Turkey will draw a line under disparaging comments by Britain&#39;s new foreign secretary Boris Johnson about President Tayyip Erdogan and his nation, a senior official said today, but warned relations would be damaged if he repeated such insults. 
 
Johnson, the former London mayor who was appointed foreign secretary late on Wednesday by new Prime Minister Theresa May, won a &quot;President Erdogan Offensive Poetry competition&quot; run by Britain&#39;s Spectator magazine earlier this year. 
 
He was the most prominent figure in the campaign for Britain to leave the European Union, which played on voters&#39; fears about immigration. This included a warning of dire consequences if Turkey, a largely Muslim nation of 79 million, joined the EU. The campaign culminated in a vote for &#39;Brexit&#39; on June 23. 
 
&quot;His negative comments on Erdogan and Turkey are unacceptable ... However we&#39;re sure of one thing, that British-Turkish relations are more important than that and can&#39;t be hostage to these statements,&quot; the Turkish official said. 
 
&quot;With his new responsibilities, we are expecting a more positive attitude from Mr. Johnson,&quot; said the official, who requested anonymity due to the sensitivity of the situation. 
 
Turkish media talks about Johnson&#39;s &#39;Turkish roots&#39;&nbsp; 
 
Turkey&#39;s leaders have repeatedly warned about rising xenophobia and anti-immigrant views in Europe. They complained that the British referendum campaign was marred by anti-Turkish sentiment fuelled by mainstream politicians. 
 
The pro-government Daily Sabah newspaper described Johnson as known for &quot;his anti-Turkey and eurosceptic stance as the mayor of London&quot; and said his appointment &quot;raises questions about the future of Britain&#39;s international relations&quot;. 
 
Other mainstream newspapers talked about Johnson&#39;s Turkish roots but made no mention of his poem about Erdogan. Johnson&#39;s great-grandfather was an opposition figure in the late Ottoman period, who was lynched during Turkey&#39;s War of Independence in the early 1920s. 
 
Speaking ahead of Johnson&#39;s appointment, Turkish Prime Minister Binali Yildirim also signalled his government would be ready to work with the former London mayor. 
 
&quot;What would I say to him? Well, may God help him and reform him and I hope that he won&#39;t make any more mistakes and try to make it up with the Turks,&quot; Yildirim said in an interview with the BBC recorded at the weekend and broadcast today.&nbsp; 
 
&quot;But the campaign is over, the referendum was held and there&#39;s no reason to discuss this anymore,&quot; he said. &nbsp; 
 
Turkey began its EU accession talks in 2005 after decades of knocking on the door but progress has been slow due to disagreements over Ankara&#39;s human rights record, Cyprus and other issues. It is not seen joining the bloc for many years. 
 
Despite the referendum campaign rhetoric, Britain was for a long time one of the main champions of Turkey&#39;s EU bid. 
 
(Reuters)&nbsp; 
&nbsp;

"With his new responsibilities, we are expecting a more positive attitude from Mr Johnson," said the official.

Turkey will draw a line under disparaging comments by Britain's new foreign secretary Boris Johnson about President Tayyip Erdogan and his nation, a senior official said today, but warned relations would be damaged if he repeated such insults. Johnson, the former London mayor who was appointed foreign secretary late on Wednesday by new Prime Minister Theresa May, won a "President Erdogan Offensive Poetry competition" run by Britain's Spectator magazine earlier this year. He was the most prominent figure in the campaign for Britain to leave the European Union, which played on voters' fears about immigration. This included a warning of dire consequences if Turkey, a largely Muslim nation of 79 million, joined the EU. The campaign culminated in a vote for 'Brexit' on June 23. "His negative comments on Erdogan and Turkey are unacceptable ... However we're sure of one thing, that British-Turkish relations are more important than that and can't be hostage to these statements," the Turkish official said. "With his new responsibilities, we are expecting a more positive attitude from Mr. Johnson," said the official, who requested anonymity due to the sensitivity of the situation. Turkish media talks about Johnson's 'Turkish roots' Turkey's leaders have repeatedly warned about rising xenophobia and anti-immigrant views in Europe. They complained that the British referendum campaign was marred by anti-Turkish sentiment fuelled by mainstream politicians. The pro-government Daily Sabah newspaper described Johnson as known for "his anti-Turkey and eurosceptic stance as the mayor of London" and said his appointment "raises questions about the future of Britain's international relations". Other mainstream newspapers talked about Johnson's Turkish roots but made no mention of his poem about Erdogan. Johnson's great-grandfather was an opposition figure in the late Ottoman period, who was lynched during Turkey's War of Independence in the early 1920s. Speaking ahead of Johnson's appointment, Turkish Prime Minister Binali Yildirim also signalled his government would be ready to work with the former London mayor. "What would I say to him? Well, may God help him and reform him and I hope that he won't make any more mistakes and try to make it up with the Turks," Yildirim said in an interview with the BBC recorded at the weekend and broadcast today. "But the campaign is over, the referendum was held and there's no reason to discuss this anymore," he said. Turkey began its EU accession talks in 2005 after decades of knocking on the door but progress has been slow due to disagreements over Ankara's human rights record, Cyprus and other issues. It is not seen joining the bloc for many years. Despite the referendum campaign rhetoric, Britain was for a long time one of the main champions of Turkey's EU bid. (Reuters)

UK-Turkey ties can't be hostage to Boris Johnson's quips: Turkish official

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

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

The aftershocks of Britain&#39;s decision to leave the European Union (EU) have hit the property sector over the past week, with a foreign bank freezing loans for buyers and some investors pulling out of commercial deals. 
 
Some foreigners, however, are already making the most of the drop in the Pound post-Brexit to snap up what they see as residential bargains. 
 
London property has long been a magnet for foreign investors, be it extravagant homes or iconic commercial real estate, and prices in the capital have sky-rocketed. 
 
Key to overseas investors will be whether the fall in the value of Sterling is attractive enough to offset the political vacuum, expected economic slowdown and questions over market access that have resulted from Britain&#39;s vote to leave the EU. 
 
Singapore&#39;s United Overseas Bank temporarily halted mortgage loans for London properties. Other Asian banks also flagged potential investment risks. 
 
For British investors, the uncertainty may be prohibitive, even though property is widely considered more profitable than other safe assets, given supply shortages. 
 
&quot;A number of deals I know have gone down or certainly been delayed,&quot; Paul Firth, head of real estate at law firm Irwin Mitchell LLP said. &quot;Everyone is taking a pause at the moment just to wait until a new normal is established.&quot; 
 
In one case, the purchase of a regional shopping centre by a US&nbsp;private equity fund worth more than 30 million Pounds ($40 million) was delayed after Brexit for at least a couple of months pending the market settling down. 
 
