The weak outlook for the UK economy will outweigh any potential pay rise for British workers if the country&#39;s EU exit leads to immigration cuts, a report warned on Monday.

Future cuts to immigration could have a positive impact on the income of some British workers, but they will still be exposed to&nbsp;Brexit&#39;s impact on the broader economy, the Resolution Foundation think tank said.

Cleaners, security employees and sales staff are among those who have seen their income fall in recent years as a result of immigration, it said in an analysis.

These workers could see their income increase by between 0.2 and 0.6 per cent by 2018 if immigration fell immediately to tens of thousands a year, a key policy pledge by former prime minister David Cameron.

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<h5>The think tank warned a cut to migration would prove challenging for food and clothing manufacturers, as well as domestic personnel services, which rely more heavily on a foreign labour force.</h5>
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But such a salary boost would not shelter workers from the wider economic consequences from Brexit, the think tank said.

The Bank of England earlier this month issued its biggest-ever downgrade of a GDP forecast in the light of Britain&#39;s looming EU exit.

Its growth forecast was slashed from 2.3 per cent for both 2017 and 2018 to 0.8 per cent next year and 1.8 per cent the year after.

&quot;Those expecting a wage boost off the back of a post-Brexit&nbsp;fall in migration are likely to be disappointed,&quot; said Stephen Clarke, a policy analyst at the Resolution Foundation.

&quot;Any such gains will be dwarfed by the losses caused by the post-referendum slowdown in the economy.&quot; 
 
Immigration was a focus point of the June 23 referendum, with campaigners to leave the EU calling for an end to freedom of movement for members of the bloc.

The Resolution Foundation said overall the increase in immigration over the past 10 years has not had an impact on the wages of British workers.

The think tank warned a cut to migration would prove challenging for food and clothing manufacturers, as well as domestic personnel services, which rely more heavily on a foreign labour force.

Prime Minister Theresa May, who replaced Cameron following the referendum, has said she intends to guarantee the rights of EU citizens currently living in Britain.

May said her promise depends on the rights of British citizens living in other EU countries being guaranteed after the UK leaves the union, which is not expected to happen before 2019. 
 
(AFP)

The study also warned that curbing migration would prove challenging for food and clothing manufacturers

The weak outlook for the UK economy will outweigh any potential pay rise for British workers if the country's EU exit leads to immigration cuts, a report warned on Monday. Future cuts to immigration could have a positive impact on the income of some British workers, but they will still be exposed to Brexit's impact on the broader economy, the Resolution Foundation think tank said. Cleaners, security employees and sales staff are among those who have seen their income fall in recent years as a result of immigration, it said in an analysis. These workers could see their income increase by between 0.2 and 0.6 per cent by 2018 if immigration fell immediately to tens of thousands a year, a key policy pledge by former prime minister David Cameron. The think tank warned a cut to migration would prove challenging for food and clothing manufacturers, as well as domestic personnel services, which rely more heavily on a foreign labour force. But such a salary boost would not shelter workers from the wider economic consequences from Brexit, the think tank said. The Bank of England earlier this month issued its biggest-ever downgrade of a GDP forecast in the light of Britain's looming EU exit. Its growth forecast was slashed from 2.3 per cent for both 2017 and 2018 to 0.8 per cent next year and 1.8 per cent the year after. "Those expecting a wage boost off the back of a post-Brexit fall in migration are likely to be disappointed," said Stephen Clarke, a policy analyst at the Resolution Foundation. "Any such gains will be dwarfed by the losses caused by the post-referendum slowdown in the economy." Immigration was a focus point of the June 23 referendum, with campaigners to leave the EU calling for an end to freedom of movement for members of the bloc. The Resolution Foundation said overall the increase in immigration over the past 10 years has not had an impact on the wages of British workers. The think tank warned a cut to migration would prove challenging for food and clothing manufacturers, as well as domestic personnel services, which rely more heavily on a foreign labour force. Prime Minister Theresa May, who replaced Cameron following the referendum, has said she intends to guarantee the rights of EU citizens currently living in Britain. May said her promise depends on the rights of British citizens living in other EU countries being guaranteed after the UK leaves the union, which is not expected to happen before 2019. (AFP)

Brexit fallout to dwarf benefits of pay rise: Report

Britain&#39;s departure from the EU could be delayed until late 2019 as civil servants struggle with the task and French and German elections may hold up the start of exit negotiations, a report said on Sunday. 
 
Prime Minister Theresa May&#39;s government has indicated that it is planning to trigger Article 50 of the EU&#39;s Lisbon Treaty, which would start a two-year countdown to leaving the bloc, early in 2017. 
 
But the Sunday Times newspaper said ministers had privately warned senior figures in the City of London financial sector that this may not now happen until later in the year, delaying Brexit until late 2019. 
 
&quot;Ministers are now thinking the trigger could be delayed to autumn 2017,&quot; said one City source who had spoken to two senior ministers on the issue. 
 
&quot;They don&#39;t have the infrastructure for the people they need to hire. They say they don&#39;t even know the right questions to ask when they finally begin bargaining with Europe.&quot; 
 
An unnamed cabinet minister told the paper there were &quot;some challenges&quot; in the German and French electoral timetables. 
 
France has presidential elections in April and May next year, and Germany has elections in the autumn. 
 
May created a new ministry to oversee Brexit talks following the June 23 referendum vote to leave the EU, but the minister in charge, 
David Davis, has reportedly only hired about half of the staff that he needs. 
 
Another new department, the ministry for international trade under Liam Fox, also has an uphill task to recruit experts after decades of leaving the job to Brussels left Britain with only a handful of experienced negotiators. 
 
(AFP)

Theresa May's government plans to initiate exit process not before 2017, said a source who has spoken to two senior ministers on the issue

Britain's departure from the EU could be delayed until late 2019 as civil servants struggle with the task and French and German elections may hold up the start of exit negotiations, a report said on Sunday. Prime Minister Theresa May's government has indicated that it is planning to trigger Article 50 of the EU's Lisbon Treaty, which would start a two-year countdown to leaving the bloc, early in 2017. But the Sunday Times newspaper said ministers had privately warned senior figures in the City of London financial sector that this may not now happen until later in the year, delaying Brexit until late 2019. "Ministers are now thinking the trigger could be delayed to autumn 2017," said one City source who had spoken to two senior ministers on the issue. "They don't have the infrastructure for the people they need to hire. They say they don't even know the right questions to ask when they finally begin bargaining with Europe." An unnamed cabinet minister told the paper there were "some challenges" in the German and French electoral timetables. France has presidential elections in April and May next year, and Germany has elections in the autumn. May created a new ministry to oversee Brexit talks following the June 23 referendum vote to leave the EU, but the minister in charge, David Davis, has reportedly only hired about half of the staff that he needs. Another new department, the ministry for international trade under Liam Fox, also has an uphill task to recruit experts after decades of leaving the job to Brussels left Britain with only a handful of experienced negotiators. (AFP)

Brexit could be delayed till 2019 due to 'lack of infrastructure'

The British government pledged today to match European Union (EU) funding for farmers, universities and infrastructure projects after Britain leaves the bloc, to stem fears that key sectors will be left struggling. 
 
The commitment, intended to address uncertainty over the impact of the June 23 vote for Brexit, could cost around &pound;4.5 billion ($5.8 billion, 5.2 billion Euros) a year, finance minister Philip Hammond said. 
 
The commitment applies to agricultural funds until 2020, structural and investment projects signed before the government&#39;s budget update this autumn, and university bids won under the Horizon 2020 research and innovation programme. 
 
&quot;We recognise that many organisations across the UK which are in receipt of EU funding, or expect to start receiving funding, want reassurance about the flow of funding they will receive,&quot; Hammond said in a statement. 
 
&quot;That is why, I am confirming that structural and investment funds projects signed before the Autumn Statement and Horizon research funding granted before we leave the EU will be guaranteed by the Treasury after we leave. 
 
&quot;The government will also match the current level of agricultural funding until 2020, providing certainty to our agricultural community, which play a vital role in our country.&quot; 
 
The cost will depend on the level of applications for funds, and on when Britain leaves the EU. 
 
The government has said it will not trigger the two-year withdrawal process before the end of this year. 
 
&quot;Around about &pound;4.5 billion a year would be the level we would expect,&quot; Hammond said. 
 
Campaigners for Britain to stay in the EU in the June 23 referendum had highlighted the funding benefits of membership to key sectors such a farming and research. 
 
But the Brexit camp said any shortfall could be covered by ending Britain&#39;s contributions to the EU budget, which stood at about &pound;12.9 billion in 2015, after the rebate. 
 
Projects covered by the government&#39;s guarantee include a new facility at the University of Manchester to develop research into graphene -- a material which scientists say could transform consumer electronics -- using &pound;5 million from the European Regional Development Fund. 
 
(AFP)

The commitment, intended to address uncertainty over the impact of the June 23 vote for Brexit, could cost around ?4.5 billion

The British government pledged today to match European Union (EU) funding for farmers, universities and infrastructure projects after Britain leaves the bloc, to stem fears that key sectors will be left struggling. The commitment, intended to address uncertainty over the impact of the June 23 vote for Brexit, could cost around £4.5 billion ($5.8 billion, 5.2 billion Euros) a year, finance minister Philip Hammond said. The commitment applies to agricultural funds until 2020, structural and investment projects signed before the government's budget update this autumn, and university bids won under the Horizon 2020 research and innovation programme. "We recognise that many organisations across the UK which are in receipt of EU funding, or expect to start receiving funding, want reassurance about the flow of funding they will receive," Hammond said in a statement. "That is why, I am confirming that structural and investment funds projects signed before the Autumn Statement and Horizon research funding granted before we leave the EU will be guaranteed by the Treasury after we leave. "The government will also match the current level of agricultural funding until 2020, providing certainty to our agricultural community, which play a vital role in our country." The cost will depend on the level of applications for funds, and on when Britain leaves the EU. The government has said it will not trigger the two-year withdrawal process before the end of this year. "Around about £4.5 billion a year would be the level we would expect," Hammond said. Campaigners for Britain to stay in the EU in the June 23 referendum had highlighted the funding benefits of membership to key sectors such a farming and research. But the Brexit camp said any shortfall could be covered by ending Britain's contributions to the EU budget, which stood at about £12.9 billion in 2015, after the rebate. Projects covered by the government's guarantee include a new facility at the University of Manchester to develop research into graphene -- a material which scientists say could transform consumer electronics -- using £5 million from the European Regional Development Fund. (AFP)

United Kingdom vows to match EU funds, farm subsidies post Brexit

Royal Bank of Scotland reported wider first-half losses, 1.3 billion Pounds of new litigation charges and axed plans to turn its Williams &amp; Glyn business into a stand-alone bank today as it braces for post-Brexit shocks to the UK economy. 
 
RBS, which has not made an annual profit since 2007, booked 2.05 billion Pounds ($2.69 billion) of losses for the first half of 2016, against a 179 million Pound loss a year ago. 
 
Chief Executive Ross McEwan is battling to complete a restructuring of the taxpayer-backed bank, which includes asset sales, job cuts and multi-billion dollar charges to settle litigation and pay regulatory fines for past misconduct. 
 
Those issues have complicated RBS&#39;s task of finding profitable business in a low interest rate economy with feeble credit demand, which now faces pressures from Britain&#39;s vote to leave the European Union and a possible new referendum on Scottish independence. 
 
&quot;There is more work to be done but we are making progress,&quot; McEwan said, adding that RBS is preparing to detail a new cost-cutting plan at its full-year results in early 2017 that will involve an unspecified number of job cuts and branch closures. 
 
The CEO said RBS had not yet decided whether to pass on the Bank of England&#39;s 25 basis point base rate cut to standard variable rate borrowers, a key part of the central bank&#39;s plans unveiled on Thursday to cushion the economy against Brexit. 
 
McEwan said RBS would look at the BoE&#39;s new Term Funding Scheme aimed at helping banks to boost lending to households and businesses. 
 
RBS shares, which have fallen almost 40 per cent so far this year, were 6.8 per cent lower by 1250 GMT.&nbsp;RBS said it no longer planned to build an independent technology platform for its Williams &amp; Glyn business, citing complexity and the lower interest rate environment. 
 
The bank had originally wanted to turn the small business lender into a &#39;bank within a bank&#39; so it could achieve a clean break when the business was sold under the terms of its 45.5 billion-Pound state bailout in the global financial crisis. 
 
But RBS said the risks and costs inherent in its plan were no longer &quot;prudent&quot; and it would look at other ways to achieve the carve out, which has already cost it 1.5 billion Pounds. 
 
Spain&#39;s Banco Santander has made a formal offer to take over Royal Bank of Scotland&#39;s Williams &amp; Glyn business, two sources familiar with the matter said earlier this week. 
 
Restructuring 
 
Edinburgh-based RBS&#39;s total income fell by almost a fifth to 6.06 billion Pounds in the first half, while the bigger losses were partly driven by a 630 million Pound charge for corporate restructuring, some 345 million Pounds of which related to Williams &amp; Glyn. 
 
&quot;These results show how much work RBS still has on its plate, progress has been made, but it has been slow,&quot; Laith Khalaf, a senior analyst at Hargreaves Lansdown told Reuters. 
 
&quot;If you went back to the financial crisis very few people would have predicted that it would have taken so long to heal the wounds. Whilst RBS is relatively well capitalised, the issue is profitability rather than solvency,&quot; he said. 
 
Impairments rose by more than a quarter to 409 million Pounds and the bank warned a target to reduce its cost to income ratio below 55 per cent by 2019 would be &quot;more challenging&quot;. 
 
