Britain should vote again on whether to remain in the European Union once a Brexit deal is agreed, Owen Smith, one of three candidates vying to lead Britain&#39;s opposition Labour Party, the Guardian newspaper reported on Thursday. 
 
Smith, who announced his candidacy to succeed Jeremy Corbyn at the helm of the centre-left party on Wednesday, said many Britons who backed leaving the EU believe they were misled and should be given a second chance to vote. 
 
&quot;That does mean a second referendum or a general election when the terms are clear. The Labour government should be committing to that,&quot; he told the Guardian newspaper.

'That does mean a second referendum or a general election when the terms are clear. The Labour government should be committing to that'

Britain should vote again on whether to remain in the European Union once a Brexit deal is agreed, Owen Smith, one of three candidates vying to lead Britain's opposition Labour Party, the Guardian newspaper reported on Thursday. Smith, who announced his candidacy to succeed Jeremy Corbyn at the helm of the centre-left party on Wednesday, said many Britons who backed leaving the EU believe they were misled and should be given a second chance to vote. "That does mean a second referendum or a general election when the terms are clear. The Labour government should be committing to that," he told the Guardian newspaper.

Labour leadership contender: Britain should vote again on Brexit

In Boris Johnson, Britain has appointed a liar with his back against the wall as its new foreign secretary at a time when somebody reliable is needed in the role, his French counterpart Jean-Marc Ayrault said today.&nbsp; 
 
Johnson campaigned successfully for Britons to vote to leave the European Union last month. In France, a founding EU member, he is seen as a key player in the departure and in the setback to European integration it represents. 
 
&quot;I am not at all worried about Boris Johnson, but... during the campaign he lied a lot to the British people and now it is he who has his back against the wall,&quot; said Ayrault on Europe 1 radio. 
 
After the vote on June 23, Johnson turned his back on a chance to stand as prime minister in place of Conservative David Cameron, who stepped down having led the campaign to stay. 
 
However, on Wednesday, Cameron`s successor, Theresa May, appointed the former mayor of London and one-time journalist as her foreign secretary. 
 
<img alt="" class="img-responsive" src="http://s.wionews.com/photos/johnson-20160714125658.jpg" />
<div class="media-description">
Boris Johnson (in photo) campaigned for Britons to vote to leave the European Union last month.
</div>
 
 
Johnson will not be in charge of talks about how the divorce will be arranged. May named David Davis, a pro-Brexit former Conservative Party chairman, to a special ministerial role for that purpose. 
 
Nevertheless, the normally soft-spoken former French prime minister Ayrault had a strong warning for the new foreign policy chief of his near neighbour. 
 
&quot;(He has) his back against the wall to defend his country but also with his back against the wall the relationship with Europe should be clear,&quot; Ayrault said. 
 
&quot;I need a partner with whom I can negotiate and who is clear, credible and reliable,&quot; he added.&nbsp; 
 
&quot;We cannot let this ambiguous, blurred situation drag on... in the interests of the British themselves.&quot; 
 
France and other EU partners have urged Britain to trigger quickly the process of exiting the bloc so that a two-year period of talks about trade terms and other links can begin. May has indicated she does not intend to do that this year.&nbsp; 
 
(Reuters)&nbsp;

On Wednesday, David Cameron's successor, Theresa May, appointed London's former mayor Boris Johnson as her foreign secretary

In Boris Johnson, Britain has appointed a liar with his back against the wall as its new foreign secretary at a time when somebody reliable is needed in the role, his French counterpart Jean-Marc Ayrault said today. Johnson campaigned successfully for Britons to vote to leave the European Union last month. In France, a founding EU member, he is seen as a key player in the departure and in the setback to European integration it represents. "I am not at all worried about Boris Johnson, but... during the campaign he lied a lot to the British people and now it is he who has his back against the wall," said Ayrault on Europe 1 radio. After the vote on June 23, Johnson turned his back on a chance to stand as prime minister in place of Conservative David Cameron, who stepped down having led the campaign to stay. However, on Wednesday, Cameron`s successor, Theresa May, appointed the former mayor of London and one-time journalist as her foreign secretary. Boris Johnson (in photo) campaigned for Britons to vote to leave the European Union last month. Johnson will not be in charge of talks about how the divorce will be arranged. May named David Davis, a pro-Brexit former Conservative Party chairman, to a special ministerial role for that purpose. Nevertheless, the normally soft-spoken former French prime minister Ayrault had a strong warning for the new foreign policy chief of his near neighbour. "(He has) his back against the wall to defend his country but also with his back against the wall the relationship with Europe should be clear," Ayrault said. "I need a partner with whom I can negotiate and who is clear, credible and reliable," he added. "We cannot let this ambiguous, blurred situation drag on... in the interests of the British themselves." France and other EU partners have urged Britain to trigger quickly the process of exiting the bloc so that a two-year period of talks about trade terms and other links can begin. May has indicated she does not intend to do that this year. (Reuters)

UK's Johnson lied in his campaign, now has his back against the wall: French foreign minister

Germany issued a &nbsp;ten-year bond at a negative interest for the first time today, selling more than 4.0 billion Euros ($4.5 billion) with a yield of minus 0.05 per cent, the German central bank or Bundesbank said.&nbsp; 
 
The &nbsp;ten-year German government bond or &quot;Bund&quot; acts as a benchmark on the debt markets and regarded as one of the safest investments. 
 
It is the first time that investors have accepted negative returns in the first issue of a bond, meaning they will pay for the privilege of owning rock-solid German bonds amid fears about the consequences of the British vote to quit the European union and economic worries.&nbsp; 
 
While borrowers traditionally pay interest on the money they are loaned, in the face of heightened political and economic uncertainty, those interest rates have come down to record lows recently as investors flock to safe havens to park their cash. 
 
By accepting negative yields, investors are effectively ditching any hope of a return on their investment in what seems a reasonable price to pay to escape the uncertainties of falling stock markets or volatile commodities and currencies. 
 
Interest rates on sovereign debt have been low for some time as central banks snap up government bonds from investors in an effort to boost economic growth through increased liquidity. 
 
The European Central Bank has slashed its key interest rates to zero and launched a massive bond-buying programme known as quantitative easing (QE) in a bid to get the eurozone economy back on its feet and push inflation higher. 
 
Germany is just one of three countries in the euro area and six in the European Union to enjoy a top-notch triple-A rating on its sovereign debt.&nbsp; 
 
(AFP)

The bond or 'Bund' acts as a benchmark on the debt markets and regarded as one of the safest investments

Germany issued a ten-year bond at a negative interest for the first time today, selling more than 4.0 billion Euros ($4.5 billion) with a yield of minus 0.05 per cent, the German central bank or Bundesbank said. The ten-year German government bond or "Bund" acts as a benchmark on the debt markets and regarded as one of the safest investments. It is the first time that investors have accepted negative returns in the first issue of a bond, meaning they will pay for the privilege of owning rock-solid German bonds amid fears about the consequences of the British vote to quit the European union and economic worries. While borrowers traditionally pay interest on the money they are loaned, in the face of heightened political and economic uncertainty, those interest rates have come down to record lows recently as investors flock to safe havens to park their cash. By accepting negative yields, investors are effectively ditching any hope of a return on their investment in what seems a reasonable price to pay to escape the uncertainties of falling stock markets or volatile commodities and currencies. Interest rates on sovereign debt have been low for some time as central banks snap up government bonds from investors in an effort to boost economic growth through increased liquidity. The European Central Bank has slashed its key interest rates to zero and launched a massive bond-buying programme known as quantitative easing (QE) in a bid to get the eurozone economy back on its feet and push inflation higher. Germany is just one of three countries in the euro area and six in the European Union to enjoy a top-notch triple-A rating on its sovereign debt. (AFP)

Germany issues 10-year bond at negative interest rate for first time

A second candidate joined the race today to try to unseat Britain&#39;s opposition Labour leader Jeremy Corbyn, who is battling a party revolt in the wake of the Brexit vote. 
 
&quot;I will stand in this election and I will do the decent thing and fight Jeremy Corbyn on the issues,&quot; Labour lawmaker Owen Smith told the BBC. 
 
He will join fellow MP Angela Eagle in trying to wrest the party leadership from the veteran socialist, who has refused to quit despite a major rebellion by his MPs. 
 
The winner of the contest, which will formally get underway with an announcement of the timetable on Thursday, is expected to be crowned in September. 
 
Smith said he had decided to stand after seeing a &quot;dramatic collapse of faith and confidence in Jeremy&quot; over the last couple of weeks. 
 
Corbyn accused of lacklustre leadership&nbsp; 
 
Many moderate Labour MPs have never reconciled themselves to Corbyn&#39;s election as leader last September, secured thanks to strong support among ordinary party members. 
 
They moved against him in the wake of Britain&#39;s shock June 23 vote to leave the European Union -- an outcome deplored by most of the parliamentary party. 
 
Three-quarters of Labour MPs backed a vote of no confidence in Corbyn on June 28, accusing him of lacklustre leadership in the campaign which culminated with many longtime Labour voters in underprivileged areas defying the party line and backing Brexit. 
 
Many party grandees also fear he would be unable to win a general election if one were called early, although incoming prime minister Theresa May, who takes over from David Cameron later today, has ruled out an early vote. 
 
Late Tuesday, Corbyn won a first victory over his critics after the party&#39;s executive committee ruled he would automatically be included on the leadership ballot. 
 
The decision means that -- unlike his challengers -- he does not need the required 51 nominations from Labour MPs or members of the European Parliament (MEPs) to stand. 
 
Smith was in his teens when joined Labour party&nbsp; 
 
Smith, a former BBC radio producer seen as more centrist than Corbyn, has only been a member of parliament since 2010, representing the Welsh constituency of Pontypridd. 
 
But the 46-year-old has been a member of the Labour party since he was 16, and was special advisor to Paul Murphy, the Labour government minister in charge of Wales and then Northern Ireland, between 2002 and 2005. 
 
After a stint working as a media advisor to pharmaceutical group Pfizer, he became an MP when Labour moved into opposition, and became its spokesman on Welsh affairs. 
 
He appeared in a list of possible candidates to replace outgoing leader Ed Miliband following Labour&#39;s second successive general election defeat last year. 
 
But he did not step forward then and was named shadow work and pensions minister under Corbyn in September 2015. 
 
(AFP)&nbsp; 
 
 
 
 
&nbsp;

Smith will join fellow MP Angela Eagle in bid to wrest party leadership from veteran socialist, who refused to quit despite a major rebel

A second candidate joined the race today to try to unseat Britain's opposition Labour leader Jeremy Corbyn, who is battling a party revolt in the wake of the Brexit vote. "I will stand in this election and I will do the decent thing and fight Jeremy Corbyn on the issues," Labour lawmaker Owen Smith told the BBC. He will join fellow MP Angela Eagle in trying to wrest the party leadership from the veteran socialist, who has refused to quit despite a major rebellion by his MPs. The winner of the contest, which will formally get underway with an announcement of the timetable on Thursday, is expected to be crowned in September. Smith said he had decided to stand after seeing a "dramatic collapse of faith and confidence in Jeremy" over the last couple of weeks. Corbyn accused of lacklustre leadership Many moderate Labour MPs have never reconciled themselves to Corbyn's election as leader last September, secured thanks to strong support among ordinary party members. They moved against him in the wake of Britain's shock June 23 vote to leave the European Union -- an outcome deplored by most of the parliamentary party. Three-quarters of Labour MPs backed a vote of no confidence in Corbyn on June 28, accusing him of lacklustre leadership in the campaign which culminated with many longtime Labour voters in underprivileged areas defying the party line and backing Brexit. Many party grandees also fear he would be unable to win a general election if one were called early, although incoming prime minister Theresa May, who takes over from David Cameron later today, has ruled out an early vote. Late Tuesday, Corbyn won a first victory over his critics after the party's executive committee ruled he would automatically be included on the leadership ballot. The decision means that -- unlike his challengers -- he does not need the required 51 nominations from Labour MPs or members of the European Parliament (MEPs) to stand. Smith was in his teens when joined Labour party Smith, a former BBC radio producer seen as more centrist than Corbyn, has only been a member of parliament since 2010, representing the Welsh constituency of Pontypridd. But the 46-year-old has been a member of the Labour party since he was 16, and was special advisor to Paul Murphy, the Labour government minister in charge of Wales and then Northern Ireland, between 2002 and 2005. After a stint working as a media advisor to pharmaceutical group Pfizer, he became an MP when Labour moved into opposition, and became its spokesman on Welsh affairs. He appeared in a list of possible candidates to replace outgoing leader Ed Miliband following Labour's second successive general election defeat last year. But he did not step forward then and was named shadow work and pensions minister under Corbyn in September 2015. (AFP)

Power struggle in Labour party heats up, Owen Smith joins race to unseat Corbyn

Gold saw its biggest one-day fall in three weeks yesterday as global equities rallied on easing political uncertainty in Britain and hopes for more economic stimulus, which in turn curbed demand for assets perceived as safe havens. 
 
Spot gold fell as much as 1.9 pe rcent to $1,329.75 an ounce and was down 1.6 pct at $1,332.86 by 2:20 p.m. EDT (1820 GMT).&nbsp; 
The most active US gold futures for August delivery settled down 1.6 per cent at $1,335.30 per ounce.&nbsp; 
 
&quot;Tensions in Britain are easing for now, as the country will soon have a new Prime Minister,&quot; ActivTrades chief analyst Carlo Alberto de Casa said, referring to incoming Prime Minister, Theresa May, who will replace David Cameron on Wednesday. 
 
&quot;With the British pound gaining some ground, demand for gold and other safe havens is decreasing,&quot; he said. 
 
Gold has gained about $100 an ounce since Britain voted recently to leave the European Union, with worried investors piling their cash into safe-haven assets.&nbsp; 
 
&quot;The UK has a leader and we almost have the outlines of a plan,&quot; said Rob Haworth, senior investment strategist for US Bank Wealth&nbsp;Management in Seattle, describing a &quot;risk-on day&quot; pressuring prices despite a weak U.S. dollar. 
 
Profit-taking and new highs in the US stock market also weighed on bullion, Haworth said. 
 
Major US stock indexes set record intraday highs on Tuesday as optimism about the world economy and upbeat corporate results from Alcoa boosted risk appetite, while European shares rose for a fourth straight day.&nbsp; 
 
Japan&#39;s ruling coalition fanned expectations of more fiscal stimulus, while the Bank of England could cut rates as soon as Thursday following its monthly policy meeting. 
 
&quot;The additional stimulus packages will continue to create a challenging environment for investors looking for a return because they are not getting it through bonds and as long as we have that scenario, then the alternatives are currently stocks but also precious metals,&quot; 
Saxo Bank senior manager Ole Hansen said. 
 
Markets were also assessing whether the latest US jobs data, which was stronger than expected, has boosted the prospects for an interest rate increase by the US Federal Reserve. 
 
The European Central Bank will not ease monetary policy any further at its meeting next week, according to an overwhelming majority of respondents in a Reuters poll of euro money market traders. 
Silver was down 0.65 per cent at $20.13 an ounce.&nbsp; 
 
Platinum fell for the first time in two weeks, down 1.14 per cent at $1,087. Palladium rose 1 per cent to $627.50. 
 
(Reuters)&nbsp;

Gold has gained about $100 an ounce since Brexit but UK is now hoping for more economic stimulus?as it welcomes new Prime Minister

Gold saw its biggest one-day fall in three weeks yesterday as global equities rallied on easing political uncertainty in Britain and hopes for more economic stimulus, which in turn curbed demand for assets perceived as safe havens. Spot gold fell as much as 1.9 pe rcent to $1,329.75 an ounce and was down 1.6 pct at $1,332.86 by 2:20 p.m. EDT (1820 GMT). The most active US gold futures for August delivery settled down 1.6 per cent at $1,335.30 per ounce. "Tensions in Britain are easing for now, as the country will soon have a new Prime Minister," ActivTrades chief analyst Carlo Alberto de Casa said, referring to incoming Prime Minister, Theresa May, who will replace David Cameron on Wednesday. "With the British pound gaining some ground, demand for gold and other safe havens is decreasing," he said. Gold has gained about $100 an ounce since Britain voted recently to leave the European Union, with worried investors piling their cash into safe-haven assets. "The UK has a leader and we almost have the outlines of a plan," said Rob Haworth, senior investment strategist for US Bank Wealth Management in Seattle, describing a "risk-on day" pressuring prices despite a weak U.S. dollar. Profit-taking and new highs in the US stock market also weighed on bullion, Haworth said. Major US stock indexes set record intraday highs on Tuesday as optimism about the world economy and upbeat corporate results from Alcoa boosted risk appetite, while European shares rose for a fourth straight day. Japan's ruling coalition fanned expectations of more fiscal stimulus, while the Bank of England could cut rates as soon as Thursday following its monthly policy meeting. "The additional stimulus packages will continue to create a challenging environment for investors looking for a return because they are not getting it through bonds and as long as we have that scenario, then the alternatives are currently stocks but also precious metals," Saxo Bank senior manager Ole Hansen said. Markets were also assessing whether the latest US jobs data, which was stronger than expected, has boosted the prospects for an interest rate increase by the US Federal Reserve. The European Central Bank will not ease monetary policy any further at its meeting next week, according to an overwhelming majority of respondents in a Reuters poll of euro money market traders. Silver was down 0.65 per cent at $20.13 an ounce. Platinum fell for the first time in two weeks, down 1.14 per cent at $1,087. Palladium rose 1 per cent to $627.50. (Reuters)

Gold sees biggest one-day fall in 3 weeks as pound gains ground

Jim Charlesworth has no doubts about the abilities of his local MP and neighbour Theresa May. &quot;She will be the best Prime Minister this country has ever known,&quot; the 69-year-old said. 
 
May, who replaces David Cameron as Britain&#39;s next leader on Wednesday, is widely viewed as hard-working, tough but approachable in her constituency of Maidenhead in southern England. 
 
&quot;I can&#39;t say a wrong word about that lady -- she will get this country back on its feet,&quot; Charlesworth told AFP. 
 
May has represented Maidenhead, west of London, since 1997. She was re-elected as its Conservative MP last year with 65.8 per cent of the vote. 
 
&quot;I never voted for her but I do respect her, she is a very hard-working MP,&quot; said Anne Matkin, 64. 
 
She said May was &quot;always willing to listen and to help people&quot; despite, for the past six years as interior minister, holding one of the toughest jobs in government. 
 
&quot;She spends a lot of time in the area,&quot; adds Maxine Lattimer, a 46-year-old housewife with five children, describing her as a &quot;nice, caring woman&quot;. 
 
She recalled how May attended a recent parade to celebrate St George&#39;s Day, in honour of England&#39;s patron saint, along with her bodyguards. 
 
After six years as home secretary, she now has the tough task of uniting the country and leading Britain out of the European Union (EU). 
 
Lattimer has no doubt that May is the right person to lead the Brexit negotiations. 
 
&quot;She&#39;ll be very assertive, she&#39;ll work really really hard for the best interest of Britain. She won&#39;t shy away from difficult decisions -- she is tough when she needs to be,&quot; she said. 
 
