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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/jun/24/global-markets-ftse-pound-uk-leave-eu-brexit-live-updates
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| Version 6 | Version 7 |
|---|---|
| Bank of England promises £250bn to calm markets after Brexit vote - live updates | Bank of England promises £250bn to calm markets after Brexit vote - live updates |
| (35 minutes later) | |
| 9.58am BST | |
| 09:58 | |
| Jill Treanor | |
| Mark Carney’s statement underlines that all the contingency plans that were drawn up ahead of the vote are having to be rolled out. | |
| The governor’s attempt at reassurance, the soothing statements from the high street banks and the decisions by banks to try to do more voice trading rather than relying on computers are all part of that strategy. | |
| Lloyds Banking Group have also tried to sound reassuring, | |
| “There are no changes in the products or services offered to customers, either in the UK or overseas. Customers can continue to use our banking and insurance services as they did before. | |
| Customer deposits in the UK continue to be protected by the Financial Services Compensation Scheme; and the Prudential Regulation Authority and Financial Conduct Authority remain our primary regulators. | |
| 9.36am BST | |
| 09:36 | |
| JP Morgan expects UK rate cut soon | |
| Julia Kollewe | |
| Malcolm Barr, economist at JP Morgan, has predicted Scotland would seek another independence referendum before the UK completes its EU exit, and “it’s likely that Scotland will vote to leave.” | |
| Speaking to investors, Barr added that Northern Ireland was “going to be troublesome to manage” with Sinn Fein already talking about a referendum (although that is unlikely to happen). | |
| In the EU, the vote to leave “is going to energise populist parties” but JP Morgan does not anticipate referenda on EU membership elsewhere. | |
| European finance ministers are meeting today and there could be an emergency EU summer this weekend or early next week. “The initial signs are not particularly conciliatory... Out is out and there won’t be any special favours for the UK.” | |
| Barr added: | |
| “An emergency budget is possible but certainly won’t have any of the character that Mr Osborne described.” | |
| His colleague Allan Monks believes the Bank of England will cut interest rates by 50 basis points [to zero] by the August meeting, with a 25bps cut in July “a distinct possibility”. | |
| He said the Bank would weigh up the potential inflation shock resulting from the sharp drop in sterling against the damage to economic growth. | |
| “There will be an inflation move up close to 3% by the end of next year on the basis of what sterling has done this morning, but I don’t think that’s enough to stop them from easing.” | |
| Monks noted that the UK would retain access to the single market for the time being, but uncertainty will rise further, so “we expect that to create further delays in firms’ investment and hiring decisions.” | |
| He is predicting that UK growth will “slow to a crawl” in coming quarters, with growth likely to be 1% lower over the coming year, while Britain’s unemployment rate is likely to rise by half a percentage point to 5.5% next year. | |
| Paul Meggyesi, currency strategist at JP Morgan, said the pound had further to fall. | |
| “I’m not convinced we’ve already seen the lows in sterling.” | |
| The sterling-dollar rate could go below $1.30 over the next week or so, he said. | |
| Updated | |
| at 9.36am BST | |
| 9.31am BST | |
| 09:31 | |
| Jill Treanor | |
| After 90 minutes of noisy drama, it’s noticeably quieter now at Cantor Fitzgerald. | |
| The lull before the US market open? Bank shares, though, are “still getting hammered”. So it’s all about waiting for the US investors to wake up.. | |
| Property firms are the biggest fallers, though, which suggests investors are expecting a housing downturn. | |
| 9.25am BST | 9.25am BST |
| 09:25 | 09:25 |
| Simon Goodley | Simon Goodley |
| We might never find out who saw them, but there is plenty of speculation in the City that hedge funds commissioned exit polls yesterday that got things even more wrong than the opinion polls and the betting markets. | We might never find out who saw them, but there is plenty of speculation in the City that hedge funds commissioned exit polls yesterday that got things even more wrong than the opinion polls and the betting markets. |
| One trader says: | One trader says: |
| “Sterling was so strong last night that it suggests that somebody had very strong data that the vote was going to be Remain. | “Sterling was so strong last night that it suggests that somebody had very strong data that the vote was going to be Remain. |
| Some hedge fund has probably paid about half a million for it and the data was absolutely terrible.” | Some hedge fund has probably paid about half a million for it and the data was absolutely terrible.” |
| Every cloud, and all that. | Every cloud, and all that. |
| 9.24am BST | 9.24am BST |
| 09:24 | 09:24 |
| While Carney was speaking, IG traders were yelling across desks to check if they can make trades. | While Carney was speaking, IG traders were yelling across desks to check if they can make trades. |
| “I want to sell 22,000 [shares]” screams one. “Yeah, I’ll trade that,” replies a colleague. | “I want to sell 22,000 [shares]” screams one. “Yeah, I’ll trade that,” replies a colleague. |
| And some clients think today’s selloff is a buying opportunity. | And some clients think today’s selloff is a buying opportunity. |
| “It’s almost all been buying,” says one trader. | “It’s almost all been buying,” says one trader. |
| “Clients think things have been oversold. There is very little selling.” | “Clients think things have been oversold. There is very little selling.” |
| 9.17am BST | 9.17am BST |
| 09:17 | 09:17 |
| The stock market has now clawed back half of its losses, following Mark Carney’s pledge to provide £250bn of funds to calm the situation. | The stock market has now clawed back half of its losses, following Mark Carney’s pledge to provide £250bn of funds to calm the situation. |
| The FTSE 100 is now down 274 points, or 4.3%, at 6065 – that’s still a very large fall, that wipes out around £70bn. | The FTSE 100 is now down 274 points, or 4.3%, at 6065 – that’s still a very large fall, that wipes out around £70bn. |
| 9.14am BST | 9.14am BST |
| 09:14 | 09:14 |
| Mark Carney concluded his statement by underlining how the Bank of England is prepared to act. | Mark Carney concluded his statement by underlining how the Bank of England is prepared to act. |
| The governor said: | The governor said: |
| A few months ago, the Bank judged that the risks around the referendum were the most significant, near-term domestic risks to financial stability. | A few months ago, the Bank judged that the risks around the referendum were the most significant, near-term domestic risks to financial stability. |
