Brexit: What we learnt last week
A round up of last week's biggest Brexit news.
1. Brexit: Personal finance implications
In the two months following the UK's vote to leave the EU, the realm of finance across all levels has experienced some turbulence.
Although the markets experienced an initial panic in the days following the leave vote, they have since returned to a normalised level.
However, as the UK and the EU both try to secure the best Brexit deal for their respective citizens, these markets are likely to be closely tied to the success or failure of these negotiations. With that in mind, savers and borrowers alike should be keeping a close eye on the situation and seeking advice where needed.
Source: CA Today
2. UK's post-Brexit rebound extends to housing and jobs
Two surveys which had initially predicted a bleak outlook for the job and housing market separately now seem to display more optimistic findings.
The Recruitment and Employment Confederation said last month that the job market was in a “dramatic freefall". A new survey from the same group now states that firms are increasing permanent staff for the first time in three months and that they are also spending more money on temporary staff members.
The Royal Institution of Chartered Surveyors said that the house price index has jumped to +12, the first rise in six months, but still one of the lowest reading in more than a year.
3. Post-Brexit London is the best city for opportunity
London has appeared to shake off the initial shock of the Brexit vote by retaining the top spot on PwC’s Cities of Opportunity index.
The City beat other financial to the number one spot as a result of its economic clout, position as a gateway city, ease of doing business, universities, entertainment and innovation.
However promising this may seem for London as a financial hub, David Snell, PwC partner in London, warned that it may still be too early to fully understand the impact Brexit will have on the City.
He said: "Change is ahead and it remains to be seen what impact the UK’s decision to leave the EU will have on our vibrant city. London is one of the world’s leading financial centres and financial services will continue to make a major contribution to the UK economy.”
Source: CA Today
4. City of London economists scrap recession forecasts
As the run of positive economic data continues, City economists are beginning to rethink their predictions of the UK falling into a recession post-Brexit.
Data from the Office of National Statistics (ONS) show that retail sales in July remained strong, and a bounce back in the closely-watched Purchasing Managers’ Indexes in August means that may economists are now backtracking on their initial recession predictions.
Source: The Independent
5. Lloyd’s of London boss threatens to quit the City after Brexit vote
John Nelson, chairman of Lloyd’s of London, said that unless the government are able to give guarantees around passporting rights, the business will have to move operations out of the City.
Speaking to the BBC’s Today programme, the boss of the specialist insurance market pointed out that 80% of capital invested in the market comes from outside the UK. 11% of the gross written premium at Lloyds comes from the EU, leading the company to consider moving operations to an EU member state if access to the Single Market is cut.
John said: “"It won't be Lloyd's losing out, it will be the UK."
Source: City AM