RBS said restructuring costs were expected to remain high in 2016, totalling more than 1 billion Pounds. 
 
The bank also set aside an additional 450 million Pounds to compensate customers mis-sold payment protection insurance and made a 180 million Euros ($201 million) provision for redress in its Irish tracker mortgages business. 
 
These came on top of 707 million Pounds of new litigation charges, which analysts at Bernstein said were largely down to a long-running dispute with investors over its 2008 rights issue.&nbsp;Despite the provision, McEwan said RBS had yet to make any deal with claimants, and he still expected the matter to go to court in 2017. 
 
Meanwhile, the bank continues to wait for what analysts broadly expect to be the biggest regulatory penalty in its history for its role in mis-selling US mortgage bonds in the run up to the financial crisis. 
 
(Reuters)

RBS, which has not made an annual profit since 2007, booked 2.05 billion Pounds ($2.69 billion) of losses for the first half of 2016

Royal Bank of Scotland reported wider first-half losses, 1.3 billion Pounds of new litigation charges and axed plans to turn its Williams & Glyn business into a stand-alone bank today as it braces for post-Brexit shocks to the UK economy. RBS, which has not made an annual profit since 2007, booked 2.05 billion Pounds ($2.69 billion) of losses for the first half of 2016, against a 179 million Pound loss a year ago. Chief Executive Ross McEwan is battling to complete a restructuring of the taxpayer-backed bank, which includes asset sales, job cuts and multi-billion dollar charges to settle litigation and pay regulatory fines for past misconduct. Those issues have complicated RBS's task of finding profitable business in a low interest rate economy with feeble credit demand, which now faces pressures from Britain's vote to leave the European Union and a possible new referendum on Scottish independence. "There is more work to be done but we are making progress," McEwan said, adding that RBS is preparing to detail a new cost-cutting plan at its full-year results in early 2017 that will involve an unspecified number of job cuts and branch closures. The CEO said RBS had not yet decided whether to pass on the Bank of England's 25 basis point base rate cut to standard variable rate borrowers, a key part of the central bank's plans unveiled on Thursday to cushion the economy against Brexit. McEwan said RBS would look at the BoE's new Term Funding Scheme aimed at helping banks to boost lending to households and businesses. RBS shares, which have fallen almost 40 per cent so far this year, were 6.8 per cent lower by 1250 GMT. RBS said it no longer planned to build an independent technology platform for its Williams & Glyn business, citing complexity and the lower interest rate environment. The bank had originally wanted to turn the small business lender into a 'bank within a bank' so it could achieve a clean break when the business was sold under the terms of its 45.5 billion-Pound state bailout in the global financial crisis. But RBS said the risks and costs inherent in its plan were no longer "prudent" and it would look at other ways to achieve the carve out, which has already cost it 1.5 billion Pounds. Spain's Banco Santander has made a formal offer to take over Royal Bank of Scotland's Williams & Glyn business, two sources familiar with the matter said earlier this week. Restructuring Edinburgh-based RBS's total income fell by almost a fifth to 6.06 billion Pounds in the first half, while the bigger losses were partly driven by a 630 million Pound charge for corporate restructuring, some 345 million Pounds of which related to Williams & Glyn. "These results show how much work RBS still has on its plate, progress has been made, but it has been slow," Laith Khalaf, a senior analyst at Hargreaves Lansdown told Reuters. "If you went back to the financial crisis very few people would have predicted that it would have taken so long to heal the wounds. Whilst RBS is relatively well capitalised, the issue is profitability rather than solvency," he said. Impairments rose by more than a quarter to 409 million Pounds and the bank warned a target to reduce its cost to income ratio below 55 per cent by 2019 would be "more challenging". RBS said restructuring costs were expected to remain high in 2016, totalling more than 1 billion Pounds. The bank also set aside an additional 450 million Pounds to compensate customers mis-sold payment protection insurance and made a 180 million Euros ($201 million) provision for redress in its Irish tracker mortgages business. These came on top of 707 million Pounds of new litigation charges, which analysts at Bernstein said were largely down to a long-running dispute with investors over its 2008 rights issue. Despite the provision, McEwan said RBS had yet to make any deal with claimants, and he still expected the matter to go to court in 2017. Meanwhile, the bank continues to wait for what analysts broadly expect to be the biggest regulatory penalty in its history for its role in mis-selling US mortgage bonds in the run up to the financial crisis. (Reuters)

Royal Banks of Scotland losses and costs mount as Brexit fallout looms large

Britain&#39;s anti-EU UK independence party (UKIP) was plunged into disarray Wednesday after the favourite to take over its leadership was barred from the race for submitting his application 17 minutes late. 
 
Immigration spokesman Steven Woolfe was excluded from the contest to replace Nigel Farage, who stood down after achieving his life&#39;s mission of Brexit in the June 23 referendum on Britain&#39;s EU membership. 
 
The decision triggered immediate chaos within UKIP - Britain&#39;s third-biggest party by the popular vote - with three members of their ruling national executive committee (NEC) resigning in protest. 
 
Woolfe, a member of the European Parliament (MEP), said he suffered technical problems submitting his papers ahead of the midday Sunday deadline. 
 
UKIP&#39;s Adam Richardson, who is overseeing the election process, said a panel led by the NEC sat on Tuesday to discuss the eligibility of candidates. 
 
&quot;By a clear majority of NEC members, Steven Woolfe MEP&#39;s application was considered to be ineligible as a result of a late submission and as such he did not meet the eligibility criteria,&quot; he said. 
 
The announcement immediately led to claims of foul play. 
 
Woolfe said he was &quot;extremely disappointed&quot; to have been excluded from the contest and said the NEC was &quot;not fit for purpose&quot;. 
Businessman Arron Banks, the party&#39;s main financial backer, said the decision to exclude Woolfe was the &quot;final straw&quot;, calling it effectively a &quot;coup&quot;. 
 
The three NEC members who quit said in a statement that the body was &quot;collectively in pursuit of oligarchy, self-promotion and cronyism&quot;, with some board members suffering from &quot;escalating megalomania&quot;. 
 
&quot;Steven Woolfe is a popular candidate among UKIP&#39;s members and should be permitted to represent those that wish to vote for him,&quot; they said. 
 
&quot;To purposefully trawl for technicalities upon which to base a decision to deny his inclusion is not in the best interests of the membership and truly injurious to UKIP.&quot; 
 
UKIP instrumental in Brexit 
 
Farage and the rise of UKIP, an anti-EU, anti-mass immigration party, played a key role in the push for a referendum on Britain&#39;s membership of the European Union. 
 
UKIP scored the third-highest number of votes in the 2015 general election, taking 12.7 per cent of the vote, but only won one constituency. 
 
They campaigned all-out for Britain to leave the EU in the June referendum on its membership of the bloc. 
 
Farage, who first became UKIP leader in 2006, stepped down after the vote to quit the EU, saying his &quot;I want my country back&quot; mantra was now &quot;I want my life back&quot;. 
 
The six candidates allowed to stand are MEPs Jonathan Arnott, Bill Etheridge and Diane James, local authority councillor Lisa Duffy, NEC member Elizabeth Jones and Phillip Broughton, who stood as a prospective member of parliament. 
 
Changes made in July ruled out several possible leadership candidates, including the party&#39;s only MP Douglas Carswell and former MP Mark Reckless. 
 
Bookmakers immediately installed home affairs spokeswoman James, who narrowly lost a high-profile parliamentary by-election in 2013, as their new odds-on favourite. 
 
Ballot papers are to be issued to members on September 1, with the new leader declared on September 15 at the party&#39;s annual conference. 
 
(AFP) 
&nbsp;

The party said that Steven Woolfe had been excluded from the leadership race after submitting his nomination papers 17 minutes late

Britain's anti-EU UK independence party (UKIP) was plunged into disarray Wednesday after the favourite to take over its leadership was barred from the race for submitting his application 17 minutes late. Immigration spokesman Steven Woolfe was excluded from the contest to replace Nigel Farage, who stood down after achieving his life's mission of Brexit in the June 23 referendum on Britain's EU membership. The decision triggered immediate chaos within UKIP - Britain's third-biggest party by the popular vote - with three members of their ruling national executive committee (NEC) resigning in protest. Woolfe, a member of the European Parliament (MEP), said he suffered technical problems submitting his papers ahead of the midday Sunday deadline. UKIP's Adam Richardson, who is overseeing the election process, said a panel led by the NEC sat on Tuesday to discuss the eligibility of candidates. "By a clear majority of NEC members, Steven Woolfe MEP's application was considered to be ineligible as a result of a late submission and as such he did not meet the eligibility criteria," he said. The announcement immediately led to claims of foul play. Woolfe said he was "extremely disappointed" to have been excluded from the contest and said the NEC was "not fit for purpose". Businessman Arron Banks, the party's main financial backer, said the decision to exclude Woolfe was the "final straw", calling it effectively a "coup". The three NEC members who quit said in a statement that the body was "collectively in pursuit of oligarchy, self-promotion and cronyism", with some board members suffering from "escalating megalomania". "Steven Woolfe is a popular candidate among UKIP's members and should be permitted to represent those that wish to vote for him," they said. "To purposefully trawl for technicalities upon which to base a decision to deny his inclusion is not in the best interests of the membership and truly injurious to UKIP." UKIP instrumental in Brexit Farage and the rise of UKIP, an anti-EU, anti-mass immigration party, played a key role in the push for a referendum on Britain's membership of the European Union. UKIP scored the third-highest number of votes in the 2015 general election, taking 12.7 per cent of the vote, but only won one constituency. They campaigned all-out for Britain to leave the EU in the June referendum on its membership of the bloc. Farage, who first became UKIP leader in 2006, stepped down after the vote to quit the EU, saying his "I want my country back" mantra was now "I want my life back". The six candidates allowed to stand are MEPs Jonathan Arnott, Bill Etheridge and Diane James, local authority councillor Lisa Duffy, NEC member Elizabeth Jones and Phillip Broughton, who stood as a prospective member of parliament. Changes made in July ruled out several possible leadership candidates, including the party's only MP Douglas Carswell and former MP Mark Reckless. Bookmakers immediately installed home affairs spokeswoman James, who narrowly lost a high-profile parliamentary by-election in 2013, as their new odds-on favourite. Ballot papers are to be issued to members on September 1, with the new leader declared on September 15 at the party's annual conference. (AFP)

Britain's UKIP faces dilemma after embarrassing exit for frontrunner Woolfe

British stocks dipped Wednesday after data suggested an economic hit from the Brexit vote just ahead of a key Bank of England policy decision. 
 
Stocks were mixed elsewhere in Europe, while US stocks gained and Japanese stocks tumbled again on worries about government stimulus. 
 
Data monitoring company Markit&#39;s preliminary composite purchasing managers&#39; index (PMI) in Britain for the services industry sank to 47.4 points in July, down from 52.3 in June. A reading under 50 indicates shrinkage. 
 
The data revived worries about the surprise British vote in June to exit the European Union, sending the FTSE down 0.2 per cent. 
 
&quot;This week&#39;s manufacturing PMI report is the latest in a long list of survey data which shows that the vote to leave the EU has caused significant uncertainty, and negative shock is on the way,&quot; said Hargreaves Lansdown economist Ben Brettell. 
 
Market watchers expect the Bank of England Thursday to slash interest rates to a record-low 0.25 per cent and to potentially boost its bond-buying stimulus program. 
 
&quot;The market anticipates at least a quarter-point cut in the base rate, but an expansion of asset purchases and a &#39;bias to ease&#39; would not be surprises,&quot; said economist Larry Hatheway at asset manager GAM. 
 
In the US, payroll firm ADP reported that private US companies added 179,000 jobs in July, slightly better than expected. The data came two days ahead of the government&#39;s official July jobs report. 
 
Analysts said US stocks were also boosted by higher oil prices, which lifted most petroleum-linked shares that helped boost the S&amp;P 500 by 0.3 per cent. 
 
Paris fell 0.2 per cent and Frankfurt rose 0.3 per cent after Markit said eurozone economic data managed a small gain in July despite Brexit. 
 
Weak stimulus hits Nikkei 
 
Japan&#39;s Nikkei dropped 1.9 per cent, its second straight decline, as gripes about a surprisingly modest stimulus package continued to dent sentiment. 
 
Japanese banking shares tanked on fears about the difficulty lenders face making money in a negative interest rate era as their bottom lines come under pressure. 
 
Mitsubishi UFJ Financial Group closed 3.9 per cent lower, rival Sumitomo Mitsui Financial Group dived 4.3 per cent and Mizuho Financial Group lost 3.3 per cent. 
 
Banking giant HSBC ended 1.8 per cent higher in Hong Kong and up more than four percent in London after it announced a $2.5 billion stock buyback and said it would maintain its dividend. 
 
In Milan, Fiat Chrysler shares surged over eight percent following a press report claiming that the auto giant is talking to Samsung about selling its car parts unit Magneti Marelli. 
 
In the US, Time Warner climbed 2.7 per cent after announcing it was taking a 10 per cent stake in Hulu, a streaming video provider that is ramping up as a competitor to sector leader Netflix. 
 
