The Times
Markets braced for further panic after debt downgrade: Britain has been hit with a two-notch downgrade to its sovereign credit rating in a move that is likely to send another wave of panic through markets. Standard & Poor’s said the decision to leave the EU could relegate sterling from the world’s exclusive reserve currencies.
Housebuilders crash as Leave vote spooks investors: The U.K.’s housebuilders have lost nearly 40% of their value since the referendum result, having been hit hard by investors who believe there is likely to be a drop in demand for new homes if the economy suffers.
Aston Martin says road to new plant is now smoother: Aston Martin is to stick to its plan to build a carmaking plant in south Wales, even arguing that the vote for Brexit has made the project more viable.
Morrisons ‘treats suppliers the worst’: Morrisons has the worst record among major supermarkets for mistreating suppliers, according to a report by the industry watchdog. A fifth of respondents to a survey of more than 1,000 suppliers and trade associations said that Morrisons “rarely” or “never” complied with industry rules governing supply chain relations.
Soldier victims of ‘forex fraud’ sought: Gurkhas caught up in an alleged £50 million City fraud have been urged to come forward by lawyers leading the fight for compensation.
Khan demands London has a seat at table for EU talks: Sadiq Khan demands that a representative for London is appointed to the U.K.’s team for negotiations over its departure from the European Union.
Javid meets business to assess future ‘challenges’: Sajid Javid insisted that the U.K. “remains open for business” after Brexit, before a hastily arranged roundtable meeting with corporate leaders and trade bodies.
The Independent
Brexit may be Scotland’s chance to steal London’s finance crown: For all the uncertainty Scotland faces with the cloud of Britain’s exit from the European Union, there could yet be a silver lining, according to U.K. Lawmaker Mark Garnier.
Foxtons share price slides 20% after it warns Brexit will hit profits: Shares in estate agent Foxtons suffered a massive 20% slide on the stock market on Monday morning after the company released a trading update saying that the results of the EU referendum would likely weigh on profits.
Brexit vote sees U.K. credit rating downgraded to AA negative by Fitch: Fitch has downgraded the U.K.’s credit rating to AA negative, after similar moves by Moody’s and S&P, following Britain’s vote to leave the EU.
Volkswagen agrees $15 billion settlement over vehicle emissions cheating scandal: Volkswagen has said it will settle claims from a lawsuit over its emissions cheating scandal to the tune of almost $15 billion (£11.35 billion), the largest U.S. civil settlement ever agreed by a car manufacturer.
Financial Times
Brexit waves batter global markets: The financial fallout from Brexit intensified on Monday, battering global shares and the pound with investor sentiment soured by the prospect of weaker global growth and an extended period of ultra-low interest rates.
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Brexit effect casts pall over estate agents: Faced with a falling number of home transactions, listed estate agents had hoped the certainty of the U.K.’s referendum result would help to revive their fortunes.
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London’s booming fintech market under threat from Brexit vote: London’s crown as the global capital of fintech is under threat by the decision to leave the EU amid worries about a squeeze on future funding and a brain drain of talent out of the U.K.
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RBS and Lloyds share falls wipe £8 billion off government’s stakes: The U.K. government has suffered paper losses of almost £8 billion on its stakes in Royal Bank of Scotland and Lloyds Banking Group since the result of the EU referendum, equivalent to about £235 for each of the 33.6 million people who voted.
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Nestlé appoints Fresenius head as Chief Executive: Nestlé has poached the head of Germany’s Fresenius healthcare group to become Chief Executive as the world’s largest food and drinks group drives further into nutrition and wellness.
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Anki raises $53 million as money pours into AI start-ups: Anki, a San Francisco start-up whose toys are powered by artificial intelligence, has raised $52.5 million in its latest funding round, as it unveils its latest robot, Cozmo.
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Lex:
KazMunaiGas EP: father does not know best: In Father Knows Best, staple of 1950s American television, the benign patriarch always kept his kids wholesome with doses of gentle wisdom. The real world often works another way. For a recent example, consider Kazakhstan’s national oil company KazMunaiGas (NC).
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City post-Brexit: brass banned: Rock Capital’s head of fixed income, equities and middle office (the devil take these efficiency drives!) felt a lump in his throat at the defiance of the British people.
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Dollar earnings: lost in translation: Risk is off, and the dollar rally is on. Sterling is now down 11% since the U.K. voted to leave the EU. One reaction is to pick out shares in U.K. companies that earn a lot of U.S. dollar revenue. Those earnings are now worth more, in sterling terms.
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Lombard:
Granny of invention: Irish grannies are proving more than usually useful. They are able to bestow EU citizenship as well as tea and sympathy to grandkids worried about losing access to EU workplaces. No such easy wheeze is open to City banks. They are set to forfeit pan-EU business passports as a result of Brexit.