Another deal his firm was working on involved a French vendor of high-end luxury goods who put on hold its new flagship London store after Britain&#39;s decision to leave the EU, he said. 
 
He said a number of their &quot;significant investment deals&quot;, worth above 30 million Pounds each, had stalled. The deals involved mainly UK investors but also some foreigners. One deal the firm was working on worth more than 40 million Pounds had gone through since Brexit. 
 
Britain&#39;s June 23 vote to leave the EU has already caused the government to collapse and deeply divided the country. 
 
Bank of England Governor Mark Carney said on Thursday the economy would probably need more stimulus over the summer given that the outlook had deteriorated. He also said commercial real estate transactions had halved since last year&#39;s peak and that activity in residential real estate had slowed sharply. 
 
British commercial real estate investment volumes reached 10.7 billion Pounds in the first three months of 2016, a 28 per cent fall versus the same period a year ago and its lowest quarter since the second quarter of 2013, according to June research from real estate services firm Cushman &amp; Wakefield. 
 
Investors&#39;&nbsp;gain, home-buyers&#39; pain 
 
There were also signs that the fallout from Brexit was benefiting professional investors such as private funds at the expense of homebuyers, who may struggle along with the economy. 
 
Before the referendum, officials said the economy could tip into recession and house prices could fall 10 to 18 per cent if Britain voted to leave the EU. Economists polled by Reuters before the vote said they expected house prices to be flat next year and then pick up again if Britain chose to leave. 
 
David Galman, sales director at Galliard Homes, said professional investors had already contacted him offering to buy any units end-users may seek to sell in the Skyline residential development it launched in June just outside London. 
 
Galliard Homes, London&#39;s second largest house-builder, had offered buyers get out clauses for the 89 off-plan units ranging from 200,000 to 250,000 Pounds in their development in Slough, west of London. The buyers had the option to withdraw their offers if they were unhappy with the outcome of the EU vote. 
 
Galman said just one client, &quot;an owner occupier&quot; had thus far invoked a Brexit clause but that flat had already been sold at the same price to a professional investor. 
 
&quot;I anticipate that we may get a small number of deals at Slough falling out of bed due to Brexit &ndash; all domestic end-users spooked by the Brexit drama,&quot; he said. 
 
Another development that offered Brexit opt out options was Two Fifty One, a 41-storey luxury apartment tower going up in south London&#39;s gentrifying Elephant and Castle district. 
 
At a May launch of some floors in the development, buyers were offered a &quot;money back Brexit guarantee pledge&quot;. 
 
&quot;A few purchasers have decided not to proceed given the uncertainty of the market,&quot; David Humbles, managing director of Oakmayne, the developer who runs the project said. &quot;However, the majority are continuing with their purchase.&quot; 
 
Tim Wright, director of residential development, at global commercial real estate firm JLL said including the Two Fifty One development, 2 out of around 20 developments in the portfolio that he runs in London had offered opt-out options for buyers on a limited number of units. 
 
&quot;We&#39;ve lost about 25 per cent of those types of deals,&quot; Wright said. &quot;But there are still a lot of people who bought on those terms who are continuing to purchase.&quot; 
 
London appeal 
 
Sterling&#39;s steep fall post-Brexit could offset some of the effects from tax increases introduced in April, which made buying properties especially in central London, an area favoured by foreign buyers, more expensive. There were signs that this was already happening in the top-end of the residential market. 
 
&quot;We have made a number of sales,&quot; David Adams, a managing director at luxury real estate agent John Taylor said, anticipating more Middle Eastern interest at the end of Ramadan in properties worth between 2 and 6 million Pounds. 
 
He said they had also had some interest and an offer on apartment blocks from 23 million to 45 million Pounds. 
 
&quot;We have an immediate uplift (in sales to the) Middle East, United States and Asia, but we have a decrease in English domestic buyers, because of political instability.&quot; 
 
Ed Mead, executive director at estate agent Douglas and Gordon had also seen an increase in foreign interest, but said the broader prime central London market would continue to struggle with the kind of uncertainty seen before the vote. 
 
&quot;We had four separate buyers who put in offers (the day after the vote), which were quite cheeky but clearly based on the fact they were getting an extraordinarily abnormal deal,&quot; he said. 
 
The offers, which were in the over one million pound range and came from US&nbsp;and European investors, had &quot;clearly been brought about because of the fall in sterling&quot;. 
 
&quot;The potential fallout from getting it wrong politically is strong and people simply want ongoing stability, both political and (in the) currency.&quot; 
 
($1 = 0.7533 pounds) 
 
(Reuters)

Singapore's UOB temporarily halted mortgage loans for London properties and other Asian banks also flagged potential investment risks