&#39;Nothing murky&#39; 
 
The 60,000 residents of Maidenhead, many of whom commute to work in London, bucked the trend across England by voting for Britain to stay in the EU. 
 
May, too, had wanted Britain to stay in and although she kept a low national profile, residents here say she had campaigned locally for the status quo. 
 
&quot;People felt that she did her bit,&quot; said Martin Trepte, editor of the local newspaper, the Maidenhead Advertiser, which has a circulation of 17,000. 
 
May has repeatedly said that she will uphold the will of the public and that &quot;Brexit means Brexit&quot;. 
 
Trepte described her as a &quot;mature, grown-up politician&quot; who &quot;knows her stuff&quot; -- and says there are no skeletons in her closet, at least as far as he knows. 
 
&quot;In 19 years there has been nothing murky at all,&quot; he said. 
 
He added: &quot;We don&#39;t know too much about her. She&#39;s quite a private person. We know she goes to church regularly.&quot; 
 
May attends church in Sonning, a picturesque village on the banks of the River Thames where she lives with her husband Philip. 
 
Its charms have attracted other high-profile neighbours including Hollywood actor George Clooney and his wife Amal, and Led Zeppelin&#39;s Jimmy Page. 
 
&#39;Genuine and passionate&#39;&nbsp; 
 
Gil Cattermole, another of May&#39;s neighbours, recalled popping in for a chat before the politician became home secretary and had to step up her security. 
 
&quot;I used to go around to her house and talk to her,&quot; said the 69-year-old, noting that when May now goes to church, she is accompanied by several armoured Range Rovers. 
 
At the Bull Inn, a pub where Clooney has been spotted, May is also well known -- although they expect to see less of her once she enters Downing Street. 
 
&quot;She&#39;s always been very charming, very nice to customers and staff. She seems sort of genuine and very passionate about her beliefs,&quot; owner Christine Mason said. 
 
&quot;I bumped in her at the petrol station the other week. She is still relaxed doing the normal things in life. Always says &#39;hello&#39; -- nice lady.&quot; 
 
(AFP)&nbsp; 
&nbsp;

Britain's new Prime Minister is widely viewed as hard-working, tough but approachable in her constituency of Maidenhead in southern England

Jim Charlesworth has no doubts about the abilities of his local MP and neighbour Theresa May. "She will be the best Prime Minister this country has ever known," the 69-year-old said. May, who replaces David Cameron as Britain's next leader on Wednesday, is widely viewed as hard-working, tough but approachable in her constituency of Maidenhead in southern England. "I can't say a wrong word about that lady -- she will get this country back on its feet," Charlesworth told AFP. May has represented Maidenhead, west of London, since 1997. She was re-elected as its Conservative MP last year with 65.8 per cent of the vote. "I never voted for her but I do respect her, she is a very hard-working MP," said Anne Matkin, 64. She said May was "always willing to listen and to help people" despite, for the past six years as interior minister, holding one of the toughest jobs in government. "She spends a lot of time in the area," adds Maxine Lattimer, a 46-year-old housewife with five children, describing her as a "nice, caring woman". She recalled how May attended a recent parade to celebrate St George's Day, in honour of England's patron saint, along with her bodyguards. After six years as home secretary, she now has the tough task of uniting the country and leading Britain out of the European Union (EU). Lattimer has no doubt that May is the right person to lead the Brexit negotiations. "She'll be very assertive, she'll work really really hard for the best interest of Britain. She won't shy away from difficult decisions -- she is tough when she needs to be," she said. 'Nothing murky' The 60,000 residents of Maidenhead, many of whom commute to work in London, bucked the trend across England by voting for Britain to stay in the EU. May, too, had wanted Britain to stay in and although she kept a low national profile, residents here say she had campaigned locally for the status quo. "People felt that she did her bit," said Martin Trepte, editor of the local newspaper, the Maidenhead Advertiser, which has a circulation of 17,000. May has repeatedly said that she will uphold the will of the public and that "Brexit means Brexit". Trepte described her as a "mature, grown-up politician" who "knows her stuff" -- and says there are no skeletons in her closet, at least as far as he knows. "In 19 years there has been nothing murky at all," he said. He added: "We don't know too much about her. She's quite a private person. We know she goes to church regularly." May attends church in Sonning, a picturesque village on the banks of the River Thames where she lives with her husband Philip. Its charms have attracted other high-profile neighbours including Hollywood actor George Clooney and his wife Amal, and Led Zeppelin's Jimmy Page. 'Genuine and passionate' Gil Cattermole, another of May's neighbours, recalled popping in for a chat before the politician became home secretary and had to step up her security. "I used to go around to her house and talk to her," said the 69-year-old, noting that when May now goes to church, she is accompanied by several armoured Range Rovers. At the Bull Inn, a pub where Clooney has been spotted, May is also well known -- although they expect to see less of her once she enters Downing Street. "She's always been very charming, very nice to customers and staff. She seems sort of genuine and very passionate about her beliefs," owner Christine Mason said. "I bumped in her at the petrol station the other week. She is still relaxed doing the normal things in life. Always says 'hello' -- nice lady." (AFP)

May's neighbours sing her praises

London: Stock markets traded within sight of their highest levels this year on Wednesday as the prospect of stimulative economic policy across the developed world eased immediate concern over Britain&#39;s vote to leave the European Union. 
 
The swift moves by the Conservative Party that see Theresa May replacing David Cameron as prime minister on Wednesday have helped fund a recovery that, aside from sterling itself, has wiped out the negative reaction to the June 23 vote. 
 
Asian markets outside Japan gained another third of a percent to come within a hair&#39;s breadth of the year&#39;s highs from April, while European shares rose 0.2 percent, on course for their fifth straight day of gains. 
 
Traders say that concerns over the economic and political impact of what promise to be torturous exit talks between London and Brussels have not gone away, but they are certainly on the back burner for a moment. 
 
U.S. stock futures showed Wall Street set to build further on record highs hit on Tuesday. Expectations that sterling&#39;s fall will help British companies has London&#39;s FTSE index at its highest since last August. 
 
&quot;This is a short term relief rally thanks to some certainty around the swift handover to a new PM,&quot; said Tobias Davis, Head of Corporate Treasury Sales at Western Union in London. 
 
&quot;The path ahead still looks incredibly challenging. Equities are only rallying thanks to negative yields across most of the curve in Swiss, German and Japanese markets. In reality, the economic landscape is deteriorating.&quot; 
 
Sterling, whose 14 percent fall made it one of the main victims of last month&#39;s referendum, hit its highest in more than a week at $1.3340. 
 
But for every blip higher for the pound at the moment there are more sellers ready to bet it will fall further in the months ahead and it quickly fell back to stand just 0.2 percent stronger on the day at $1.3280. 
 
The yen, investors&#39; go-to currency in times of market stress was also up half a percent against the euro and dollar after falling sharply on the back of Japan&#39;s move into another round of stimulative policy. 
 
The debate among currency traders around Thursday&#39;s Bank of England meeting is also now not whether it will cut interest rates but by how much -- some measure of the concern over the economy&#39;s fate for the rest of the year. 
 
&quot;I&#39;m struck at the enthusiasm of all and sundry to tell us that European and U.S. growth rates will hardly be affected by the UK post-referendum slowdown,&quot; Societe Generale&#39;s Kit Juckes said in a note to clients. 
 
&quot;That flies in the face of the increased correlation of major economies&#39; growth rates in an ever more connected world.&quot; 
 
Stimulus 
In commodities, oil prices dropped after industry group American Petroleum Institute (API) reported a surprise build of 2.2 million barrels in US crude stockpiles last week. [O/R] 
 
Brent crude futures fell 1.6 percent to $47.71 after surging roughly 5 percent on Tuesday on broad improvement in risk sentiment. 
 
Japanese Prime Minister Shinzo Abe ordered a new round of fiscal stimulus spending, as expected, after an election victory on Sunday. His meeting with former U.S. Federal Reserve Chair Ben Bernanke, a proponent of &quot;helicopter money&quot; policies - printing money and directly handing it to the private sector to stimulate the economy - fuelled speculation that some of the stimulus plan could be funded by Bank of Japan easing. 
 
The European Central Bank is also widely expected to take a dovish stance when it holds its policy review a week later. 
 
&quot;After being faced with the prospect of a major slowdown in global activity in the wake of the Brexit vote, governments and central banks worldwide are now expected to do their utmost to reassure markets and provide stimulus,&quot; wrote Angus Nicholson, market analyst at IG in Melbourne. 
 
(Reuters)

Swift moves by the Conservative Party that see Theresa May replacing David Cameron as prime minister have helped fund a recovery

London: Stock markets traded within sight of their highest levels this year on Wednesday as the prospect of stimulative economic policy across the developed world eased immediate concern over Britain's vote to leave the European Union. The swift moves by the Conservative Party that see Theresa May replacing David Cameron as prime minister on Wednesday have helped fund a recovery that, aside from sterling itself, has wiped out the negative reaction to the June 23 vote. Asian markets outside Japan gained another third of a percent to come within a hair's breadth of the year's highs from April, while European shares rose 0.2 percent, on course for their fifth straight day of gains. Traders say that concerns over the economic and political impact of what promise to be torturous exit talks between London and Brussels have not gone away, but they are certainly on the back burner for a moment. U.S. stock futures showed Wall Street set to build further on record highs hit on Tuesday. Expectations that sterling's fall will help British companies has London's FTSE index at its highest since last August. "This is a short term relief rally thanks to some certainty around the swift handover to a new PM," said Tobias Davis, Head of Corporate Treasury Sales at Western Union in London. "The path ahead still looks incredibly challenging. Equities are only rallying thanks to negative yields across most of the curve in Swiss, German and Japanese markets. In reality, the economic landscape is deteriorating." Sterling, whose 14 percent fall made it one of the main victims of last month's referendum, hit its highest in more than a week at $1.3340. But for every blip higher for the pound at the moment there are more sellers ready to bet it will fall further in the months ahead and it quickly fell back to stand just 0.2 percent stronger on the day at $1.3280. The yen, investors' go-to currency in times of market stress was also up half a percent against the euro and dollar after falling sharply on the back of Japan's move into another round of stimulative policy. The debate among currency traders around Thursday's Bank of England meeting is also now not whether it will cut interest rates but by how much -- some measure of the concern over the economy's fate for the rest of the year. "I'm struck at the enthusiasm of all and sundry to tell us that European and U.S. growth rates will hardly be affected by the UK post-referendum slowdown," Societe Generale's Kit Juckes said in a note to clients. "That flies in the face of the increased correlation of major economies' growth rates in an ever more connected world." Stimulus In commodities, oil prices dropped after industry group American Petroleum Institute (API) reported a surprise build of 2.2 million barrels in US crude stockpiles last week. [O/R] Brent crude futures fell 1.6 percent to $47.71 after surging roughly 5 percent on Tuesday on broad improvement in risk sentiment. Japanese Prime Minister Shinzo Abe ordered a new round of fiscal stimulus spending, as expected, after an election victory on Sunday. His meeting with former U.S. Federal Reserve Chair Ben Bernanke, a proponent of "helicopter money" policies - printing money and directly handing it to the private sector to stimulate the economy - fuelled speculation that some of the stimulus plan could be funded by Bank of Japan easing. The European Central Bank is also widely expected to take a dovish stance when it holds its policy review a week later. "After being faced with the prospect of a major slowdown in global activity in the wake of the Brexit vote, governments and central banks worldwide are now expected to do their utmost to reassure markets and provide stimulus," wrote Angus Nicholson, market analyst at IG in Melbourne. (Reuters)

Brexit, what Brexit? Global shares near 2016 highs

The Bank of England (BoE) is mulling whether to cut interest rates for the first time in over seven years to curb economic fallout from Britain`s vote to exit the European Union (EU). 
 
The BoE on Thursday concludes its first interest-rate meeting since Britain voted on June 23 to exit the EU and subsequent comments by governor Mark Carney that &quot;some monetary policy easing will likely be required over the summer&quot;. 
 
Jonathan Loynes, economist at Capital Economics research group, said &quot;given that the biggest near-term threat to the economy is uncertainty and its adverse effects on confidence, an interest rate cut could help to re-assure households and markets following the referendum result&quot;. 
 
Political uncertainity gripped Britain after Brexit 
 
While markets are pricing in a cut as early as this week, some analysts believe a drop in the BoE&#39;s main lending rate from 0.50 percent to a new record-low of 0.25 percent or even zero may not now occur until August. 
 
This they say is owing to Theresa May`s quick appointment as Prime Minister having reduced some of the political uncertainty that has gripped Britain since the shock referendum result. 
 
Whether or not a rate cut occurs Thursday or in August, markets expect that by the end of the British summer, the BoE will unveil a fresh means of stimulating the economy, as the government heads into tough negotiations on quitting the EU. 
 
Analysts suggest there could for example be some more cash stimulus pumped around the British economy to encourage lending by commercial banks. 
 
The central bank&#39;s quantitative easing (QE) programme, launched alongside record-low interest rates during the global financial crisis, has enabled an additional &pound;375 billion ($494 billion, 445 billion euros) to move through the economy. 
 
BoE has also vowed to pump&nbsp; &pound;250 billion into markets&nbsp; 
 
The BoE has already taken steps to calm fears over Brexit&#39;s economic fallout when it last week relaxed commercial banks&#39; capital requirements to boost lending to businesses and households. 
 
The move -- which came as the bank&#39;s governor Mark Carney warned that risks to financial stability were materialising following the referendum result -- will boost lending by up to &pound;150 billion and reduce banks&#39; regulatory capital buffers by &pound;5.7 billion. 
 
Addressing MPs for a regular update Tuesday, Carney said demand for credit was set to drop because of uncertainty created by Brexit, adding that the &pound;150 billion lending-boost would be &quot;part of a series of measures&quot; going forward. 
 
Since Brexit, the BoE has also vowed to pump at least &pound;250 billion into money markets if needed to prevent a damaging credit crunch. 
 
Finance minister George Osborne has meanwhile said that the Treasury could expand the so-called Funding for Lending scheme, which provides cheap finance to banks in exchange for increased lending. 
 
&quot;After all the volatility of the past few weeks, odds have increased sharply that the Bank of England could well cut interest rates&quot; on Thursday, said Michael Hewson, chief analyst at trading group CMC Markets. 
 
&quot;It is this expectation that has helped push the pound to new 31-year lows against the US dollar.&quot; 
 
Hewson added, however, that the rate could now remain on hold Thursday as &quot;the political picture has become much more stable&quot;. 
 
David Cameron on Tuesday chaired his final cabinet meeting after six years as Britain`s Prime Minister, with incoming premier May preparing to form a new government to negotiate Britain`s exit from the EU. 
 
(AFP)&nbsp; 
 
&nbsp;

This would be the first interest rate cut in seven years

The Bank of England (BoE) is mulling whether to cut interest rates for the first time in over seven years to curb economic fallout from Britain`s vote to exit the European Union (EU). The BoE on Thursday concludes its first interest-rate meeting since Britain voted on June 23 to exit the EU and subsequent comments by governor Mark Carney that "some monetary policy easing will likely be required over the summer". Jonathan Loynes, economist at Capital Economics research group, said "given that the biggest near-term threat to the economy is uncertainty and its adverse effects on confidence, an interest rate cut could help to re-assure households and markets following the referendum result". Political uncertainity gripped Britain after Brexit While markets are pricing in a cut as early as this week, some analysts believe a drop in the BoE's main lending rate from 0.50 percent to a new record-low of 0.25 percent or even zero may not now occur until August. This they say is owing to Theresa May`s quick appointment as Prime Minister having reduced some of the political uncertainty that has gripped Britain since the shock referendum result. Whether or not a rate cut occurs Thursday or in August, markets expect that by the end of the British summer, the BoE will unveil a fresh means of stimulating the economy, as the government heads into tough negotiations on quitting the EU. Analysts suggest there could for example be some more cash stimulus pumped around the British economy to encourage lending by commercial banks. The central bank's quantitative easing (QE) programme, launched alongside record-low interest rates during the global financial crisis, has enabled an additional £375 billion ($494 billion, 445 billion euros) to move through the economy. BoE has also vowed to pump £250 billion into markets The BoE has already taken steps to calm fears over Brexit's economic fallout when it last week relaxed commercial banks' capital requirements to boost lending to businesses and households. The move -- which came as the bank's governor Mark Carney warned that risks to financial stability were materialising following the referendum result -- will boost lending by up to £150 billion and reduce banks' regulatory capital buffers by £5.7 billion. Addressing MPs for a regular update Tuesday, Carney said demand for credit was set to drop because of uncertainty created by Brexit, adding that the £150 billion lending-boost would be "part of a series of measures" going forward. Since Brexit, the BoE has also vowed to pump at least £250 billion into money markets if needed to prevent a damaging credit crunch. Finance minister George Osborne has meanwhile said that the Treasury could expand the so-called Funding for Lending scheme, which provides cheap finance to banks in exchange for increased lending. "After all the volatility of the past few weeks, odds have increased sharply that the Bank of England could well cut interest rates" on Thursday, said Michael Hewson, chief analyst at trading group CMC Markets. "It is this expectation that has helped push the pound to new 31-year lows against the US dollar." Hewson added, however, that the rate could now remain on hold Thursday as "the political picture has become much more stable". David Cameron on Tuesday chaired his final cabinet meeting after six years as Britain`s Prime Minister, with incoming premier May preparing to form a new government to negotiate Britain`s exit from the EU. (AFP)

Bank of England mulls rate cut to curb Brexit fallout

David Cameron chairs his final cabinet meeting today after six years as Britain`s Prime Minister, with incoming premier Theresa May preparing to form a new government to deliver Brexit.&nbsp; 
 
Cameron&#39;s last full day as the premier came sooner than expected after dramatic twists in the race to replace him led to his swift exit from power less than three weeks after the nation&#39;s seismic vote to quit the European Union (EU). 
 
Home Secretary May, the interior minister, was declared the new leader of the governing centre-right Conservative Party on Monday after junior energy minister Andrea Leadsom, her only remaining challenger for the post, withdrew from the contest. 
 
Next on agenda: Breaking ties with EU&nbsp; 
 
Cameron announced he would step down after leading the failed campaign for Britain to remain in the EU in the June 23 referendum. 
 
May will immediately face questions on when she plans to trigger Article 50 -- the formal procedure for withdrawal from the EU -- which would set a two-year deadline for completing exit negotiations. 
 
While May supported Britain staying in the bloc, she cut a low profile during the referendum campaign and insists she will honour the popular vote, stressing on Monday: &quot;Brexit means Brexit&quot;. 
 
May also noted the need &quot;to negotiate the best deal for Britain in leaving the EU&quot; in brief comments outside parliament. 
 
EU leaders have kept up the pressure on Britain, with German Chancellor Angela Merkel saying late Monday, &quot;The United Kingdom will need to quickly clarify how it wants its ties with the European Union to be in future.&quot; 
 
Cameron was to face MPs in parliament for a final time tomorrow in the weekly Prime Minister&#39;s questions session, before meeting Queen Elizabeth II to tender his resignation to the head of state. 
 