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Cold case unit: The deterrent effect of a Financial Reporting Council investigation is diluted by the time it may take to start. The watchdog is to probe whether Halifax Bank of Scotland, absorbed by Lloyds in 2008, was still a going concern in 2007 as accounts said.
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The Daily Telegraph
Italy eyes €40 billion bank rescue as first Brexit domino falls: Italy is preparing a €40 billion rescue of its financial system as bank shares collapse on the Milan bourse and the powerful after-shocks of Brexit shake European markets.
KPMG faces full probe into HBOS audit – eight years after the bank crashed: KPMG’s role in assessing HBOS’ finances in the year ahead of its collapse in the financial crisis will at long last come under scrutiny, the U.K.’s audit watchdog has decided.
Brexit: Norway-style deal with EU would help U.K. avoid damaging recession, says Morgan Stanley: Britain must pursue a Norway-style agreement with the EU if it is to avoid a damaging recession, according to Morgan Stanley.
GW pharma shares flying high after stellar results for epilepsy drug: A British biotech that develops drugs derived from the cannabis plant has unveiled stellar results from late-stage trials testing its key mediation on children with severe, untreatable epilepsy, sending shares in the company soaring by 25%.
Steel industry could ‘crumble’ in wake of Brexit vote, warns union: Britain’s steel industry could “crumble” because of the Brexit referendum, according to union leaders, who are now demanding an urgent meeting with the Government over their concerns.
Insurance shares hit after Brexit vote: Shares in London-listed insurance firms have taken another tumble as analysts try to judge the damage that Brexit could inflict on their customer base and investment portfolios.
The Questor Column:
Foxtons: Foxtons’ profit warning meant the estate agent was also in the dumps on the market, losing 22.6% and leaving the firm at its lowest ever closing price. The heady days when the stock was pushing £4 less than a year after the initial public offering in September 2013 seem like a distant memory. Peel Hunt analysts were particularly gloomy about the firm, saying its annual profit forecast of £42 million could be halved, and that even a recovery in the London market would not be enough to revive the estate agent when its competitors are eager to undercut it on commission. The Questor column advised selling in March, after Foxton posted a 2.6% fall in annual profits as cheaper rivals sprang up across its London heartland. The firm has previously managed to balance falling sales with the growing lettings market, but this equation no longer works if there is a broader draining of activity from the capital city. We see no reason to take the plunge, even at the current rock-bottom price. Sell. Foxtons at £1.04-30.5p. Questor says “Sell”.
The Guardian
Brexit: Asian financial markets remain tentative after Britain’s vote to leave EU: Britain’s decision to leave the EU continued to reverberate around the Asia-Pacific financial markets on Tuesday as some analysts warned that global markets were bracing for a full-blown recession in the U.K.
RBS slumps 25% as Brexit puts bank shares under severe strain: Bank shares are under severe pressure after the Brexit vote, with bailed-out Royal Bank of Scotland shedding a quarter of its stock market value at one point.
U.S. stock markets sink again following Brexit vote: U.S. stock markets were rocked again on Monday by the aftershocks of the U.K.’s referendum decision to quit the European Union.
Chaos ahead after Brexit vote, says U.K.’s food and drink industry body: The U.K. food and drink industry is facing a period of uncertainty and chaos following the vote to leave the EU as more than a quarter of its workforce come from Eastern Europe, according to the sector’s trade body.
Big investment houses warn of inequality risk after Brexit: Britain’s historic vote to leave the EU has prompted some of the world’s most powerful investment houses to turn their focus to inequality.
Trust in charities at record low after scandals: Public trust in charities in England and Wales has fallen to the lowest recorded level since monitoring began in 2005, in the wake of a series of high-profile scandals.
Daily Mail
Probe into collapse of BHS and its £571 million pension deficit widens with investigation into its auditor: The probe into the collapse of BHS and its £571 million pension deficit widened with an investigation into its auditor.
Hedge fund Boss George Soros who made £760 million betting against pound on Black Wednesday fails to repeat feat following Brexit vote: Hedge fund Boss George Soros who made £760 million betting against the pound on Black Wednesday failed to repeat the feat following the Brexit vote.
Investigators to probe accountancy firm employed by Halifax/Bank of Scotland – eight years after bailout helped trigger financial crisis: Investigators will at last probe the accountancy firm employed by Halifax/Bank of Scotland – eight years after its bailout helped trigger the financial crisis.
Aston Martin sees losses almost triple over past year due to major expansion drive aimed at transforming fortunes: Aston Martin saw losses almost triple over the past year due to a major expansion drive aimed at transforming its fortunes.
