British Prime Minister Theresa May is heading to Berlin on Wednesday and Paris on Thursday to start thrashing out the roadmap for Britain&#39;s departure from the EU. 
 
In her first foreign visits, a week since taking over as Britain&#39;s premier, May will plunge straight into laying out the Brexit groundwork in talks with German Chancellor Angela Merkel and French President Francois Hollande. 
 
May&#39;s Downing Street office said she would try to establish a personal relationship and explain how her government needed time to consult before sculpting its objectives for Britain&#39;s divorce from Brussels. 
 
&quot;I am determined that Britain will make a success of leaving the European Union and that&#39;s why I have decided to visit Berlin and Paris so soon after taking office,&quot; May said in a statement. 
 
&quot;I do not underestimate the challenge of negotiating our exit from the EU and I firmly believe that being able to talk frankly and openly about the issues we face will be an important part of a successful negotiation. 
 
&quot;I also want to deliver a very clear message about the importance we attach to our bilateral relationship with our European partners, not just now but also when we have left the EU.&quot; 
 
May will have a meeting and a working dinner with Merkel. 
 
Then on Thursday, she will visit Paris for a meeting with Hollande at the president&#39;s official residence, the Elysee Palace. 
 
Key sticking points in the Brexit negotiations could be freedom of movement and the timetable for triggering Article 50 of the Lisbon Treaty, which starts the two-year countdown to Britain&#39;s formal departure. 
 
&quot;May has to build bridges with her fellow leaders,&quot; Professor Iain Begg, from the European Institute at the London School of Economics university, told AFP. 
 
&quot;It will be getting to know each other combined with trying to put positions on the table. 
 
&quot;May has this reputation as a tough negotiator who says what she wants and wants what she says. She will be anxious to convey that she&#39;s not a soft touch.&quot; 
 
The new British prime minster may well have an easier ride with Merkel than Socialist Hollande, though both have their own domestic election cycles to think about. 
 
Commentators have drawn comparisons between the two female centre-right leaders: both pastor&#39;s daughters with low-profile husbands, no children and a love of Alpine hiking who have risen to the top. 
 
While some EU countries want Britain out of the bloc as soon as possible, Merkel has called for patience with London as it sorts out its Brexit negotiating stance. 
 
However, she has also warned that Britain cannot have continued access to the single market while restricting the freedom of EU citizens to emigrate to Britain, the key issue in the June 23 referendum. 
 
Meanwhile, Hollande has a presidential election looming in April and is coming under pressure from the Front National, which wants France to leave the EU too. 
 
&quot;For Hollande there is manifestly a concern about Brexit contagion to France,&quot; said Begg. 
 
&quot;He will want to impress upon May that she cannot string this along indefinitely or expect great gifts from France because Hollande has domestic politics to think about and he will want to avoid &#39;encourager les autres&#39; (encouraging others).&quot; 
 
Downing Street said it would &quot;take some time&quot; to prepare for the Brexit negotiations, as the government needed to consult with the devolved administrations in Scotland, Wales and Northern Ireland, and with industry sectors to determine the objectives for post-departure relations with the EU. 
 
Nina Schick, communications director at the Open Europe independent EU policy think-tank, said Britain &quot;does have things in its favour&quot; going into the talks. 
 
&quot;Paris and Berlin are quite divided as to what the future of the EU should be,&quot; she told AFP. 
 
&quot;I don&#39;t think May has the upper hand. She&#39;s the one that&#39;s going to trigger Article 50. There will be a period where Merkel will say there&#39;s no need to rush into it. 
 
&quot;But if the UK does not trigger it until late next year, political goodwill might be lost if the UK waits too long, especially if uncertainty drags on. 
 