(AFP) 
&nbsp;

Market watchers anticipate 0.25 per cent cut in Bank of England's base rate

British stocks dipped Wednesday after data suggested an economic hit from the Brexit vote just ahead of a key Bank of England policy decision. Stocks were mixed elsewhere in Europe, while US stocks gained and Japanese stocks tumbled again on worries about government stimulus. Data monitoring company Markit's preliminary composite purchasing managers' index (PMI) in Britain for the services industry sank to 47.4 points in July, down from 52.3 in June. A reading under 50 indicates shrinkage. The data revived worries about the surprise British vote in June to exit the European Union, sending the FTSE down 0.2 per cent. "This week's manufacturing PMI report is the latest in a long list of survey data which shows that the vote to leave the EU has caused significant uncertainty, and negative shock is on the way," said Hargreaves Lansdown economist Ben Brettell. Market watchers expect the Bank of England Thursday to slash interest rates to a record-low 0.25 per cent and to potentially boost its bond-buying stimulus program. "The market anticipates at least a quarter-point cut in the base rate, but an expansion of asset purchases and a 'bias to ease' would not be surprises," said economist Larry Hatheway at asset manager GAM. In the US, payroll firm ADP reported that private US companies added 179,000 jobs in July, slightly better than expected. The data came two days ahead of the government's official July jobs report. Analysts said US stocks were also boosted by higher oil prices, which lifted most petroleum-linked shares that helped boost the S&P 500 by 0.3 per cent. Paris fell 0.2 per cent and Frankfurt rose 0.3 per cent after Markit said eurozone economic data managed a small gain in July despite Brexit. Weak stimulus hits Nikkei Japan's Nikkei dropped 1.9 per cent, its second straight decline, as gripes about a surprisingly modest stimulus package continued to dent sentiment. Japanese banking shares tanked on fears about the difficulty lenders face making money in a negative interest rate era as their bottom lines come under pressure. Mitsubishi UFJ Financial Group closed 3.9 per cent lower, rival Sumitomo Mitsui Financial Group dived 4.3 per cent and Mizuho Financial Group lost 3.3 per cent. Banking giant HSBC ended 1.8 per cent higher in Hong Kong and up more than four percent in London after it announced a $2.5 billion stock buyback and said it would maintain its dividend. In Milan, Fiat Chrysler shares surged over eight percent following a press report claiming that the auto giant is talking to Samsung about selling its car parts unit Magneti Marelli. In the US, Time Warner climbed 2.7 per cent after announcing it was taking a 10 per cent stake in Hulu, a streaming video provider that is ramping up as a competitor to sector leader Netflix. (AFP)

Bank of England expected to axe rates to record low, British stocks dip

The Bank of England looks ready to cut interest rates for the first time since 2009 on Thursday, seeking to stop Britain&#39;s vote to leave the European Union from kicking the country into recession. 
 
It may even go a step further and pump billions of pounds into financial markets. 
 
Economic surveys have pointed to a sharp slowdown since the BoE wrong footed markets just over two weeks back, when it kept rates on hold while it considered a bigger, unspecified package of stimulus, which policymakers said was likely in August. 
 
Manufacturing figures on Monday showed the most widespread downturn since early 2013. Earlier survey data for the much larger services sector pointed to the sharpest contraction since 2009. 
 
There is a chance these reports reflect a knee-jerk reaction to the vote, so the question the BoE faces this week is how aggressively to react. 
 
BoE chief economist Andy Haldane said he wanted to use &quot;a sledgehammer to crack a nut&quot;, but another policymaker, Kristin Forbes, said the central bank should stay calm and not rush into a decision until more hard data was available. 
 
Most economists polled by Reuters expect the BoE to cut interest rates by at least a quarter percentage point to 0.25 per cent, and almost half say it will restart its quantitative easing bond purchase programme, on hold since late 2012. 
 
&quot;If you&#39;re heading towards a waterfall, it is better to start paddling than to wait until you&#39;re at the edge,&quot; said Bank of America Merrill Lynch economist Robert Wood, who previously worked as a BoE forecaster. 
 
Wood said looser monetary policy would take months to help the economy. He predicts the BoE will announce 50 billion pounds of asset purchases on top of the 375 billion of government bonds bought between 2009 and 2012. 
 
Others say the BoE&#39;s Monetary Policy Committee (MPC) might be concerned more QE at a time of record-low global bond yields could have unpredictable consequences for banks and markets. 
 
&quot;Taken at face value, recent survey data point to a significant recession. However, there may be some element of a knee-jerk reaction and the MPC may wish to wait for more data before making such a big call,&quot; HSBC economist Simon Wells said. 
 
Surveys carried out in the first half of July may reflect the temporary political disarray as David Cameron stepped down as prime minister and the Conservative Party hunted for a successor. Some data, including the BoE&#39;s own in-house research, point to a fairly modest reaction to the referendum. 
 
Divided MPC 
 
BoE Governor Mark Carney will present the policy decision in a news conference, but is unlikely to have the full support of the MPC. 
 
Forbes, a US academic who serves as an external member of the rate-setting body, said last month looser monetary policy had costs as well as benefits, and the BoE should wait for better data to calibrate its response. 
 
The effectiveness of rate cuts and asset purchases is also in doubt at a time when 10-year British government borrowing costs GB10YT=RR have already hit a record low 0.7 per cent. 
 
&quot;At this stage monetary policy is almost out of juice,&quot; Bank of America&#39;s Wood said. Ultimately the government was likely to need to spend more or cut taxes to boost the economy, he added. 
 
HSBC&#39;s Wells also a former BoE staffer said it was probably too soon for Carney to say the BoE would act like the Bank of Japan and buy bonds in support of a fiscal stimulus which Britain&#39;s government has only hinted at so far. 
 
&quot;Although the BoE may tease us with these ideas ... (this) poses significant policy risks for the future and potentially undermines the BoE&#39;s operational independence,&quot; Wells said. 
 
More likely is for the BoE to extend its Funding for Lending Scheme, which offers banks cheap finance in return for higher lending to the private sector and was in the process of being phased out as the economy recovered. 
 
Other measures are also possible to ensure lower interest rates do not hurt financial institutions&#39; incentives to lend. 
 
The BoE will also release a quarterly update to its growth and inflation forecasts. Sterling&#39;s 12 per cent fall since the referendum is likely to trigger a forecast that inflation will exceed its 2 percent target next year as imports become more costly. 
 
Growth is certain to be revised down, with the main question whether the central bank forecasts a recession. Before the referendum, Carney said a material slowdown, not a recession, was his central scenario if Britain voted to leave. 
 
(Reuters) 
&nbsp;

The Bank of England unlikely to have the full support of Monetary Policy Committee when it will present its policy decision

The Bank of England looks ready to cut interest rates for the first time since 2009 on Thursday, seeking to stop Britain's vote to leave the European Union from kicking the country into recession. It may even go a step further and pump billions of pounds into financial markets. Economic surveys have pointed to a sharp slowdown since the BoE wrong footed markets just over two weeks back, when it kept rates on hold while it considered a bigger, unspecified package of stimulus, which policymakers said was likely in August. Manufacturing figures on Monday showed the most widespread downturn since early 2013. Earlier survey data for the much larger services sector pointed to the sharpest contraction since 2009. There is a chance these reports reflect a knee-jerk reaction to the vote, so the question the BoE faces this week is how aggressively to react. BoE chief economist Andy Haldane said he wanted to use "a sledgehammer to crack a nut", but another policymaker, Kristin Forbes, said the central bank should stay calm and not rush into a decision until more hard data was available. Most economists polled by Reuters expect the BoE to cut interest rates by at least a quarter percentage point to 0.25 per cent, and almost half say it will restart its quantitative easing bond purchase programme, on hold since late 2012. "If you're heading towards a waterfall, it is better to start paddling than to wait until you're at the edge," said Bank of America Merrill Lynch economist Robert Wood, who previously worked as a BoE forecaster. Wood said looser monetary policy would take months to help the economy. He predicts the BoE will announce 50 billion pounds of asset purchases on top of the 375 billion of government bonds bought between 2009 and 2012. Others say the BoE's Monetary Policy Committee (MPC) might be concerned more QE at a time of record-low global bond yields could have unpredictable consequences for banks and markets. "Taken at face value, recent survey data point to a significant recession. However, there may be some element of a knee-jerk reaction and the MPC may wish to wait for more data before making such a big call," HSBC economist Simon Wells said. Surveys carried out in the first half of July may reflect the temporary political disarray as David Cameron stepped down as prime minister and the Conservative Party hunted for a successor. Some data, including the BoE's own in-house research, point to a fairly modest reaction to the referendum. Divided MPC BoE Governor Mark Carney will present the policy decision in a news conference, but is unlikely to have the full support of the MPC. Forbes, a US academic who serves as an external member of the rate-setting body, said last month looser monetary policy had costs as well as benefits, and the BoE should wait for better data to calibrate its response. The effectiveness of rate cuts and asset purchases is also in doubt at a time when 10-year British government borrowing costs GB10YT=RR have already hit a record low 0.7 per cent. "At this stage monetary policy is almost out of juice," Bank of America's Wood said. Ultimately the government was likely to need to spend more or cut taxes to boost the economy, he added. HSBC's Wells also a former BoE staffer said it was probably too soon for Carney to say the BoE would act like the Bank of Japan and buy bonds in support of a fiscal stimulus which Britain's government has only hinted at so far. "Although the BoE may tease us with these ideas ... (this) poses significant policy risks for the future and potentially undermines the BoE's operational independence," Wells said. More likely is for the BoE to extend its Funding for Lending Scheme, which offers banks cheap finance in return for higher lending to the private sector and was in the process of being phased out as the economy recovered. Other measures are also possible to ensure lower interest rates do not hurt financial institutions' incentives to lend. The BoE will also release a quarterly update to its growth and inflation forecasts. Sterling's 12 per cent fall since the referendum is likely to trigger a forecast that inflation will exceed its 2 percent target next year as imports become more costly. Growth is certain to be revised down, with the main question whether the central bank forecasts a recession. Before the referendum, Carney said a material slowdown, not a recession, was his central scenario if Britain voted to leave. (Reuters)

Bank of England prepares to cut interest rates

Lloyds Banking Group said on Thursday it would accelerate its cost cutting plan to help offset a more testing economic environment and a likely drop in demand for credit caused by Britain&#39;s vote to quit the European Union.

Britain&#39;s largest retail bank announced plans to save 400 million pounds by the end of&nbsp;2017 by laying off&nbsp;a further 3,000 people&nbsp;and closing an additional 200 branches to protect its earnings and ambitious dividend profile against lower-for-longer interest rates. Chief Executive Officer Antonio Horta-Os?rio is searching for ways to prop up shareholder returns and sustain profit growth in Lloyds&#39; core UK consumer and commercial lending market, still reeling from the Brexit result on June 24.

&quot;Given the uncertainty, it is too early to determine the impact on our formal longer term guidance at this stage,&quot; the bank said in a statement.

&quot;However, while the business will remain highly capital generative, it is possible that this capital generation may be somewhat lower in future years than previously guided.&quot;

So far this year, Lloyds has already said it would cut about 3,000 positions from its 75,000-strong workforce. The bank also said it would look to streamline its non-branch property portfolio by around 30 per cent by the end of 2018.

Lloyds reported a first-half statutory pretax profit of 2.45 billion Pounds ($3.3 billion) in the six months to June 30, more than double the sum achieved in the same period last year.

That figure was just ahead of the 2.35 billion Pound average estimate of 15 analysts surveyed by the bank. Income for the first half of the year came in at 8.9 billion Pounds, just below the 2015 figure.

The bank said its net interest margin (NIM) - a key performance measure that tracks the difference between what Lloyds receives in interest and lends out to customers &ndash; had widened to 2.74 per cent over the period. It affirmed previous guidance of about 2.7 per cent for the full financial year.

But a rise in impairments by almost a third to 254 million Pounds took the shine off the profit beat, and robust NIM result and offered a glimpse into tougher times to come. Lloyds, rescued in a 20.5 billion Pound taxpayer bail-out during the financial crisis, is the first major British bank to report results since the referendum and is the most exposed to any downturn in the British economy.

But as the vote to leave the EU came at almost the end of the bank&#39;s fiscal first half, the likely impact on lending volumes will remain unclear until the third quarter and beyond.

Lloyds said it will pay an interim dividend of 0.85 pence, up 13 percent on last year. This leaves it with a common equity tier 1 ratio, a measure of financial strength, of 13 per cent after the payout. 
 
(Reuters)

Lloyds is the first major British bank to to report results since referendum and is the most exposed to downturn in British economy

Lloyds Banking Group said on Thursday it would accelerate its cost cutting plan to help offset a more testing economic environment and a likely drop in demand for credit caused by Britain's vote to quit the European Union. Britain's largest retail bank announced plans to save 400 million pounds by the end of 2017 by laying off a further 3,000 people and closing an additional 200 branches to protect its earnings and ambitious dividend profile against lower-for-longer interest rates. Chief Executive Officer Antonio Horta-Os?rio is searching for ways to prop up shareholder returns and sustain profit growth in Lloyds' core UK consumer and commercial lending market, still reeling from the Brexit result on June 24. "Given the uncertainty, it is too early to determine the impact on our formal longer term guidance at this stage," the bank said in a statement. "However, while the business will remain highly capital generative, it is possible that this capital generation may be somewhat lower in future years than previously guided." So far this year, Lloyds has already said it would cut about 3,000 positions from its 75,000-strong workforce. The bank also said it would look to streamline its non-branch property portfolio by around 30 per cent by the end of 2018. Lloyds reported a first-half statutory pretax profit of 2.45 billion Pounds ($3.3 billion) in the six months to June 30, more than double the sum achieved in the same period last year. That figure was just ahead of the 2.35 billion Pound average estimate of 15 analysts surveyed by the bank. Income for the first half of the year came in at 8.9 billion Pounds, just below the 2015 figure. The bank said its net interest margin (NIM) - a key performance measure that tracks the difference between what Lloyds receives in interest and lends out to customers – had widened to 2.74 per cent over the period. It affirmed previous guidance of about 2.7 per cent for the full financial year. But a rise in impairments by almost a third to 254 million Pounds took the shine off the profit beat, and robust NIM result and offered a glimpse into tougher times to come. Lloyds, rescued in a 20.5 billion Pound taxpayer bail-out during the financial crisis, is the first major British bank to report results since the referendum and is the most exposed to any downturn in the British economy. But as the vote to leave the EU came at almost the end of the bank's fiscal first half, the likely impact on lending volumes will remain unclear until the third quarter and beyond. Lloyds said it will pay an interim dividend of 0.85 pence, up 13 percent on last year. This leaves it with a common equity tier 1 ratio, a measure of financial strength, of 13 per cent after the payout. (Reuters)

Lloyds plans 3,000 jobs cull, fresh branch closures after Brexit shock

Estonia will take over the rotating EU presidency from Britain in late 2017 after London pulled out to focus on negotiations to leave the bloc, the 28 members of the union said yesterday. 
 
