Business Live: Monday 27 June

Summary

Sterling falls more than 3% to new 31 year-low against dollar
Airline, building company and bank shares hit hard as FTSE 100 closes down 2.5%
Former Bank Governor Mervyn King: 'People shouldn't panic'
George Osborne indicates no Emergency Budget

Live Reporting

Karen Hoggan

Scotland holds talks with Gibraltarpublished at 17:45 British Summer Time 27 June 2016
BBC Middle East correspondent tweets
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Storm hits FTSE 250published at 17:36 British Summer Time 27 June 2016
BBC economics editor tweets
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'No change' for EU workers while UK still in EUpublished at 17:31 British Summer Time 27 June 2016
Media caption,
David Cameron on the future of UK's EU workers
Situation could get 'ugly'published at 17:24 British Summer Time 27 June 2016
Quote Message
Whatever bounce Osborne delivered, it’s gone now as markets are getting slammed again. Today’s US open shattered the peace. Wall Street opened sharply lower, with all 30 Dow stocks in the red. Cable has hit fresh 31-year lows, shedding 4% on the day. After Friday’s freefall it doesn’t sound much but these moves are massive in a historical context and it looks like nothing but down for sterling. The UK-focused FTSE 250 is one of the worst hit indices, dropping 6%. While the FTSE 100 is more sheltered from UK earnings, it too is suffering as the banks and house builders are sold hard. Fund managers were sitting on the side lines on Friday but are back in the game today and flexing their sell muscles. Political turmoil in Britain is roiling markets and there doesn’t seem to be an end in sight. For all that Osborne and Mark Carney have done to soothe market nerves, someone needs to take charge of this situation fast or it could get really ugly.
Joe Rundle, Head of trading, ETX Capital
Jeremy Corbyn's 'economic guru' has 'lost faith'published at 17:13 British Summer Time 27 June 2016
Economist tweets
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FTSE 100 down 2.5%, FTSE 250 down 7%published at 16:58 British Summer Time 27 June 2016
Image source, AFP/Getty Images
It's been another day of big falls in London share trading, following Thursday vote to leave the EU.
The FTSE 100 has closed down 2.55% at 5,982.20.
The biggest faller in the FTSE100 was easyJet whose shares slumped by 22%.
Other big falls were seen by building firms Barratt Developments, down by 19% and Travis Perkins down by 17%.
Barclays - which lost more than 20% on Friday lost a further 17% today.
Trading in some shares was suspended during the course of the day because of the big falls.
And BA owner - International Consolidated Airlines Group saw a 16% fall in its shares.
The FTSE 250 - which mostly comprises companies that trade in the UK, and is regarded as being a better guide to the economy - dropped by 6.96% to end the day at 14,967.86.
City could be “damaged” by Brexitpublished at 16:44 British Summer Time 27 June 2016
Rating agency Fitch has said the victory by the “Leave” campaign could damage the Britain's status as a banking hub.
The agency also said most sectors would likely see less growth and lower investments due to the uncertainty about future trade arrangements.
Quote Message
The UK's status as a major international banking hub could be damaged as some business lines shift to the EU. Higher import costs and pressure on exports due to the potential imposition of tariffs would be broadly negative for corporates.
Fitch
Berlin senator says UK can't leave EU and still benefit from advantagespublished at 16:35 British Summer Time 27 June 2016
Image source, Sen/WTF/Lopata
Berlin's Senator for Economic, Technology and Research, Cornelia Yzer, has told the BBC that Boris Johnson's plan for the UK to continue to benefit from the single market despite choosing to leave the EU 'will not work'.
"The British people made a decision, we will see what the consequences are - it will take some time," she said.
"To make the decision to step out and to expect the advantages of the European Union, this will not work.
"To step out means some opportunities have gone.
"Nobody wants to block the British, but they made the decision to quit," she added.
"[Boris Johnson] will have to explain to the British the burden he put on them by making the decision in favour of Brexit."
Investor pulls out of funding tech firmpublished at 16:29 British Summer Time 27 June 2016
BBC technology correspondent tweets
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No immediate change for EU citizens in UKpublished at 16:12 British Summer Time 27 June 2016
The prime minister, David Cameron, has addressed the House of Commons for the first time since the UK voted to leave the EU in last Thursday's referendum. He told MPs that people's lives would be able to continue as they are.
Quote Message
We can reassure European citizens living here and Brits living in European countries that there will be no immediate changes in their circumstances. Neither will there be any initial change in the way our people can travel, in the way our goods can move or the way our services can be sold. The deal we negotiated at the European Council in February will not be discarded and a new negotiation to leave the EU will begin under a new Prime Minister.
New government unit will coordinate Brexitpublished at 16:08 British Summer Time 27 June 2016
The prime minister, David Cameron, has addressed the House of Commons for the first time since the UK voted to leave the EU in last Thursday's referendum. He told MPs that he was creating a new government unit to co-ordinate the strategy for leaving the European Union. He said it would be the most complex and most important task that the civil service has undertaken for decades:
Quote Message
This will bring together officials and policy expertise from across the Cabinet Office, Treasury, Foreign Office and Business departments. Clearly this will be the most complex and most important task that the British Civil Service has undertaken in decades. So the new unit will sit at the heart of government and be led and staffed by the best and brightest from across our Civil Service.
David Cameron, Prime Minister
EEA the way forward?published at 16:03 British Summer Time 27 June 2016
Royal Institute of International Affairs tweets
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SNP: will not see Scotland out of the EUpublished at 15:56 British Summer Time 27 June 2016
Angus Robertson, MP tells the House of Commons that the SNP has no intention of seeing Scotland out of of the EU.
If that means we have to have an independence referendum then so be it.
UK must not turn its back ...published at 15:42 British Summer Time 27 June 2016
BBC political editor tweets
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No hesitation ...published at 15:41 British Summer Time 27 June 2016
BBC economics editor tweets
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Brexit far from plain sailingpublished at 15:38 British Summer Time 27 June 2016
BBC economics editor
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Prime Minister address Parliament on Brexitpublished at 15:38 British Summer Time 27 June 2016
BBC political editor tweets
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How does Brexit affect your personal finances?published at 15:31 British Summer Time 27 June 2016
Image source, AP
Much has been said about what will happen to our finances as a result of leaving the EU, but there have been some striking examples of the immediate effect of the vote to leave.
Holiday money and retirement income are on that list.
Other important aspects of our finances, such as taxes and savings protection remain unchanged.
BBC personal finance reporter Kevin Peachey has been taking a look at five changes to your finances following the vote to leave. Read more here
UK situation 'far more serious than is being recognised'published at 15:13 British Summer Time 27 June 2016
Financial Times Economics editor tweets
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Soros did profit from Brexitpublished at 15:06 British Summer Time 27 June 2016
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