The aftershocks of Britain's decision to leave the European Union (EU) have hit the property sector over the past week, with a foreign bank freezing loans for buyers and some investors pulling out of commercial deals. Some foreigners, however, are already making the most of the drop in the Pound post-Brexit to snap up what they see as residential bargains. London property has long been a magnet for foreign investors, be it extravagant homes or iconic commercial real estate, and prices in the capital have sky-rocketed. Key to overseas investors will be whether the fall in the value of Sterling is attractive enough to offset the political vacuum, expected economic slowdown and questions over market access that have resulted from Britain's vote to leave the EU. Singapore's United Overseas Bank temporarily halted mortgage loans for London properties. Other Asian banks also flagged potential investment risks. For British investors, the uncertainty may be prohibitive, even though property is widely considered more profitable than other safe assets, given supply shortages. "A number of deals I know have gone down or certainly been delayed," Paul Firth, head of real estate at law firm Irwin Mitchell LLP said. "Everyone is taking a pause at the moment just to wait until a new normal is established." In one case, the purchase of a regional shopping centre by a US private equity fund worth more than 30 million Pounds ($40 million) was delayed after Brexit for at least a couple of months pending the market settling down. Another deal his firm was working on involved a French vendor of high-end luxury goods who put on hold its new flagship London store after Britain's decision to leave the EU, he said. He said a number of their "significant investment deals", worth above 30 million Pounds each, had stalled. The deals involved mainly UK investors but also some foreigners. One deal the firm was working on worth more than 40 million Pounds had gone through since Brexit. Britain's June 23 vote to leave the EU has already caused the government to collapse and deeply divided the country. Bank of England Governor Mark Carney said on Thursday the economy would probably need more stimulus over the summer given that the outlook had deteriorated. He also said commercial real estate transactions had halved since last year's peak and that activity in residential real estate had slowed sharply. British commercial real estate investment volumes reached 10.7 billion Pounds in the first three months of 2016, a 28 per cent fall versus the same period a year ago and its lowest quarter since the second quarter of 2013, according to June research from real estate services firm Cushman & Wakefield. Investors' gain, home-buyers' pain There were also signs that the fallout from Brexit was benefiting professional investors such as private funds at the expense of homebuyers, who may struggle along with the economy. Before the referendum, officials said the economy could tip into recession and house prices could fall 10 to 18 per cent if Britain voted to leave the EU. Economists polled by Reuters before the vote said they expected house prices to be flat next year and then pick up again if Britain chose to leave. David Galman, sales director at Galliard Homes, said professional investors had already contacted him offering to buy any units end-users may seek to sell in the Skyline residential development it launched in June just outside London. Galliard Homes, London's second largest house-builder, had offered buyers get out clauses for the 89 off-plan units ranging from 200,000 to 250,000 Pounds in their development in Slough, west of London. The buyers had the option to withdraw their offers if they were unhappy with the outcome of the EU vote. Galman said just one client, "an owner occupier" had thus far invoked a Brexit clause but that flat had already been sold at the same price to a professional investor. "I anticipate that we may get a small number of deals at Slough falling out of bed due to Brexit – all domestic end-users spooked by the Brexit drama," he said. Another development that offered Brexit opt out options was Two Fifty One, a 41-storey luxury apartment tower going up in south London's gentrifying Elephant and Castle district. At a May launch of some floors in the development, buyers were offered a "money back Brexit guarantee pledge". "A few purchasers have decided not to proceed given the uncertainty of the market," David Humbles, managing director of Oakmayne, the developer who runs the project said. "However, the majority are continuing with their purchase." Tim Wright, director of residential development, at global commercial real estate firm JLL said including the Two Fifty One development, 2 out of around 20 developments in the portfolio that he runs in London had offered opt-out options for buyers on a limited number of units. "We've lost about 25 per cent of those types of deals," Wright said. "But there are still a lot of people who bought on those terms who are continuing to purchase." London appeal Sterling's steep fall post-Brexit could offset some of the effects from tax increases introduced in April, which made buying properties especially in central London, an area favoured by foreign buyers, more expensive. There were signs that this was already happening in the top-end of the residential market. "We have made a number of sales," David Adams, a managing director at luxury real estate agent John Taylor said, anticipating more Middle Eastern interest at the end of Ramadan in properties worth between 2 and 6 million Pounds. He said they had also had some interest and an offer on apartment blocks from 23 million to 45 million Pounds. "We have an immediate uplift (in sales to the) Middle East, United States and Asia, but we have a decrease in English domestic buyers, because of political instability." Ed Mead, executive director at estate agent Douglas and Gordon had also seen an increase in foreign interest, but said the broader prime central London market would continue to struggle with the kind of uncertainty seen before the vote. "We had four separate buyers who put in offers (the day after the vote), which were quite cheeky but clearly based on the fact they were getting an extraordinarily abnormal deal," he said. The offers, which were in the over one million pound range and came from US and European investors, had "clearly been brought about because of the fall in sterling". "The potential fallout from getting it wrong politically is strong and people simply want ongoing stability, both political and (in the) currency." ($1 = 0.7533 pounds) (Reuters)

Brexit hits London property market

Thousands of demonstrators gathered in central London on Saturday to march in protest against last week&#39;s vote to leave the European Union (EU), a result that has plunged Britain into political chaos and which most people in the capital rejected. 
 
Most protesters were young adults, and many were draped in EU flags while others waved banners proclaiming slogans like &quot;I`m with EU&quot; or simply &quot;Wrexit&quot;. 
 
&#39;I feel uncertain about my future&#39;&nbsp; 
The protesters chanted &quot;what do we want to do? Stay in the EU,&quot; as they set off for the Westminster political district. 
 
&quot;I was genuinely stunned on the morning after the vote,&quot; said one marcher, Nathaniel Samson, 25, from Hertfordshire north of London. 
 
&quot;I feel deeply uncertain about my future,&quot; he added, &quot;I&#39;m on the march to voice my discontentment. I am accepting the result, but it`s to show that we won`t accept it quietly.&quot; 
 
&#39;Let&#39;s take our fingers off the self-destruct button&#39;&nbsp; 
London voted 60 per cent in favour of remaining in the EU in last Thursday&#39;s referendum, with younger voters widely in favour of staying in the bloc, but 52 per cent of Britons overall cast ballots in favour of leaving. 
 
Rally organiser, King&#39;s College graduate Kieran MacDermott, said, &quot;We can prevent Brexit by refusing to accept the referendum as the final say and take our finger off the self-destruct button&quot;. 
 
Parliament should have the final say on whether Britain should leave, he told the BBC. 
 
The vote to leave has prompted a battle within the ruling Conservative party to succeed Prime Minister David Cameron who said he would resign after the result.&nbsp; 
 
The main opposition Labour Party has also turned on itself, with most of its lawmakers in parliament having voted to withdraw support for party leader Jeremy Corbyn after what they saw as his lacklustre contribution to the referendum campaign.&nbsp; 
 
(Reuters)&nbsp;

'What do we want to do? Stay in the EU,' they shouted

Thousands of demonstrators gathered in central London on Saturday to march in protest against last week's vote to leave the European Union (EU), a result that has plunged Britain into political chaos and which most people in the capital rejected. Most protesters were young adults, and many were draped in EU flags while others waved banners proclaiming slogans like "I`m with EU" or simply "Wrexit". 'I feel uncertain about my future' The protesters chanted "what do we want to do? Stay in the EU," as they set off for the Westminster political district. "I was genuinely stunned on the morning after the vote," said one marcher, Nathaniel Samson, 25, from Hertfordshire north of London. "I feel deeply uncertain about my future," he added, "I'm on the march to voice my discontentment. I am accepting the result, but it`s to show that we won`t accept it quietly." 'Let's take our fingers off the self-destruct button' London voted 60 per cent in favour of remaining in the EU in last Thursday's referendum, with younger voters widely in favour of staying in the bloc, but 52 per cent of Britons overall cast ballots in favour of leaving. Rally organiser, King's College graduate Kieran MacDermott, said, "We can prevent Brexit by refusing to accept the referendum as the final say and take our finger off the self-destruct button". Parliament should have the final say on whether Britain should leave, he told the BBC. The vote to leave has prompted a battle within the ruling Conservative party to succeed Prime Minister David Cameron who said he would resign after the result. The main opposition Labour Party has also turned on itself, with most of its lawmakers in parliament having voted to withdraw support for party leader Jeremy Corbyn after what they saw as his lacklustre contribution to the referendum campaign. (Reuters)

Thousands of Londoners gather, protest agains Brexit

Britain&#39;s two main political parties were embroiled in leadership battles today to decide who will lead the country through turbulent times in the wake of a vote to leave the European Union. 
 
Interior minister Theresa May, who had been a low-key supporter of remaining in the bloc, announced her bid to succeed Prime Minister David Cameron after he resigned in the wake of the referendum. 
 