(AFP) 
&nbsp;

Key sticking points in the negotiations could be freedom of movement and a timetable for triggering Article 50 of the Lisbon Treaty

British Prime Minister Theresa May is heading to Berlin on Wednesday and Paris on Thursday to start thrashing out the roadmap for Britain's departure from the EU. In her first foreign visits, a week since taking over as Britain's premier, May will plunge straight into laying out the Brexit groundwork in talks with German Chancellor Angela Merkel and French President Francois Hollande. May's Downing Street office said she would try to establish a personal relationship and explain how her government needed time to consult before sculpting its objectives for Britain's divorce from Brussels. "I am determined that Britain will make a success of leaving the European Union and that's why I have decided to visit Berlin and Paris so soon after taking office," May said in a statement. "I do not underestimate the challenge of negotiating our exit from the EU and I firmly believe that being able to talk frankly and openly about the issues we face will be an important part of a successful negotiation. "I also want to deliver a very clear message about the importance we attach to our bilateral relationship with our European partners, not just now but also when we have left the EU." May will have a meeting and a working dinner with Merkel. Then on Thursday, she will visit Paris for a meeting with Hollande at the president's official residence, the Elysee Palace. Key sticking points in the Brexit negotiations could be freedom of movement and the timetable for triggering Article 50 of the Lisbon Treaty, which starts the two-year countdown to Britain's formal departure. "May has to build bridges with her fellow leaders," Professor Iain Begg, from the European Institute at the London School of Economics university, told AFP. "It will be getting to know each other combined with trying to put positions on the table. "May has this reputation as a tough negotiator who says what she wants and wants what she says. She will be anxious to convey that she's not a soft touch." The new British prime minster may well have an easier ride with Merkel than Socialist Hollande, though both have their own domestic election cycles to think about. Commentators have drawn comparisons between the two female centre-right leaders: both pastor's daughters with low-profile husbands, no children and a love of Alpine hiking who have risen to the top. While some EU countries want Britain out of the bloc as soon as possible, Merkel has called for patience with London as it sorts out its Brexit negotiating stance. However, she has also warned that Britain cannot have continued access to the single market while restricting the freedom of EU citizens to emigrate to Britain, the key issue in the June 23 referendum. Meanwhile, Hollande has a presidential election looming in April and is coming under pressure from the Front National, which wants France to leave the EU too. "For Hollande there is manifestly a concern about Brexit contagion to France," said Begg. "He will want to impress upon May that she cannot string this along indefinitely or expect great gifts from France because Hollande has domestic politics to think about and he will want to avoid 'encourager les autres' (encouraging others)." Downing Street said it would "take some time" to prepare for the Brexit negotiations, as the government needed to consult with the devolved administrations in Scotland, Wales and Northern Ireland, and with industry sectors to determine the objectives for post-departure relations with the EU. Nina Schick, communications director at the Open Europe independent EU policy think-tank, said Britain "does have things in its favour" going into the talks. "Paris and Berlin are quite divided as to what the future of the EU should be," she told AFP. "I don't think May has the upper hand. She's the one that's going to trigger Article 50. There will be a period where Merkel will say there's no need to rush into it. "But if the UK does not trigger it until late next year, political goodwill might be lost if the UK waits too long, especially if uncertainty drags on. (AFP)

May to thrash out Brexit roadmap in Berlin, Paris talks

The uncertainty created by Britain&#39;s vote to leave the European Union will slow the global economy into next year, the International Monetary Fund (IMF) predicted on Tuesday. 
 
Last month&#39;s populist victory in the British referendum has darkened the skies in that country and across the Euro area, according to the global crisis lender, forcing it to cut April&#39;s growth forecasts and rattling what had already been a fragile recovery. 
 
Britain&#39;s relations to the 28-member EU single market were thrown into confusion following the June 23 vote, raising the possibility of sudden, new trade barriers and at least initially causing a selloff in global financial markets. 
 
Analysts have predicted this will weigh on consumption and investor confidence.

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. 
 