The monarch will call for May, the new leader of the majority party in parliament, to form a fresh government. 
 
May set to become Britain&#39;s &nbsp;second female PM 
 
May will become Britain&#39;s second female Prime Minister after 1980s Conservative titan Margaret Thatcher. 
 
The 59-year-old will have to keep Leave-supporting Conservative heavyweights onside if she is to heal the splits in the party caused by the referendum.The futures of leading pro-Brexit figureheads such as Leadsom, Justice Secretary Michael Gove and former London mayor Boris Johnson hang in the balance. 
 
May will also have to decide whether to keep top figures such as finance minister George Osborne and Foreign Secretary Philip Hammond in place. 
 
Corbyn faces leadership challenge 
 
Meanwhile, Tuesday was set to be a key date in the history of the main opposition Labour Party, whose embattled leader Jeremy Corbyn -- hugely popular with the party membership -- is facing a leadership challenge after losing the confidence of three quarters of Labour MPs. 
 
The party`s ruling National Executive Committee (NEC) was to decide whether Corbyn would require nominations to stand in the contest after the party`s former business spokeswoman Angela Eagle announced her leadership challenge on Monday. 
 
The left-of-centre party&#39;s rulebook is ambiguous on what is required of a sitting leader if challenged. 
 
Corbyn is adamant his name should automatically be on the ballot: he would struggle to get the support of 20 percent of Labour MPs and members of the European Parliament required by Eagle. 
 
Lawyers for Jim Kennedy, a trade union member of the NEC, have written a letter to party general secretary Iain McNicol threatening legal action. 
 
&quot;We put you on the clearest notice that we will be instructed to apply to the High Court for immediate injunctive relief should Jeremy Corbyn`s name not go forward automatically to the ballot,&quot; it said. 
 
Corbyn lost confidence after his perceived half-hearted, lacklustre campaigning for Labour`s position of supporting the EU referendum Remain campaign. 
 
With so many Labour MPs in opposition to their leader, there is a risk of the party splitting if Corbyn makes it on the ballot and secures a repeat of September`s landslide victory. 
 
(AFP)&nbsp;

David Cameron's last full day as British Prime Minister came sooner than expected after dramatic twists in the race to replace him

David Cameron chairs his final cabinet meeting today after six years as Britain`s Prime Minister, with incoming premier Theresa May preparing to form a new government to deliver Brexit. Cameron's last full day as the premier came sooner than expected after dramatic twists in the race to replace him led to his swift exit from power less than three weeks after the nation's seismic vote to quit the European Union (EU). Home Secretary May, the interior minister, was declared the new leader of the governing centre-right Conservative Party on Monday after junior energy minister Andrea Leadsom, her only remaining challenger for the post, withdrew from the contest. Next on agenda: Breaking ties with EU Cameron announced he would step down after leading the failed campaign for Britain to remain in the EU in the June 23 referendum. May will immediately face questions on when she plans to trigger Article 50 -- the formal procedure for withdrawal from the EU -- which would set a two-year deadline for completing exit negotiations. While May supported Britain staying in the bloc, she cut a low profile during the referendum campaign and insists she will honour the popular vote, stressing on Monday: "Brexit means Brexit". May also noted the need "to negotiate the best deal for Britain in leaving the EU" in brief comments outside parliament. EU leaders have kept up the pressure on Britain, with German Chancellor Angela Merkel saying late Monday, "The United Kingdom will need to quickly clarify how it wants its ties with the European Union to be in future." Cameron was to face MPs in parliament for a final time tomorrow in the weekly Prime Minister's questions session, before meeting Queen Elizabeth II to tender his resignation to the head of state. The monarch will call for May, the new leader of the majority party in parliament, to form a fresh government. May set to become Britain's second female PM May will become Britain's second female Prime Minister after 1980s Conservative titan Margaret Thatcher. The 59-year-old will have to keep Leave-supporting Conservative heavyweights onside if she is to heal the splits in the party caused by the referendum.The futures of leading pro-Brexit figureheads such as Leadsom, Justice Secretary Michael Gove and former London mayor Boris Johnson hang in the balance. May will also have to decide whether to keep top figures such as finance minister George Osborne and Foreign Secretary Philip Hammond in place. Corbyn faces leadership challenge Meanwhile, Tuesday was set to be a key date in the history of the main opposition Labour Party, whose embattled leader Jeremy Corbyn -- hugely popular with the party membership -- is facing a leadership challenge after losing the confidence of three quarters of Labour MPs. The party`s ruling National Executive Committee (NEC) was to decide whether Corbyn would require nominations to stand in the contest after the party`s former business spokeswoman Angela Eagle announced her leadership challenge on Monday. The left-of-centre party's rulebook is ambiguous on what is required of a sitting leader if challenged. Corbyn is adamant his name should automatically be on the ballot: he would struggle to get the support of 20 percent of Labour MPs and members of the European Parliament required by Eagle. Lawyers for Jim Kennedy, a trade union member of the NEC, have written a letter to party general secretary Iain McNicol threatening legal action. "We put you on the clearest notice that we will be instructed to apply to the High Court for immediate injunctive relief should Jeremy Corbyn`s name not go forward automatically to the ballot," it said. Corbyn lost confidence after his perceived half-hearted, lacklustre campaigning for Labour`s position of supporting the EU referendum Remain campaign. With so many Labour MPs in opposition to their leader, there is a risk of the party splitting if Corbyn makes it on the ballot and secures a repeat of September`s landslide victory. (AFP)

Cameron holds last cabinet meet as May prepares to deliver Brexit

Sri Lanka today announced that it had raised $1.5 billion through a bond issue which was nearly four times oversubscribed despite volatility triggered by Britain&#39;s to leave the European Union (EU). 
 
The Central Bank of Sri Lanka said orders totalled $5.5 billion for the $1.5 billion bond issue on Monday. Sri Lanka offered $500 million in bonds with a tenure of 5.5 years and $1 billion for a period of 10 years. 
 
The shorter term debt was priced just below 6.125 per cent while the longer tenue was at 7.125 percent, the bank said, adding that the rate was well within its anticipated interest rate. 
 
&quot;Despite the high volatility in the global financial markets following the historic United Kingdom referendum in June regarding their membership of the European Union, the bonds saw strong interests from a wide range of high quality investors,&quot; the bank said. 
 
Sri Lanka has already appointed a high-powered panel to study the effects of Brexit on its $82 billion economy as 10 per cent of its exports to Britain are under European Union trade concessions. 
 
Sri Lanka&#39;s new government secured a $1.5 billion IMF bailout last month to address its balance of payments crisis after a spending spree to increase public sector salaries last year. 
 
President Maithripala Sirisena&#39;s administration sought an IMF bailout immediately after taking power in January last year, but the fund turned down the request, saying Sri Lanka&#39;s reserves were at a comfortable level then. 
 
However, the government faced a balance of payments crisis after it implemented its election pledges of lower fuel and utility prices. 
 
Sri Lanka enjoyed impressive economic growth rates averaging more than 8.0 percent for two years after a prolonged civil war ended in 2009. 
 
But the pace has since slowed, falling to 4.8 percent in 2015, down from 4.9 in the previous year, according to official data. 
 
(AFP)&nbsp; 
 
&nbsp;

Sri Lanka has already appointed a high-powered panel to study the effects of Brexit on its $82 billion economy

Sri Lanka today announced that it had raised $1.5 billion through a bond issue which was nearly four times oversubscribed despite volatility triggered by Britain's to leave the European Union (EU). The Central Bank of Sri Lanka said orders totalled $5.5 billion for the $1.5 billion bond issue on Monday. Sri Lanka offered $500 million in bonds with a tenure of 5.5 years and $1 billion for a period of 10 years. The shorter term debt was priced just below 6.125 per cent while the longer tenue was at 7.125 percent, the bank said, adding that the rate was well within its anticipated interest rate. "Despite the high volatility in the global financial markets following the historic United Kingdom referendum in June regarding their membership of the European Union, the bonds saw strong interests from a wide range of high quality investors," the bank said. Sri Lanka has already appointed a high-powered panel to study the effects of Brexit on its $82 billion economy as 10 per cent of its exports to Britain are under European Union trade concessions. Sri Lanka's new government secured a $1.5 billion IMF bailout last month to address its balance of payments crisis after a spending spree to increase public sector salaries last year. President Maithripala Sirisena's administration sought an IMF bailout immediately after taking power in January last year, but the fund turned down the request, saying Sri Lanka's reserves were at a comfortable level then. However, the government faced a balance of payments crisis after it implemented its election pledges of lower fuel and utility prices. Sri Lanka enjoyed impressive economic growth rates averaging more than 8.0 percent for two years after a prolonged civil war ended in 2009. But the pace has since slowed, falling to 4.8 percent in 2015, down from 4.9 in the previous year, according to official data. (AFP)

Despite Brexit volatility, Sri Lanka raises $1.5 billion

Prime Minister David Cameron said it was in Britain&#39;s fundamental interest to remain very close to the European Union (EU) when it renegotiates a new relationship with the bloc it voted to leave in a referendum last month. 
 
Speaking to global aerospace executives at the Farnborough airshow today, Cameron said Britain must accept the reality of the vote and must make it work, including forging a new relationship with its European partners. 
 
&quot;The big strategic decisions are for the next prime minister but the groundwork is underway,&quot; he said. 
 
&quot;All I would say about the outcome is this: I believe it is in our fundamental national and economic interest to remain very close to the European Union, for trade, for business, for security, for cooperation. So let that be our goal.&quot; 
 
Cameron announced his resignation the day after his campaign to remain in the EU was defeated in the referendum. 
 
He said Britain had already had a taste of the turbulence in global markets and in term of the value of the pound that he had warned would follow a leave victory. 
 
&quot;There will be other problems ahead but I want to be clear: we will deal with them from a position of strength, with a growing economy, a greatly reduced deficit, lower inflation and more jobs and businesses than ever before in our country,&quot; he said. 
 
&quot;Above all though, we must recognise we are in a new reality now, we must accept it and we must make it work.&quot; 
 
He said Britain needed to &quot;think big and think radically&quot; to ensure the best outcome in the new circumstances, including a much bigger push on trade and investment targeting fast-growing economies like India and China. 
 
(Reuters)

Britain needs to "think big and think radically" to ensure the best outcome in the new circumstances, insists PM David Cameron

Prime Minister David Cameron said it was in Britain's fundamental interest to remain very close to the European Union (EU) when it renegotiates a new relationship with the bloc it voted to leave in a referendum last month. Speaking to global aerospace executives at the Farnborough airshow today, Cameron said Britain must accept the reality of the vote and must make it work, including forging a new relationship with its European partners. "The big strategic decisions are for the next prime minister but the groundwork is underway," he said. "All I would say about the outcome is this: I believe it is in our fundamental national and economic interest to remain very close to the European Union, for trade, for business, for security, for cooperation. So let that be our goal." Cameron announced his resignation the day after his campaign to remain in the EU was defeated in the referendum. He said Britain had already had a taste of the turbulence in global markets and in term of the value of the pound that he had warned would follow a leave victory. "There will be other problems ahead but I want to be clear: we will deal with them from a position of strength, with a growing economy, a greatly reduced deficit, lower inflation and more jobs and businesses than ever before in our country," he said. "Above all though, we must recognise we are in a new reality now, we must accept it and we must make it work." He said Britain needed to "think big and think radically" to ensure the best outcome in the new circumstances, including a much bigger push on trade and investment targeting fast-growing economies like India and China. (Reuters)

After divorce, Cameron says UK must stay close to EU

Britain&#39;s vote to leave the European Union and simmering discontent in other Western countries is seen as hastening the arrival of an &quot;Asian Century&quot;, analysts say, led by the rise of China and India. 
 
By 2050, Asia will account for over half the world&#39;s GDP, almost double that of 2011, according to the Asian Development Bank, with three billion newly affluent citizens. 
 
The EU and other powerful collectives such as the United Nations, NATO, IMF and World Bank hark back to the post-World War II era, with a vision of cooperation leading to peace, prosperity and security. 
 
But the churning currents of globalisation and institutions` reluctance to reform have left Asian nations feeling that they are not well-represented and looking to form new alliances. 
 
&quot;The old system which kept the West rich and safe is under threat,&quot; said Neelam Deo, a former ambassador and director at Gateway House think-tank in Mumbai.&nbsp; 
 
&quot;The British voting to leave the EU in the way they did will impact the old institutions which were set up after World War II and intended to entrench Western power,&quot; she said. 
 
Brexit has summoned the spectre of a domino-like departure of other members of the EU, pounded by the migrant and Euro crises, as well as a fragmenting United Kingdom, should Scotland vote for independence. 
 
A resurgent Russia, which is angered by EU- and US-imposed sanctions and has friendly ties with China and India, has hailed the Brexit vote as it looks for cracks to exploit. 
 
As the &quot;American Century&quot; got underway after WWII, following imperial Britain before it, China was writhing in the chaos of civil war and colonial India was just gaining independence. 
 
Now China is the world`s second-largest economy, set to overtake the US in around a decade, while India will be the world`s most populous nation by 2022. 
 
The IMF named the Chinese renminbi a reserve currency -- a main world currency -- last November, joining the Pound, Dollar, Euro and Yen.&nbsp; 
 
Rising economic stars Indonesia and the Philippines are growing at around five per cent a year, while Europe remains sluggish. 
 
Yet emerging markets argue that IMF voting reforms still don`t give them a big enough voice, while India laments its lack of a permanent seat on the UN Security Council.&nbsp; 
 
Three centuries ago, before the industrial revolution, Asia was the dominant power, far away from the twin Atlantic centres. 
 
With a name that harks back to those days, Beijing`s flagship &quot;One Belt, One Road&quot; policy seeks to revive the ancient Silk Road trade route with huge investment from central Asia to Europe. 
 
In January, China opened the Asian Infrastructure Investment Bank ( AIIB), seen as rivalling the World Bank or the Japan-led Asian Development Bank, seeking to expand its financial clout. 
 
Describing itself as &quot;a bank conceived for the 21st century&quot;, AIIB has attracted 57 members including Britain and Australia -- with the notable exclusions of the United States and Japan. 
 
Asia&#39;s growing clout rests on various assumptions, including that nations continue on the same economic trajectory and aren`t derailed by unforeseen financial crises. 
 
Other threats include rising inequality, the middle-income trap -- where an economy gets stuck at a certain stage of development -- and competition for natural resources. 
 
Tensions between rivals China and India were highlighted in June when Beijing blocked New Delhi`s entry to the Nuclear Suppliers Group, a trade group of 48 nations. 
 
&quot;India and China have a fair amount of discontent. Until this is resolved, the Asian Century is going to be very elusive,&quot; C. Uday Bhaskar, a leading Indian security analyst told AFP. 
 
And the West will vigorously defend itself after Brexit, with US President Obama insisting at a NATO summit on Friday that the earthquake will not harm transatlantic unity. 
 
World Bank chief Jim Yong Kim used a visit to New Delhi in the aftermath to warn against nations &quot;looking inward&quot;. 
 
But the US is feeling similar pulls, with presidential candidate Donald Trump playing to a desire to retrench from globalisation and immigration by pledging to bring back manufacturing and build a wall with Mexico. 
 
Some see a drift back towards sovereign nation states hostile to outside forces -- seen in the mantra of &quot;take back control from Brussels&quot; that won the Brexit vote. 
 
&quot;We had this romantic vision to be one world -- it is clearly over, nation member states have come back with a vengeance,&quot; said Samir Saran, a senior fellow at the Observer Research Foundation in New Delhi. 
 
&quot;It is something we are witnessing around the world.&quot; 
 
(AFP)

The Asian Development Bank says Asia will account for over half the world's GDP by 2050, almost double that of 2011

Britain's vote to leave the European Union and simmering discontent in other Western countries is seen as hastening the arrival of an "Asian Century", analysts say, led by the rise of China and India. By 2050, Asia will account for over half the world's GDP, almost double that of 2011, according to the Asian Development Bank, with three billion newly affluent citizens. The EU and other powerful collectives such as the United Nations, NATO, IMF and World Bank hark back to the post-World War II era, with a vision of cooperation leading to peace, prosperity and security. But the churning currents of globalisation and institutions` reluctance to reform have left Asian nations feeling that they are not well-represented and looking to form new alliances. "The old system which kept the West rich and safe is under threat," said Neelam Deo, a former ambassador and director at Gateway House think-tank in Mumbai. "The British voting to leave the EU in the way they did will impact the old institutions which were set up after World War II and intended to entrench Western power," she said. Brexit has summoned the spectre of a domino-like departure of other members of the EU, pounded by the migrant and Euro crises, as well as a fragmenting United Kingdom, should Scotland vote for independence. A resurgent Russia, which is angered by EU- and US-imposed sanctions and has friendly ties with China and India, has hailed the Brexit vote as it looks for cracks to exploit. As the "American Century" got underway after WWII, following imperial Britain before it, China was writhing in the chaos of civil war and colonial India was just gaining independence. Now China is the world`s second-largest economy, set to overtake the US in around a decade, while India will be the world`s most populous nation by 2022. The IMF named the Chinese renminbi a reserve currency -- a main world currency -- last November, joining the Pound, Dollar, Euro and Yen. Rising economic stars Indonesia and the Philippines are growing at around five per cent a year, while Europe remains sluggish. Yet emerging markets argue that IMF voting reforms still don`t give them a big enough voice, while India laments its lack of a permanent seat on the UN Security Council. Three centuries ago, before the industrial revolution, Asia was the dominant power, far away from the twin Atlantic centres. With a name that harks back to those days, Beijing`s flagship "One Belt, One Road" policy seeks to revive the ancient Silk Road trade route with huge investment from central Asia to Europe. In January, China opened the Asian Infrastructure Investment Bank ( AIIB), seen as rivalling the World Bank or the Japan-led Asian Development Bank, seeking to expand its financial clout. Describing itself as "a bank conceived for the 21st century", AIIB has attracted 57 members including Britain and Australia -- with the notable exclusions of the United States and Japan. Asia's growing clout rests on various assumptions, including that nations continue on the same economic trajectory and aren`t derailed by unforeseen financial crises. Other threats include rising inequality, the middle-income trap -- where an economy gets stuck at a certain stage of development -- and competition for natural resources. Tensions between rivals China and India were highlighted in June when Beijing blocked New Delhi`s entry to the Nuclear Suppliers Group, a trade group of 48 nations. "India and China have a fair amount of discontent. Until this is resolved, the Asian Century is going to be very elusive," C. Uday Bhaskar, a leading Indian security analyst told AFP. And the West will vigorously defend itself after Brexit, with US President Obama insisting at a NATO summit on Friday that the earthquake will not harm transatlantic unity. World Bank chief Jim Yong Kim used a visit to New Delhi in the aftermath to warn against nations "looking inward". But the US is feeling similar pulls, with presidential candidate Donald Trump playing to a desire to retrench from globalisation and immigration by pledging to bring back manufacturing and build a wall with Mexico. Some see a drift back towards sovereign nation states hostile to outside forces -- seen in the mantra of "take back control from Brussels" that won the Brexit vote. "We had this romantic vision to be one world -- it is clearly over, nation member states have come back with a vengeance," said Samir Saran, a senior fellow at the Observer Research Foundation in New Delhi. "It is something we are witnessing around the world." (AFP)

China, India eye 'Asian Century' as Brexit rattles old order

The British government today formally rejected a petition signed by more than 4.125 million people calling for a second referendum on Britain&#39;s membership of the EU. 
 