In the first major step towards Brexit after last month&#39;s shock referendum result, Prime Minister Theresa May announced that Britain would no longer take up its scheduled six-month stint next July. 
 
Ambassadors of the 28 member states had reached a &quot;broad agreement&quot; on July 20 to bring forward Estonia&#39;s presidency by six months to take Britain&#39;s place, a spokesman for European Council president Donald Tusk said last week. 
 
A statement on yesterday said that decision was formalised. 
 
Croatia, which in 2013 became the latest state to join the EU, will take over the presidency in the first semester of 2020, the members&#39; statement added. 
 
Slovakia currently holds the presidency and will be followed by Malta in the first half of 2017. 
 
(AFP)

Britain will not take up its scheduled six-month term next July. Estonia will take control over the rotating presidency in late 2017

Estonia will take over the rotating EU presidency from Britain in late 2017 after London pulled out to focus on negotiations to leave the bloc, the 28 members of the union said yesterday. In the first major step towards Brexit after last month's shock referendum result, Prime Minister Theresa May announced that Britain would no longer take up its scheduled six-month stint next July. Ambassadors of the 28 member states had reached a "broad agreement" on July 20 to bring forward Estonia's presidency by six months to take Britain's place, a spokesman for European Council president Donald Tusk said last week. A statement on yesterday said that decision was formalised. Croatia, which in 2013 became the latest state to join the EU, will take over the presidency in the first semester of 2020, the members' statement added. Slovakia currently holds the presidency and will be followed by Malta in the first half of 2017. (AFP)

Estonia to take over EU presidency from UK

US consumer sentiment held steady in July, helped by soaring stocks and undeterred by global worries over Britain&#39;s vote to leave the European Union (EU), the Conference Board reported today. 
 
The Board&#39;s monthly consumer confidence index stood at 97.3, down from 97.4 in June, with a rise in consumer views of the current situation in the economy. 
 
That was above the 91.0 level of one year ago, but still below last September&#39;s 12-month high of 101.3. 
 
In July, there was a slight fall in views of the picture six months down the road, with more people expecting business conditions to slow somewhat. 
 
Fewer of the consumers surveyed said they planned to buy cars or homes or take vacations over the next six months, suggesting caution in the market. 
 
&quot;Consumers were slightly more positive about current business and labour market conditions, suggesting the economy will continue to expand at a moderate pace,&quot; said Lynn Franco, director of indicators at The Conference Board. 
 
&quot;Expectations regarding business and labour market conditions, as well as personal income prospects, declined slightly as consumers remain cautiously optimistic about growth in the near-term.&quot;&nbsp; 
 
(AFP)&nbsp; 
&nbsp;

Fewer of the consumers surveyed, however, said they planned to buy cars or homes over next 6 months, suggesting caution in market

US consumer sentiment held steady in July, helped by soaring stocks and undeterred by global worries over Britain's vote to leave the European Union (EU), the Conference Board reported today. The Board's monthly consumer confidence index stood at 97.3, down from 97.4 in June, with a rise in consumer views of the current situation in the economy. That was above the 91.0 level of one year ago, but still below last September's 12-month high of 101.3. In July, there was a slight fall in views of the picture six months down the road, with more people expecting business conditions to slow somewhat. Fewer of the consumers surveyed said they planned to buy cars or homes or take vacations over the next six months, suggesting caution in the market. "Consumers were slightly more positive about current business and labour market conditions, suggesting the economy will continue to expand at a moderate pace," said Lynn Franco, director of indicators at The Conference Board. "Expectations regarding business and labour market conditions, as well as personal income prospects, declined slightly as consumers remain cautiously optimistic about growth in the near-term." (AFP)

Undeterred by Brexit, US consumer confidence steady in July?

Britain will need months of preparation before Brexit talks can start, European Union Commission President Jean-Claude Juncker said today, chiding the government in London for not preparing better for the possibility of a &#39;Leave&#39; vote. 
 
Juncker, who also confirmed Britain would lose unrestricted access to the internal European Union market if it did not accept free movement of workers, said his preference would have been for Brexit talks to start as soon as possible. 
 
&quot;(But) this is not the case. The British government needs several months to fine-tune its position,&quot; Juncker told France 2 television. 
 
New British Prime Minister Theresa May told Juncker in mid-July that Britain hoped to hold positive talks with the EU following the result of the June 23 referendum, but needed time to prepare for the negotiations. 
 
Juncker said there was no deadline, since article 50 of the EU treaty, which specifies the exit procedures, could only be activated by Britain. 
 
&quot;I would have preferred the UK presents us its letter of resignation, so to speak, as soon as possible, as I had thought that the British, especially those who wanted to leave the EU, would have prepared for this possibility,&quot; Juncker said. 
 
He said the EU would not grant tariff-free access to the internal market for UK goods and services if Britain did not accept free movement of workers from within the EU. 
 
&quot;There will be no access to the internal market for those who do not accept the rules, without exception or nuance, that make up the very nature of the internal market system,&quot; Juncker said. 
 
French President Francois Hollande has warned that Britain would lose free EU market access and that the City of London would no longer be able to act as a clearing house in euros, if the UK stopped free movement of workers from Europe. 
 
Asked about Boris Johnson&#39;s comparison of the EU&#39;s aims to unify Europe to those of Adolf Hitler, made before Johnson&#39;s appointment as foreign minister while he was campaigning for the &#39;Leave&#39; camp, Juncker said he was looking forward to meeting him. 
 
&quot;He may notice then that the difference between Hitler and me is more than a matter of nuance,&quot; Juncker said. 
 
(Reuters)

Juncker confirmed Britain would lose tariff-free access to the internal European Union market if it did not accept free movement of workers

Britain will need months of preparation before Brexit talks can start, European Union Commission President Jean-Claude Juncker said today, chiding the government in London for not preparing better for the possibility of a 'Leave' vote. Juncker, who also confirmed Britain would lose unrestricted access to the internal European Union market if it did not accept free movement of workers, said his preference would have been for Brexit talks to start as soon as possible. "(But) this is not the case. The British government needs several months to fine-tune its position," Juncker told France 2 television. New British Prime Minister Theresa May told Juncker in mid-July that Britain hoped to hold positive talks with the EU following the result of the June 23 referendum, but needed time to prepare for the negotiations. Juncker said there was no deadline, since article 50 of the EU treaty, which specifies the exit procedures, could only be activated by Britain. "I would have preferred the UK presents us its letter of resignation, so to speak, as soon as possible, as I had thought that the British, especially those who wanted to leave the EU, would have prepared for this possibility," Juncker said. He said the EU would not grant tariff-free access to the internal market for UK goods and services if Britain did not accept free movement of workers from within the EU. "There will be no access to the internal market for those who do not accept the rules, without exception or nuance, that make up the very nature of the internal market system," Juncker said. French President Francois Hollande has warned that Britain would lose free EU market access and that the City of London would no longer be able to act as a clearing house in euros, if the UK stopped free movement of workers from Europe. Asked about Boris Johnson's comparison of the EU's aims to unify Europe to those of Adolf Hitler, made before Johnson's appointment as foreign minister while he was campaigning for the 'Leave' camp, Juncker said he was looking forward to meeting him. "He may notice then that the difference between Hitler and me is more than a matter of nuance," Juncker said. (Reuters)

EU president Juncker: No deadline for start of Brexit talks

Britain&#39;s new finance minister Philip Hammond, under pressure from his peers from around the world, said today there could be more clarity later this year on how the country will exit the European Union. 
 
Several nations called on Britain during weekend talks on the world economy to explain how the politically fraught Brexit process will unfold in order to avoid adding a new drag on the long and slow recovery from the financial crisis. 
 
&quot;It&#39;s right at the top of the agenda here at the G20,&quot; Hammond said at the end of the two-day meeting of the Group of 20 leading economies in the Chinese city of Chengdu. &quot;It&#39;s a new factor affecting the global economic outlook and it has increased the uncertainty which the world economy faces.&quot; 
 
Britain was plunged into its biggest political crisis in decades by the June 23 Brexit vote and so far it has resisted calls from some other EU countries to trigger quickly the two-year process for negotiating its exit from the bloc. 
 
Prime Minister Theresa May, who has been in her job for less than two weeks, traveled to Germany and France last week to explain why she needed time to come up with an exit strategy. 
 
The EU&#39;s top economic official, Pierre Moscovici, said the bloc understood that Britain should not be rushed but &quot;at the same time let&#39;s not waste time, let&#39;s not have too much uncertainty, let&#39;s act and choose as swiftly as possible.&quot; 
 
Hammond told reporters today the two-year negotiating period, once launched, represented &quot;quite a tight timescale&quot; and Britain needed to go into it with clear objectives. &quot;We have to do that before the start of the process because when we serve that notice, we need to hit the ground running,&quot; he said. 
 
But Hammond also showed he was aware of the need for some clarity on Brexit: &quot;What will start to reduce uncertainty is when we are able to set out more clearly the kind of arrangement we envisage going forward with the European Union.&quot; 
 
&quot;If our European Union partners respond to such a vision positively - obviously it will be subject to negotiation - so that there is a sense perhaps later this year that we are all on the same page in terms of where we expect to be going, I think that will send a reassuring signal to the business community and to markets,&quot; Hammond said. 
 
May has said she does not plan to launch the formal negotiation period this year. It remains to be seen if other EU countries would enter informal talks with Britain before the formal negotiations, something they have previously ruled out. 
 
Govt, Bank of England have to be ready 
 
Financial markets have stabilised after the initial shock of the referendum result which saw the value of the pound plunge by more than 10 per cent and trillions of dollars wiped off stock markets worldwide. But economists are expecting Britain to fall into a recession, according to a Reuters poll. 
 
Hammond said he did not think that a survey of British businesses published on Friday, which showed the sharpest fall on record in a purchasing managers index, was a sign that the economy was in already in a recession. 
 
&quot;What it does is underscore the hit to confidence,&quot; he said. 
 
Hammond warned that Brexit-related volatility in markets would be a risk throughout the two-year negotiation period. 
 
&quot;We have to be ready as government, the Bank of England has to be ready as monetary authority, throughout that period to respond to any instability created by that uncertainty and to ensure that the economy continues to operate smoothly,&quot; he said. 
 
The BoE is expected to cut interest rates and possibly announce more stimulus measures on August 4. Hammond has said he could ease fiscal policy in the autumn if more help is needed. 
 
Asked about a comment he made on Friday, that he might &quot;reset&quot; fiscal policy to cope with the Brexit fallout, Hammond said Britain&#39;s still high levels of debt meant it needed a new framework on its public finances to give clarity to markets. 
 
&quot;What that framework will look like will depend on the decisions we make about whether or not any fiscal stimulus is required on the basis of the data we will by then have available,&quot; he said. 
 
(Reuters)

Britain's finance minister accepted the need for some clarity on Brexit, said it's at the top of agenda at the G20

Britain's new finance minister Philip Hammond, under pressure from his peers from around the world, said today there could be more clarity later this year on how the country will exit the European Union. Several nations called on Britain during weekend talks on the world economy to explain how the politically fraught Brexit process will unfold in order to avoid adding a new drag on the long and slow recovery from the financial crisis. "It's right at the top of the agenda here at the G20," Hammond said at the end of the two-day meeting of the Group of 20 leading economies in the Chinese city of Chengdu. "It's a new factor affecting the global economic outlook and it has increased the uncertainty which the world economy faces." Britain was plunged into its biggest political crisis in decades by the June 23 Brexit vote and so far it has resisted calls from some other EU countries to trigger quickly the two-year process for negotiating its exit from the bloc. Prime Minister Theresa May, who has been in her job for less than two weeks, traveled to Germany and France last week to explain why she needed time to come up with an exit strategy. The EU's top economic official, Pierre Moscovici, said the bloc understood that Britain should not be rushed but "at the same time let's not waste time, let's not have too much uncertainty, let's act and choose as swiftly as possible." Hammond told reporters today the two-year negotiating period, once launched, represented "quite a tight timescale" and Britain needed to go into it with clear objectives. "We have to do that before the start of the process because when we serve that notice, we need to hit the ground running," he said. But Hammond also showed he was aware of the need for some clarity on Brexit: "What will start to reduce uncertainty is when we are able to set out more clearly the kind of arrangement we envisage going forward with the European Union." "If our European Union partners respond to such a vision positively - obviously it will be subject to negotiation - so that there is a sense perhaps later this year that we are all on the same page in terms of where we expect to be going, I think that will send a reassuring signal to the business community and to markets," Hammond said. May has said she does not plan to launch the formal negotiation period this year. It remains to be seen if other EU countries would enter informal talks with Britain before the formal negotiations, something they have previously ruled out. Govt, Bank of England have to be ready Financial markets have stabilised after the initial shock of the referendum result which saw the value of the pound plunge by more than 10 per cent and trillions of dollars wiped off stock markets worldwide. But economists are expecting Britain to fall into a recession, according to a Reuters poll. Hammond said he did not think that a survey of British businesses published on Friday, which showed the sharpest fall on record in a purchasing managers index, was a sign that the economy was in already in a recession. "What it does is underscore the hit to confidence," he said. Hammond warned that Brexit-related volatility in markets would be a risk throughout the two-year negotiation period. "We have to be ready as government, the Bank of England has to be ready as monetary authority, throughout that period to respond to any instability created by that uncertainty and to ensure that the economy continues to operate smoothly," he said. The BoE is expected to cut interest rates and possibly announce more stimulus measures on August 4. Hammond has said he could ease fiscal policy in the autumn if more help is needed. Asked about a comment he made on Friday, that he might "reset" fiscal policy to cope with the Brexit fallout, Hammond said Britain's still high levels of debt meant it needed a new framework on its public finances to give clarity to markets. "What that framework will look like will depend on the decisions we make about whether or not any fiscal stimulus is required on the basis of the data we will by then have available," he said. (Reuters)

UK seeks to assuage global worries over path to Brexit

Britain&#39;s vote to leave the European Union heightened risks for the world economy, finance chiefs from the G20 group of leading countries said on Sunday at a meeting in China. 
 