&quot;Following last week&#39;s referendum, our country needs strong, proven leadership to steer us through this period of economic and political uncertainty, and to negotiate the best possible terms as we leave the European Union,&quot; May wrote in The Times newspaper. 
 
The 69-year-old&#39;s main rival for the Conservative leadership, the mop-haired former mayor of London and prominent &quot;Leave&quot; campaigner Boris Johnson, is expected to launch his campaign today. 
 
Challengers have until 1100 GMT to declare. Work and pensions minister Stephen Crabb and right-wing former defence minister Liam Fox are also expected to run. 
 
Cameron has left to his successor the task of renegotiating Britain&#39;s relationship with the EU following an exit vote that has roiled the markets, sunk the pound, and prompted economists to slash their growth forecasts for the country. 
 
The next Conservative party leader will take over by early September and will face a decision on whether to seek an election to gain a public mandate. 
 
But Britain is also under pressure from the EU not to delay starting the formal notification of leaving the bloc, Article 50 of the Lisbon Treaty. 
 
European leaders, keen not to encourage burgeoning anti-EU movements across the continent, have warned that Britain will not be able to pick and choose the cosiest terms of divorce. 
 
Britain&#39;s main opposition party Labour has also been thrown into turmoil by the vote, as lawmakers moved in its aftermath to oust left-wing leader Jeremy Corbyn in a slow-motion revolt. 
 
Senior lawmaker Angela Eagle is expected to announce a leadership challenge to Corbyn, who has refused to resign despite losing a confidence vote by MPs. 
 
Corbyn, 67, has been criticised for making a lacklustre bid for Britain to remain in the EU, and even insinuations from former allies that he harboured eurosceptic feelings himself. 
 
At a rally at a London university on Wednesday, a heckler called out &quot;What about Europe, Jeremy? Where were you when we needed you?&quot; before being drowned out by booing. 
 
&quot;We`re in the midst of a very interesting political time in this country. I was very honoured to be elected to lead the Labour party last year,&quot; Corbyn told the cheering young activists who form his support base. 
 
&quot;The mandate was given by hundreds of thousands of ordinary people... I`m very proud to be carrying on with that work.&quot; 
 
Though Labour lawmakers passed a vote of no confidence against him by 172 to 40, Corbyn insists he still has the support of the party membership and will fight any leadership challenge he sees as a plot by the more right-wing elements of his party. 
 
The former pensions minister Eagle quit as Corbyn`s business spokeswoman earlier this week in one of a string of resignations. 
 
The ructions in both parties were splashed across today&#39;s front pages. 
 
&quot;Now it`s civil war&quot; declared the Daily Mirror, a historically Labour-supporting newspaper, with a photograph of Corbyn. 
 
&quot;Boris: I want to be your PM&quot; read the eurosceptic Daily Express, while The Times read &quot;May: I will reunite Britain&quot;. 
 
May has a record as a hardliner on immigration, a driving issue in the EU referendum which was presented by &quot;Leave&quot; campaigners as an opportunity to reduce the numbers arriving in Britain. 
 
Following through with that promise could prove a challenge. 
 
EU president Donald Tusk warned Wednesday that if Britain wanted access to the bloc`s huge single market of 500 million people, it would have to accept the free movement of EU citizens. 
 
(AFP)

Boris Johnson is expected to announce his candidacy today, Theresa May has already announced her's

Britain's two main political parties were embroiled in leadership battles today to decide who will lead the country through turbulent times in the wake of a vote to leave the European Union. Interior minister Theresa May, who had been a low-key supporter of remaining in the bloc, announced her bid to succeed Prime Minister David Cameron after he resigned in the wake of the referendum. "Following last week's referendum, our country needs strong, proven leadership to steer us through this period of economic and political uncertainty, and to negotiate the best possible terms as we leave the European Union," May wrote in The Times newspaper. The 69-year-old's main rival for the Conservative leadership, the mop-haired former mayor of London and prominent "Leave" campaigner Boris Johnson, is expected to launch his campaign today. Challengers have until 1100 GMT to declare. Work and pensions minister Stephen Crabb and right-wing former defence minister Liam Fox are also expected to run. Cameron has left to his successor the task of renegotiating Britain's relationship with the EU following an exit vote that has roiled the markets, sunk the pound, and prompted economists to slash their growth forecasts for the country. The next Conservative party leader will take over by early September and will face a decision on whether to seek an election to gain a public mandate. But Britain is also under pressure from the EU not to delay starting the formal notification of leaving the bloc, Article 50 of the Lisbon Treaty. European leaders, keen not to encourage burgeoning anti-EU movements across the continent, have warned that Britain will not be able to pick and choose the cosiest terms of divorce. Britain's main opposition party Labour has also been thrown into turmoil by the vote, as lawmakers moved in its aftermath to oust left-wing leader Jeremy Corbyn in a slow-motion revolt. Senior lawmaker Angela Eagle is expected to announce a leadership challenge to Corbyn, who has refused to resign despite losing a confidence vote by MPs. Corbyn, 67, has been criticised for making a lacklustre bid for Britain to remain in the EU, and even insinuations from former allies that he harboured eurosceptic feelings himself. At a rally at a London university on Wednesday, a heckler called out "What about Europe, Jeremy? Where were you when we needed you?" before being drowned out by booing. "We`re in the midst of a very interesting political time in this country. I was very honoured to be elected to lead the Labour party last year," Corbyn told the cheering young activists who form his support base. "The mandate was given by hundreds of thousands of ordinary people... I`m very proud to be carrying on with that work." Though Labour lawmakers passed a vote of no confidence against him by 172 to 40, Corbyn insists he still has the support of the party membership and will fight any leadership challenge he sees as a plot by the more right-wing elements of his party. The former pensions minister Eagle quit as Corbyn`s business spokeswoman earlier this week in one of a string of resignations. The ructions in both parties were splashed across today's front pages. "Now it`s civil war" declared the Daily Mirror, a historically Labour-supporting newspaper, with a photograph of Corbyn. "Boris: I want to be your PM" read the eurosceptic Daily Express, while The Times read "May: I will reunite Britain". May has a record as a hardliner on immigration, a driving issue in the EU referendum which was presented by "Leave" campaigners as an opportunity to reduce the numbers arriving in Britain. Following through with that promise could prove a challenge. EU president Donald Tusk warned Wednesday that if Britain wanted access to the bloc`s huge single market of 500 million people, it would have to accept the free movement of EU citizens. (AFP)

War of the British succession

Britain will not decide where to build a new runway at Heathrow airport until at least October due to the political turmoil following Britons&#39; vote to leave the European Union, transport minister Patrick McLoughlin said today.&nbsp; 
 
London&#39;s Heathrow, Britain and Europe&#39;s busiest airport, has been campaigning for 25 years for an extra runway and a decision had been expected this summer, after it was pushed back by the government from last year. 
 