&quot;We the undersigned call upon Her Majesty&#39;s government to implement a rule that if the remain or leave vote is less than 60 per cent based a turnout less than 75 per cent there should be another referendum,&quot; the petition said. 
 
On June 23, on a 72 per cent turnout, 52 per cent (17.4 million people) voted in favour of Britain leaving the European Union. 
 
When a petition on Parliament`s website tops 100,000 signatures, the Petitions Committee considers it for a parliamentary debate. 
More than 77,000 fraudulent signatures were removed from the EU referendum petition. 
 
In its response, the government said no minimum turnout threshold was set when the EU Referendum Act passed through parliament. 
 
It said that Prime Minister David Cameron had made clear to parliament on June 27 that the referendum was &quot;one of the biggest democratic exercises in British history&quot; with more than 33 million people voting. 
 
&quot;The prime minister and government have been clear that this was a once in a generation vote and, as the prime minister has said, the decision must be respected,&quot; the foreign office said on behalf of the government. 
 
&quot;We must now prepare for the process to exit the EU and the government is committed to ensuring the best possible outcome for the British people in the negotiations.&quot; 
 
Between 2,000 and 6,000 people were expected to join in the More In Common Picnic Against Brexit today. 
 
People who are against Britain leaving the EU were to gather in London`s Green Park, which is next to Buckingham Palace, Queen Elizabeth II`s official residence. 
 
A rally was held in London on July 3 when more than 40,000 people, according to organisers, marched through the British capital to vent their anger at the outgoing Cameron for calling the referendum. 
 
They waved European flags and chanted &quot;We love you EU&quot;. 
 
The referendum result triggered Cameron&#39;s resignation. Members of the governing centre-right Conservative Party will choose either interior minister Theresa May or energy minister Andrea Leadsom as their next leader -- and therefore the next prime minister. 
 
It will be down to the new premier to trigger Article 50 of the EU&#39;s Lisbon Treaty, which starts a two-year clock running on a country&#39;s exit from the bloc. 
 
(AFP)

'If the remain or leave vote is less than 60% based on a turnout less than 75% there should be another referendum' was rejected

The British government today formally rejected a petition signed by more than 4.125 million people calling for a second referendum on Britain's membership of the EU. "We the undersigned call upon Her Majesty's government to implement a rule that if the remain or leave vote is less than 60 per cent based a turnout less than 75 per cent there should be another referendum," the petition said. On June 23, on a 72 per cent turnout, 52 per cent (17.4 million people) voted in favour of Britain leaving the European Union. When a petition on Parliament`s website tops 100,000 signatures, the Petitions Committee considers it for a parliamentary debate. More than 77,000 fraudulent signatures were removed from the EU referendum petition. In its response, the government said no minimum turnout threshold was set when the EU Referendum Act passed through parliament. It said that Prime Minister David Cameron had made clear to parliament on June 27 that the referendum was "one of the biggest democratic exercises in British history" with more than 33 million people voting. "The prime minister and government have been clear that this was a once in a generation vote and, as the prime minister has said, the decision must be respected," the foreign office said on behalf of the government. "We must now prepare for the process to exit the EU and the government is committed to ensuring the best possible outcome for the British people in the negotiations." Between 2,000 and 6,000 people were expected to join in the More In Common Picnic Against Brexit today. People who are against Britain leaving the EU were to gather in London`s Green Park, which is next to Buckingham Palace, Queen Elizabeth II`s official residence. A rally was held in London on July 3 when more than 40,000 people, according to organisers, marched through the British capital to vent their anger at the outgoing Cameron for calling the referendum. They waved European flags and chanted "We love you EU". The referendum result triggered Cameron's resignation. Members of the governing centre-right Conservative Party will choose either interior minister Theresa May or energy minister Andrea Leadsom as their next leader -- and therefore the next prime minister. It will be down to the new premier to trigger Article 50 of the EU's Lisbon Treaty, which starts a two-year clock running on a country's exit from the bloc. (AFP)

UK government formally rejects petition signed by 4 million for second EU referendum

Britain&#39;s outgoing prime minister David Cameron said today&nbsp;he would hold a parliamentary vote on July 18 to decide on the renewal of Britain&#39;s nuclear deterrent, in an apparent move to underscore London&#39;s commitment to European security.

The replacement of Trident, which was backed in principle by parliament in 2007, has raised questions about national security as Britain&#39;s vote to leave the European Union fuels doubts about its future status on the world stage.

The Conservative government says the nuclear deterrent is vital to keep Britain safe in an increasingly hostile world, but some opposition figures say it is indefensible to spend billions on renewing the programme at a time of austerity cuts.

&quot;Today I can announce that we&#39;ll hold a parliamentary vote on July 18 to confirm members of parliaments&#39; support for the renewal of a full fleet of four nuclear submarines capable of providing around-the-clock cover,&quot; Cameron told a news conference at the NATO summit in Warsaw.

&quot;The nuclear deterrent remains essential in my view, not just to Britain&#39;s security, but as our allies have acknowledged here today, to the overall security of the NATO alliance.&quot;

The government has indicated the price tag for replacing the fleet has risen since 2007 but has not given a full cost over its expected 30-year life. Calculations by Reuters and a Conservative lawmaker suggest it could reach 167 billion pounds.

Cameron, who resigned after last month&#39;s EU referendum and is due to be replaced as prime minister by early September, said replacement of the ageing fleet of four submarines carrying nuclear weapons needed to be put &quot;beyond doubt&quot;. 
 
(Reuters)

Some opposition figures, in contradiction to the Conservatives, say it's indefensible to spend billions at a time of austerity cuts

Britain's outgoing prime minister David Cameron said today he would hold a parliamentary vote on July 18 to decide on the renewal of Britain's nuclear deterrent, in an apparent move to underscore London's commitment to European security. The replacement of Trident, which was backed in principle by parliament in 2007, has raised questions about national security as Britain's vote to leave the European Union fuels doubts about its future status on the world stage. The Conservative government says the nuclear deterrent is vital to keep Britain safe in an increasingly hostile world, but some opposition figures say it is indefensible to spend billions on renewing the programme at a time of austerity cuts. "Today I can announce that we'll hold a parliamentary vote on July 18 to confirm members of parliaments' support for the renewal of a full fleet of four nuclear submarines capable of providing around-the-clock cover," Cameron told a news conference at the NATO summit in Warsaw. "The nuclear deterrent remains essential in my view, not just to Britain's security, but as our allies have acknowledged here today, to the overall security of the NATO alliance." The government has indicated the price tag for replacing the fleet has risen since 2007 but has not given a full cost over its expected 30-year life. Calculations by Reuters and a Conservative lawmaker suggest it could reach 167 billion pounds. Cameron, who resigned after last month's EU referendum and is due to be replaced as prime minister by early September, said replacement of the ageing fleet of four submarines carrying nuclear weapons needed to be put "beyond doubt". (Reuters)

Britain's Cameron sets nuclear deterrent vote for July 18

Twelve people have died during a massive three-day traffic jam in Indonesia that stretched more than 20 kilometres (13 miles) and brought thousands of holidaymakers to a complete standstill, an official said Friday. 
 
The horrible traffic at a major highway junction at Brebes, a city on the main island of Java, was so bad that Indonesians dubbed the disastrous toll gate &quot;Brexit&quot;, from the words &quot;Brebes exit&quot;. 
 
Roads across the world&#39;s most populous Muslim-majority country are choked every year at the end of the holy month of Ramadan, as millions head to villages to celebrate Eid, which fell on Wednesday. 
 
But the chaos at the &quot;Brexit&quot; junction this year was particularly acute in the three days before Eid, as tens of thousands of cars crammed the arterial highway, transport ministry spokesman Hemi Pramuraharjo told AFP. 
 
&quot;In terms of this Brexit case, there has been a total of 12 victims over different days,&quot; he said. The deaths occurred between July 3 and July 5, not a single day as earlier reported, he said. 
 
Pramuraharjo said several of the victims were elderly, while others died from fatigue and other health complications. Local media reported that a one-year-old suffering from fume poisoning was also among the deceased. 
 
More than 400 motorists had died on Indonesia&#39;s roads so far this holiday season, including those in the &quot;Brexit&quot; jam, Pramuraharjo said. 
 
Accidents are not uncommon during the holiday odysseys, particularly on the potholed roads of overcrowded Java, home to more than half of Indonesia&#39;s 255 million people. 
 
Frustrated motorists vent ire on social media&nbsp; 
 
At the &quot;Brexit&quot; snarl, frustrated motorists posted pictures to social media showing cars snaked back for miles. Aerial shots captured a sea of motionless vehicles, with some drivers seeking respite on the roadside. 
 
Pramuraharjo said roadside vendors and crowded markets near the junction compounded the chaos, leading to traffic snarls &quot;more than 20 kilometres&quot; in length. 
 
&quot;There is a bottleneck there, where there&#39;s a petrol station very nearby and many people queue,&quot; he said. 
 
&quot;There&#39;s no space on the road. We don&#39;t have a solution,&quot; he added saying.&nbsp; 
 
Responding to the controversy, the health ministry denied earlier reports the &quot;Brexit&quot; victims died in a single day, and urged motorists planning a long journey to rest and take all necessary precautions. 
 
The ministry&#39;s Achmad Yurianto said in a statement the heavy use of air conditioning could also lead to an increase in carbon dioxide within the cramped confines of the car. 
 
(AFP)

Those who died include the elderly, some with fatigue or health complications and even a one-year-old who succumbed to fume poisoning

Twelve people have died during a massive three-day traffic jam in Indonesia that stretched more than 20 kilometres (13 miles) and brought thousands of holidaymakers to a complete standstill, an official said Friday. The horrible traffic at a major highway junction at Brebes, a city on the main island of Java, was so bad that Indonesians dubbed the disastrous toll gate "Brexit", from the words "Brebes exit". Roads across the world's most populous Muslim-majority country are choked every year at the end of the holy month of Ramadan, as millions head to villages to celebrate Eid, which fell on Wednesday. But the chaos at the "Brexit" junction this year was particularly acute in the three days before Eid, as tens of thousands of cars crammed the arterial highway, transport ministry spokesman Hemi Pramuraharjo told AFP. "In terms of this Brexit case, there has been a total of 12 victims over different days," he said. The deaths occurred between July 3 and July 5, not a single day as earlier reported, he said. Pramuraharjo said several of the victims were elderly, while others died from fatigue and other health complications. Local media reported that a one-year-old suffering from fume poisoning was also among the deceased. More than 400 motorists had died on Indonesia's roads so far this holiday season, including those in the "Brexit" jam, Pramuraharjo said. Accidents are not uncommon during the holiday odysseys, particularly on the potholed roads of overcrowded Java, home to more than half of Indonesia's 255 million people. Frustrated motorists vent ire on social media At the "Brexit" snarl, frustrated motorists posted pictures to social media showing cars snaked back for miles. Aerial shots captured a sea of motionless vehicles, with some drivers seeking respite on the roadside. Pramuraharjo said roadside vendors and crowded markets near the junction compounded the chaos, leading to traffic snarls "more than 20 kilometres" in length. "There is a bottleneck there, where there's a petrol station very nearby and many people queue," he said. "There's no space on the road. We don't have a solution," he added saying. Responding to the controversy, the health ministry denied earlier reports the "Brexit" victims died in a single day, and urged motorists planning a long journey to rest and take all necessary precautions. The ministry's Achmad Yurianto said in a statement the heavy use of air conditioning could also lead to an increase in carbon dioxide within the cramped confines of the car. (AFP)

12 in Indonesia die in 20 km-long, three-day traffic jam

Oil prices rebounded in Asia today after tanking nearly five per cent the day before on fresh worries about an oversupply, while traders await the release of key US jobs data. 
 
The commodity plunged Thursday in response to official figures showing US commercial inventories fell less than expected last week, indicating softer demand in the world&#39;s top oil consumer as the crucial driving season kicks in. 
 
The data added to an already downbeat mood on markets as investors worry about the longer-term fallout from Britain&#39;s vote to leave the European Union (EU). 
 
At around 0650 GMT, the US benchmark West Texas Intermediate was up 26 cents, or 0.58 per cent, at $45.40 and Brent gained 32 cents, or 0.69 per cent, to $46.72. 
 
WTI plunged 4.8 per cent and Brent sank 4.9 per cent on Thursday after the US Department of Energy (DoE) reported stockpiles fell 2.2 million barrels in the week ending July 1. The market was expecting a 2.5 million barrel drop, according to Bloomberg News. 
 
Both contracts are more than six per cent lower down from last Friday. 
 
The DoE also reported a much smaller than expected decline in petrol stockpiles during the peak summer driving season when Americans take to the road for their holidays. Gasoline stockpiles fell 100,000 barrels, well below the forecast 350,000. 
 
IG Markets analyst Bernard Aw said traders were looking for bargains after Thursday&#39;s &quot;substantial drop&quot; in prices, but added the oversupply concerns will linger. 
 
&quot;What&#39;s even more important was the lack of decline in the gasoline inventories, given that the summer driving season in the US still has two more months to go,&quot; Aw said. 
 
&quot;Traders now fear that we could see a worsening of the supply overhang when summer is over,&quot; he added.&nbsp; 
 
Prices were also given some support after a militant group in Nigeria, Africa&#39;s biggest oil producer, said it attacked more oil infrastructure in the country&#39;s south, ignoring a call for unity from President Muhammadu Buhari. 
 
(AFP)&nbsp; 
&nbsp;

The data added to an already downbeat mood on markets as investors worry about the longer-term Brexit fallout

Oil prices rebounded in Asia today after tanking nearly five per cent the day before on fresh worries about an oversupply, while traders await the release of key US jobs data. The commodity plunged Thursday in response to official figures showing US commercial inventories fell less than expected last week, indicating softer demand in the world's top oil consumer as the crucial driving season kicks in. The data added to an already downbeat mood on markets as investors worry about the longer-term fallout from Britain's vote to leave the European Union (EU). At around 0650 GMT, the US benchmark West Texas Intermediate was up 26 cents, or 0.58 per cent, at $45.40 and Brent gained 32 cents, or 0.69 per cent, to $46.72. WTI plunged 4.8 per cent and Brent sank 4.9 per cent on Thursday after the US Department of Energy (DoE) reported stockpiles fell 2.2 million barrels in the week ending July 1. The market was expecting a 2.5 million barrel drop, according to Bloomberg News. Both contracts are more than six per cent lower down from last Friday. The DoE also reported a much smaller than expected decline in petrol stockpiles during the peak summer driving season when Americans take to the road for their holidays. Gasoline stockpiles fell 100,000 barrels, well below the forecast 350,000. IG Markets analyst Bernard Aw said traders were looking for bargains after Thursday's "substantial drop" in prices, but added the oversupply concerns will linger. "What's even more important was the lack of decline in the gasoline inventories, given that the summer driving season in the US still has two more months to go," Aw said. "Traders now fear that we could see a worsening of the supply overhang when summer is over," he added. Prices were also given some support after a militant group in Nigeria, Africa's biggest oil producer, said it attacked more oil infrastructure in the country's south, ignoring a call for unity from President Muhammadu Buhari. (AFP)

Oil prices rebound in Asia as investors await key US jobs data

Commercial real estate has hit the headlines this week, a victim of the recent Brexit vote which has left over $20 billion trapped in funds that not long ago promised investors a slice of London&#39;s red-hot property market 
 
Money placed in real estate vehicles managed by big asset management firms such as Standard Life and Henderson may have yielded strong returns during the boom years, but with the Pound in freefall and Britain headed towards economic recession, the flip side of such investments is fast becoming evident. 
 
The ins and outs of commercial property investments remain a mystery to many. But put very simply, this week&#39;s seize-up - the biggest since the 2008 crisis - has unfolded as punters lined up to demand their cash back from the asset managers. 
 
The reason behind the outflow wave? Fears that economic uncertainty after Britons&#39; decision to exit the EU will hit demand from companies to rent and buy commercial property. 
 
In normal times, most funds allow investors to pull out their money daily. But when redemption requests balloon, as they did this week, funds may run out of cash and must then sell the buildings they own. That process can take months. 
 
&quot;Property is an illiquid asset and this week shows what can happen to illiquid assets when the fundamentals/facts change,&quot; Deutsche Bank reminded clients. 
 
Many property investors will also remember the 2008 crisis when funds hit by huge redemptions were forced into a fire sale of commercial buildings, eventually bringing central London property prices down by as much as 40 per cent. 
 
Fund suspensions aim to avert this scenario by giving the asset managers more time to sell property. 
 
Some managers such as Legal &amp; General and F&amp;C have resorted to less extreme measures such as reassessing the value of the fund to account for likely changes in market pricing even if sales data has yet to justify the figure. 
 
That means anyone who wants money back must accept a lower price than was established the last time the property portfolio was formally valued - essentially an incentive to leave cash in the fund. 
 
One thing has changed since the last crisis - the amount of money involved is far higher, exacerbated by shifts in the global investment landscape. 
 
British property markets along with other business hotspots such as New York and Singapore have seen a huge influx of cash from investors - domestic and foreign - seeking to escape crushingly low or even negative yields on bond markets. 
 
An investment in real estate on the other hand offered deep-pocketed money managers, such as sovereign wealth funds (SWF) or insurance firms, the promise of an asset that would hopefully appreciate in value while also providing handsome rental income. 
 
Average SWF exposure to real estate rose to 6.5 per cent in 2015 from 3 per cent in 2012, according to a recent survey by Invesco, while a Reuters poll found in June that global funds held an average 2.9 per cent of portfolios in property - the highest in at least five years. 
 
In absolute terms, the value of investment in commercial property worldwide topped $650 billion at the end of 2015, more than four times 2009 levels, data portal Statista estimates. 
 
This week&#39;s turmoil is likely to raise questions about how best to invest in property in future. Many are calling Britain&#39;s Financial Ombudsman Service to complain about the fund suspensions and the potential hit to their savings. 
 
&quot;Time and again investors are faced with making the difficult choice between withstanding the woes that strike when fear overshadows the property market, and paying a high price tag to liquidate their investments,&quot; Morningstar investment research analyst Muna Abu-Habsa. 
 
She reckons property investors may be better served by real estate investment trusts (REITs) - closed funds with a set number of shares that pay dividends to shareholders. At REITs investors who want money back just sell their shares and trusts don&#39;t have to sell assets to meet redemptions. 
 
However, shares in UK REITs, too, have slumped since the vote, with those from F&amp;C and Schroders, for instance, down as much as 20 per cent in the past two weeks. 
 
What&#39;s the outlook? 
 