Brexit was liable to cost the British economy nearly a full percentage point of growth in 2017 as demand will likely be significantly lower than it would have been had the remain camp been victorious. 
 
&quot;Continuing uncertainty is likely to weigh on consumption and especially investment,&quot; the IMF said. 
 
Nigeria, Africas largest economy, saw unusually painful revisions as dropping oil prices have hurt oil revenues, power production and investor confidence. Its economy is now expected to contract by 1.8 per cent rather than grow by 2.3 per cent, a sharp revision that has followed the steep devaluation of the countrys currency. 
 
In a bright spot, stronger activity in the Euro area has seen this years growth forecast revised upward by 0.1 per cent to 1.6 per cent. But possible drops in consumer and business confidence as well as strain on banks means 2017 will likely see a slowdown after the Brexit referendum. Brexits consequences for the United States were likely to be &quot;muted,&quot; with growth steady at 1.8 per cent this year and next, representing a downward revision of 0.2 per cent in 2016. 
 
However, the IMF warned of possibly greater risks for global growth. Non-performing loans and the poor profitability of Greek, Italian and Portuguese banks as well as enduring market turbulence were among factors that &quot;could have severe macroeconomic repercussions,&quot; according to the Fund. 
 
While the short-term prospects for the Chinese economy were unchanged or even improved due to interventions by central authorities -- driving this years forecast up 0.1 to 6.6 per cent -- the heavy reliance on credit to drive growth could create instability. 
 
The recent appreciation of the Yen is likely to counteract an announced two-year delay in hiking a consumption tax in Japan. This has slowed the forecast growth in that countrys already anemic economy, with the IMF revising it downward to just 0.3 per cent, to be followed by a bare 0.1 per cent expansion in 2017. 
 
(Reuters)

Britain's uncertain relations with the 28-member EU single market raises possibility of sudden and new trade barriers

The uncertainty created by Britain's vote to leave the European Union will slow the global economy into next year, the International Monetary Fund (IMF) predicted on Tuesday. Last month's populist victory in the British referendum has darkened the skies in that country and across the Euro area, according to the global crisis lender, forcing it to cut April's growth forecasts and rattling what had already been a fragile recovery. Britain's relations to the 28-member EU single market were thrown into confusion following the June 23 vote, raising the possibility of sudden, new trade barriers and at least initially causing a selloff in global financial markets. Analysts have predicted this will weigh on consumption and investor confidence. 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. Brexit was liable to cost the British economy nearly a full percentage point of growth in 2017 as demand will likely be significantly lower than it would have been had the remain camp been victorious. "Continuing uncertainty is likely to weigh on consumption and especially investment," the IMF said. Nigeria, Africas largest economy, saw unusually painful revisions as dropping oil prices have hurt oil revenues, power production and investor confidence. Its economy is now expected to contract by 1.8 per cent rather than grow by 2.3 per cent, a sharp revision that has followed the steep devaluation of the countrys currency. In a bright spot, stronger activity in the Euro area has seen this years growth forecast revised upward by 0.1 per cent to 1.6 per cent. But possible drops in consumer and business confidence as well as strain on banks means 2017 will likely see a slowdown after the Brexit referendum. Brexits consequences for the United States were likely to be "muted," with growth steady at 1.8 per cent this year and next, representing a downward revision of 0.2 per cent in 2016. However, the IMF warned of possibly greater risks for global growth. Non-performing loans and the poor profitability of Greek, Italian and Portuguese banks as well as enduring market turbulence were among factors that "could have severe macroeconomic repercussions," according to the Fund. While the short-term prospects for the Chinese economy were unchanged or even improved due to interventions by central authorities -- driving this years forecast up 0.1 to 6.6 per cent -- the heavy reliance on credit to drive growth could create instability. The recent appreciation of the Yen is likely to counteract an announced two-year delay in hiking a consumption tax in Japan. This has slowed the forecast growth in that countrys already anemic economy, with the IMF revising it downward to just 0.3 per cent, to be followed by a bare 0.1 per cent expansion in 2017. (Reuters)

IMF: Brexit to cost Britain nearly 1% growth in 2017

The Asian Development Bank (ADB) lowered its 2016 growth forecast for developing Asia on Monday, citing the slowing US economy and near-term shocks from Britain&#39;s decision to leave the European Union (EU). 
 