But, after his side lost the vote on the country&#39;s EU membership, Prime Minister David Cameron said he would resign by October, and a Conservative leadership contest has begun. 
 
&quot;Being realistic, given recent events, I cannot now foresee an announcement (on airport capacity in southeast England) until at least October,&quot; McLoughlin told lawmakers.&nbsp; 
 
Cameron&#39;s government has been considering for four years where to build the runway, with Heathrow seen as the front-runner over Gatwick, Britain&#39;s second busiest airport, after it was selected by the Davies independent commission in 2015. 
 
However, his possible successor Theresa May opposes Heathrow expansion.&nbsp; 
 
Another high-profile opponent of Heathrow expansion, former London mayor Boris Johnson, said on Thursday he would not be standing for the Conservative leadership.&nbsp; 
 
Business leaders have repeatedly called on the government to build a new runway as Heathrow, Europe&#39;s busiest airport, is already full.&nbsp; 
 
But past attempts to expand the airport, 15 miles west of London in a densely populated area, have been scuppered by local opposition over worries about increased noise and air pollution.&nbsp; 
 
McLoughlin said a government analysis on air quality linked to expansion would be published soon, and said that despite the delays the runway could still be built by the 2030 deadline set by the Davies commission report. 
 
The latest delay to Heathrow&#39;s 18 billion pound ($24 billion) expansion plan was criticised by business groups. 
 
The British Chambers of Commerce said the government was missing an opportunity to stimulate business confidence, while the City of London Corporation said competing on a world stage meant being able to build new trade links.&nbsp; 
 
A quarter of the country&#39;s exports move through Heathrow, Britain&#39;s biggest port, but it has no extra capacity to add routes to new markets including China. 
 
&quot;If Britain wants to be confident, outward-looking and at the centre of the world&#39;s economy then expanding Heathrow must be a key building block in the government&#39;s Brexit plan,&quot; Heathrow chief executive John Holland-Kaye said in a statement.&nbsp; 
 
Tesco chairman John Allan told BBC radio that a delay was &quot;unhelpful&quot; and lamented the fact that &quot;reasons of internal party management&quot; came ahead of what was in the nation&#39;s interest.&nbsp; 
 
Heathrow&#39;s largest shareholder is Spanish infrastructure firm Ferrovial. Other partners include Qatar Holding, China Investment Corp and the Government of Singapore Investment Corp. 
 
(Reuters)

Heathrow has been pushing for 25 years for an extra runway but efforts have been thwarted by opposition to increased noise and air pollution

Britain will not decide where to build a new runway at Heathrow airport until at least October due to the political turmoil following Britons' vote to leave the European Union, transport minister Patrick McLoughlin said today. London's Heathrow, Britain and Europe's busiest airport, has been campaigning for 25 years for an extra runway and a decision had been expected this summer, after it was pushed back by the government from last year. But, after his side lost the vote on the country's EU membership, Prime Minister David Cameron said he would resign by October, and a Conservative leadership contest has begun. "Being realistic, given recent events, I cannot now foresee an announcement (on airport capacity in southeast England) until at least October," McLoughlin told lawmakers. Cameron's government has been considering for four years where to build the runway, with Heathrow seen as the front-runner over Gatwick, Britain's second busiest airport, after it was selected by the Davies independent commission in 2015. However, his possible successor Theresa May opposes Heathrow expansion. Another high-profile opponent of Heathrow expansion, former London mayor Boris Johnson, said on Thursday he would not be standing for the Conservative leadership. Business leaders have repeatedly called on the government to build a new runway as Heathrow, Europe's busiest airport, is already full. But past attempts to expand the airport, 15 miles west of London in a densely populated area, have been scuppered by local opposition over worries about increased noise and air pollution. McLoughlin said a government analysis on air quality linked to expansion would be published soon, and said that despite the delays the runway could still be built by the 2030 deadline set by the Davies commission report. The latest delay to Heathrow's 18 billion pound ($24 billion) expansion plan was criticised by business groups. The British Chambers of Commerce said the government was missing an opportunity to stimulate business confidence, while the City of London Corporation said competing on a world stage meant being able to build new trade links. A quarter of the country's exports move through Heathrow, Britain's biggest port, but it has no extra capacity to add routes to new markets including China. "If Britain wants to be confident, outward-looking and at the centre of the world's economy then expanding Heathrow must be a key building block in the government's Brexit plan," Heathrow chief executive John Holland-Kaye said in a statement. Tesco chairman John Allan told BBC radio that a delay was "unhelpful" and lamented the fact that "reasons of internal party management" came ahead of what was in the nation's interest. Heathrow's largest shareholder is Spanish infrastructure firm Ferrovial. Other partners include Qatar Holding, China Investment Corp and the Government of Singapore Investment Corp. (Reuters)

Brexit political turmoil delays call on new runway at London airport until October

The pound was sitting at three-decade lows Monday morning as currency markets were left reeling from Britain`s shock decision to leave the European Union. 
 
Sterling collapsed to its lowest level since 1985 on Friday ahead of official referendum results as early numbers suggested that the vote would surprise markets, which had widely expected voters to opt for the status quo. 
 
On Monday morning in Tokyo, the pound was at $1.3379, off $1.3670 in New York but still above $1.3229, its lowest point earlier Friday. 
 
&quot;People are finding it difficult to comprehend what Brexit implies for the future -- we don`t know yet what the magnitude of the shock will be,&quot; Steven Barrow, head of Group-of-10 strategy at Standard Bank Group in London, told Bloomberg News. 
 
The euro bought 82.07 pence against 81.31 pence, while the dollar ticked up to 102.34 Yen, from 102.21 yen on Friday. 
 
Japan`s currency surged Friday as traders scooped up the safe-haven unit, seen as a safe bet in times of turmoil. 
 
But the rally in the Yen, which had already been on the upswing before the vote, poses a threat to profits at major Japanese exporters. 
 
And Britain`s vote to leave the EU could have significant consequences for more than 1,000 Japanese firms that operate in Britain -- many of which see it as a staging point for dealing in Europe. 
 
&quot;It was very regrettable,&quot; Sadayuki Sakakibara, chairman of Keidanren, Japan`s biggest business lobby, said of the result on Friday. 
 
Japanese Prime Minister Shinzo Abe held an emergency meeting with top officials Monday morning to discuss Brexit and how to deal with the market fallout. 
 
Ahead of the meeting, Abe pointed to unspecified measures to smooth out any impact on the world`s number three economy.&nbsp; 
 
&quot;We will make thorough efforts so that (Brexit) will not negatively affect Japan`s economy and the business of small to medium-sized firms,&quot; he said, without elaborating. 
 
On Friday, Finance Minister Taro Aso pledged that Tokyo was ready to adopt strong measures to address wild volatility on financial markets. 
 
His remarks hinted at a possible market intervention to cool the surging yen. 
 