Some deep-pocketed funds such as SWFs will be able to wait out some volatility. Longer-term, much depends on how Brexit is negotiated and whether foreign firms and banks exit London. 
 
Many reckon that even with the suspensions, large numbers of properties will be sold cheaply, leading to price corrections that will ripple out from London across the country. 
 
UBS Asset Management said it already expected price declines of 4-10 per cent on City properties in 2017-2018 due to large volumes of construction. Now weaker demand due to Brexit could cause bigger falls, it added. 
 
(Reuters)

Money placed in real estate vehicles hits downfall with the Pound in freefall and Britain heading towards economic recession

Commercial real estate has hit the headlines this week, a victim of the recent Brexit vote which has left over $20 billion trapped in funds that not long ago promised investors a slice of London's red-hot property market Money placed in real estate vehicles managed by big asset management firms such as Standard Life and Henderson may have yielded strong returns during the boom years, but with the Pound in freefall and Britain headed towards economic recession, the flip side of such investments is fast becoming evident. The ins and outs of commercial property investments remain a mystery to many. But put very simply, this week's seize-up - the biggest since the 2008 crisis - has unfolded as punters lined up to demand their cash back from the asset managers. The reason behind the outflow wave? Fears that economic uncertainty after Britons' decision to exit the EU will hit demand from companies to rent and buy commercial property. In normal times, most funds allow investors to pull out their money daily. But when redemption requests balloon, as they did this week, funds may run out of cash and must then sell the buildings they own. That process can take months. "Property is an illiquid asset and this week shows what can happen to illiquid assets when the fundamentals/facts change," Deutsche Bank reminded clients. Many property investors will also remember the 2008 crisis when funds hit by huge redemptions were forced into a fire sale of commercial buildings, eventually bringing central London property prices down by as much as 40 per cent. Fund suspensions aim to avert this scenario by giving the asset managers more time to sell property. Some managers such as Legal & General and F&C have resorted to less extreme measures such as reassessing the value of the fund to account for likely changes in market pricing even if sales data has yet to justify the figure. That means anyone who wants money back must accept a lower price than was established the last time the property portfolio was formally valued - essentially an incentive to leave cash in the fund. One thing has changed since the last crisis - the amount of money involved is far higher, exacerbated by shifts in the global investment landscape. British property markets along with other business hotspots such as New York and Singapore have seen a huge influx of cash from investors - domestic and foreign - seeking to escape crushingly low or even negative yields on bond markets. An investment in real estate on the other hand offered deep-pocketed money managers, such as sovereign wealth funds (SWF) or insurance firms, the promise of an asset that would hopefully appreciate in value while also providing handsome rental income. Average SWF exposure to real estate rose to 6.5 per cent in 2015 from 3 per cent in 2012, according to a recent survey by Invesco, while a Reuters poll found in June that global funds held an average 2.9 per cent of portfolios in property - the highest in at least five years. In absolute terms, the value of investment in commercial property worldwide topped $650 billion at the end of 2015, more than four times 2009 levels, data portal Statista estimates. This week's turmoil is likely to raise questions about how best to invest in property in future. Many are calling Britain's Financial Ombudsman Service to complain about the fund suspensions and the potential hit to their savings. "Time and again investors are faced with making the difficult choice between withstanding the woes that strike when fear overshadows the property market, and paying a high price tag to liquidate their investments," Morningstar investment research analyst Muna Abu-Habsa. She reckons property investors may be better served by real estate investment trusts (REITs) - closed funds with a set number of shares that pay dividends to shareholders. At REITs investors who want money back just sell their shares and trusts don't have to sell assets to meet redemptions. However, shares in UK REITs, too, have slumped since the vote, with those from F&C and Schroders, for instance, down as much as 20 per cent in the past two weeks. What's the outlook? Some deep-pocketed funds such as SWFs will be able to wait out some volatility. Longer-term, much depends on how Brexit is negotiated and whether foreign firms and banks exit London. Many reckon that even with the suspensions, large numbers of properties will be sold cheaply, leading to price corrections that will ripple out from London across the country. UBS Asset Management said it already expected price declines of 4-10 per cent on City properties in 2017-2018 due to large volumes of construction. Now weaker demand due to Brexit could cause bigger falls, it added. (Reuters)

UK real estate investments run into trouble post Brexit

Britain said it would start preliminary talks with India on Friday about an eventual bilateral trade deal after last month&#39;s referendum vote to leave the European Union, which has forced London to rethink its trade ties with the rest of the world. 
 
British business secretary Sajid Javid also said Britain would have as many as 300 trade specialists in place before the end of the year, up from about 100 now, as the country tries to increase its firepower to operate as a solo trading nation. 
 
Britain has negotiated its trade deals through the EU for decades. 
 
&quot;Following the referendum result, my absolute priority is making sure the UK has the tools it needs to continue to compete on the global stage,&quot; Javid said in a statement 
 
&quot;Over the coming months, I will be conducting similar meetings with other key trade partners, outlining the government&#39;s vision for what the UK&#39;s future trade relationship might look like,&quot; he said. 
 
Javid&#39;s trip to New Delhi was likely to be followed in the coming months by discussions about trade with the United States, China, Japan and South Korea, the business ministry said. 
 
London also appears to be keen to tighten its trade ties with China. A source close to British finance minister George Osborne said he met senior officials from the world&#39;s second-largest economy in London on Thursday to discuss trade, agreeing to work to foster stronger ties between the two countries. 
 
Britain&#39;s decision to leave the EU at a referendum on June 23 has raised big questions about its future trading relationship with the rest of the bloc, which buys about 45 per cent of British exports, and with other economies. 
 
Brexit supporters have said that Britain will be able to strike a good deal with the EU and also reach agreements with other big economies more quickly on its own than as part of the 28-nation EU. 
 
For its part, the bloc has so far failed to do a deal with India.&nbsp;Formal negotiations between Britain and countries such as India and the United States will have to wait for London to settle its future ties with the EU, something that is likely to take years. 
 
India is by far the most populous nation in the 53-country Commonwealth, whose members are mostly former British colonies and represent a combined 2.2 billion people across the world. 
 
Britain was the biggest foreign investor among the Group of 20 nations in India in 2015, while India represents the third-largest source of foreign direct investment in Britain, the British business ministry said in a statement. 
 
Bilateral trade in goods and services last year was worth 16.55 billion pounds ($21.33 billion), it said. 
 
As one of the world&#39;s biggest and fastest-growing developing economies, India has long been a target for rich countries. It has demanded significant visa concessions for its citizens to work abroad, a source of tension with the United States. 
 
The leaders of Britain&#39;s &quot;Leave&quot; campaign in the referendum said they wanted to allow more skilled, non-EU workers into the country under a new selective immigration policy. 
 
On its part, Britain is likely to push for more access to India&#39;s financial services market. 
 
Javid was due to meet Indian finance minister Arun Jaitley and commerce and industry minister Nirmala Sitharaman on Friday. 
 
(Reuters)

After ending its tryst with the EU, Britain is now looking to strengthen its economic ties with countries like India, China and Japan

Britain said it would start preliminary talks with India on Friday about an eventual bilateral trade deal after last month's referendum vote to leave the European Union, which has forced London to rethink its trade ties with the rest of the world. British business secretary Sajid Javid also said Britain would have as many as 300 trade specialists in place before the end of the year, up from about 100 now, as the country tries to increase its firepower to operate as a solo trading nation. Britain has negotiated its trade deals through the EU for decades. "Following the referendum result, my absolute priority is making sure the UK has the tools it needs to continue to compete on the global stage," Javid said in a statement "Over the coming months, I will be conducting similar meetings with other key trade partners, outlining the government's vision for what the UK's future trade relationship might look like," he said. Javid's trip to New Delhi was likely to be followed in the coming months by discussions about trade with the United States, China, Japan and South Korea, the business ministry said. London also appears to be keen to tighten its trade ties with China. A source close to British finance minister George Osborne said he met senior officials from the world's second-largest economy in London on Thursday to discuss trade, agreeing to work to foster stronger ties between the two countries. Britain's decision to leave the EU at a referendum on June 23 has raised big questions about its future trading relationship with the rest of the bloc, which buys about 45 per cent of British exports, and with other economies. Brexit supporters have said that Britain will be able to strike a good deal with the EU and also reach agreements with other big economies more quickly on its own than as part of the 28-nation EU. For its part, the bloc has so far failed to do a deal with India. Formal negotiations between Britain and countries such as India and the United States will have to wait for London to settle its future ties with the EU, something that is likely to take years. India is by far the most populous nation in the 53-country Commonwealth, whose members are mostly former British colonies and represent a combined 2.2 billion people across the world. Britain was the biggest foreign investor among the Group of 20 nations in India in 2015, while India represents the third-largest source of foreign direct investment in Britain, the British business ministry said in a statement. Bilateral trade in goods and services last year was worth 16.55 billion pounds ($21.33 billion), it said. As one of the world's biggest and fastest-growing developing economies, India has long been a target for rich countries. It has demanded significant visa concessions for its citizens to work abroad, a source of tension with the United States. The leaders of Britain's "Leave" campaign in the referendum said they wanted to allow more skilled, non-EU workers into the country under a new selective immigration policy. On its part, Britain is likely to push for more access to India's financial services market. Javid was due to meet Indian finance minister Arun Jaitley and commerce and industry minister Nirmala Sitharaman on Friday. (Reuters)

UK launches bilateral trade talks with India

US President Barack Obama urged NATO leaders on Friday to stand firm against a resurgent Russia over its seizure of Crimea from Ukraine, saying Britain&#39;s vote to leave the European Union should not weaken the Western defence alliance. 
 
In an article published in the Financial Times newspaper as he arrived for his last summit of the North Atlantic Treaty Organisation before he leaves office in January, Obama said America&#39;s &quot;special relationship&quot; with Britain would survive the referendum decision he had warned against. 
 
&quot;The special relationship between the US and the UK will endure. I have no doubt that the UK will remain one of NATO&rsquo;s most capable members,&quot; he said, but noted that the vote raised significant questions about the future of EU integration. 
 
The 28-nation EU will formally agree to deploy four battalions totalling 3,000 to 4,000 troops in the Baltic states and Poland on a rotational basis to reassure eastern members of its readiness to defend them against Russian aggression. 
 
Host nation Poland set the tone of mistrust of Russia. Its foreign minister, Witold Waszczykowski, told a pre-summit forum: &quot;We have to reject any type of wishful thinking with regard to a pragmatic cooperation with Russia as long as it keeps on invading its neighbours.&quot; 
 
Obama was more diplomatic, urging dialogue with Russia, but he too urged allies to keep sanctions on Moscow until it fully complies with a ceasefire agreement in Ukraine, and to help Kiev defend its sovereignty. Ukraine is not itself a member of NATO. 
 
&quot;In Warsaw, we must reaffirm our determination, our duty under Article 5 of the North Atlantic Treaty, to defend every NATO ally,&quot; Obama said. 
 
&quot;We need to bolster the defence of our allies in central and eastern Europe, strengthen deterrence and boost our resilience against new threats, including cyber attacks.&quot; 
 
Estonia, Latvia, Lithuania and Poland, all NATO members, have requested a permanent NATO presence. They fear Moscow will seek to destabilise their pro-Western governments through cyber attacks, stirring up Russian speakers, hostile broadcasting and even territorial incursions. Critics say the NATO plan is a minimal trip wire that might not deter Russian action. 
 
The head of NATO&#39;s military committee, Czech General Petr Pavel, said Russia was attempting to restore its status as a world power, an effort that includes using its military. 
 
&quot;We must accept that Russia can be a competitor, adversary, peer or partner and probably all four at the same time,&quot; he said. 
 
The Kremlin said it was absurd for NATO to talk of any threat coming from Russia and it hoped &quot;common sense&quot; would prevail at the Warsaw summit. Moscow was and remains open to dialogue with NATO and is ready to cooperate with it, Kremlin spokesman Dmitry Peskov said in a conference call with journalists. 
 
Russia often depicts NATO as an aggressor, whose member states are moving troops and military hardware further into former Soviet territory, which it regards as its sphere of influence. 
 
Russian President Vladimir Putin made several gestures aimed at showing a cooperative face before the summit. At the same time, Moscow highlighted its intention to deploy nuclear-capable missiles in Kaliningrad, a Russian enclave between Poland and Lithuania. 
 
Putin agreed to a meeting of the NATO-Russia Council next week, the second meeting this year of a consultation body that was put on ice after Moscow&#39;s seizure of Crimea in 2014. Russia allowed a UN resolution authorising the EU to intercept arms shipments to Libya in the Mediterranean, and Putin spoke to Obama over the phone in the run-up to the NATO meeting. 
 
However, a White House spokesman said they reached no agreement on cooperation in fighting Islamic State militants in Syria during that call on Wednesday. 
 
Britain 
 
Outgoing British Prime Minister David Cameron, who said he will resign after losing the referendum on EU membership last month, will seek to emphasise an active commitment to Western security at his final NATO summit, to offset any concern about Europe&#39;s biggest military spender leaving the EU. 
 
The first item on the summit agenda was the signing of an agreement between the EU and NATO on deeper military and security cooperation. 
 
The US-led alliance is also expected to announce its support for the EU&#39;s Mediterranean interdiction operation. NATO already supports EU efforts to stem a flood of refugees and migrants from Turkey into Greece, in conjunction with an EU-Turkey deal to curb migration in return for benefits for Ankara. 
 
Obama and the other NATO leaders will have a more unscripted discussion of how to deal with Russia over dinner in the same room of the Polish Presidential Palace where the Warsaw Pact was signed in 1955, creating the Soviet-dominated military alliance that was NATO&#39;s adversary during the Cold War. 
 
NATO secretary general Jens Stoltenberg sought to balance the new military deployments and air patrols close to Russia&#39;s borders by stressing that the alliance would continue to seek &quot;meaningful and constructive dialogue&quot; with Moscow. 
 
&quot;We don&#39;t want a new Cold War,&quot; he told reporters. &quot;The Cold War is history and it should remain history.&quot; 
 
Turkish President Tayyip Erdogan told reporters before leaving Ankara to attend the summit that NATO also needed to adapt to do more to fight the threat from Islamic State militants, who were accused of last week&#39;s deadly attack on Istanbul airport. 
 
&quot;As we have seen from the terrorist attacks first in Istanbul and then in Iraq and Saudi Arabia, international security is becoming more fragile,&quot; Erdogan said. 
 
&quot;The concept of a security threat is undergoing a serious change. In this process, NATO needs to be more active and has to update itself against the new security threats,&quot; he said. 
 
(Reuters)&nbsp;

EU will formally agree to deploy four battalions totalling 3,000 to 4,000 troops in the Baltic states and Poland on a rotating basis

US President Barack Obama urged NATO leaders on Friday to stand firm against a resurgent Russia over its seizure of Crimea from Ukraine, saying Britain's vote to leave the European Union should not weaken the Western defence alliance. In an article published in the Financial Times newspaper as he arrived for his last summit of the North Atlantic Treaty Organisation before he leaves office in January, Obama said America's "special relationship" with Britain would survive the referendum decision he had warned against. "The special relationship between the US and the UK will endure. I have no doubt that the UK will remain one of NATO’s most capable members," he said, but noted that the vote raised significant questions about the future of EU integration. The 28-nation EU will formally agree to deploy four battalions totalling 3,000 to 4,000 troops in the Baltic states and Poland on a rotational basis to reassure eastern members of its readiness to defend them against Russian aggression. Host nation Poland set the tone of mistrust of Russia. Its foreign minister, Witold Waszczykowski, told a pre-summit forum: "We have to reject any type of wishful thinking with regard to a pragmatic cooperation with Russia as long as it keeps on invading its neighbours." Obama was more diplomatic, urging dialogue with Russia, but he too urged allies to keep sanctions on Moscow until it fully complies with a ceasefire agreement in Ukraine, and to help Kiev defend its sovereignty. Ukraine is not itself a member of NATO. "In Warsaw, we must reaffirm our determination, our duty under Article 5 of the North Atlantic Treaty, to defend every NATO ally," Obama said. "We need to bolster the defence of our allies in central and eastern Europe, strengthen deterrence and boost our resilience against new threats, including cyber attacks." Estonia, Latvia, Lithuania and Poland, all NATO members, have requested a permanent NATO presence. They fear Moscow will seek to destabilise their pro-Western governments through cyber attacks, stirring up Russian speakers, hostile broadcasting and even territorial incursions. Critics say the NATO plan is a minimal trip wire that might not deter Russian action. The head of NATO's military committee, Czech General Petr Pavel, said Russia was attempting to restore its status as a world power, an effort that includes using its military. "We must accept that Russia can be a competitor, adversary, peer or partner and probably all four at the same time," he said. The Kremlin said it was absurd for NATO to talk of any threat coming from Russia and it hoped "common sense" would prevail at the Warsaw summit. Moscow was and remains open to dialogue with NATO and is ready to cooperate with it, Kremlin spokesman Dmitry Peskov said in a conference call with journalists. Russia often depicts NATO as an aggressor, whose member states are moving troops and military hardware further into former Soviet territory, which it regards as its sphere of influence. Russian President Vladimir Putin made several gestures aimed at showing a cooperative face before the summit. At the same time, Moscow highlighted its intention to deploy nuclear-capable missiles in Kaliningrad, a Russian enclave between Poland and Lithuania. Putin agreed to a meeting of the NATO-Russia Council next week, the second meeting this year of a consultation body that was put on ice after Moscow's seizure of Crimea in 2014. Russia allowed a UN resolution authorising the EU to intercept arms shipments to Libya in the Mediterranean, and Putin spoke to Obama over the phone in the run-up to the NATO meeting. However, a White House spokesman said they reached no agreement on cooperation in fighting Islamic State militants in Syria during that call on Wednesday. Britain Outgoing British Prime Minister David Cameron, who said he will resign after losing the referendum on EU membership last month, will seek to emphasise an active commitment to Western security at his final NATO summit, to offset any concern about Europe's biggest military spender leaving the EU. The first item on the summit agenda was the signing of an agreement between the EU and NATO on deeper military and security cooperation. The US-led alliance is also expected to announce its support for the EU's Mediterranean interdiction operation. NATO already supports EU efforts to stem a flood of refugees and migrants from Turkey into Greece, in conjunction with an EU-Turkey deal to curb migration in return for benefits for Ankara. Obama and the other NATO leaders will have a more unscripted discussion of how to deal with Russia over dinner in the same room of the Polish Presidential Palace where the Warsaw Pact was signed in 1955, creating the Soviet-dominated military alliance that was NATO's adversary during the Cold War. NATO secretary general Jens Stoltenberg sought to balance the new military deployments and air patrols close to Russia's borders by stressing that the alliance would continue to seek "meaningful and constructive dialogue" with Moscow. "We don't want a new Cold War," he told reporters. "The Cold War is history and it should remain history." Turkish President Tayyip Erdogan told reporters before leaving Ankara to attend the summit that NATO also needed to adapt to do more to fight the threat from Islamic State militants, who were accused of last week's deadly attack on Istanbul airport. "As we have seen from the terrorist attacks first in Istanbul and then in Iraq and Saudi Arabia, international security is becoming more fragile," Erdogan said. "The concept of a security threat is undergoing a serious change. In this process, NATO needs to be more active and has to update itself against the new security threats," he said. (Reuters)

Obama urges NATO to stand firm against Russia despite Brexit

JPMorgan&nbsp;Chase &amp; Co could be forced to move thousands of staff out of Britain if the country loses its automatic right to sell financial services to the European Union after last month&#39;s Brexit vote, bank CEO Jamie Dimon told an Italian newspaper.