The outcome of last month&#39;s referendum &quot;adds to the uncertainty in the global economy&quot;, said China&#39;s finance minister Lou Jiwei, who hosted the meeting. 
 
But he added that EU member countries were &quot;well positioned to proactively address the potential economic and financial consequences stemming from the UK referendum&quot;.
The International Monetary Fund (IMF) has warned risks to the global economy are growing, as it called on some G20 nations to boost government spending.

Central bank chiefs and finance ministers from the world&#39;s top 20 economies gathered in the southwestern Chinese city of Chengdu on Saturday to tackle a slowing global economy facing new uncertainties with Britain voting to leave the European Union (EU).

&quot;Global growth remains weak, and downside risks have become more salient,&quot; the IMF said in a report released ahead of the G20 meeting.

&quot;Growth could be even lower if the current increases in economic and political uncertainty in the wake of the &#39;Brexit&#39; vote continue.&quot;

The IMF wants advanced economies like Germany and the United States to channel more public spending into infrastructure investment to help boost global growth, an issue that has sparked divisions among G20 members.

&quot;Reforms that facilitate the scaling up of infrastructure investment would help raise productive capacity, boost short-term demand directly, and catalyse private investment,&quot; it said.
(AFP) 
 
&nbsp;

The IMF has called on some advanced economies like Germany and the US to channel more public spending to help boost global growth

Britain's vote to leave the European Union heightened risks for the world economy, finance chiefs from the G20 group of leading countries said on Sunday at a meeting in China. The outcome of last month's referendum "adds to the uncertainty in the global economy", said China's finance minister Lou Jiwei, who hosted the meeting. But he added that EU member countries were "well positioned to proactively address the potential economic and financial consequences stemming from the UK referendum". The International Monetary Fund (IMF) has warned risks to the global economy are growing, as it called on some G20 nations to boost government spending. Central bank chiefs and finance ministers from the world's top 20 economies gathered in the southwestern Chinese city of Chengdu on Saturday to tackle a slowing global economy facing new uncertainties with Britain voting to leave the European Union (EU). "Global growth remains weak, and downside risks have become more salient," the IMF said in a report released ahead of the G20 meeting. "Growth could be even lower if the current increases in economic and political uncertainty in the wake of the 'Brexit' vote continue." The IMF wants advanced economies like Germany and the United States to channel more public spending into infrastructure investment to help boost global growth, an issue that has sparked divisions among G20 members. "Reforms that facilitate the scaling up of infrastructure investment would help raise productive capacity, boost short-term demand directly, and catalyse private investment," it said. (AFP)

G20: Brexit adding uncertainty to slowing global economy

More than 6,000 hate crimes have been reported to police in England, Wales and Northern Ireland after Britain voted to leave the European Union (EU) last month, latest figures released this week show.&nbsp; 
 
In the four weeks since June 16, as many as 6,193 offences had been reported across the UK, with the most common crimes being harassment, assault, verbal abuse and spitting, the UK&#39;s National Police Chief&#39;s Council said. 
 
&quot;Following increase in hate crime seen after the EU referendum, police forces have been taking a robust approach to these crimes and we are pleased to see the numbers of incidents have begun to fall,&quot; said assistant chief constable Mark Hamilton, the National Police Chiefs&#39; Council lead for hate crime. 
 
&quot;Clearly any hate crime is unacceptable and these numbers are still far too high. We remain committed to helping people feel safe and secure about being themselves as they go about their lives so police officers will continue to be out around the country engaging with communities and picking up and dealing with tensions and problems,&quot; he said. 
 
There was a slight fall in reports in the first half of July compared with an initial spike in the days before and after the 23 June Brexit vote, police chiefs said. 
 
But the overall level of racist and hate related incidents was up 20 per cent on the same period in July 2015. 
 
Following the vote to leave the European Union, there has been a spike in the number of attacks on migrants and ethnic minorities. 
 
Muslim people and Eastern Europeans reported they had been particularly targeted with the result. 
 
Immigration was one of the most prevalent and divisive issues discussed during the campaign, with the prospect of controlling migration one of the key topics that is believed to have swung the vote in favour of Brexit.&nbsp; 
 
(PTI)&nbsp; 
 
&nbsp;

A spike in the number of attacks on migrants and ethnic minorities has been reported

More than 6,000 hate crimes have been reported to police in England, Wales and Northern Ireland after Britain voted to leave the European Union (EU) last month, latest figures released this week show. In the four weeks since June 16, as many as 6,193 offences had been reported across the UK, with the most common crimes being harassment, assault, verbal abuse and spitting, the UK's National Police Chief's Council said. "Following increase in hate crime seen after the EU referendum, police forces have been taking a robust approach to these crimes and we are pleased to see the numbers of incidents have begun to fall," said assistant chief constable Mark Hamilton, the National Police Chiefs' Council lead for hate crime. "Clearly any hate crime is unacceptable and these numbers are still far too high. We remain committed to helping people feel safe and secure about being themselves as they go about their lives so police officers will continue to be out around the country engaging with communities and picking up and dealing with tensions and problems," he said. There was a slight fall in reports in the first half of July compared with an initial spike in the days before and after the 23 June Brexit vote, police chiefs said. But the overall level of racist and hate related incidents was up 20 per cent on the same period in July 2015. Following the vote to leave the European Union, there has been a spike in the number of attacks on migrants and ethnic minorities. Muslim people and Eastern Europeans reported they had been particularly targeted with the result. Immigration was one of the most prevalent and divisive issues discussed during the campaign, with the prospect of controlling migration one of the key topics that is believed to have swung the vote in favour of Brexit. (PTI)

UK records 6,193 post-Brexit hate crimes

While British politicians have spent the month since the EU referendum in a whirl of resignations, recriminations and political backstabbings, civil servants have been quietly beginning the mammoth task of implementing Brexit. 
 
Unpicking 43 years of EU laws and regulations and forging new alliances outside the 28-nation bloc arguably represents the biggest challenge for Whitehall -- as the civil service is collectively known -- since World War II. 
 
 
What is the strategy&nbsp; 
 
Prime Minister Theresa May has promised to implement the June 23 referendum vote to leave the EU -- but what this means in practice is not yet clear. 
 
In talks with German Chancellor Angela Merkel and French President Francois Hollande this week, she said she would not launch the formal two-year exit process before the end of this year, to give the government time to formulate its position. 
 
It will be up to the civil service to draw up options in terms of Britain&#39;s withdrawal from the EU, its future relationship with European allies and new trade deals. 
 
Issues at stake range from the status of EU citizens in Britain and Britons living on the continent, to whether Britain will want continued access to the EU single market. 
 
There are also questions over what happens to British recipients of key EU programmes such as agricultural subsidies and scientific research funding. 
 
Which ministers are in charge? 
 
Three ministers will help shape Britain&#39;s new future outside the EU -- Foreign Secretary Boris Johnson, Minister for Exiting the European Union David Davis and Minister for International Trade Liam Fox. 
 
They all campaigned to leave the bloc in the referendum, but as individuals they have clashed in the past. 
 
May, who campaigned to stay in the EU, will maintain control by personally chairing a Brexit cabinet group. 
 
But leaving the EU will impact on almost everything in government, and May has told all her cabinet ministers that they have a responsibility to &quot;make Brexit work&quot;. 
 
Who is leading Brexit talks? 
 
The new Department for Exiting the European Union will oversee preparations on leaving the bloc and support the prime minister in negotiations for the divorce. 
 
It will also lead work on establishing new ties with EU nations and consulting with those involved, from the devolved governments in Scotland, Wales and Northern Ireland to business and trade union leaders. 
 
Oliver Robbins, a career civil servant with experience at the interior and finance ministries, was appointed to run the department in one of former prime minister David Cameron&#39;s final acts of office. 
 
The department is currently based in the Cabinet Office at number nine Downing Street, next door to May&#39;s office, and has just 40 staff. 
 
It intends to expand to about 200, taking some staff from the Foreign Office and Britain&#39;s current team in Brussels. 
 
What about trade? 
 
The new Department for International Trade, led by Fox, is charged with formulating a new trade policy outside the EU. 
 
Informal talks have already begun with Canada and Australia, although Britain cannot sign any new deals until it formally relinquishes its EU membership. 
 
Officials have said they are aiming for a withdrawal in early 2019. 
 
A major problem is Britain&#39;s lack of trade negotiators. 
 
Since 1972, it has relied on the EU to conduct all deals and has only 12 to 20 serving officials with any experience of trade negotiations, according to one former civil servant. 
 
If it decides to leave the EU single market, Britain must negotiate a free trade agreement with the bloc as well as with non-EU nations. 
 
The government aims to have up to 300 specialist trade staff by the end of the year. 
 
What is the cost? 
 
All in all, Dominic Cook, associate fellow of the Said Business School in Oxford, estimates that up to 10,000 staff could be required to implement Brexit. 
 
There are currently more than 1,000 British nationals working for the European Commission, and efforts will likely be made to try to lure some of them back. 
 
But government will also likely need to turn to the private sector, with management consultancy firm McKinsey already working with the Brexit ministry. 
 
&quot;It&#39;s going to cost billions,&quot; Cook told The Times. 
 
(AFP)&nbsp;

Unpicking 43 years of EU regulations, forging new alliances outside 28-nation bloc arguably represents the biggest challenge for Whitehall

While British politicians have spent the month since the EU referendum in a whirl of resignations, recriminations and political backstabbings, civil servants have been quietly beginning the mammoth task of implementing Brexit. Unpicking 43 years of EU laws and regulations and forging new alliances outside the 28-nation bloc arguably represents the biggest challenge for Whitehall -- as the civil service is collectively known -- since World War II. What is the strategy Prime Minister Theresa May has promised to implement the June 23 referendum vote to leave the EU -- but what this means in practice is not yet clear. In talks with German Chancellor Angela Merkel and French President Francois Hollande this week, she said she would not launch the formal two-year exit process before the end of this year, to give the government time to formulate its position. It will be up to the civil service to draw up options in terms of Britain's withdrawal from the EU, its future relationship with European allies and new trade deals. Issues at stake range from the status of EU citizens in Britain and Britons living on the continent, to whether Britain will want continued access to the EU single market. There are also questions over what happens to British recipients of key EU programmes such as agricultural subsidies and scientific research funding. Which ministers are in charge? Three ministers will help shape Britain's new future outside the EU -- Foreign Secretary Boris Johnson, Minister for Exiting the European Union David Davis and Minister for International Trade Liam Fox. They all campaigned to leave the bloc in the referendum, but as individuals they have clashed in the past. May, who campaigned to stay in the EU, will maintain control by personally chairing a Brexit cabinet group. But leaving the EU will impact on almost everything in government, and May has told all her cabinet ministers that they have a responsibility to "make Brexit work". Who is leading Brexit talks? The new Department for Exiting the European Union will oversee preparations on leaving the bloc and support the prime minister in negotiations for the divorce. It will also lead work on establishing new ties with EU nations and consulting with those involved, from the devolved governments in Scotland, Wales and Northern Ireland to business and trade union leaders. Oliver Robbins, a career civil servant with experience at the interior and finance ministries, was appointed to run the department in one of former prime minister David Cameron's final acts of office. The department is currently based in the Cabinet Office at number nine Downing Street, next door to May's office, and has just 40 staff. It intends to expand to about 200, taking some staff from the Foreign Office and Britain's current team in Brussels. What about trade? The new Department for International Trade, led by Fox, is charged with formulating a new trade policy outside the EU. Informal talks have already begun with Canada and Australia, although Britain cannot sign any new deals until it formally relinquishes its EU membership. Officials have said they are aiming for a withdrawal in early 2019. A major problem is Britain's lack of trade negotiators. Since 1972, it has relied on the EU to conduct all deals and has only 12 to 20 serving officials with any experience of trade negotiations, according to one former civil servant. If it decides to leave the EU single market, Britain must negotiate a free trade agreement with the bloc as well as with non-EU nations. The government aims to have up to 300 specialist trade staff by the end of the year. What is the cost? All in all, Dominic Cook, associate fellow of the Said Business School in Oxford, estimates that up to 10,000 staff could be required to implement Brexit. There are currently more than 1,000 British nationals working for the European Commission, and efforts will likely be made to try to lure some of them back. But government will also likely need to turn to the private sector, with management consultancy firm McKinsey already working with the Brexit ministry. "It's going to cost billions," Cook told The Times. (AFP)

Preparing for EU divorce:  UK faces monumental task

The International Monetary Fund (IMF) has warned risks to the global economy are growing, as it called on some G20 nations to boost government spending.