| To mitigate them, the Bank of England has put in place extensive contingency plans.These begin with ensuring that the core of our financial system is well-capitalised, liquid and strong. | To mitigate them, the Bank of England has put in place extensive contingency plans.These begin with ensuring that the core of our financial system is well-capitalised, liquid and strong. |
| This resilience is backed up by the Bank of England’s liquidity facilities in sterling and foreign currencies.All these resources will support orderly market functioning in the face of any short-term volatility. | This resilience is backed up by the Bank of England’s liquidity facilities in sterling and foreign currencies.All these resources will support orderly market functioning in the face of any short-term volatility. |
| The Bank will continue to consult and cooperate with all relevant domestic and international authorities to ensure that the UK financial system can absorb any stresses and can concentrate on serving the real economy. | The Bank will continue to consult and cooperate with all relevant domestic and international authorities to ensure that the UK financial system can absorb any stresses and can concentrate on serving the real economy. |
| And he finished by telling the public that the future is in their hands.... | And he finished by telling the public that the future is in their hands.... |
| That economy will adjust to new trading relationships that will be put in place over time.It is these public and private decisions that will determine the UK’s long-term economic prospects. | That economy will adjust to new trading relationships that will be put in place over time.It is these public and private decisions that will determine the UK’s long-term economic prospects. |
| The best contribution of the Bank of England to this process is to continue to pursue relentlessly our responsibilities for monetary and financial stability. | The best contribution of the Bank of England to this process is to continue to pursue relentlessly our responsibilities for monetary and financial stability. |
| These are unchanged. | These are unchanged. |
| We have taken all the necessary steps to prepare for today’s events.In the future we will not hesitate to take any additional measures required to meet our responsibilities as the United Kingdom moves forward. | We have taken all the necessary steps to prepare for today’s events.In the future we will not hesitate to take any additional measures required to meet our responsibilities as the United Kingdom moves forward. |
| Statement from the Governor of the Bank of England following the EU referendum result https://t.co/KyZLffHAlu | Statement from the Governor of the Bank of England following the EU referendum result https://t.co/KyZLffHAlu |
| 8.55am BST | 8.55am BST |
| 08:55 | 08:55 |
| Bank of England promises £250bn to calm markets | Bank of England promises £250bn to calm markets |
| Bank of England governor Mark Carney is giving a statement now. | Bank of England governor Mark Carney is giving a statement now. |
| He says there will inevitably be a period of uncertainty following the decision to leave the European Union. But there will be no immediate change to our relationship with the EU. | He says there will inevitably be a period of uncertainty following the decision to leave the European Union. But there will be no immediate change to our relationship with the EU. |
| It will take some times for the UK to establish new relationships with the rest of the world. So some market and economic volatility can be expected, but we are well prepared for this, says Carney. | It will take some times for the UK to establish new relationships with the rest of the world. So some market and economic volatility can be expected, but we are well prepared for this, says Carney. |
| He says he has been in close contact with chancellor George Osborne through the night, and this morning. | He says he has been in close contact with chancellor George Osborne through the night, and this morning. |
| UK banks are more resilient than before the 2008 crisis, Carney says, and are forced to carry 10 times as much capital. | UK banks are more resilient than before the 2008 crisis, Carney says, and are forced to carry 10 times as much capital. |
| The Bank of England will not hesitate to take additional measures as required to address any market volatility, says the governor | The Bank of England will not hesitate to take additional measures as required to address any market volatility, says the governor |
| And Carney says the BOE will make £250bn of additional funds available through its normal market operations to stability markets, as needed. | And Carney says the BOE will make £250bn of additional funds available through its normal market operations to stability markets, as needed. |
| Carney: Bank of England will provide additional £250bn liquidity to banks pic.twitter.com/BvhQzX51bQ | Carney: Bank of England will provide additional £250bn liquidity to banks pic.twitter.com/BvhQzX51bQ |
| That’s a pledge to pump huge liquidity into the banking system, if necessary, to prevent the wheels of the City grinding to a half. | That’s a pledge to pump huge liquidity into the banking system, if necessary, to prevent the wheels of the City grinding to a half. |
| Striking a reassuring tone, Carney says the Bank will consider what additional measures may be needed over the next few weeks [so he’s not announcing any emergency measures right now]. | Striking a reassuring tone, Carney says the Bank will consider what additional measures may be needed over the next few weeks [so he’s not announcing any emergency measures right now]. |
| And governor Carney concludes by repeating that the BoE “will not hesitate to take any further measures, as required.” | And governor Carney concludes by repeating that the BoE “will not hesitate to take any further measures, as required.” |
| And with that, he heads back into the Bank. | And with that, he heads back into the Bank. |
| Updated | Updated |
| at 9.05am BST | at 9.05am BST |
| 8.46am BST | 8.46am BST |
| 08:46 | 08:46 |
| European stock markets are deeply in the red: | European stock markets are deeply in the red: |
| 8.44am BST | 8.44am BST |
| 08:44 | 08:44 |
| Massive amounts of shares are changing hands in the City. | Massive amounts of shares are changing hands in the City. |
| Almost 463.9m trades flowed through the London stock market in the first 30 minutes, the sort of volume you might see by after lunchtime on a normalish day. | Almost 463.9m trades flowed through the London stock market in the first 30 minutes, the sort of volume you might see by after lunchtime on a normalish day. |