignations were then followed by latest shadow foreign minister Diana Johnson, shadow civil society minister Anna Turley, shadow defence minister Toby Perkins and Wayne David, the shadow Cabinet Office, Scotland and justice minister. Despite his cabinet’s lack of confidence Corbyn will continue as Labour leader for the foreseeable future, stating on Sunday that he would not “betray the trust” of the people who voted for him and vowed to stand against anyone challenging him for the leadership. Jeremy Corbyn has reappointed ministers as fast as they can resign, filling at least ten positions so far; these include the promotion of Diane Abbot to shadow health secretary, Emily Thornberry to shadow foreign secretary and Clive Lewis to shadow defence.

27/06/2016

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.

27/06/2016