Central bank chiefs and finance ministers from the world&#39;s top 20 economies gathered in the southwestern Chinese city of Chengdu on Saturday to tackle a slowing global economy facing new uncertainties with Britain voting to leave the European Union (EU).

&quot;Global growth remains weak, and downside risks have become more salient,&quot; the IMF said in a report released ahead of the G20 meeting.

&quot;Growth could be even lower if the current increases in economic and political uncertainty in the wake of the &#39;Brexit&#39; vote continue.&quot;

In an update to its April forecast, the IMF lowered its forecasts for global growth this year and next by 0.1 per cent, to 3.1 per cent and 3.5 per cent respectively.

Britain&#39;s new finance minister Philip Hammond is among those attending to deliver a message that his country is still &quot;open for business&quot;, according to a statement from the British treasury.

The IMF wants advanced economies like Germany and the United States to channel more public spending into infrastructure investment to help boost global growth, an issue that has sparked divisions among G20 members.

&quot;Reforms that facilitate the scaling up of infrastructure investment would help raise productive capacity, boost short-term demand directly, and catalyse private investment,&quot; it said.
Terrorism, Turkey, Trump 
 
But other challenges loom besides Brexit, including what one official attending referred to as the &quot;Three Ts&quot; -&nbsp;terrorism, Turkey and Trump.

The recent attack in the French city of Nice which killed 84 people, the third major incident in the European country over the past 18 months, has rattled financial markets, and a gunman in the German city of Munich killed nine people on Friday.

A failed coup in Turkey which had aimed at unseating President Recep Tayyip Erdogan, and his huge subsequent crackdown on opponents, has alarmed Ankara&#39;s Western allies.

Speaking at a G20-linked tax seminar on Saturday, Turkey&#39;s deputy prime minister Mehmet Simsek sought to reassure other countries.

&quot;Despite what has happened a week ago in Turkey,&nbsp;we will continue to strongly adhere to democratic principles and apply rule of law, and not much really has changed,&quot; he said.

Tycoon Donald Trump sealing the Republican party nomination in the US presidential race, where he will face Democrat Hillary Clinton, could add uncertainty if the contest is close.

At an earlier G20 meeting in February, finance ministers vowed to use &quot;all policy tools&quot; -- monetary, fiscal and structural -- to support economic growth.

&quot;The G20 process has given us greater ability to focus globally on how to use the different tools at our disposal to promote growth,&quot; US treasury secretary Jacob Lew told the tax seminar.

But with the use of monetary policy reaching its limits in some countries, analysts see more room for using fiscal measures.

&quot;As to stimulus, we actually do not expect much monetary stimulus ahead in the major advanced economies other than in Japan,&quot; Louis Kuijs, head of Asia economics at Oxford Economics in Hong Kong, said ahead of the G20 meeting.

&quot;But I do think that the likelihood of fiscal policy easing is rising globally.&quot; 
 
(AFP)

The International Monetary Fund has warned of risks to global growth in the wake of Britain leaving the European Union

The International Monetary Fund (IMF) has warned risks to the global economy are growing, as it called on some G20 nations to boost government spending. Central bank chiefs and finance ministers from the world's top 20 economies gathered in the southwestern Chinese city of Chengdu on Saturday to tackle a slowing global economy facing new uncertainties with Britain voting to leave the European Union (EU). "Global growth remains weak, and downside risks have become more salient," the IMF said in a report released ahead of the G20 meeting. "Growth could be even lower if the current increases in economic and political uncertainty in the wake of the 'Brexit' vote continue." In an update to its April forecast, the IMF lowered its forecasts for global growth this year and next by 0.1 per cent, to 3.1 per cent and 3.5 per cent respectively. Britain's new finance minister Philip Hammond is among those attending to deliver a message that his country is still "open for business", according to a statement from the British treasury. The IMF wants advanced economies like Germany and the United States to channel more public spending into infrastructure investment to help boost global growth, an issue that has sparked divisions among G20 members. "Reforms that facilitate the scaling up of infrastructure investment would help raise productive capacity, boost short-term demand directly, and catalyse private investment," it said. Terrorism, Turkey, Trump But other challenges loom besides Brexit, including what one official attending referred to as the "Three Ts" - terrorism, Turkey and Trump. The recent attack in the French city of Nice which killed 84 people, the third major incident in the European country over the past 18 months, has rattled financial markets, and a gunman in the German city of Munich killed nine people on Friday. A failed coup in Turkey which had aimed at unseating President Recep Tayyip Erdogan, and his huge subsequent crackdown on opponents, has alarmed Ankara's Western allies. Speaking at a G20-linked tax seminar on Saturday, Turkey's deputy prime minister Mehmet Simsek sought to reassure other countries. "Despite what has happened a week ago in Turkey, we will continue to strongly adhere to democratic principles and apply rule of law, and not much really has changed," he said. Tycoon Donald Trump sealing the Republican party nomination in the US presidential race, where he will face Democrat Hillary Clinton, could add uncertainty if the contest is close. At an earlier G20 meeting in February, finance ministers vowed to use "all policy tools" -- monetary, fiscal and structural -- to support economic growth. "The G20 process has given us greater ability to focus globally on how to use the different tools at our disposal to promote growth," US treasury secretary Jacob Lew told the tax seminar. But with the use of monetary policy reaching its limits in some countries, analysts see more room for using fiscal measures. "As to stimulus, we actually do not expect much monetary stimulus ahead in the major advanced economies other than in Japan," Louis Kuijs, head of Asia economics at Oxford Economics in Hong Kong, said ahead of the G20 meeting. "But I do think that the likelihood of fiscal policy easing is rising globally." (AFP)

G20 finance leaders meet in China, discuss growing risks to global economy

The world cannot depend on China alone to save it from a Brexit-induced downturn, the country&#39;s premier said today. 
 
Li Keqiang made the remarks after meeting the heads of six global economic organisations, days after the International Monetary Fund&nbsp;(IMF)&nbsp;predicted that uncertainty created by Britain&#39;s vote to leave the European Union would slow the world economy into next year. 
 
&quot;Given the financial fluctuations as a result of Brexit, China will advance market-based reform of its exchange rate,&quot; Li said, adding, &quot;we will not engage in a trade war or currency war.&nbsp;But it is impossible to carry all of the burden of the whole world on our shoulders,&quot; he said. 
 
Improving global economic growth would require the world to step up macroeconomic coordination and increase the transparency of macro policies, Li added. 
 
In an update to its April forecast, the IMF said global economic growth was likely to be 3.1 per cent this year and 3.4 per cent in 2017, a downward revision of 0.1 per cent for both years. At the same time it upgraded its growth forecast for China by 0.1 per cent to 6.6. 
 
The Asian giant&#39;s economy expanded at 6.7 per cent in the April-June period, the same as the first three months of the year, and slowing from a growth of 6.9 for the full year 2015, its weakest annual rate in a quarter of a century.&nbsp;But the second-quarter reading was stronger than expected and fuelled hopes that growth in the world&#39;s second-largest economy may be stabilising. 
 
Li said the IMF hike put &quot;pressure&quot; on China to &quot;maintain growth and stability&quot;, adding that the organisation should &quot;encourage all countries to move in the same direction&quot;. 
 
Following Li&#39;s comments, World Bank president Jim Yong Kim praised China for its commitment to international economic cooperation at a &quot;time when in the West there is a very loud rejection of globalisation and multilateralism&quot;. 
 
The remarks come as Beijing finds itself in a dispute with the EU over whether or not it deserves to be granted market economy status, a designation that would make it much harder for major economies to fight Beijing over alleged unfair trading practices. 
 
Li&#39;s meeting came ahead of a G-20 finance ministers summit in the Chinese city of Chengdu, where representatives from the biggest industrialised and emerging economies are expected to discuss the impact of Brexit. 
 
(AFP)

In the West there is a very loud rejection of globalisation and multilateralism: World Bank president, Jim Yong Kim

The world cannot depend on China alone to save it from a Brexit-induced downturn, the country's premier said today. Li Keqiang made the remarks after meeting the heads of six global economic organisations, days after the International Monetary Fund (IMF) predicted that uncertainty created by Britain's vote to leave the European Union would slow the world economy into next year. "Given the financial fluctuations as a result of Brexit, China will advance market-based reform of its exchange rate," Li said, adding, "we will not engage in a trade war or currency war. But it is impossible to carry all of the burden of the whole world on our shoulders," he said. Improving global economic growth would require the world to step up macroeconomic coordination and increase the transparency of macro policies, Li added. In an update to its April forecast, the IMF said global economic growth was likely to be 3.1 per cent this year and 3.4 per cent in 2017, a downward revision of 0.1 per cent for both years. At the same time it upgraded its growth forecast for China by 0.1 per cent to 6.6. The Asian giant's economy expanded at 6.7 per cent in the April-June period, the same as the first three months of the year, and slowing from a growth of 6.9 for the full year 2015, its weakest annual rate in a quarter of a century. But the second-quarter reading was stronger than expected and fuelled hopes that growth in the world's second-largest economy may be stabilising. Li said the IMF hike put "pressure" on China to "maintain growth and stability", adding that the organisation should "encourage all countries to move in the same direction". Following Li's comments, World Bank president Jim Yong Kim praised China for its commitment to international economic cooperation at a "time when in the West there is a very loud rejection of globalisation and multilateralism". The remarks come as Beijing finds itself in a dispute with the EU over whether or not it deserves to be granted market economy status, a designation that would make it much harder for major economies to fight Beijing over alleged unfair trading practices. Li's meeting came ahead of a G-20 finance ministers summit in the Chinese city of Chengdu, where representatives from the biggest industrialised and emerging economies are expected to discuss the impact of Brexit. (AFP)

Chinese premier: We alone cannot save world from Brexit downturn

British business activity sank in July to its lowest level since April 2009, a survey revealed today in the first indication of economic contaction since the shock European Union (EU) exit vote. 
 
The preliminary composite purchasing managers&#39; index (PMI) by the research Markit group sank to 47.7 points in July, down from 52.4 in June. 
 
A reading under 50 indicates contraction in private sector activity. 
 
The survey -- regarded as a key early indicator of economic activity before official statistics are published -- is the first major evidence of economic fallout after Britons voted to leave the EU in a referendum on June 23. 
 
&quot;July saw a dramatic deterioration in the economy, with business activity slumping at the fastest rate since the height of the global financial crisis in early-2009,&quot; said Chris Williamson, chief economist at Markit. 
 
&quot;The downturn, whether manifesting itself in order book cancellations, a lack of new orders or the postponement or halting of projects, was most commonly attributed in one way or another to Brexit,&quot; he added.&nbsp; 
 
Third quarter opens on weak footing in Britain&nbsp; 
 
Markit added that the survey signalled a 0.4-per cent contraction in the British economy in the third quarter, or three months to September. 
 
&quot;Much of course depends on whether we see a further deterioration in August or if July represents a shock-induced nadir,&quot; added Williamson. 
 
&quot;Given the record slump in service sector business expectations, the suggestion is that there is further pain to come in the short-term at least.&quot; 
 
Markit added the survey showed that the economy had &quot;opened the third quarter on a weak footing&quot;. 
 
Output and new orders fell in both the manufacturing and service sectors during July. 
 
&quot;A number of firms linked this to ongoing uncertainty pre- and post-EU referendum, with reports especially prevalent among service providers,&quot; added Markit in a statement. 
 
&quot;The downturn in services was also more marked than that seen in manufacturing. Services activity and new orders both fell at the quickest rates in over seven years.&quot; 
 
The collapse in the British pound following the Brexit vote had meanwhile pushed up manufacturers&#39; costs. 
 
&quot;The downside of the exchange rate was a steep rise in manufacturers` input prices, mainly due to higher import costs,&quot; it said. 
 
&quot;The rate of purchase price inflation hit a five-year record, with the extent of the acceleration among the steepest in the survey history.&quot; 
 
The data was published after the International Monetary Fund slashed its global and British economic growth forecasts for 2016 and 2017 earlier this week -- and blamed uncertainty created by Brexit. Britain`s new finance minister Philip Hammond meanwhile declared this week that it was up to the Bank of England (BoE) to respond to the economic &quot;shock&quot; arising from Brexit. 
 
&#39;PMI data could persuade policymakers to act&#39;&nbsp; 
 
Williamson added today that the new PMI data could persuade policymakers to act. 
 
&quot;With policymakers waiting to see hard data on the state of the economy before considering more stimulus, the slump in the PMI will provide a powerful argument for swift action,&quot; noted Williamson. 
 
The BoE kept its key interest rate at 0.50 percent last week, confounding expectations for a reduction -- but flagged a possible August cut in response to Brexit. 
 
Policymakers also signalled that the exact size and nature of any stimulatory measures would be determined at next month`s monetary policy gathering, due on August 4. 
 
The impact of Brexit on the eurozone was much more muted, however, with Markit&#39;s preliminary composite PMI for the 19 nations that share the euro dipping to 52.9 points, which was however an 18-month low. 
 
