Financial Markets – Since the Brexit

Waters have Settled amid Huge Doubts about Brexit

July 6, 2016July 6, 2016 adminBrexit, corbyn, farage, gove, leadership, leadsom, may0 comment

Almost two weeks after the crucial Brexit vote, the waters seems to have settled down a bit both in the UK and in the rest of the European Union. Paradoxically, however, the number of unknown factors have increased significantly since the vote, and how it will all turn out in the end is anybody’s guess. The major UK parties are all but leaderless, as David Cameron has announced his intention to resign, and Labour leader Jeremy Corbyn is basically without support among his own MPs, making any opinion he may…

Financial Markets

UK stripped of AAA rating by Big Two Credit Rating Agencies

June 27, 2016 adminBrexit, EURO2016, ratings0 comment

On a day which has seen UK party politics in turmoil and the England national team crashing out of the EURO 2016 being defeated by microscopic Iceland, two of the three major international credit rating agencies have stripped the UK of its top credit rating, making it more expensive for households, companies and UK government alike to borrow money. The rating was downgraded by two notches, from AAA to AA, by Standard & Poors and by one notch from AA+ to AA by Fitch. UK Growth forecasts were downgraded as well,…

Financial Markets UK Politics

Markets Continue to Drop in Wake of Brexit – But Not as much as Expected

June 27, 2016June 27, 2016 admin£350 million, bregret, Brexit, farage, IDS, sturgeon0 comment

The markets continued to drop in early trading on June 27 following the Brexit referendum. Although the massive drops predicted in the early hours after the vote has yet to materialize, the Pound is trading at its lowest level against the US dollar for about 30 years, and the FTSE is a further 2% down compared to the Friday closing level, and is now trading dangerously close to the 6,000 points mark. It is being speculated that the – after all – less-than-expected fall is in part due to increasing doubts over whether the UK will actually…

Financial Markets Jobs

Morgan Stanley to move 2,000 jobs out of London – or?

June 25, 2016June 26, 2016 adminBrexit, city of london, jobs, rumours, unemployment0 comment

Shortly after the official result of the Brexit referendum became known, BBC reported that according to anonymous sources, Morgan Stanley, one of the world’s largest financial services corporations, had already decided to move 2,000 employees from the City of London/Canary Wharf to Dublin and Frankfurt due to the British exit vote. This seemed to be the first of many such announcements from major companies. However, shortly after the newsflash from the BBC a spokesman for Morgan Stanley denied that any such plans to move employees from London exists. Thus it is still…

Financial Markets

Financial markets plummet in response to surprise Leave vote

June 25, 2016June 26, 2016 adminBrexit, EUR, Financial, FTSE, GBP, stocks, USD0 comment

The Leave vote came as a surprise to the financial markets, as the last polls before the Brexit referendum had shown a small but fairly secure victory for the Remain side. Even the UK bookmakers had got it wrong, and in the days before the referendum some bookies offered odds of 2/9 on Remain, implying a 82 percent winning chance for that outcome. As such, the financial markets were generally unprepared for the final result, which therefore came as a huge shock to the international financial markets. The British Pound dropped early on in…