Recently, Japanese officials, including Aso, have been warning over the Yen&#39;s rise and said an intervention was possible. However, such a move could put Japan on a collision course with its G20 counterparts, who have agreed to hold off stepping into forex markets to manipulate their currencies. 
 
Officials from the Bank of Japan (BoJ) were at the meeting on Monday. The BoJ has said it was ready to lean on a currency swap agreement it has with other major central banks to supply liquidity for markets in an effort to counter the wild volatility. 
 
(AFP)

Japanese Prime Minister Shinzo Abe held an emergency meeting with top officials Monday morning to review Brexit and the market fallout

The pound was sitting at three-decade lows Monday morning as currency markets were left reeling from Britain`s shock decision to leave the European Union. Sterling collapsed to its lowest level since 1985 on Friday ahead of official referendum results as early numbers suggested that the vote would surprise markets, which had widely expected voters to opt for the status quo. On Monday morning in Tokyo, the pound was at $1.3379, off $1.3670 in New York but still above $1.3229, its lowest point earlier Friday. "People are finding it difficult to comprehend what Brexit implies for the future -- we don`t know yet what the magnitude of the shock will be," Steven Barrow, head of Group-of-10 strategy at Standard Bank Group in London, told Bloomberg News. The euro bought 82.07 pence against 81.31 pence, while the dollar ticked up to 102.34 Yen, from 102.21 yen on Friday. Japan`s currency surged Friday as traders scooped up the safe-haven unit, seen as a safe bet in times of turmoil. But the rally in the Yen, which had already been on the upswing before the vote, poses a threat to profits at major Japanese exporters. And Britain`s vote to leave the EU could have significant consequences for more than 1,000 Japanese firms that operate in Britain -- many of which see it as a staging point for dealing in Europe. "It was very regrettable," Sadayuki Sakakibara, chairman of Keidanren, Japan`s biggest business lobby, said of the result on Friday. Japanese Prime Minister Shinzo Abe held an emergency meeting with top officials Monday morning to discuss Brexit and how to deal with the market fallout. Ahead of the meeting, Abe pointed to unspecified measures to smooth out any impact on the world`s number three economy. "We will make thorough efforts so that (Brexit) will not negatively affect Japan`s economy and the business of small to medium-sized firms," he said, without elaborating. On Friday, Finance Minister Taro Aso pledged that Tokyo was ready to adopt strong measures to address wild volatility on financial markets. His remarks hinted at a possible market intervention to cool the surging yen. Recently, Japanese officials, including Aso, have been warning over the Yen's rise and said an intervention was possible. However, such a move could put Japan on a collision course with its G20 counterparts, who have agreed to hold off stepping into forex markets to manipulate their currencies. Officials from the Bank of Japan (BoJ) were at the meeting on Monday. The BoJ has said it was ready to lean on a currency swap agreement it has with other major central banks to supply liquidity for markets in an effort to counter the wild volatility. (AFP)

Pound weak on post-Brexit fallout

Brexit has apparently pushed the anxiety button in London as the British capital fears investors and bankers could flee the city after the nationwide vote arguably threatened its coveted reputation as a global financial hub. 
 
Some 60 percent of Londoners voted to stay in the EU in Thursday&#39;s historic referendum but the rest of the country cast their ballots overwhelmingly to leave.&nbsp; 
 
&#39;A fifth of all global banking activity takes place in London&#39;&nbsp; 
The capital&#39;s 8.6 million residents, whose GDP is about the same as that of oil-rich Norway, are anxious about the impact on the city&#39;s economy. The fear is that London will no longer be able to claim to serve as the gateway for US and Asian businesses into Europe&#39;s vast single market. 
 
&quot;Some firms that saw&nbsp;London&nbsp;as a platform for serving the integrated EU market will relocate at least part of their headquarters&#39; functions to other cities within the EU,&quot; said Greg Clark of the Brookings Institution. 
 
A first bank, US giant JP Morgan which employs around 16,000 staff in the United Kingdom, said Friday that it &quot;may need to make changes to our European legal entity structure and the location of some roles&quot;. 
 
It gave no figures, but chairman and chief executive Jamie Dimon previously said that up to 4,000 jobs could move out of the UK. 
 
According to ratings agency Standard and Poor&#39;s, a fifth of all global banking activity takes place in London.&nbsp;Speculations are rife that a haemorrhaging of bankers would hit the city. 
 
It may be also be underlined that the financial sector provides one in three jobs, or some 1.25 million. &nbsp;Services overall represent 85 percent of jobs, having completely supplanted manufacturing which historically was the driving force of the capital. 
 
&quot;Although we will be outside the EU, it is crucial that we remain part of the single market,&quot; pro-EU&nbsp;London&nbsp;Mayor Sadiq Khan said Friday. 
 
&quot;It is crucial that&nbsp;London&nbsp;has a voice at the table during those renegotiations,&quot; added the Labour mayor, who took over in May from Conservative Boris Johnson, who went on to spearhead the &quot;Leave&quot; camp. 
 
A petition for&nbsp;London&nbsp;to have independence from the United Kingdom and make an application to join the EU started partly as a stunt. 
 
But it highlighted deep concerns and had by Saturday evening garnered more than 150,000 signatures for a so-called &quot;Lexit&rdquo;.&nbsp; 
 
&#39;Net job losses may not be high&#39;&nbsp; 
Despite these&nbsp;fears, Clark of the Brookings Institution said that in the end &quot;the total number of net job losses in&nbsp;London&nbsp;may not be high, as corporations will re-organise rather than leave&quot;. 
 
&quot;London&nbsp;will remain a good location to service global markets,&quot; he added. 
 
The city, whose GDP grew by 3.3 percent last year against 2.3 percent for the whole country, remains well-placed: it speaks English, the international language of business, as well as being cosmopolitan and culturally rich. 
 
London&#39;s successful hosting of the 2012 Olympics, which saw huge investment notably in transport infrastructure, burnished its reputation as a global capital. 
 
Real estate on frontline 
If well-paid bankers and other expatriates flee London for Frankfurt, Paris or Dublin, a whole swathe of the economy which depends on higher spending power will suffer, from luxury real estate agencies to select private schools. 
 
The first sector to pay the price might be bricks and mortar. 
 
&quot;In our view the decision to leave the EU will be most keenly felt in the&nbsp;Londonhousing market which is fully valued and already facing headwinds,&quot; said real estate specialists Hometrack. 
 
&quot;History shows that external shocks have led to falls in turnover by as much as 20 percent,&quot; it added. 
 
That kind of slump could put downward pressure on prices, actually good news finally for many prospective buyers and renters in a city where homes have become increasingly unaffordable, and where prices have been rising by 13 percent a year. 
 
Seeking silver linings, Clark also points out another potential advantage. 
 