Williamson said the eurozone economy &quot;showed surprising resilience in the face of the UK&#39;s vote to leave the EU and another terrorist attack in France.&quot; 
 
(AFP)&nbsp;

The survey is the first major evidence of economic fallout after Britons voted to leave the EU

British business activity sank in July to its lowest level since April 2009, a survey revealed today in the first indication of economic contaction since the shock European Union (EU) exit vote. The preliminary composite purchasing managers' index (PMI) by the research Markit group sank to 47.7 points in July, down from 52.4 in June. A reading under 50 indicates contraction in private sector activity. The survey -- regarded as a key early indicator of economic activity before official statistics are published -- is the first major evidence of economic fallout after Britons voted to leave the EU in a referendum on June 23. "July saw a dramatic deterioration in the economy, with business activity slumping at the fastest rate since the height of the global financial crisis in early-2009," said Chris Williamson, chief economist at Markit. "The downturn, whether manifesting itself in order book cancellations, a lack of new orders or the postponement or halting of projects, was most commonly attributed in one way or another to Brexit," he added. Third quarter opens on weak footing in Britain Markit added that the survey signalled a 0.4-per cent contraction in the British economy in the third quarter, or three months to September. "Much of course depends on whether we see a further deterioration in August or if July represents a shock-induced nadir," added Williamson. "Given the record slump in service sector business expectations, the suggestion is that there is further pain to come in the short-term at least." Markit added the survey showed that the economy had "opened the third quarter on a weak footing". Output and new orders fell in both the manufacturing and service sectors during July. "A number of firms linked this to ongoing uncertainty pre- and post-EU referendum, with reports especially prevalent among service providers," added Markit in a statement. "The downturn in services was also more marked than that seen in manufacturing. Services activity and new orders both fell at the quickest rates in over seven years." The collapse in the British pound following the Brexit vote had meanwhile pushed up manufacturers' costs. "The downside of the exchange rate was a steep rise in manufacturers` input prices, mainly due to higher import costs," it said. "The rate of purchase price inflation hit a five-year record, with the extent of the acceleration among the steepest in the survey history." The data was published after the International Monetary Fund slashed its global and British economic growth forecasts for 2016 and 2017 earlier this week -- and blamed uncertainty created by Brexit. Britain`s new finance minister Philip Hammond meanwhile declared this week that it was up to the Bank of England (BoE) to respond to the economic "shock" arising from Brexit. 'PMI data could persuade policymakers to act' Williamson added today that the new PMI data could persuade policymakers to act. "With policymakers waiting to see hard data on the state of the economy before considering more stimulus, the slump in the PMI will provide a powerful argument for swift action," noted Williamson. The BoE kept its key interest rate at 0.50 percent last week, confounding expectations for a reduction -- but flagged a possible August cut in response to Brexit. Policymakers also signalled that the exact size and nature of any stimulatory measures would be determined at next month`s monetary policy gathering, due on August 4. The impact of Brexit on the eurozone was much more muted, however, with Markit's preliminary composite PMI for the 19 nations that share the euro dipping to 52.9 points, which was however an 18-month low. Williamson said the eurozone economy "showed surprising resilience in the face of the UK's vote to leave the EU and another terrorist attack in France." (AFP)

British business activity sinks after EU divorce, eurozone economy shows resilience: Key survey

French President Francois Hollande on Thursday told Britain it would have to choose between access to the single market and the free movement of people, when it begins its negotiations on leaving the European Union. 
 
The French leader accepted Britain&#39;s right to delay formal exit talks, but described the timing of its departure as &quot;the sooner the better&quot;, following the country&#39;s shock vote to leave last month. 
 
&quot;It&#39;s the most crucial point... Britain will have to choose: stay in the single market and accept free movement or have another status,&quot; he said without elaborating on the latter option. 
 
Speaking after talks in Paris with British Prime Minister Theresa May, Hollande took a tougher line than German chancellor Angela Merkel a day earlier in Berlin. 
 
&quot;The United Kingdom has decided to leave the European Union. It&#39;s their choice, it&#39;s their responsibility and we respect that decision.... There can be no discussions, no pre-negotiation before the negotiation,&quot; Hollande told a joint news conference with May. 
 
On the timing for the talks, Hollande acknowledged that, Britain would need time to prepare a negotiating position. 
 
&quot;There can be preparations for this negotiation,&quot; he said. 
 
&quot;But I repeat. The sooner the better, it&#39;s in the common interest, of Europe, the United Kingdom, and our economies,&quot; he added. 
 
Encouraging resilience 
 
May said she was committed to achieving a deal that reflected the sentiments expressed by most Britons in the June 23 referendum. 
 
&quot;The message the British people gave in their vote for the UK to leave the EU had a very clear message: that we should introduce some controls to the movement of individuals from countries in the European Union into the UK. 
 
&quot;I&#39;m clear the government should deliver and will deliver on that for the British people. 
 
&quot;But we also want to get the right deal on trade in goods and services,&quot; she said, calling it a matter of importance to both Britain and its EU partners. 
 
May arrived in Paris a day after meeting Merkel in Berlin. 
 
The Conservative leader repeated what she told Merkel, namely, that she would not trigger the two-year EU exit process &quot;before the end of the year&quot;. 
 
Brexit aside she and Hollande were at pains to emphasise the entente between their countries. 
 
A week after the massacre in Nice, May said Britain stood &quot;shoulder to shoulder&quot; as &quot;a great ally and friend&quot;, while Hollande said Franco-British ties &quot;will never come undone&quot;. 
 
Britain&#39;s vote to leave the European Union sent shockwaves through the global economy and sparked political turmoil at home. 
 
European Central Bank chief Mario Draghi struck a reassuring tone, however, in remarks following the ECB&#39;s regular policy-setting meeting. 
 
&quot;After the UK referendum, Euro area financial markets have weathered the spike in uncertainty and volatility with encouraging resilience,&quot; Draghi said. 
 
On Wednesday, speaking on her first foreign trip since taking office in the wake of the seismic vote, May told Merkel that her government planned on a &quot;sensible and orderly departure&quot; from the EU. 
 
Merkel, who is expected to play a pivotal role in the Brexit talks along with France, said it was in the interests of all that Britain had a &quot;well-defined position&quot; before the talks began. 
 
The Brexit talks are expected to hinge on Britain&#39;s desire to restrict immigration by EU citizens, but still retain vital access to the EU&#39;s single market. 
 
In the UK, EU immigration was the most hotly-debated issue of the referendum campaign. 
 
Brexit campaigners argued that the hundreds of thousands of EU immigrants arriving in Britain every year have pushed down wages for low-paid Britons and overburdened public services. 
 
Unique concerns 
 
Earlier on Thursday Hollande held talks in Dublin with Irish Prime Minister Enda Kenny. 
 
In a joint statement with Kenny he said there should be &quot;a balance of rights and obligations, including in respect of the four freedoms&quot;, referring to the free movement of goods, services, capital and people in the EU. 
 
Ireland&#39;s concerns revolve mainly around the future of its lucrative exports to Britain, and its border with British-ruled Northern Ireland, which would be the EU&#39;s only land border with Britain once it has left. 
 
&quot;Ireland and France are the UK&#39;s nearest neighbours, with significant and complex economic, human, cultural and historical links,&quot; Kenny and Hollande said. 
 
&quot;In consequence, both countries have specific and indeed unique concerns to be addressed in future negotiations,&quot; they said. 
 
Britain on Wednesday took the first step towards Brexit by announcing it was relinquishing its six-month EU presidency which had been due to start in July 2017 and will be taken up by Estonia instead. 
 
(AFP)

UK will not begin the EU exit operation 'before the end of the year', Prime Minister Theresa May reiterated

French President Francois Hollande on Thursday told Britain it would have to choose between access to the single market and the free movement of people, when it begins its negotiations on leaving the European Union. The French leader accepted Britain's right to delay formal exit talks, but described the timing of its departure as "the sooner the better", following the country's shock vote to leave last month. "It's the most crucial point... Britain will have to choose: stay in the single market and accept free movement or have another status," he said without elaborating on the latter option. Speaking after talks in Paris with British Prime Minister Theresa May, Hollande took a tougher line than German chancellor Angela Merkel a day earlier in Berlin. "The United Kingdom has decided to leave the European Union. It's their choice, it's their responsibility and we respect that decision.... There can be no discussions, no pre-negotiation before the negotiation," Hollande told a joint news conference with May. On the timing for the talks, Hollande acknowledged that, Britain would need time to prepare a negotiating position. "There can be preparations for this negotiation," he said. "But I repeat. The sooner the better, it's in the common interest, of Europe, the United Kingdom, and our economies," he added. Encouraging resilience May said she was committed to achieving a deal that reflected the sentiments expressed by most Britons in the June 23 referendum. "The message the British people gave in their vote for the UK to leave the EU had a very clear message: that we should introduce some controls to the movement of individuals from countries in the European Union into the UK. "I'm clear the government should deliver and will deliver on that for the British people. "But we also want to get the right deal on trade in goods and services," she said, calling it a matter of importance to both Britain and its EU partners. May arrived in Paris a day after meeting Merkel in Berlin. The Conservative leader repeated what she told Merkel, namely, that she would not trigger the two-year EU exit process "before the end of the year". Brexit aside she and Hollande were at pains to emphasise the entente between their countries. A week after the massacre in Nice, May said Britain stood "shoulder to shoulder" as "a great ally and friend", while Hollande said Franco-British ties "will never come undone". Britain's vote to leave the European Union sent shockwaves through the global economy and sparked political turmoil at home. European Central Bank chief Mario Draghi struck a reassuring tone, however, in remarks following the ECB's regular policy-setting meeting. "After the UK referendum, Euro area financial markets have weathered the spike in uncertainty and volatility with encouraging resilience," Draghi said. On Wednesday, speaking on her first foreign trip since taking office in the wake of the seismic vote, May told Merkel that her government planned on a "sensible and orderly departure" from the EU. Merkel, who is expected to play a pivotal role in the Brexit talks along with France, said it was in the interests of all that Britain had a "well-defined position" before the talks began. The Brexit talks are expected to hinge on Britain's desire to restrict immigration by EU citizens, but still retain vital access to the EU's single market. In the UK, EU immigration was the most hotly-debated issue of the referendum campaign. Brexit campaigners argued that the hundreds of thousands of EU immigrants arriving in Britain every year have pushed down wages for low-paid Britons and overburdened public services. Unique concerns Earlier on Thursday Hollande held talks in Dublin with Irish Prime Minister Enda Kenny. In a joint statement with Kenny he said there should be "a balance of rights and obligations, including in respect of the four freedoms", referring to the free movement of goods, services, capital and people in the EU. Ireland's concerns revolve mainly around the future of its lucrative exports to Britain, and its border with British-ruled Northern Ireland, which would be the EU's only land border with Britain once it has left. "Ireland and France are the UK's nearest neighbours, with significant and complex economic, human, cultural and historical links," Kenny and Hollande said. "In consequence, both countries have specific and indeed unique concerns to be addressed in future negotiations," they said. Britain on Wednesday took the first step towards Brexit by announcing it was relinquishing its six-month EU presidency which had been due to start in July 2017 and will be taken up by Estonia instead. (AFP)

Choose free trade or 'another' status, Hollande tells Britain

British police said today there had been almost 6,200 hate crimes reported in the last month following the vote to leave the European Union in a referendum where immigration had been a key issue. In the four weeks from June 16, police forces across the country said 6,193 offences had been reported, with the most common crimes being harassment, assault and other violence such as verbal abuse or spitting. 
 
Britons voted on June 23 to exit the EU following bitter and deeply divisive campaigning in which the control of immigration was one of the main arguments of those who supported leaving the bloc. 
 
Since the result was declared, Muslims and Eastern Europeans say they have been particularly targeted. The latest figures showed there were 3001 offences in the first two weeks of July, down six per cent compared to the previous fortnight, but still 20 per cent higher than the same period last year.&nbsp; 
 
&quot;Following increases in hate crime seen after the EU referendum, police forces have been taking a robust approach to these crimes and we are pleased to see the numbers of incidents have begun to fall,&quot; said Mark Hamilton, the National Police Chiefs&#39; Council spokesman on hate crimes. &quot;Clearly any hate crime is unacceptable and these numbers are still far too high.&quot; 
 
Critics of the &quot;Leave&quot; campaign say its focus on immigration helped stoke xenophobia and racism, an accusation its leaders reject. A week before the vote, opposition Labour lawmaker Jo Cox, a strong supporter of remaining in the EU, was shot and stabbed to death in her constituency in northern England. 
 
(Reuters)

Since the result was declared, Muslims and Eastern Europeans say they have been particularly targeted

British police said today there had been almost 6,200 hate crimes reported in the last month following the vote to leave the European Union in a referendum where immigration had been a key issue. In the four weeks from June 16, police forces across the country said 6,193 offences had been reported, with the most common crimes being harassment, assault and other violence such as verbal abuse or spitting. Britons voted on June 23 to exit the EU following bitter and deeply divisive campaigning in which the control of immigration was one of the main arguments of those who supported leaving the bloc. Since the result was declared, Muslims and Eastern Europeans say they have been particularly targeted. The latest figures showed there were 3001 offences in the first two weeks of July, down six per cent compared to the previous fortnight, but still 20 per cent higher than the same period last year. "Following increases in hate crime seen after the EU referendum, police forces have been taking a robust approach to these crimes and we are pleased to see the numbers of incidents have begun to fall," said Mark Hamilton, the National Police Chiefs' Council spokesman on hate crimes. "Clearly any hate crime is unacceptable and these numbers are still far too high." Critics of the "Leave" campaign say its focus on immigration helped stoke xenophobia and racism, an accusation its leaders reject. A week before the vote, opposition Labour lawmaker Jo Cox, a strong supporter of remaining in the EU, was shot and stabbed to death in her constituency in northern England. (Reuters)

UK police report almost 6,200 hate crimes in month after Brexit vote

French President Francois Hollande said on Thursday he wanted Britain to open talks fast on quitting the European Union and would seek explanation from British Prime Minister Theresa May for any foot-dragging. 
 