Currently, banks based in the UK can sell services freely across the EU under a &quot;passporting&quot; system, considered the most significant feature of the EU single market for financial firms. But that is now in doubt after Britons voted to leave the bloc.

&quot;The key issue is the &#39;passport rule&#39; that we have in London and allows us to provide services to clients in the European Union,&quot; Il Sole 24 Ore quoted Dimon as saying on Thursday.

&quot;However, if the EU imposes new conditions on Britain, the worst-case scenario is we would have to move some thousands of employees to other branches in the Euro zone,&quot; Dimon said.

JPMorgan&nbsp;has 16,000 employees in Britain. Its European headquarters are in London and the bank has offices in the English coastal city of Bournemouth as well as in Scotland.

Those locations helped&nbsp;JPMorgan&nbsp;produce $14.2 billion worth of revenue last year from operations across Europe, the Middle East and Africa.

(Reuters) 
 
&nbsp;

The company has said that if the EU imposes new rules on Britain it would move thousands of employees to branches in other Euro zone

JPMorgan Chase & Co could be forced to move thousands of staff out of Britain if the country loses its automatic right to sell financial services to the European Union after last month's Brexit vote, bank CEO Jamie Dimon told an Italian newspaper. Currently, banks based in the UK can sell services freely across the EU under a "passporting" system, considered the most significant feature of the EU single market for financial firms. But that is now in doubt after Britons voted to leave the bloc. "The key issue is the 'passport rule' that we have in London and allows us to provide services to clients in the European Union," Il Sole 24 Ore quoted Dimon as saying on Thursday. "However, if the EU imposes new conditions on Britain, the worst-case scenario is we would have to move some thousands of employees to other branches in the Euro zone," Dimon said. JPMorgan has 16,000 employees in Britain. Its European headquarters are in London and the bank has offices in the English coastal city of Bournemouth as well as in Scotland. Those locations helped JPMorgan produce $14.2 billion worth of revenue last year from operations across Europe, the Middle East and Africa. (Reuters)

JPMorgan could move thousands of staffers out of UK: Report

Four US investment banks promised British finance minister George Osborne on Thursday that they would help London keep its top spot as a global financial centre following the country&#39;s vote to leave the European Union. 
 
Since the June 23 referendum there have been fears of an exodus from the City of London if access to the EU&#39;s single market becomes significantly harder. Banks like JPMorgan have said they could move thousands of jobs. 
 
On Thursday JP Morgan, Goldman Sachs, Bank of America Merrill Lynch and Morgan Stanley, as well as Britain&#39;s Asia-focused Standard Chartered said they would try to support London&#39;s financial sector. 
 
&quot;Today we met and agreed that we would work together ... with a common aim to help London retain its position as the leading international financial centre,&quot; the banks said in a joint statement with Osborne. 
 
The statement said no other city in Europe had capital markets as deep as those of London, but the banks made no commitment about keeping jobs in Britain. 
 
The French government pledged on Wednesday to make its tax regime for expatriates the most favourable in Europe in a landgrab for London banking business. 
 
Goldman Sachs and Morgan Stanley have denied speculation they were poised to shift London-based staff and operations to Frankfurt 
 
Jamie Dimon, the head of JPMorgan Chase, said before the referendum that the bank could have to move up to 4,000 staff from the UK in the event of a Brexit vote. 
 
On Wednesday, the municipal authority for the City of London, the district in the capital that is home to many large banks, said the government needed to ensure EU exit talks preserved financial services firms&#39; &quot;passporting&quot; rights that allow them to use London as a base for EU-wide activities. 
 
Osborne, who was senior figure in the failed campaign to keep Britain in the EU, has spent years trying to expand London&#39;s role as a global hub for trade in China&#39;s renminbi and India&#39;s rupee, as well as Islamic finance. 
 
On Tuesday, he met British domestic banks, whose share prices have tumbled since the Brexit vote, and encouraged them to make more funds available for UK lending after the Bank of England eased capital rules. 
 
(Reuters)

The banks said they would work at helping London 'retain its position as the leading international financial centre'

Four US investment banks promised British finance minister George Osborne on Thursday that they would help London keep its top spot as a global financial centre following the country's vote to leave the European Union. Since the June 23 referendum there have been fears of an exodus from the City of London if access to the EU's single market becomes significantly harder. Banks like JPMorgan have said they could move thousands of jobs. On Thursday JP Morgan, Goldman Sachs, Bank of America Merrill Lynch and Morgan Stanley, as well as Britain's Asia-focused Standard Chartered said they would try to support London's financial sector. "Today we met and agreed that we would work together ... with a common aim to help London retain its position as the leading international financial centre," the banks said in a joint statement with Osborne. The statement said no other city in Europe had capital markets as deep as those of London, but the banks made no commitment about keeping jobs in Britain. The French government pledged on Wednesday to make its tax regime for expatriates the most favourable in Europe in a landgrab for London banking business. Goldman Sachs and Morgan Stanley have denied speculation they were poised to shift London-based staff and operations to Frankfurt Jamie Dimon, the head of JPMorgan Chase, said before the referendum that the bank could have to move up to 4,000 staff from the UK in the event of a Brexit vote. On Wednesday, the municipal authority for the City of London, the district in the capital that is home to many large banks, said the government needed to ensure EU exit talks preserved financial services firms' "passporting" rights that allow them to use London as a base for EU-wide activities. Osborne, who was senior figure in the failed campaign to keep Britain in the EU, has spent years trying to expand London's role as a global hub for trade in China's renminbi and India's rupee, as well as Islamic finance. On Tuesday, he met British domestic banks, whose share prices have tumbled since the Brexit vote, and encouraged them to make more funds available for UK lending after the Bank of England eased capital rules. (Reuters)

After Brexit, London gets a little help from 4 US banks

Britain&#39;s business minister Sajid Javid said the government should cut corporate and personal taxes to soften the blow from an expected slowdown after Britain&#39;s vote to leave the European Union (EU). 
 
Javid told the Financial Times the government needed to switch its focus from reducing the deficit to stimulating economic growth by introducing unfunded tax cuts to boost research and investment for companies. 
 
Confidence in Britain&#39;s economy has been rocked by the decision by voters to leave the world&#39;s largest trading bloc on June 23. The pound is trading at 31-year lows and the Bank of England has warned that the financial risks it highlighted ahead of the vote were starting to crystallise.&nbsp; 
 
Javid backs Osborne&#39;s approach&nbsp; 
 
Finance minister George Osborne has said he plans to cut Britain&#39;s corporation tax to below 15 per cent and has also dropped his aim of turning Britain&#39;s budget deficit into a surplus by 2020. 
 
Javid backed Osborne&#39;s softer approach to fixing the public finances. He told the FT it was hard to predict what would happen to the deficit. 
 
&quot;Does it mean 3 per cent becomes 4 per cent or 5 per cent? I don&#39;t think anyone can say at this point,&quot; he said.&nbsp; 
 
Britain&#39;s budget deficit was just under 4 per cent of gross domestic product in the financial year which ended in March. 
 
Javid said the government should double tax credits for research and development, exempt new plant and machinery from business rates and increase the annual investment allowance. He said the threshold at which people start paying income tax should also rise by 1,000 pounds. 
 
As well as the signals from the government of help for the economy from lower taxes, Bank of England Governor Mark Carney has said he expects the central bank to provide more monetary stimulus over the summer. On Tuesday, the BoE lowered a requirement for banks to set aside money to cover losses. 
 
It is not clear how long Osborne and Javid will remain in their jobs. Prime Minister David Cameron has said he will resign by September and the ruling Conservative Party is in the process of choosing a new leader. 
 
(Reuters)&nbsp;

Confidence in Britain's economy has been rocked by the decision by voters to leave the world's largest trading bloc on June 23

Britain's business minister Sajid Javid said the government should cut corporate and personal taxes to soften the blow from an expected slowdown after Britain's vote to leave the European Union (EU). Javid told the Financial Times the government needed to switch its focus from reducing the deficit to stimulating economic growth by introducing unfunded tax cuts to boost research and investment for companies. Confidence in Britain's economy has been rocked by the decision by voters to leave the world's largest trading bloc on June 23. The pound is trading at 31-year lows and the Bank of England has warned that the financial risks it highlighted ahead of the vote were starting to crystallise. Javid backs Osborne's approach Finance minister George Osborne has said he plans to cut Britain's corporation tax to below 15 per cent and has also dropped his aim of turning Britain's budget deficit into a surplus by 2020. Javid backed Osborne's softer approach to fixing the public finances. He told the FT it was hard to predict what would happen to the deficit. "Does it mean 3 per cent becomes 4 per cent or 5 per cent? I don't think anyone can say at this point," he said. Britain's budget deficit was just under 4 per cent of gross domestic product in the financial year which ended in March. Javid said the government should double tax credits for research and development, exempt new plant and machinery from business rates and increase the annual investment allowance. He said the threshold at which people start paying income tax should also rise by 1,000 pounds. As well as the signals from the government of help for the economy from lower taxes, Bank of England Governor Mark Carney has said he expects the central bank to provide more monetary stimulus over the summer. On Tuesday, the BoE lowered a requirement for banks to set aside money to cover losses. It is not clear how long Osborne and Javid will remain in their jobs. Prime Minister David Cameron has said he will resign by September and the ruling Conservative Party is in the process of choosing a new leader. (Reuters)

UK business minister calls for tax cuts to soften Brexit blow

Gold rose as much as 1 per cent today, hitting the highest in more than two years, as investors piled back into safe havens such as bullion amid renewed market jitters over Britain&#39;s decision to leave the European Union (EU).&nbsp; 
 
Asian shares also tumbled as fears over instability in the EU returned with a vengeance, sending the pound to three-decade low and hammering risky assets. 
 
Spot gold touched its highest since March 2014 at $1,371.40, and was trading up 0.9 per cent at $1,367.20 an ounce by 0401 GMT. It surpassed the $1,358.20 mark hit on June 24 in the immediate aftermath of the Brexit vote. 
 
US gold was up 0.8 per cent at $1,369.40. 
 
&quot;No one is able to understand how much risk is yet to be unravelled (from Brexit). That is an uncertainty that no one likes. This is what is driving gold prices higher,&quot; said Helen Lau, an analyst at Argonaut Securities in Hong Kong. 
 
Yellow metal is on track to log its biggest yearly gain since 2010&nbsp; 
 
The Bank of England took steps on Tuesday to ensure British banks keep lending as the financial consequences of the decision to leave the EU began to materialise. 
 
The yellow metal, often favoured as a hedge against economic and financial uncertainty, has risen about 29 per cent this year and is on track to log its biggest yearly gain since 2010. 
 
Further boosting gold, were comments from New York Federal Reserve President William Dudley, who said that the central bank can be patient on raising interest rates due to low inflation and uncertainties over US economic prospects. 
 
New orders for US factory goods fell in May on weak demand for transportation and defence capital goods, but growing order backlogs and lean inventories suggested the worst of the manufacturing downturn was probably over. 
 
Investors will be watching out for signs on the US Federal Reserve&#39;s thinking on rates from minutes of its June 14-15 meeting due later in the day. 
 
Holdings in SPDR Gold Trust, the world&#39;s largest gold-backed exchange-traded fund, increased 3.02 per cent to 982.72 tonnes on Tuesday, the highest since June 2013. 
 
SPDR gold holdings have jumped more than 50 per cent this year so far, heading for biggest annual rise since 2006. 
 
Spot silver&#39;s rally hit a bump on Tuesday as the metal fell 2 per cent, its biggest one-day loss in about three weeks. It was up 1.7 per cent at $20.26. 
 
Among other precious metals, platinum, which was trading at two-month highs, edged 0.2 per cent lower to $1,070.24 an ounce. 
 
Palladium was up 0.3 per cent at $599.47. 
 
(Reuters)&nbsp;

Asian shares also tumbled as fears over instability in the EU returned with a vengeance, sending the pound to three-decade low

Gold rose as much as 1 per cent today, hitting the highest in more than two years, as investors piled back into safe havens such as bullion amid renewed market jitters over Britain's decision to leave the European Union (EU). Asian shares also tumbled as fears over instability in the EU returned with a vengeance, sending the pound to three-decade low and hammering risky assets. Spot gold touched its highest since March 2014 at $1,371.40, and was trading up 0.9 per cent at $1,367.20 an ounce by 0401 GMT. It surpassed the $1,358.20 mark hit on June 24 in the immediate aftermath of the Brexit vote. US gold was up 0.8 per cent at $1,369.40. "No one is able to understand how much risk is yet to be unravelled (from Brexit). That is an uncertainty that no one likes. This is what is driving gold prices higher," said Helen Lau, an analyst at Argonaut Securities in Hong Kong. Yellow metal is on track to log its biggest yearly gain since 2010 The Bank of England took steps on Tuesday to ensure British banks keep lending as the financial consequences of the decision to leave the EU began to materialise. The yellow metal, often favoured as a hedge against economic and financial uncertainty, has risen about 29 per cent this year and is on track to log its biggest yearly gain since 2010. Further boosting gold, were comments from New York Federal Reserve President William Dudley, who said that the central bank can be patient on raising interest rates due to low inflation and uncertainties over US economic prospects. New orders for US factory goods fell in May on weak demand for transportation and defence capital goods, but growing order backlogs and lean inventories suggested the worst of the manufacturing downturn was probably over. Investors will be watching out for signs on the US Federal Reserve's thinking on rates from minutes of its June 14-15 meeting due later in the day. Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased 3.02 per cent to 982.72 tonnes on Tuesday, the highest since June 2013. SPDR gold holdings have jumped more than 50 per cent this year so far, heading for biggest annual rise since 2006. Spot silver's rally hit a bump on Tuesday as the metal fell 2 per cent, its biggest one-day loss in about three weeks. It was up 1.7 per cent at $20.26. Among other precious metals, platinum, which was trading at two-month highs, edged 0.2 per cent lower to $1,070.24 an ounce. Palladium was up 0.3 per cent at $599.47. (Reuters)

Gold at highest in over two years over renewed Brexit concerns

France and Britain were vying for fifth place on the list of the world&#39;s biggest economies on Wednesday, with France nudging ahead after a renewed slump in the Pound in the wake of the Brexit vote, Reuters calculations showed. 
 
Britain&#39;s gross domestic product stood at 1.864 trillion Pounds in 2015, according to the last available figures from the International Monetary Fund. 
 
The average exchange rate for the year in question is commonly used for comparisons between countries. But using the current exchange rate, France has pulled slightly ahead. 
 
With the Pound falling below 1.17 Euros overnight for the first time since 2013, that means the size of the British economy in 2015 is now equivalent to 2.172 trillion Euros - less than France&#39;s official GDP of 2.182 trillion Euros last year. 
 
Britain&#39;s vote in a referendum on June 23 to quit the EU has hammered financial markets, rattled businesses and punished the pound, which was trading at 1.1650 Euros as of 1440 GMT. 
 
But volatile exchange rates meant the figures were hard to pin down. Britain briefly regained fifth spot after the pound broke above 1.17 Euros for a few hours on Wednesday, only to sag again in mid-afternoon trade. 
 
Britain and France, which have similar populations, have swapped positions before in the rankings. 
 
In 2014 Britain overtook France, six years after the financial crisis caused the pound to fall and allowed France to regain a crown it had lost in 1997. 
 
(Reuters)

The size of the British economy in 2015 is now 2.172 trillion Euros - less than France's official GDP of 2.182 trillion Euros last year

France and Britain were vying for fifth place on the list of the world's biggest economies on Wednesday, with France nudging ahead after a renewed slump in the Pound in the wake of the Brexit vote, Reuters calculations showed. Britain's gross domestic product stood at 1.864 trillion Pounds in 2015, according to the last available figures from the International Monetary Fund. The average exchange rate for the year in question is commonly used for comparisons between countries. But using the current exchange rate, France has pulled slightly ahead. With the Pound falling below 1.17 Euros overnight for the first time since 2013, that means the size of the British economy in 2015 is now equivalent to 2.172 trillion Euros - less than France's official GDP of 2.182 trillion Euros last year. Britain's vote in a referendum on June 23 to quit the EU has hammered financial markets, rattled businesses and punished the pound, which was trading at 1.1650 Euros as of 1440 GMT. But volatile exchange rates meant the figures were hard to pin down. Britain briefly regained fifth spot after the pound broke above 1.17 Euros for a few hours on Wednesday, only to sag again in mid-afternoon trade. Britain and France, which have similar populations, have swapped positions before in the rankings. In 2014 Britain overtook France, six years after the financial crisis caused the pound to fall and allowed France to regain a crown it had lost in 1997. (Reuters)

After Pound drops, France overtakes Britain as world's fifth-largest economy

The pound tumbled to a new 31-year low on Wednesday, dipping below $1.28 at one point before recovering a little, as investors shunned the currency after Britain&#39;s vote to leave the European Union. 
 
The pound, one of the main vehicles through which financial markets can express concern over the Brexit vote, fell as low as $1.2798 in Asian trading, its lowest since June 1985, before recovering to about $1.2965. That still left it 13 per cent below its levels before the June 23 referendum, and about 0.4 per cent down on the day. 
 
Against the Euro, Sterling hit a three-year trough, trading as weakly as at 86.29 pence per Euro before climbing back to about 85.25 pence, also down 0.3 per cent on the day. 
 
Worries have grown in the past two days about financial stress, highlighted by the Bank of England on Tuesday and by the suspension of trading by three of Britain&#39;s biggest property funds, following an increased number of investor redemption since the referendum. 
 
&quot;The pound is still very volatile after the Brexit vote, and still vulnerable to the downside,&quot; said Bank of Tokyo-Mitsubishi UFJ currency economist Lee Hardman. 
 
&quot;Yesterday the main trigger was the reports of signs of distress in the commercial real estate market, which the Bank of England highlighted as one of the financial stability risks in the UK. That created a fairly large sell-off...and Sterling is just recovering some of those falls.&quot; 
 
The latest of the property funds to announce a suspension in customer withdrawals was M&amp;G, the fund management arm of insurer Prudential, which made the announcement after the London market close on Tuesday. 
 
&quot;Clearly Asia came in and didn&#39;t like what it saw in the news flow,&quot; said UBS Wealth Management currency strategist Geoffrey Yu, adding that many international investors also have large exposures to the UK property market. 
 
The Bank of England also expressed concern on Tuesday about a fall in investor demand for British assets, which could make it harder to finance Britain&#39;s large current account deficit, piling further pressure on the pound. 
 