&quot;London&nbsp;will also present a diversification opportunity for investors who want to hedge against the EU,&quot; for example if another euro currency crisis hits, &quot;but be part of Europe&#39;s growth story&quot;, he said. 
 
&quot;London&nbsp;may even garner a &#39;first (EU) leaver&#39; advantage. The British pound has always served as a currency hedge for the euro, and this function may even strengthen it,&quot; he said.&nbsp; 
 
(AFP)&nbsp; 
&nbsp;

The fear is that?London?will no longer be able to claim to serve as the gateway for US and Asian businesses into Europe's vast single market

Brexit has apparently pushed the anxiety button in London as the British capital fears investors and bankers could flee the city after the nationwide vote arguably threatened its coveted reputation as a global financial hub. Some 60 percent of Londoners voted to stay in the EU in Thursday's historic referendum but the rest of the country cast their ballots overwhelmingly to leave. 'A fifth of all global banking activity takes place in London' The capital's 8.6 million residents, whose GDP is about the same as that of oil-rich Norway, are anxious about the impact on the city's economy. The fear is that London will no longer be able to claim to serve as the gateway for US and Asian businesses into Europe's vast single market. "Some firms that saw London as a platform for serving the integrated EU market will relocate at least part of their headquarters' functions to other cities within the EU," said Greg Clark of the Brookings Institution. A first bank, US giant JP Morgan which employs around 16,000 staff in the United Kingdom, said Friday that it "may need to make changes to our European legal entity structure and the location of some roles". It gave no figures, but chairman and chief executive Jamie Dimon previously said that up to 4,000 jobs could move out of the UK. According to ratings agency Standard and Poor's, a fifth of all global banking activity takes place in London. Speculations are rife that a haemorrhaging of bankers would hit the city. It may be also be underlined that the financial sector provides one in three jobs, or some 1.25 million. Services overall represent 85 percent of jobs, having completely supplanted manufacturing which historically was the driving force of the capital. "Although we will be outside the EU, it is crucial that we remain part of the single market," pro-EU London Mayor Sadiq Khan said Friday. "It is crucial that London has a voice at the table during those renegotiations," added the Labour mayor, who took over in May from Conservative Boris Johnson, who went on to spearhead the "Leave" camp. A petition for London to have independence from the United Kingdom and make an application to join the EU started partly as a stunt. But it highlighted deep concerns and had by Saturday evening garnered more than 150,000 signatures for a so-called "Lexit”. 'Net job losses may not be high' Despite these fears, Clark of the Brookings Institution said that in the end "the total number of net job losses in London may not be high, as corporations will re-organise rather than leave". "London will remain a good location to service global markets," he added. The city, whose GDP grew by 3.3 percent last year against 2.3 percent for the whole country, remains well-placed: it speaks English, the international language of business, as well as being cosmopolitan and culturally rich. London's successful hosting of the 2012 Olympics, which saw huge investment notably in transport infrastructure, burnished its reputation as a global capital. Real estate on frontline If well-paid bankers and other expatriates flee London for Frankfurt, Paris or Dublin, a whole swathe of the economy which depends on higher spending power will suffer, from luxury real estate agencies to select private schools. The first sector to pay the price might be bricks and mortar. "In our view the decision to leave the EU will be most keenly felt in the Londonhousing market which is fully valued and already facing headwinds," said real estate specialists Hometrack. "History shows that external shocks have led to falls in turnover by as much as 20 percent," it added. That kind of slump could put downward pressure on prices, actually good news finally for many prospective buyers and renters in a city where homes have become increasingly unaffordable, and where prices have been rising by 13 percent a year. Seeking silver linings, Clark also points out another potential advantage. "London will also present a diversification opportunity for investors who want to hedge against the EU," for example if another euro currency crisis hits, "but be part of Europe's growth story", he said. "London may even garner a 'first (EU) leaver' advantage. The British pound has always served as a currency hedge for the euro, and this function may even strengthen it," he said. (AFP)

Brexit effect: Possible hemorrhaging of bankers may hit London's long-booming economy?

Top US diplomat John Kerry will fly to Brussels and London on Monday for talks with Washington&#39;s key allies in the aftermath of Britain&#39;s vote to leave the European Union. 
 
US officials travelling to Rome with the secretary of state told reporters on the flight that two stops had been added to his European itinerary at the last moment. 
 
&quot;Tomorrow we&#39;ll go to Brussels and then on to London,&quot; one official said. 
 
Washington was dismayed last week when British voters chose to leave the European Union, a decision that triggered global economic uncertainty and fears other EU members will follow suit. 
 
President Barack Obama had made clear his concern about the Brexit referendum, and now US officials are scrambling to try to stop the political crisis harming Western unity. 
 
Kerry arrived in Rome today on a planned visit to have lunch with Foreign Minister Paolo Gentiloni and a working dinner with Israeli Prime Minister Benjamin Netanyahu. 
 
But officials on his flight said that on Monday he would fly on to the EU headquarters in Brussels for crisis talks with EU foreign policy chief Federica Mogherini. 
 
Mogherini had been expected to meet Kerry in Rome today, but she was busy dealing with the fallout of the dramatic vote, which stunned European and world leaders. 
 
From Brussels Kerry will continue to London to see Foreign Secretary Philip Hammond and other officials from outgoing British Prime Minister David Cameron`s government. 
 
The two senior diplomats are expected to hold a joint news conference before Kerry leaves to return to Washington. 
 
Obama and Kerry have been at pains to insist the vaunted &quot;special relationship&quot; between Washington and London will survive what US officials view as the Brexit debacle.But Washington foreign policy experts are all but unanimous in assessing that the White House will increasingly turn to core EU allies to defend its interests on the continent. 
 
Obama himself, on a visit to London last month, warned British voters that their nation would go &quot;to the back of the queue&quot; for a US trade deal if they voted &quot;out.&quot; 
 
US officials are also keen to help London`s divorce from Brussels go through smoothly without further inflicting further damage on skittish world financial markets. 
 
But they, like many EU capitals, are also concerned not to allow Brexit to serve as an inspiration for eurosceptic forces in other members such as Italy or The Netherlands. 
 
The London visit will be the first by a senior US official since Thursday`s dramatic referendum, when voters demanded Britain leave the world`s richest trading bloc.&nbsp; 
 
Kerry&#39;s trip had originally been planned as an opportunity to meet Netanyahu and discuss regional security and the stalled Israel-Palestinian peace process. 
 