Hollande, who is due to meet Theresa May in Paris later on Thursday, told a news conference during a visit to Ireland: &quot;I will meet Theresa May tonight. That will be the opportunity to hear the arguments. What is the interest of delaying? I would like justifications.&quot; 
 
The French leader, who was speaking in Dublin where he and Irish Prime minister Enda Kenny issued a joint statement urging rapid exit talks, also said he would confer with German leader Angela Merkel after his meeting with May. 
 
There should be no pre-negotiations before full and formal exit talks, he said. 
 
Hollande added that Britain should not be able to access the EU`s single market without allowing free movement of EU citizens. 
 
&quot;Access to the single market cannot be guaranteed unless free movement of workers is respected,&quot; Hollande said following talks with Irish Prime Minister Enda Kenny in Dublin. 
 
(Reuters) 
&nbsp;

French President Francois Hollande insisted that Britain cannot acces EU's single market without allowing free movement of EU citizens

French President Francois Hollande said on Thursday he wanted Britain to open talks fast on quitting the European Union and would seek explanation from British Prime Minister Theresa May for any foot-dragging. Hollande, who is due to meet Theresa May in Paris later on Thursday, told a news conference during a visit to Ireland: "I will meet Theresa May tonight. That will be the opportunity to hear the arguments. What is the interest of delaying? I would like justifications." The French leader, who was speaking in Dublin where he and Irish Prime minister Enda Kenny issued a joint statement urging rapid exit talks, also said he would confer with German leader Angela Merkel after his meeting with May. There should be no pre-negotiations before full and formal exit talks, he said. Hollande added that Britain should not be able to access the EU`s single market without allowing free movement of EU citizens. "Access to the single market cannot be guaranteed unless free movement of workers is respected," Hollande said following talks with Irish Prime Minister Enda Kenny in Dublin. (Reuters)

Hollande urges Britain to open EU exit talks

Confidence in Japanese manufacturers is expected to worsen to zero in the next three months, a Reuters poll found, as Britain&#39;s vote to exit the European Union (EU) further clouded the outlook for Japan&#39;s export-reliant economy. 
 
The Reuters Tankan, which tracks the Bank of Japan&#39;s (BOJ) quarterly Tankan survey, also found the service sector&#39;s mood fell in July to levels last seen in April 2013 when the BOJ embarked on massive monetary stimulus to reflate the economy. 
 
The monthly poll of 534 big and mid-sized firms taken July 1-15, of which 266 responded, offered an early glimpse of Japanese business sentiment in the wake of the Brexit vote, which briefly prompted a sharp Yen gain to below 100 Yen versus the Dollar. 
 
The Reuters Tankan sentiment index for manufacturers was unchanged at 3 in July and was seen worsening to zero in October, dragged down by exporters of cars, electronics, steel and chemicals. 
 
The sentiment indexes subtract the percentage of companies saying conditions are poor from those saying conditions are good. A positive number means optimists outnumber pessimists. 
 
The service-sector index fell to 15 from 17 in June, and was seen unchanged in October, reflecting weak domestic demand. 
 
Bleak business sentiment should add to calls for policymakers to do more to revive a flagging economy, with the government eyeing a stimulus package of 10 trillion Yen ($94.62 billion) or more and the Bank of Japan under pressure to ease policy further. 
 
&quot;We cannot see the future, given the effects of a rapid Yen gain due to Britain&#39;s vote to leave EU,&quot; a manager at a chemicals firm said in the survey, which companies answer anonymously. 
 
&quot;Capital expenditures are being put off because of uncertainty over Europe caused by Britain&#39;s exit from the EU, as well as a slowdown in China&#39;s economy, and currency situations,&quot; a machinery-maker said. 
 
While the safe-haven Yen has fallen to about 105 since last week as global risk aversion abated, manufacturers reported concerns over another possible spike in the Yen because of uncertainty over the global economic outlook. 
 
Last week Prime Minister Shinzo Abe ordered compilation of an economic stimulus package by the end of this month to respond to weak private consumption and investment, and external risks. Speculation also lingers that the BOJ may ease again at its July 28-29 policy review. 
 
(Reuters)

Confidence in Japanese manufacturers, which was steady in July, was seen worsening to zero in October, says a Reuters poll

Confidence in Japanese manufacturers is expected to worsen to zero in the next three months, a Reuters poll found, as Britain's vote to exit the European Union (EU) further clouded the outlook for Japan's export-reliant economy. The Reuters Tankan, which tracks the Bank of Japan's (BOJ) quarterly Tankan survey, also found the service sector's mood fell in July to levels last seen in April 2013 when the BOJ embarked on massive monetary stimulus to reflate the economy. The monthly poll of 534 big and mid-sized firms taken July 1-15, of which 266 responded, offered an early glimpse of Japanese business sentiment in the wake of the Brexit vote, which briefly prompted a sharp Yen gain to below 100 Yen versus the Dollar. The Reuters Tankan sentiment index for manufacturers was unchanged at 3 in July and was seen worsening to zero in October, dragged down by exporters of cars, electronics, steel and chemicals. The sentiment indexes subtract the percentage of companies saying conditions are poor from those saying conditions are good. A positive number means optimists outnumber pessimists. The service-sector index fell to 15 from 17 in June, and was seen unchanged in October, reflecting weak domestic demand. Bleak business sentiment should add to calls for policymakers to do more to revive a flagging economy, with the government eyeing a stimulus package of 10 trillion Yen ($94.62 billion) or more and the Bank of Japan under pressure to ease policy further. "We cannot see the future, given the effects of a rapid Yen gain due to Britain's vote to leave EU," a manager at a chemicals firm said in the survey, which companies answer anonymously. "Capital expenditures are being put off because of uncertainty over Europe caused by Britain's exit from the EU, as well as a slowdown in China's economy, and currency situations," a machinery-maker said. While the safe-haven Yen has fallen to about 105 since last week as global risk aversion abated, manufacturers reported concerns over another possible spike in the Yen because of uncertainty over the global economic outlook. Last week Prime Minister Shinzo Abe ordered compilation of an economic stimulus package by the end of this month to respond to weak private consumption and investment, and external risks. Speculation also lingers that the BOJ may ease again at its July 28-29 policy review. (Reuters)

Japan's business mood falls as Brexit clouds economic outlook

Labour Party leader Jeremy Corbyn launched his bid today to remain head of Britain&#39;s biggest opposition party despite bitter divisions that have gone deeper by the Brexit referendum. The veteran socialist has clung on even though three-quarters of the party&#39;s lawmakers say they have lost confidence in his leadership and Welsh MP Owen Smith has launched a challenge to oust him. 
 
&quot;It&#39;s the job, it&#39;s the duty, it&#39;s the responsibility of every Labour MP to get behind the party,&quot; Corbyn said at the start of his leadership campaign. &quot;I hold out the hand of friendship,&quot; he said, addressing &quot;those who may not agree with me politically, may not even like me personally&quot;. 
 
Labour Party members and supporters will vote on Corbyn and Smith by postal ballot over the summer and the result will be announced on September 24. Some commentators have warned the outcome could split the historic Labour Party, which grew out of Britains trade union movement in the 19th century. 
 
The 67-year-old Corbyn is automatically on the ballot as the current leader and he has strong grassroots support but Smith is backed by 162 of the party&#39;s 230 MPs including former leader Ed Miliband. Some 180,000 Labour supporters have signed up to vote in recent days. &quot;We, the Labour party, will be stronger, even stronger, and hopefully even bigger at the end of this campaign,&quot; Corbyn said. 
 
Smith is barely known outside of Westminster and Wales but moderates in the Labour party are hoping he will dethrone Corbyn, who has been heavily criticised for lukewarm campaigning for Britain to stay in the European Union ahead of last month&#39;s referendum. 
 
Corbyn critics, many of them supporters of the more centrist policies of former leader Tony Blair, accuse Corbyn of pursuing a leftist agenda that could keep the party out of power for years. 
 
The 46-year-old Smith, who previously worked as a BBC producer and a lobbyist for pharmaceuticals giant Pfizer, has paid tribute to Corbyn for &quot;helping Labour discover its radical roots&quot; but said the party needed a new generation to take it forward. 
 
(AFP)

Labour Party members and supporters will vote on Corbyn and Smith by postal ballot over the summer

Labour Party leader Jeremy Corbyn launched his bid today to remain head of Britain's biggest opposition party despite bitter divisions that have gone deeper by the Brexit referendum. The veteran socialist has clung on even though three-quarters of the party's lawmakers say they have lost confidence in his leadership and Welsh MP Owen Smith has launched a challenge to oust him. "It's the job, it's the duty, it's the responsibility of every Labour MP to get behind the party," Corbyn said at the start of his leadership campaign. "I hold out the hand of friendship," he said, addressing "those who may not agree with me politically, may not even like me personally". Labour Party members and supporters will vote on Corbyn and Smith by postal ballot over the summer and the result will be announced on September 24. Some commentators have warned the outcome could split the historic Labour Party, which grew out of Britains trade union movement in the 19th century. The 67-year-old Corbyn is automatically on the ballot as the current leader and he has strong grassroots support but Smith is backed by 162 of the party's 230 MPs including former leader Ed Miliband. Some 180,000 Labour supporters have signed up to vote in recent days. "We, the Labour party, will be stronger, even stronger, and hopefully even bigger at the end of this campaign," Corbyn said. Smith is barely known outside of Westminster and Wales but moderates in the Labour party are hoping he will dethrone Corbyn, who has been heavily criticised for lukewarm campaigning for Britain to stay in the European Union ahead of last month's referendum. Corbyn critics, many of them supporters of the more centrist policies of former leader Tony Blair, accuse Corbyn of pursuing a leftist agenda that could keep the party out of power for years. The 46-year-old Smith, who previously worked as a BBC producer and a lobbyist for pharmaceuticals giant Pfizer, has paid tribute to Corbyn for "helping Labour discover its radical roots" but said the party needed a new generation to take it forward. (AFP)

Jeremy Corbyn launches bid to remain UK Labour leader

Belgium is ready to take on Britain&#39;s rotating six-month EU presidency in 2017 after London announced it would drop out to focus on its Brexit negotiations, a Belgian official said Wednesday. 
 
&quot;Belgium is ready to take over this presidency if we are asked,&quot; foreign ministry spokesman Didier Vanderhasselt told AFP. 
 
A spokeswoman for British Prime Minister Theresa May said earlier Britain would no longer assume the EU presidency as planned in the second half of next year, as the government will &quot;be prioritising the negotiations to leave the European Union.&quot; 
 
The decision, reached in a phone call between May and EU Council President Donald Tusk on Tuesday evening, reflects the scale of the task facing Britain as it seeks to negotiate a new relationship with the EU after a June 23 public vote to leave. 
 
&quot;The Prime Minister suggested that the UK should relinquish the rotating Presidency of the Council, currently scheduled for the second half of 2017, noting that we would be prioritising the negotiations to leave the European Union,&quot; the spokeswoman said. 
 
A spokesman for Tusk said there had been no decision yet on who would take up the vacant slot, and that discussions on the issue would begin immediately between ambassadors. 
 
Belgium is among the EU nations that have been pushing strongest for Britain to trigger article 50 of the Lisbon treaty, which would set in motion the negotiations for the Brexit divorce proceedings. 
 
The presidency of the European Council -- the gathering of national ministers from the EU&#39;s 28 member states -- rotates among members every six months. 
 
Slovakia currently has the presidency, until December 31, to be followed by Malta. Britain was due to take it from July 1 until December 31, 2017. 
 
(AFP, Reuters) 
&nbsp;

Britain to give up its planned presidency of the European Council, due to start in July 2017, to focus on Brexit negotiations

Belgium is ready to take on Britain's rotating six-month EU presidency in 2017 after London announced it would drop out to focus on its Brexit negotiations, a Belgian official said Wednesday. "Belgium is ready to take over this presidency if we are asked," foreign ministry spokesman Didier Vanderhasselt told AFP. A spokeswoman for British Prime Minister Theresa May said earlier Britain would no longer assume the EU presidency as planned in the second half of next year, as the government will "be prioritising the negotiations to leave the European Union." The decision, reached in a phone call between May and EU Council President Donald Tusk on Tuesday evening, reflects the scale of the task facing Britain as it seeks to negotiate a new relationship with the EU after a June 23 public vote to leave. "The Prime Minister suggested that the UK should relinquish the rotating Presidency of the Council, currently scheduled for the second half of 2017, noting that we would be prioritising the negotiations to leave the European Union," the spokeswoman said. A spokesman for Tusk said there had been no decision yet on who would take up the vacant slot, and that discussions on the issue would begin immediately between ambassadors. Belgium is among the EU nations that have been pushing strongest for Britain to trigger article 50 of the Lisbon treaty, which would set in motion the negotiations for the Brexit divorce proceedings. The presidency of the European Council -- the gathering of national ministers from the EU's 28 member states -- rotates among members every six months. Slovakia currently has the presidency, until December 31, to be followed by Malta. Britain was due to take it from July 1 until December 31, 2017. (AFP, Reuters)

UK relinquishes planned presidency of European Council, Belgium ready to take over

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