Theresa May certainty eases UK political crisis 11 Jul 2016 Her last rival's exit from the Tory leadership race means the home secretary is set to be Britain's new prime minister. May says "Brexit means Brexit" and she's likely to restrict immigration. Business and the City will still be worse off, but a new direction should soon be clear.
Workers on boards only small step in UK governance 11 Jul 2016 Theresa May, perhaps Britain's next prime minister, wants employees among company directors. Germany's 40-year-old union-heavy "Mitbestimmung" model - which goes further than the UK would - hasn't been the disaster predicted by industry, but it also has its downsides.
Remittance risk adds to east European Brexit blues 11 Jul 2016 Sterling's slump has depressed the local currency value of remittances that migrants from central and eastern Europe send home from Britain. This is a worry for countries like Poland or Romania. Their current account balances are particularly flattered by such transfers.
UK’s property trauma looks worse from abroad 8 Jul 2016 The slew of gated property funds and 15 pct-plus markdown of values may not hit British banks. They might also not be too bad for sterling-denominated borrowers. Alternative lenders and foreign investors look more likely to be in the firing line.
Where Brexit went next 8 Jul 2016 The knock-on effects of Britain’s vote to leave the European Union are spreading well beyond its borders. Italy, Germany, Ireland, Russia and even the oil-rich state of Oman are among those who now face difficult political and economic questions.
British retail sleepwalks into Amazon-ageddon 8 Jul 2016 Real-world stores are burdened with poor demand, too much property and thinning profit. The U.S. tech giant, meanwhile, is hiring 1,000 UK staff and pushing into fashion and groceries. The UK's economic problems could be a decisive moment in the online land grab.
Iraq report makes awkward reading for BP and Shell 7 Jul 2016 Oil majors were big winners from the 2003 invasion. The UK inquiry into the war shows how UK producers were at the heart of plans to rebuild and carve up Iraq’s oil fields. They won’t relish the public airing of their involvement any more than ex-Prime Minister Tony Blair.
UK fashion profit risks becoming too skinny 7 Jul 2016 British retailers M&S and Next were losing ground to foreign rivals like Zara even before sterling’s sharp drop boosted the cost of sourcing clothes from Asia. Few can pass on higher costs to thrifty shoppers. Brexit will make it even tougher to regain share and mend margins.
How to read global banks’ love letter to London 7 Jul 2016 Standard Chartered, Goldman Sachs and three other U.S. investment banks have given the UK a boost by releasing a statement celebrating London. Yet the nebulous prose in which they have done so leaves it open to interpretation. Breakingviews fills in the gaps.
Stars align for a new Sky takeover attempt 7 Jul 2016 The drop in the pound could tempt Rupert Murdoch’s Fox to bid for the 61 pct it doesn’t own of the UK pay-TV operator, after failing to do so in 2011. It would leave Fox investors more exposed to Europe. Still, if the Murdoch clan is bullish, there’s no time like the present.
London faces a luxury ghost-town problem 7 Jul 2016 The city’s charm was fading for high-end home investors even before the UK’s vote to quit the EU. A developer in the fancy Nine Elms complex just took a writedown, and prime prices are 8 pct below their peak. Sterling’s fall is a temporary lure, but the capital is losing lustre.
Migration has masked UK skills shortage 7 Jul 2016 Britain has a paucity of negotiators to thrash out post-EU trade deals. This is not the only national shortage of know-how. Over a quarter of adults in England lack basic skills, the OECD says. Migrants have helped plug a gap that homegrown talent may struggle to fill quickly.
Damning Iraq report shows there’s hope for Britain 6 Jul 2016 A state inquiry has slated British lawmakers for the 2003 Iraq war. This, and a post-referendum political vacuum, may spur investors to wonder why they fund the UK’s big current account deficit. The answer - for now - is institutional resilience and a capacity for self-criticism.
UK upstart banks lack too-big-to-fail airbag 6 Jul 2016 Britain's challenger banks have grown thanks to their bigger peers' dire customer service. Most look well capitalised. But a Brexit-induced recession and commercial property downturn may expose shoddy underwriting. Their tiny size means regulators won't mind if they go under.
UK banks can lend but customers may not borrow 5 Jul 2016 The Bank of England has cut capital needs for British lenders. Even beforehand, UK banks looked strong enough to keep credit flowing. The issue, as with in the aftermath of the 2008 crisis, is whether prolonged uncertainty will stop businesses feeling confident enough to borrow.
Property gives Britain first post-EU stress test 5 Jul 2016 Standard Life’s 2.9 bln stg UK property fund blocked redemptions after too many investors wanted out. Something similar happened in 2007-08, after which real estate values fell 40 pct. The property market is stretched, as it was then. Hopefully the financial system is more solid.
Japan’s carmakers are passengers in wild FX ride 5 Jul 2016 Shares in Toyota, Nissan, Honda and others have crashed since Britain voted to quit the EU. All will be hit by an economic slowdown, and some would suffer from new tariffs on UK-made vehicles. But the selloff mostly reflects how exposed the firms are to currency-market swings.
Sainsbury’s finds super-cheap isn’t super-cheerful 4 Jul 2016 The UK grocer will close the Netto brand of low-cost supermarkets that was meant to challenge Lidl and Aldi. Budget food retail is set to grow 40 percent over the next five years. But the bigger retailers don't necessarily need to join the discounters to beat them.
The declaration of independence from Europe 4 Jul 2016 It's 2076, and researchers finally gain access to Boris Johnson's private archives. They find a printed document bearing scribbled annotations made in 2016 by the American-born former London mayor, politician and campaigner for Britain's exit from the EU. Here are excerpts.
UK’s tax cut goal: calm business, scare Brussels 4 Jul 2016 George Osborne has plans to cut the UK's already-low corporate tax rate to near-Irish 15 pct levels. It might stop domestic business jumping ship post-Brexit. But the prospect of a tax haven UK also acts as a bargaining chip to use in forthcoming exit negotiations.