But US officials played down the chance of any concrete progress, insisting that the pair meet regularly and that no new initiative would be on the table.&nbsp; 
 
(AFP)

London visit will be the first by John Kerry after the referendum when voters demanded Britain leave the world's richest trading bloc

Top US diplomat John Kerry will fly to Brussels and London on Monday for talks with Washington's key allies in the aftermath of Britain's vote to leave the European Union. US officials travelling to Rome with the secretary of state told reporters on the flight that two stops had been added to his European itinerary at the last moment. "Tomorrow we'll go to Brussels and then on to London," one official said. Washington was dismayed last week when British voters chose to leave the European Union, a decision that triggered global economic uncertainty and fears other EU members will follow suit. President Barack Obama had made clear his concern about the Brexit referendum, and now US officials are scrambling to try to stop the political crisis harming Western unity. Kerry arrived in Rome today on a planned visit to have lunch with Foreign Minister Paolo Gentiloni and a working dinner with Israeli Prime Minister Benjamin Netanyahu. But officials on his flight said that on Monday he would fly on to the EU headquarters in Brussels for crisis talks with EU foreign policy chief Federica Mogherini. Mogherini had been expected to meet Kerry in Rome today, but she was busy dealing with the fallout of the dramatic vote, which stunned European and world leaders. From Brussels Kerry will continue to London to see Foreign Secretary Philip Hammond and other officials from outgoing British Prime Minister David Cameron`s government. The two senior diplomats are expected to hold a joint news conference before Kerry leaves to return to Washington. Obama and Kerry have been at pains to insist the vaunted "special relationship" between Washington and London will survive what US officials view as the Brexit debacle.But Washington foreign policy experts are all but unanimous in assessing that the White House will increasingly turn to core EU allies to defend its interests on the continent. Obama himself, on a visit to London last month, warned British voters that their nation would go "to the back of the queue" for a US trade deal if they voted "out." US officials are also keen to help London`s divorce from Brussels go through smoothly without further inflicting further damage on skittish world financial markets. But they, like many EU capitals, are also concerned not to allow Brexit to serve as an inspiration for eurosceptic forces in other members such as Italy or The Netherlands. The London visit will be the first by a senior US official since Thursday`s dramatic referendum, when voters demanded Britain leave the world`s richest trading bloc. Kerry's trip had originally been planned as an opportunity to meet Netanyahu and discuss regional security and the stalled Israel-Palestinian peace process. But US officials played down the chance of any concrete progress, insisting that the pair meet regularly and that no new initiative would be on the table. (AFP)

Top US envoy Kerry heads to Britain amid Brexit crisis

Talks on Britain leaving the European Union must be carried out quickly to limit uncertainty, ECB Governing Council member Francois Villeroy de Galhau said today, adding London&#39;s financial centre was at risk of losing its prized &quot;EU passport&quot;. 
 
Banks based in London rely on a so-called EU passport to operate across the bloc&#39;s capital market unhindered. Some banks have said they would shift operations to the euro zone if Britain left the EU. 
 
The City of London will not be able to keep that passport if Britain leaves the EU&#39;s single market of trade in goods and services, Villeroy told France Inter radio. 
 
&quot;There is a precedent, it is the Norwegian model of European Economic Area, that would allow Britain to keep access to the single market but by committing to implement all EU rules,&quot; he said. 
 
&quot;It would be a bit paradoxical to leave the EU and apply all EU rules, but that is one solution if Britain wants to keep access to the single market.&quot; 
 
Central banks are efficiently dealing with the fallout of Thursday&#39;s UK vote to leave the EU, said Villeroy, who is also governor of the French central bank, adding: &quot;The euro is a solid currency.&quot; 
 
&quot;What happened on Thursday is bad news, first of all for Britain,&quot; he said. &quot;Of course there will be negative consequences for the European economy but there will be much more limited than the negative consequences all experts forecast for the UK economy.&quot; 
 
Brexit does not put the French economy at any risk of contracting in the next quarters, he said, confirming past growth forecasts of at least 1.4 per cent for 2016. 
 
(Reuters)

Some London-based banks have said they would shift operations to the euro zone if Britain left the EU

Talks on Britain leaving the European Union must be carried out quickly to limit uncertainty, ECB Governing Council member Francois Villeroy de Galhau said today, adding London's financial centre was at risk of losing its prized "EU passport". Banks based in London rely on a so-called EU passport to operate across the bloc's capital market unhindered. Some banks have said they would shift operations to the euro zone if Britain left the EU. The City of London will not be able to keep that passport if Britain leaves the EU's single market of trade in goods and services, Villeroy told France Inter radio. "There is a precedent, it is the Norwegian model of European Economic Area, that would allow Britain to keep access to the single market but by committing to implement all EU rules," he said. "It would be a bit paradoxical to leave the EU and apply all EU rules, but that is one solution if Britain wants to keep access to the single market." Central banks are efficiently dealing with the fallout of Thursday's UK vote to leave the EU, said Villeroy, who is also governor of the French central bank, adding: "The euro is a solid currency." "What happened on Thursday is bad news, first of all for Britain," he said. "Of course there will be negative consequences for the European economy but there will be much more limited than the negative consequences all experts forecast for the UK economy." Brexit does not put the French economy at any risk of contracting in the next quarters, he said, confirming past growth forecasts of at least 1.4 per cent for 2016. (Reuters)

ECB's Villeroy: Brexit talks must be quick, City of London at risk of losing 'EU passport'

British lawmaker Jo Cox, who was killed on Thursday, had previously contacted police after receiving &quot;malicious communications&quot; and they had arrested a man in connection with the investigation in March. 
 
Police said that the man they had arrested at that time was not the 52-year-old man who was being held in custody in West Yorkshire following his arrest close to the crime scene. 
 
&quot;Officers received an allegation of malicious communications from Jo Cox MP, and in March 2016 arrested a man in connection with the investigation,&quot; police said. &quot;The man subsequently accepted a police caution.&quot; 
 
Cox, a 41-lawmaker for the opposition Labour Party and a vocal advocate of Britain&#39;s European Union membership, died after she was shot and stabbed repeatedly by a man who witnesses said shouted &quot;Britain first&quot;. 
 
Both sides in Britain&#39;s EU referendum suspended campaigning after the attack. 
(Reuters)

The police arrested a man in March 2016 but he was not the 52-year-old man who was being held in custody in West Yorkshire

British lawmaker Jo Cox, who was killed on Thursday, had previously contacted police after receiving "malicious communications" and they had arrested a man in connection with the investigation in March. Police said that the man they had arrested at that time was not the 52-year-old man who was being held in custody in West Yorkshire following his arrest close to the crime scene. "Officers received an allegation of malicious communications from Jo Cox MP, and in March 2016 arrested a man in connection with the investigation," police said. "The man subsequently accepted a police caution." Cox, a 41-lawmaker for the opposition Labour Party and a vocal advocate of Britain's European Union membership, died after she was shot and stabbed repeatedly by a man who witnesses said shouted "Britain first". Both sides in Britain's EU referendum suspended campaigning after the attack. (Reuters)

Murdered British lawmaker Jo Cox had contacted police over threats

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