Rate cuts 
 
Next week the BoE will make a decision on interest rates, which are already at record lows. Investors are pricing in a 25 basis point rate cut in August, which is also helping to drive down the pound, but some reckon a cut could come next week. 
 
A Reuters poll of more than 60 foreign exchange strategists forecast the pound at $1.27 by year end from Monday&#39;s close of around $1.30. 
 
&quot;The market is still likely under-pricing BoE easing, with our economists forecasting a 25 basis point rate cut next week followed by a 25 basis point cut at the August meeting,&quot; wrote BNP Paribas strategists in a research note, adding that they also expected an asset-purchase programme to be announced at the November meeting. 
 
Yields on British 10, 20 and 30-year government bonds sank to fresh record lows, extending their slide since the day after the shock referendum result. 
 
The yield on 10-year gilts fell as low as 0.731 per cent, almost half its level on June 23, when Britons were voting in the referendum which many investors had expected to keep Britain in the EU. 
 
(Reuters)

The Pound fell as low as $1.2798 in Asian trading on Wednesday, its lowest since June 1985

The pound tumbled to a new 31-year low on Wednesday, dipping below $1.28 at one point before recovering a little, as investors shunned the currency after Britain's vote to leave the European Union. The pound, one of the main vehicles through which financial markets can express concern over the Brexit vote, fell as low as $1.2798 in Asian trading, its lowest since June 1985, before recovering to about $1.2965. That still left it 13 per cent below its levels before the June 23 referendum, and about 0.4 per cent down on the day. Against the Euro, Sterling hit a three-year trough, trading as weakly as at 86.29 pence per Euro before climbing back to about 85.25 pence, also down 0.3 per cent on the day. Worries have grown in the past two days about financial stress, highlighted by the Bank of England on Tuesday and by the suspension of trading by three of Britain's biggest property funds, following an increased number of investor redemption since the referendum. "The pound is still very volatile after the Brexit vote, and still vulnerable to the downside," said Bank of Tokyo-Mitsubishi UFJ currency economist Lee Hardman. "Yesterday the main trigger was the reports of signs of distress in the commercial real estate market, which the Bank of England highlighted as one of the financial stability risks in the UK. That created a fairly large sell-off...and Sterling is just recovering some of those falls." The latest of the property funds to announce a suspension in customer withdrawals was M&G, the fund management arm of insurer Prudential, which made the announcement after the London market close on Tuesday. "Clearly Asia came in and didn't like what it saw in the news flow," said UBS Wealth Management currency strategist Geoffrey Yu, adding that many international investors also have large exposures to the UK property market. The Bank of England also expressed concern on Tuesday about a fall in investor demand for British assets, which could make it harder to finance Britain's large current account deficit, piling further pressure on the pound. Rate cuts Next week the BoE will make a decision on interest rates, which are already at record lows. Investors are pricing in a 25 basis point rate cut in August, which is also helping to drive down the pound, but some reckon a cut could come next week. A Reuters poll of more than 60 foreign exchange strategists forecast the pound at $1.27 by year end from Monday's close of around $1.30. "The market is still likely under-pricing BoE easing, with our economists forecasting a 25 basis point rate cut next week followed by a 25 basis point cut at the August meeting," wrote BNP Paribas strategists in a research note, adding that they also expected an asset-purchase programme to be announced at the November meeting. Yields on British 10, 20 and 30-year government bonds sank to fresh record lows, extending their slide since the day after the shock referendum result. The yield on 10-year gilts fell as low as 0.731 per cent, almost half its level on June 23, when Britons were voting in the referendum which many investors had expected to keep Britain in the EU. (Reuters)

Pound falls to 31-year low as investors shun currency

NATO leaders will this week formally endorse its biggest military revamp since the end of the Cold War at a landmark summit in Warsaw, in the shadow of a resurgent Russia and Britain&#39;s shock EU exit vote. 
 
The centrepiece of the summit in the former heart of the Soviet-led Warsaw pact is a &quot;Readiness Action Plan&quot; to counter a more aggressive Russia after Moscow&#39;s shock 2014 annexation of Crimea and intervention in Ukraine. 
 
But also important is an EU-NATO cooperation accord, laying out how the alliance -- which includes 22 of the 28 EU member states -- can work with the EU in face of failing states across the Middle East, North Africa and beyond. 
 
Security is heavy, especially around the National Stadium venue, as Poland prepares to welcome world leaders, including US President Barack Obama for his last NATO summit.&nbsp; 
 
Jens Stoltenberg, the Norwegian secretary general of NATO, said this week that the summit &quot;comes at a defining time for our security with threats and challenges from many directions&quot;. 
 
But while Russia is still the main theme, just as at the last NATO summit in Wales in 2014, it is the vote for a so-called &quot;Brexit&quot; that will be on everyone&#39;s lips. NATO insists Brexit makes no difference, but it clearly adds to uncertainty amid fears Russia may exploit any opening as Britain negotiates its way out of the EU in difficult and complex talks. 
 
The Ukraine crisis proved a rude wake-up call for NATO and the summit is meant to convey a clear message to Moscow that it will not be caught napping again. 
 
The Readiness Action Plan, agreed at the 2014 Wales summit, included a pledge to spend two per cent of annual economic output on defence, ending years of cuts. 
 
To reassure nervous east European allies, once ruled from Moscow, NATO also tripled the size of its fast Response Force to some 40,000 troops and created a 5,000-strong &quot;Spearhead&quot; unit to deploy within days to any new crisis point. 
 
Poland, the summit host, and the three Baltic states have however pushed hard for more, to get a NATO tripwire presence on the ground to deter any Russian adventurism. 
&nbsp; 
Leaders will accordingly approve sending one multinational battalion each to Poland, Estonia, Latvia and Lithuania, up to 4,000 troops in all. Russia bitterly opposes NATO&#39;s expansion into its Soviet-era satellites, which it sees as a threat to its own security requiring an appropriate response. 
 
&quot;We don&#39;t intend to give in to this militaristic frenzy, but it seems that is what they are pushing us to, to provoke a costly and pointless arms race,&quot; Russian President Vladimir Putin said last month. 
 
Moscow reserves it direst warnings however for a Ballistic Missile Defence system the United States is building and which the summit is due to declare has reached an initial operating level. 
 
Washington says the shield is designed to counter missile threats from Iran or the Middle East, but Russia says that once the system becomes fully operational in 2018, it will undercut its strategic nuclear deterrent. 
 
The NATO upgrade has largely been driven by the Ukraine crisis, but leaders are increasingly worried by threats to the south in the shape of massive flows of illegal migrants across the Mediterranean and terror groups such as Islamic State gaining ground in Libya. 
 
NATO leaders are expected to endorse plans to &quot;project stability&quot; by providing advice and assistance in the region to head off future problems. 
 
NATO diplomatic sources say that while the alliance has a role to play, it does not consider itself to be the &quot;first responder&quot; which should be the EU&#39;s role. 
 
(AFP)

The 'Readiness Action Plan' to counter a more aggressive, Crimea-annexing Russia will be the Warsaw summit's main theme

NATO leaders will this week formally endorse its biggest military revamp since the end of the Cold War at a landmark summit in Warsaw, in the shadow of a resurgent Russia and Britain's shock EU exit vote. The centrepiece of the summit in the former heart of the Soviet-led Warsaw pact is a "Readiness Action Plan" to counter a more aggressive Russia after Moscow's shock 2014 annexation of Crimea and intervention in Ukraine. But also important is an EU-NATO cooperation accord, laying out how the alliance -- which includes 22 of the 28 EU member states -- can work with the EU in face of failing states across the Middle East, North Africa and beyond. Security is heavy, especially around the National Stadium venue, as Poland prepares to welcome world leaders, including US President Barack Obama for his last NATO summit. Jens Stoltenberg, the Norwegian secretary general of NATO, said this week that the summit "comes at a defining time for our security with threats and challenges from many directions". But while Russia is still the main theme, just as at the last NATO summit in Wales in 2014, it is the vote for a so-called "Brexit" that will be on everyone's lips. NATO insists Brexit makes no difference, but it clearly adds to uncertainty amid fears Russia may exploit any opening as Britain negotiates its way out of the EU in difficult and complex talks. The Ukraine crisis proved a rude wake-up call for NATO and the summit is meant to convey a clear message to Moscow that it will not be caught napping again. The Readiness Action Plan, agreed at the 2014 Wales summit, included a pledge to spend two per cent of annual economic output on defence, ending years of cuts. To reassure nervous east European allies, once ruled from Moscow, NATO also tripled the size of its fast Response Force to some 40,000 troops and created a 5,000-strong "Spearhead" unit to deploy within days to any new crisis point. Poland, the summit host, and the three Baltic states have however pushed hard for more, to get a NATO tripwire presence on the ground to deter any Russian adventurism. Leaders will accordingly approve sending one multinational battalion each to Poland, Estonia, Latvia and Lithuania, up to 4,000 troops in all. Russia bitterly opposes NATO's expansion into its Soviet-era satellites, which it sees as a threat to its own security requiring an appropriate response. "We don't intend to give in to this militaristic frenzy, but it seems that is what they are pushing us to, to provoke a costly and pointless arms race," Russian President Vladimir Putin said last month. Moscow reserves it direst warnings however for a Ballistic Missile Defence system the United States is building and which the summit is due to declare has reached an initial operating level. Washington says the shield is designed to counter missile threats from Iran or the Middle East, but Russia says that once the system becomes fully operational in 2018, it will undercut its strategic nuclear deterrent. The NATO upgrade has largely been driven by the Ukraine crisis, but leaders are increasingly worried by threats to the south in the shape of massive flows of illegal migrants across the Mediterranean and terror groups such as Islamic State gaining ground in Libya. NATO leaders are expected to endorse plans to "project stability" by providing advice and assistance in the region to head off future problems. NATO diplomatic sources say that while the alliance has a role to play, it does not consider itself to be the "first responder" which should be the EU's role. (AFP)

NATO faces up to Russia in Brexit's shadow

British Conservative lawmaker Stephen Crabb pulled out of the race to be the next prime minister on Tuesday and endorsed front-runner Theresa May as the list of candidates was reduced to three.

Crabb, 43, withdrew after he came fourth out of five in the first round of voting, securing support from just 34 out of 330 Conservative lawmakers.

Interior minister Theresa May secured 165 votes, ahead of Andrea Leadsom and Michael Gove. Liam Fox, who finished last, was eliminated from the contest earlier in the evening.

&quot;I&#39;ll be lending my wholehearted support to Theresa May,&quot; Crabb said, describing her as the only candidate who could unite the party and lead a strong and cohesive government. 
 
(Reuters)

He secured support from 34 out of 330 Conservative lawmakers. The list for UK prime ministerial candidates has now been reduced to three

British Conservative lawmaker Stephen Crabb pulled out of the race to be the next prime minister on Tuesday and endorsed front-runner Theresa May as the list of candidates was reduced to three. Crabb, 43, withdrew after he came fourth out of five in the first round of voting, securing support from just 34 out of 330 Conservative lawmakers. Interior minister Theresa May secured 165 votes, ahead of Andrea Leadsom and Michael Gove. Liam Fox, who finished last, was eliminated from the contest earlier in the evening. "I'll be lending my wholehearted support to Theresa May," Crabb said, describing her as the only candidate who could unite the party and lead a strong and cohesive government. (Reuters)

UK PM candidate Stephen Crabb withdraws from race, endorses May

Interior minister Theresa May opened up a strong lead on Tuesday in what is now a three-horse race to become Britain&#39;s next Prime Minister, but the first stage of voting was overshadowed by post-Brexit carnage for property investors and the Pound. 
 
In symptoms of market concern about the economic impact of leaving the European Union, sterling hit new 31-year lows and three funds investing in British property said they were suspending trading because too many people were rushing to withdraw their money at once. 
 
May won 165 votes in a first ballot of Conservative members of parliament and Andrea Leadsom, a junior energy minister, won 66, increasing the likelihood that Britain will get only its second woman Prime Minister after Margaret Thatcher. Justice secretary Michael Gove was third on 48. 
 
Former defence minister Liam Fox won the fewest votes, 16, and was eliminated from the battle to replace David Cameron, who has said he will step down after Britons voted in a June 23 referendum to break away from the EU. 
 
Soon afterwards, work and pensions minister Stephen Crabb, who placed fourth with 34 votes, said he was pulling out and throwing his &quot;wholehearted support&quot; behind May. Fox said he would also back her.&nbsp; 
 
May, 59, said: &quot;There is a big job before us: to unite our party and the country, to negotiate the best possible deal as we leave the EU, and to make Britain work for everyone.&nbsp;I am the only candidate capable of delivering these three things as Prime Minister, and tonight it is clear that I am also the only one capable of drawing support from the whole of the Conservative Party.&quot; 
 
&#39;No coronation&#39; 
 
The drawn-out selection process will ultimately be decided by about 150,000 Conservative Party members in September, once MPs have whittled the field down to two candidates. 
 
Given strong eurosceptic sentiment among grassroots Conservatives, Leadsom, 53, and Gove, 48, remain in contention. Both were leading voices in the victorious Leave campaign, while May favoured remaining inside the 28-nation EU. 
 
Leadsom backer Stewart Jackson told Sky News: &quot;This shows she&#39;s ready to go all the way, there isn&#39;t going to be a coronation&quot; of May. 
 
In the meantime, signs are multiplying that concern about the impact of Brexit on trade, investment and business confidence is starting to hit the economy. 
 
The 4.4-billion-Pound ($5.7 billion) Property Portfolio run by M&amp;G Investments, the fund arm of insurer Prudential, was the latest to suspend business on Tuesday afternoon. Insurer Aviva&#39;s fund arm had earlier stopped trading in its 1.8-billion-Pound UK Property Trust, while Standard Life Investments suspended a 2.9-billion-Pound fund late on Monday. 
 
Shares plunged in other property-related funds, and asset managers and insurers were also hit. 
 
The Pound, which has borne the brunt of market concern about potential damage to the economy, plumbed new 31-year lows and is now down more than 12 per cent since the referendum.&nbsp; 
 
&quot;There is evidence that some risks have begun to crystallise. The current outlook for UK financial stability is challenging,&quot; the Bank of England said, announcing measures to encourage banks to keep lending. 
 
In a possible blow to London&#39;s financial centre, Germany&#39;s Deutsche Boerse signalled on Tuesday that the headquarters of a European giant to be created from its merger with the London Stock Exchange Group may now have to be outside the United Kingdom. 
 
Voters were bombarded in the run-up to the referendum with warnings from Cameron and a host of financial institutions and think tanks that Brexit would plunge Britain into a self-inflicted recession by jeopardising its access to the EU&#39;s tariff-free single market. 
 
The Leave campaign derided such arguments as &#39;Project Fear&#39;, arguing Britain would prosper by regaining &#39;independence&#39; from Brussels and freeing itself to set its own laws, clinch its own trade deals and set a cap on immigration - something it cannot do under EU rules allowing free movement throughout the bloc. 
 
&#39;Bloody difficult woman&#39; 
 
Whoever wins the Conservative leadership and the keys to 10 Downing Street will have to stabilise the economy and unify a party that was deeply split by the referendum campaign. 
 
The victor will also need to decide when to initiate divorce proceedings with the EU, and how to extricate Britain from 43 years of membership while trying to negotiate favourable terms of trade. 
 
The most seasoned candidates in the field are May and Gove, who stunned colleagues and commentators alike when he abruptly withdrew his support for former London mayor Boris Johnson last week, effectively forcing him from the race. Leadsom entered parliament only six years ago after a long career in financial services, and has never served in the cabinet. 
 
Gove and Leadsom have both argued forcefully that the next prime minister should come from the winning side in the referendum, which would disqualify May. 
 
&quot;I&#39;ve managed to bring people together across the Conservative Party behind a hopeful and optimistic message of change, and I hope that I&#39;ll be able to take that message to the country,&quot; Gove said. 
 
In unguarded comments earlier on Tuesday, caught on camera and broadcast by Sky News, former Conservative minister Ken Clarke made disparaging remarks about all three contenders, saying that with Gove as Prime Minister &quot;we would go to war with at least three countries at once&quot;. 
 
He described May as &quot;a bloody difficult woman&quot;, but no more difficult than Thatcher, in whose cabinet he served. He added that she was &quot;good&quot;, but lacking in foreign policy experience. 
 
Of Leadsom, Clarke said: &quot;She does have experience in the city...She is not one of the tiny band of lunatics who think we can have a sort of glorious economic future outside the (EU) single market. So long as she understands that she&#39;s not to deliver on some of the extremely stupid things she&#39;s been saying.&quot;&nbsp; 
 
(Reuters)

The victor will need to decide when to pull out of the EU, and how to favourably extricate Britain after 43 years of membership

Interior minister Theresa May opened up a strong lead on Tuesday in what is now a three-horse race to become Britain's next Prime Minister, but the first stage of voting was overshadowed by post-Brexit carnage for property investors and the Pound. In symptoms of market concern about the economic impact of leaving the European Union, sterling hit new 31-year lows and three funds investing in British property said they were suspending trading because too many people were rushing to withdraw their money at once. May won 165 votes in a first ballot of Conservative members of parliament and Andrea Leadsom, a junior energy minister, won 66, increasing the likelihood that Britain will get only its second woman Prime Minister after Margaret Thatcher. Justice secretary Michael Gove was third on 48. Former defence minister Liam Fox won the fewest votes, 16, and was eliminated from the battle to replace David Cameron, who has said he will step down after Britons voted in a June 23 referendum to break away from the EU. Soon afterwards, work and pensions minister Stephen Crabb, who placed fourth with 34 votes, said he was pulling out and throwing his "wholehearted support" behind May. Fox said he would also back her. May, 59, said: "There is a big job before us: to unite our party and the country, to negotiate the best possible deal as we leave the EU, and to make Britain work for everyone. I am the only candidate capable of delivering these three things as Prime Minister, and tonight it is clear that I am also the only one capable of drawing support from the whole of the Conservative Party." 'No coronation' The drawn-out selection process will ultimately be decided by about 150,000 Conservative Party members in September, once MPs have whittled the field down to two candidates. Given strong eurosceptic sentiment among grassroots Conservatives, Leadsom, 53, and Gove, 48, remain in contention. Both were leading voices in the victorious Leave campaign, while May favoured remaining inside the 28-nation EU. Leadsom backer Stewart Jackson told Sky News: "This shows she's ready to go all the way, there isn't going to be a coronation" of May. In the meantime, signs are multiplying that concern about the impact of Brexit on trade, investment and business confidence is starting to hit the economy. The 4.4-billion-Pound ($5.7 billion) Property Portfolio run by M&G Investments, the fund arm of insurer Prudential, was the latest to suspend business on Tuesday afternoon. Insurer Aviva's fund arm had earlier stopped trading in its 1.8-billion-Pound UK Property Trust, while Standard Life Investments suspended a 2.9-billion-Pound fund late on Monday. Shares plunged in other property-related funds, and asset managers and insurers were also hit. The Pound, which has borne the brunt of market concern about potential damage to the economy, plumbed new 31-year lows and is now down more than 12 per cent since the referendum. "There is evidence that some risks have begun to crystallise. The current outlook for UK financial stability is challenging," the Bank of England said, announcing measures to encourage banks to keep lending. In a possible blow to London's financial centre, Germany's Deutsche Boerse signalled on Tuesday that the headquarters of a European giant to be created from its merger with the London Stock Exchange Group may now have to be outside the United Kingdom. Voters were bombarded in the run-up to the referendum with warnings from Cameron and a host of financial institutions and think tanks that Brexit would plunge Britain into a self-inflicted recession by jeopardising its access to the EU's tariff-free single market. The Leave campaign derided such arguments as 'Project Fear', arguing Britain would prosper by regaining 'independence' from Brussels and freeing itself to set its own laws, clinch its own trade deals and set a cap on immigration - something it cannot do under EU rules allowing free movement throughout the bloc. 'Bloody difficult woman' Whoever wins the Conservative leadership and the keys to 10 Downing Street will have to stabilise the economy and unify a party that was deeply split by the referendum campaign. The victor will also need to decide when to initiate divorce proceedings with the EU, and how to extricate Britain from 43 years of membership while trying to negotiate favourable terms of trade. The most seasoned candidates in the field are May and Gove, who stunned colleagues and commentators alike when he abruptly withdrew his support for former London mayor Boris Johnson last week, effectively forcing him from the race. Leadsom entered parliament only six years ago after a long career in financial services, and has never served in the cabinet. Gove and Leadsom have both argued forcefully that the next prime minister should come from the winning side in the referendum, which would disqualify May. "I've managed to bring people together across the Conservative Party behind a hopeful and optimistic message of change, and I hope that I'll be able to take that message to the country," Gove said. In unguarded comments earlier on Tuesday, caught on camera and broadcast by Sky News, former Conservative minister Ken Clarke made disparaging remarks about all three contenders, saying that with Gove as Prime Minister "we would go to war with at least three countries at once". He described May as "a bloody difficult woman", but no more difficult than Thatcher, in whose cabinet he served. He added that she was "good", but lacking in foreign policy experience. Of Leadsom, Clarke said: "She does have experience in the city...She is not one of the tiny band of lunatics who think we can have a sort of glorious economic future outside the (EU) single market. So long as she understands that she's not to deliver on some of the extremely stupid things she's been saying." (Reuters)

May leads three-horse PM race as Brexit hits Pound and property

The European Union&#39;s authority is fraying as governments and politicians in many members challenge EU policies and take aim at &#39;Brussels bureaucracy&#39; in the aftermath of Britain&#39;s vote to leave the 28-nation bloc. 
 