Developing Asia, which groups 45 countries in the Asia Pacific region, is now expected to expand 5.6 per cent this year, slightly weaker than a March forecast of 5.7 per cent, the ADB said in a supplement to its Asian Development Outlook 2016. 
 
The shock British vote in June to secede from the EU has chilled already tepid growth in the euro area and has shaken global financial markets. 
 
The Manila-based multi-lateral lending agency kept its 2017 growth estimate for the region at 5.7 per cent, however. 
 
&quot;Although the Brexit vote has affected developing Asia&#39;s currency and stock markets, its impact on the real economy in the short term is expected to be small,&quot; said ADB chief economist Shang-Jin Wei. 
 
&quot;However, in light of the tepid growth prospects in the major industrial economies, policy makers should remain vigilant and be prepared to respond to external shocks to ensure growth in the region remains robust.&quot; 
 
The ADB believes China is still on track to grow 6.5 per cent this year and 6.3 per cent in 2017, with government plans to cut excess industrial capacity in the world&#39;s second-largest economy expected to weigh on growth next year. 
 
China&#39;s economy expanded slightly faster than expected in the second quarter but private investment growth shrank to a record low, suggesting future weakness which could pressure the government to roll out more support measures. 
 
India&#39;s economy is still forecast to grow 7.4 per cent this year and 7.8 per cent in 2017, the ADB said. 
 
Growth forecasts for Southeast Asia were also left unchanged at 4.5 per cent this year and 4.8 per cent next year. 
 
(Reuters)

Brexit chills already tepid growth in the euro area and has shaken global financial markets

The Asian Development Bank (ADB) lowered its 2016 growth forecast for developing Asia on Monday, citing the slowing US economy and near-term shocks from Britain's decision to leave the European Union (EU). Developing Asia, which groups 45 countries in the Asia Pacific region, is now expected to expand 5.6 per cent this year, slightly weaker than a March forecast of 5.7 per cent, the ADB said in a supplement to its Asian Development Outlook 2016. The shock British vote in June to secede from the EU has chilled already tepid growth in the euro area and has shaken global financial markets. The Manila-based multi-lateral lending agency kept its 2017 growth estimate for the region at 5.7 per cent, however. "Although the Brexit vote has affected developing Asia's currency and stock markets, its impact on the real economy in the short term is expected to be small," said ADB chief economist Shang-Jin Wei. "However, in light of the tepid growth prospects in the major industrial economies, policy makers should remain vigilant and be prepared to respond to external shocks to ensure growth in the region remains robust." The ADB believes China is still on track to grow 6.5 per cent this year and 6.3 per cent in 2017, with government plans to cut excess industrial capacity in the world's second-largest economy expected to weigh on growth next year. China's economy expanded slightly faster than expected in the second quarter but private investment growth shrank to a record low, suggesting future weakness which could pressure the government to roll out more support measures. India's economy is still forecast to grow 7.4 per cent this year and 7.8 per cent in 2017, the ADB said. Growth forecasts for Southeast Asia were also left unchanged at 4.5 per cent this year and 4.8 per cent next year. (Reuters)

ADB lowers its 2016 growth forecast for developing Asia

The head of Britain&#39;s new Brexit ministry on Sunday said that EU migrants arriving between now and the country&#39;s official departure from the bloc may not be guaranteed the right to remain. 
 
David Davis told the Mail on Sunday that he would negotiate with European leaders to secure &quot;a generous settlement for EU migrants here now and a generous settlement for British citizens in the EU&quot;, but offered no such assurances for newcomers. 
 