Shares in airline easyJet nosedive as it warns Brexit uncertainty, strikes and bad weather will bring lower profits: Airline easyJet has warned on profits after it said that economic uncertainty stemming from Britain’s decision to leave the EU will add to its existing woes caused by recent strikes and bad weather.
Daily Express
Brexit will not trigger recession and U.K. economy will grow, says Moody’s ratings Boss: Britain’s decision to leave the EU will not trigger a recession, a top ratings agency has said. Alastair Wilson, the head of the sovereign ratings at Moody’s said Britain is “not looking at a recession,” despite fear-mongering from other businesses in the City.
EU Bosses reject informal talks with Britain & demand the U.K. formally triggers Brexit now: Senior EU Chiefs have refused to start informal negotiations with Britain – demanding that the U.K. begins divorce proceedings before any talks can take place.
The Scottish Herald
Forrest makes big profit after Glasgow showroom sale: Forrest Furnishing has reported a huge leap in profits after selling its Macdonald Furniture Galleries showroom on Glasgow’s Cathedral Street.
Lanark haulage firm JHP on the up after bank funding boost: A Lanark-based haulage and logistics firm as acquired news premises to accommodate its expanding fleet, growing workforce after securing a £300,000 funding package from Bank of Scotland.
Scottish dairy brand launched to boost U.S. exports: A new Scottish dairy brand is being launched at a New York food show to help meet the increasing U.S. demand for products with Scottish provenance.
Large business tax supplement raises more than expected: Tax revenue generated from the Scottish Government doubling the supplement rate applicable to large businesses is expected to be £62.4 million.
U.K. strong enough to weather the storm, says Cameron and Osborne: David Cameron and George Osborne have moved to calm nerves over Britain’s withdrawal from the EU, as the financial markets responded with continued volatility after Thursday’s Brexit vote.
The Scotsman
Omega aims to ‘under-promise and over-deliver’: Life sciences firm Omega Diagnostics said it remained confident on the prospects for its “revolutionary” product that checks the immune systems of HIV patients.
New Chief Executive for smart antennas firm Sofant: Smart antenna specialist Sofant Technologies announced its appointment of David Wither as Chief Executive.
SECC profits boosted by record conference haul: The company behind the Scottish Exhibition and Conference Centre (SECC) and the SSE Hydro has reported a steady rise in turnover and underlying earnings after enjoying a record year for conference events.
Edinburgh and Glasgow retail sites go under hammer: Three commercial properties across the Central Belt are being sold over the internet this week by the capital markets division of consultancy Lambert Smith Hampton (LSH).
City A.M.
The U.K. can afford no more delays on airport expansion, the Boss of Gatwick Airport has said: The Boss of Gatwick Airport is to renew calls for a new runway, arguing it is the only option suitable for expansion.
HS2 completion timetable “unrealistic”, says National Audit Office: The Department for Transport set an “unrealistic timetable” for the completion of High Speed 2 (HS2), the National Audit Office (NAO) has said.
Parliaments across Europe intensify calls for more corporation tax transparency, as Public Accounts Committee unveils open letter asking for just that: Parliaments across Europe are urging their respective governments to do more to make tax transparent.
Boutique investment bank shares suffer in U.S. as Brexit dampens M&A prospects: Boutique investment bank share prices are tumbling in the U.S. with the U.K.’s Brexit expected to slow mergers and acquisitions (M&A) activity.
JJB Boss flexes muscles to snap up Fitness First’s U.K. operations: JJB Sports Founder Dave Whelan is in talks to buy the British operations of gym chain Fitness First. The multi-millionaire business tycoon’s DW Sports is set to fork out £70 million for a takeover of the business, Sky News reported.
Brexit fallout: McLaren’s Chief Executive has urged the government to find a way to create stability, fast: The Boss of one of the world’s elite supercar manufacturers might be expected to prize speed above anything. So it’s hardly surprising that McLaren Chief Executive Mike Flewitt has urged the government to find a way to create stability as fast as possible after Thursday’s vote in favour of Brexit.
Italians worry the U.K. might buy less prosecco in the wake of Brexit vote and the fall in Sterling: Italian prosecco producers have been spooked by the U.K.’s vote to leave the EU last week, worrying that the hit to the pound could “upset” trade and send sales flat.
Miner BHP Billiton swims against the tide with spending boost: The battered mining sector could be on the tip of a pick up after BHP Billiton unveiled plans to boost how much it spends on finding oil and copper. Speaking during a presentation to Citxigroup investors, BHP said it will raise exploration spending by nearly 30% over this financial year, from $700 million (£530 million) to $900 million.