The Czech President and some contenders for the French presidency have called for their own referendums on continued membership of the pan-European economic and political community, although no such plebiscite is on the cards in the near future. 
 
Verbal assaults on the role of the European commission and the European parliament since the British shock almost two weeks back look more like an attempt to appease domestic public opinion than a concerted drive to strip Brussels of its main powers. 
 
But they could further undermine the legitimacy of the EU&#39;s common institutions in the eyes of citizens. 
 
France, facing a presidential election next year, has threatened to stop obeying EU rules on workers posted from one member state to another, which it says undercuts the jobs of native employees. President Francois Hollande has also demanded a rewriting of EU merger control rules and restrictions on state aid to industry to enable the creation of &quot;European champions&quot;. 
 
Socialist Prime Minister Manuel Valls said on Sunday an EU regulation allowing employers to pay seconded workers less than their local counterparts must be changed soon or Paris would stop applying it. 
 
Employers are not now obliged to pay posted workers more than the minimum wage of the host country, often well below the average wage in the sector, and they pay social contributions in their home country welfare systems which are usually far lower than those in western Europe. Central and east European governments oppose moves to reduce the gap. 
 
&quot;There must be equal treatment upwards to fight social dumping,&quot; Valls said. 
 
Spooked by a surge of support for anti-EU nationalist Marine Le Pen, conservative candidate Alain Juppe called on Monday for a new balance of power between Brussels and member states and a halt to further EU enlargement, ending Turkey&#39;s membership bid. He called last week for a referendum on a &quot;new Europe&quot;. 
 
Italy is demanding a loosening of recently adopted EU regulations that make shareholders, bondholders and depositors liable for the losses of failed banks before taxpayers. 
 
&#39;A technocracy with no soul&#39; 
 
Italian Prime Minister Matteo Renzi, who has fought to bend EU budget deficit rules and now seeks to pump billions of euros into his country&#39;s ailing banks if needed to shore them up, said on Monday the EU was run by &quot;a technocracy with no soul&quot;. 
 
He also opposed sanctions against fellow southern members Spain and Portugal for violating the EU&#39;s deficit limits last year, a step the commission is due to consider on Tuesday in a German-backed drive to uphold the much-abused budget rules. 
 
Italy&#39;s banks are saddled with 360 billion euros ($401.18 billion) in bad loans and their share prices plunged after last month&#39;s Brexit vote. Rome is in talks with the EU commission to devise a plan to recapitalise its lenders with public money limiting losses for bank investors. 
 
Dutch and German ministers have attacked a Commission decision that the European Parliament can approve a trade pact with Canada without referring it to national parliaments. The Dutch parliament was assured it would have a chance to weigh in on the treaty. 
 
But perhaps most worryingly for the EU, senior ministers in Germany, the bloc&#39;s reluctant hegemon, are advocating shrinking the executive commission, trimming its powers, and bypassing common European institutions to take more decisions by inter-governmental agreement. 
 
A call from veteran German finance minister Wolfgang Schaeuble, long an advocate of closer integration, to shift more policy decision-making to governments for expediency&#39;s sake was among the most striking indicators of the mood around Europe. 
 
&quot;If the commission doesn&#39;t get involved, then we should take the matter into our own hands and solve problems between governments,&quot; Schaeuble told Welt am Sonntag newspaper, saying now was a time for pragmatism. 
 
&quot;This inter-governmental approach proved successful during the euro zone crisis,&quot; he added. 
 
Berlin insisted on setting up the euro zone&#39;s rescue fund as an intergovernmental body outside the control of the EU&#39;s common institutions, giving itself a veto on each stage of bail-outs for distressed states and the decisive say on fiscal policy conditions. 
 
Many experts say further moves towards intergovernmentalism would accentuate German dominance and increase resentment among other EU members. 
 
Among some former communist countries that joined the bloc in 2004, there is resentment at perceived meddling by Brussels, notably on issues concerning the rule of law and media freedom, as well as environmental regulation. 
 
The Polish and Czech foreign ministers called last week for European commission president Jean-Claude Juncker to resign as a scapegoat for the June 23 British vote. 
 
The Visegrad Group of four central European countries, Poland, Hungary, the Czech Republic and Slovakia, demanded that the powers of the EU executive be reined in and more competences be returned to capitals. 
 
&quot;We need to change the overall functioning of the EU and I think it is needed to change the functioning of the European commission,&quot; said Czech Prime Minister Bohuslav Sobotka. 
 
(Reuters)

Inter-governmentalism would accentuate German dominance and increase resentment among other EU members

The European Union's authority is fraying as governments and politicians in many members challenge EU policies and take aim at 'Brussels bureaucracy' in the aftermath of Britain's vote to leave the 28-nation bloc. The Czech President and some contenders for the French presidency have called for their own referendums on continued membership of the pan-European economic and political community, although no such plebiscite is on the cards in the near future. Verbal assaults on the role of the European commission and the European parliament since the British shock almost two weeks back look more like an attempt to appease domestic public opinion than a concerted drive to strip Brussels of its main powers. But they could further undermine the legitimacy of the EU's common institutions in the eyes of citizens. France, facing a presidential election next year, has threatened to stop obeying EU rules on workers posted from one member state to another, which it says undercuts the jobs of native employees. President Francois Hollande has also demanded a rewriting of EU merger control rules and restrictions on state aid to industry to enable the creation of "European champions". Socialist Prime Minister Manuel Valls said on Sunday an EU regulation allowing employers to pay seconded workers less than their local counterparts must be changed soon or Paris would stop applying it. Employers are not now obliged to pay posted workers more than the minimum wage of the host country, often well below the average wage in the sector, and they pay social contributions in their home country welfare systems which are usually far lower than those in western Europe. Central and east European governments oppose moves to reduce the gap. "There must be equal treatment upwards to fight social dumping," Valls said. Spooked by a surge of support for anti-EU nationalist Marine Le Pen, conservative candidate Alain Juppe called on Monday for a new balance of power between Brussels and member states and a halt to further EU enlargement, ending Turkey's membership bid. He called last week for a referendum on a "new Europe". Italy is demanding a loosening of recently adopted EU regulations that make shareholders, bondholders and depositors liable for the losses of failed banks before taxpayers. 'A technocracy with no soul' Italian Prime Minister Matteo Renzi, who has fought to bend EU budget deficit rules and now seeks to pump billions of euros into his country's ailing banks if needed to shore them up, said on Monday the EU was run by "a technocracy with no soul". He also opposed sanctions against fellow southern members Spain and Portugal for violating the EU's deficit limits last year, a step the commission is due to consider on Tuesday in a German-backed drive to uphold the much-abused budget rules. Italy's banks are saddled with 360 billion euros ($401.18 billion) in bad loans and their share prices plunged after last month's Brexit vote. Rome is in talks with the EU commission to devise a plan to recapitalise its lenders with public money limiting losses for bank investors. Dutch and German ministers have attacked a Commission decision that the European Parliament can approve a trade pact with Canada without referring it to national parliaments. The Dutch parliament was assured it would have a chance to weigh in on the treaty. But perhaps most worryingly for the EU, senior ministers in Germany, the bloc's reluctant hegemon, are advocating shrinking the executive commission, trimming its powers, and bypassing common European institutions to take more decisions by inter-governmental agreement. A call from veteran German finance minister Wolfgang Schaeuble, long an advocate of closer integration, to shift more policy decision-making to governments for expediency's sake was among the most striking indicators of the mood around Europe. "If the commission doesn't get involved, then we should take the matter into our own hands and solve problems between governments," Schaeuble told Welt am Sonntag newspaper, saying now was a time for pragmatism. "This inter-governmental approach proved successful during the euro zone crisis," he added. Berlin insisted on setting up the euro zone's rescue fund as an intergovernmental body outside the control of the EU's common institutions, giving itself a veto on each stage of bail-outs for distressed states and the decisive say on fiscal policy conditions. Many experts say further moves towards intergovernmentalism would accentuate German dominance and increase resentment among other EU members. Among some former communist countries that joined the bloc in 2004, there is resentment at perceived meddling by Brussels, notably on issues concerning the rule of law and media freedom, as well as environmental regulation. The Polish and Czech foreign ministers called last week for European commission president Jean-Claude Juncker to resign as a scapegoat for the June 23 British vote. The Visegrad Group of four central European countries, Poland, Hungary, the Czech Republic and Slovakia, demanded that the powers of the EU executive be reined in and more competences be returned to capitals. "We need to change the overall functioning of the EU and I think it is needed to change the functioning of the European commission," said Czech Prime Minister Bohuslav Sobotka. (Reuters)

EU authority fraying in reaction to Brexit vote

The European Union&#39;s top economic official on Tuesday criticised a British proposal to slash corporate tax to less than 15 per cent following the nation&#39;s vote to quit the bloc. 
 
Britain&#39;s finance minister George Osborne said at the weekend he would seek to reduce corporation tax to under 15 per cent over fears of a corporate exodus following the June 23 referendum to leave the EU.&nbsp; 
 
The bloc gave a frosty reception to the plan, however, saying it would raise the threat of a competitive series of corporate tax cuts as countries try to lure firms to their shores. 
 
&quot;Going to 15 per cent does not seem to me to be a good initiative,&quot; EU economic affairs commissioner Pierre Moscovici told French radio station Radio Classique. 
 
&quot;We should not enter into exacerbated fiscal competition between ourselves, or fiscal dumping,&quot; Moscovici said in the first public reaction by the EU to Osborne&#39;s proposal. 
 
The British chancellor of the exchequer revealed his plan in an interview with the Financial Times published on Sunday evening. The Treasury confirmed the comments to AFP. 
 
Prior to the Brexit vote, British tax rates on corporate profits were already set to be cut from 20 to 19 per cent next year and to 17 per cent in 2020.&nbsp; 
 
But the new target, which has no timetable, would give Britain the lowest rates of any major economy, and put it closer to the 12.5 per cent rate in EU member Ireland.&nbsp; 
 
&quot;We must focus on the horizon and the journey ahead and make the most of the hand we&#39;ve been dealt,&quot; Osborne told the Financial Times. 
 
But Moscovici said that Osborne&#39;s initiative &quot;also means an absolutely considerable loss for the British treasury in a situation in which deficits in Britain are already much too high&quot;. 
 
Those deficits would now &quot;attract more attention from markets and rating agencies&quot; because Britain would no longer be operating in the EU framework, he said. 
 
However, Moscovici also said there was no reason to be &quot;excessively worried&quot;, suggesting that Osborne may not be around to implement 
his tax cut plan. 
 
&quot;I will wait for the Conservative party to have a real leader, and it will not be (Osborne) who prepares Britain&#39;s next budget,&quot; Moscovici said. 
 
The commissioner also issued a warning to those calling for a referendum on EU membership in France. 
 
&quot;I also say to all those who may be tempted by a referendum in France that a referendum hurts, it burns, it divides and it does not yield solutions,&quot; Moscovici said. 
 
(AFP)

It could lead to a series of competitive tax cuts as countries try to lure firms to their shores, it said

The European Union's top economic official on Tuesday criticised a British proposal to slash corporate tax to less than 15 per cent following the nation's vote to quit the bloc. Britain's finance minister George Osborne said at the weekend he would seek to reduce corporation tax to under 15 per cent over fears of a corporate exodus following the June 23 referendum to leave the EU. The bloc gave a frosty reception to the plan, however, saying it would raise the threat of a competitive series of corporate tax cuts as countries try to lure firms to their shores. "Going to 15 per cent does not seem to me to be a good initiative," EU economic affairs commissioner Pierre Moscovici told French radio station Radio Classique. "We should not enter into exacerbated fiscal competition between ourselves, or fiscal dumping," Moscovici said in the first public reaction by the EU to Osborne's proposal. The British chancellor of the exchequer revealed his plan in an interview with the Financial Times published on Sunday evening. The Treasury confirmed the comments to AFP. Prior to the Brexit vote, British tax rates on corporate profits were already set to be cut from 20 to 19 per cent next year and to 17 per cent in 2020. But the new target, which has no timetable, would give Britain the lowest rates of any major economy, and put it closer to the 12.5 per cent rate in EU member Ireland. "We must focus on the horizon and the journey ahead and make the most of the hand we've been dealt," Osborne told the Financial Times. But Moscovici said that Osborne's initiative "also means an absolutely considerable loss for the British treasury in a situation in which deficits in Britain are already much too high". Those deficits would now "attract more attention from markets and rating agencies" because Britain would no longer be operating in the EU framework, he said. However, Moscovici also said there was no reason to be "excessively worried", suggesting that Osborne may not be around to implement his tax cut plan. "I will wait for the Conservative party to have a real leader, and it will not be (Osborne) who prepares Britain's next budget," Moscovici said. The commissioner also issued a warning to those calling for a referendum on EU membership in France. "I also say to all those who may be tempted by a referendum in France that a referendum hurts, it burns, it divides and it does not yield solutions," Moscovici said. (AFP)

EU does not approve of British proposal to slash corporate tax to under 15%

Former London mayor Boris Johnson, who shocked Britain last week when he decided not to stand to replace Prime Minister David Cameron, criticised the government on Monday for not having a positive plan to make a British exit from the EU work. 
 
Johnson, who led the campaign to take Britain out of the European Union, said &quot;hysteria&quot; had gripped those who had supported staying in the bloc, and the government needed to explain the truth about the impact of Brexit. 
 
&quot;There is, among a section of the population, a kind of hysteria, a contagious mourning of the kind that I remember in 1997 after the death of (Diana) the Princess of Wales,&quot; Johnson wrote in the Daily Telegraph newspaper. 
 
&quot;It was wrong of the government to offer the public a binary choice on the EU without being willing, in the event that people voted Leave, to explain how this can be made to work in the interests of the UK and Europe. We cannot wait until mid-September, and a new PM.&quot; 
 
The flamboyant and popular Johnson, one of the most prominent Brexit campaigners, had been expected to join the contest to be the new Conservative leader after Cameron announced he would quit following the referendum vote to leave the EU. 
 
However, he pulled out when his ally, justice secretary Michael Gove, decided to run for the job himself, calling Johnson&#39;s abilities into question, which Johnson&#39;s supporters described as an act of Machiavellian treachery. 
 
A new leader is expected to be in place by early September. 
 
Johnson said fears about the impact of leaving the EU had been wildly overdone, saying the stock market had not collapsed and the emergency budget with spending cuts and tax rises had not materialised as finance minister and Remain supporter George Osborne had warned. 
 
Conservative lawmaker Ben Wallace, who was running Johnson&#39;s campaign, said he thought Gove himself was unfit to be the leader himself, calling him a gossip. 
 
&quot;Michael seems to have an emotional need to gossip, particularly when drink is taken, as it all too often seemed to be,&quot; Wallace wrote in the Telegraph. 
 
(Reuters)

'There is, among a section of the population, a contagious mourning of the kind that I remember in 1997 after the death of Princess Diana'

Former London mayor Boris Johnson, who shocked Britain last week when he decided not to stand to replace Prime Minister David Cameron, criticised the government on Monday for not having a positive plan to make a British exit from the EU work. Johnson, who led the campaign to take Britain out of the European Union, said "hysteria" had gripped those who had supported staying in the bloc, and the government needed to explain the truth about the impact of Brexit. "There is, among a section of the population, a kind of hysteria, a contagious mourning of the kind that I remember in 1997 after the death of (Diana) the Princess of Wales," Johnson wrote in the Daily Telegraph newspaper. "It was wrong of the government to offer the public a binary choice on the EU without being willing, in the event that people voted Leave, to explain how this can be made to work in the interests of the UK and Europe. We cannot wait until mid-September, and a new PM." The flamboyant and popular Johnson, one of the most prominent Brexit campaigners, had been expected to join the contest to be the new Conservative leader after Cameron announced he would quit following the referendum vote to leave the EU. However, he pulled out when his ally, justice secretary Michael Gove, decided to run for the job himself, calling Johnson's abilities into question, which Johnson's supporters described as an act of Machiavellian treachery. A new leader is expected to be in place by early September. Johnson said fears about the impact of leaving the EU had been wildly overdone, saying the stock market had not collapsed and the emergency budget with spending cuts and tax rises had not materialised as finance minister and Remain supporter George Osborne had warned. Conservative lawmaker Ben Wallace, who was running Johnson's campaign, said he thought Gove himself was unfit to be the leader himself, calling him a gossip. "Michael seems to have an emotional need to gossip, particularly when drink is taken, as it all too often seemed to be," Wallace wrote in the Telegraph. (Reuters)

Ex-London mayor Boris Johnson says UK government needs to spell out Brexit benefits

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