&quot;There are a variety of possibilities,&quot; he said of plans to deal with a predicted &quot;surge&quot; in arrivals from the EU ahead of Britain&#39;s departure. 
 
&quot;We may have to say that the right to indefinite leave to remain protection only applies before a certain date. But you have to make those judgments on reality, not speculation.&quot; 
 
Britain will have to stick to the EU&#39;s freedom of movement rules until it officially leaves, but will then have control over who stays in the country, including over those who arrived before the pullout date. 
 
Davis has said that invoking Article 50, which would trigger official negotiations to leave the EU, should happen by the beginning of 2017. The negotiations have a two-year time limit, meaning Britain would leave by early 2019, at the latest. 
 
The EU Commission is refusing to hold talks until Article 50 takes effect, but Davis said some dialogue was inevitable. 
 
&quot;We don&#39;t have to do any negotiations, just find out where their interests are,&quot; he told the paper.&nbsp;&quot;(Foreign Secretary) Boris Johnson is going to the EU foreign affairs council this weekend. Are they going to say, &#39;Oh, I can&#39;t mention this to you?&#39; Of course not.&quot;&nbsp; 
 
Davis, 67, has been a long-time eurosceptic and was briefly Europe Minister in the Conservative government of former Prime Minister John Major in the 1990s. 
 
(AFP)

Britain is bound to the EU's freedom of movement rules until it officially leaves, then controls who stays, including new and old migrants

The head of Britain's new Brexit ministry on Sunday said that EU migrants arriving between now and the country's official departure from the bloc may not be guaranteed the right to remain. David Davis told the Mail on Sunday that he would negotiate with European leaders to secure "a generous settlement for EU migrants here now and a generous settlement for British citizens in the EU", but offered no such assurances for newcomers. "There are a variety of possibilities," he said of plans to deal with a predicted "surge" in arrivals from the EU ahead of Britain's departure. "We may have to say that the right to indefinite leave to remain protection only applies before a certain date. But you have to make those judgments on reality, not speculation." Britain will have to stick to the EU's freedom of movement rules until it officially leaves, but will then have control over who stays in the country, including over those who arrived before the pullout date. Davis has said that invoking Article 50, which would trigger official negotiations to leave the EU, should happen by the beginning of 2017. The negotiations have a two-year time limit, meaning Britain would leave by early 2019, at the latest. The EU Commission is refusing to hold talks until Article 50 takes effect, but Davis said some dialogue was inevitable. "We don't have to do any negotiations, just find out where their interests are," he told the paper. "(Foreign Secretary) Boris Johnson is going to the EU foreign affairs council this weekend. Are they going to say, 'Oh, I can't mention this to you?' Of course not." Davis, 67, has been a long-time eurosceptic and was briefly Europe Minister in the Conservative government of former Prime Minister John Major in the 1990s. (AFP)

UK Brexit minister can't guarantee new arrivals from EU the right to remain

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

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

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

Labour leadership contender: Britain should vote again on Brexit

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

May's neighbours sing her praises

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

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

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

Brexit, what Brexit? Global shares near 2016 highs

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

This would be the first interest rate cut in seven years

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

Bank of England mulls rate cut to curb Brexit fallout

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

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

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

Cameron holds last cabinet meet as May prepares to deliver Brexit

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

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

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

Despite Brexit volatility, Sri Lanka raises $1.5 billion

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

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

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

After divorce, Cameron says UK must stay close to EU

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

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

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

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

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

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

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

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

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

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

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

Britain's Cameron sets nuclear deterrent vote for July 18

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

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

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

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

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

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

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

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

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

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

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

UK real estate investments run into trouble post Brexit

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

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

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

UK launches bilateral trade talks with India

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

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

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

Obama urges NATO to stand firm against Russia despite Brexit

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

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

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

JPMorgan could move thousands of staffers out of UK: Report

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